Diokno releases 4th tranche of salary hike but only for LGU and GOCC personnel

Budget Secretary Benjamin Diokno has allowed the release of the fourth tranche of salary increase but only for employees of local government units (LGU) and government-owned and -controlled corporation (GOCC).

House Majority Leader Rolando Andaya Jr. said Friday he got hold of two circulars of the Department of Budget and Management (DBM) authorizing LGUs and GOCCs to release the fourth tranche of the wage hike to their employees under the Salary Standardization Law.

Local Budget Circular No. 118 and Corporate Budget Circular No. 23 were both signed by Diokno on January 15 and took effect on January 1.

Local Budget Circular No. 118 states the amounts required to implement the salary adjustments of LGU personnel shall be sourced exclusively from LGU funds.

Meanwhile, Corporate Budget Circular No. 23 states the amounts required to implement the compensation adjustment shall be charged against their approved corporate operating  budgets, provided that the national government shall not release funds for compensation adjustment and the GOCC shall not resort to borrowings for the purpose.

Sought for comment, Diokno confirmed that there are DBM issuances applicable to the fourth tranche for LGUs and GOCCs.

"LGUs have their own budget hence can go ahead with the fourth tranche. Their IRA (internal revenue allotment) is automatically appropriated," the Budget chief told GMA News Online.

"For government corporations, they can also pay for the fourth tranche provided their corporate budget, which is independent of the general appropriations act, has been approved by their respective boards," the Cabinet official said.

Andaya said the issuance of the circulars showed that “Diokno has come to his senses.”

“Now, he realizes what he has to do. He has to implement the law granting salary increases to civil servants even under a reenacted budget. The twin circulars only mean that what we are saying is true all along. It is the DBM that has the tools to implement the salary increases even under a reenacted budget,” he said in a press statement.

He said Diokno can use these tools to release the salary increase for other civil servants in the executive, legislative, and judicial branches as well as in constitutional offices.

“Sec. Diokno is just taking these employees hostage in a desperate bid to force Congress to approve his pet projects the soonest time possible. Kung gusto ni Sec. Diokno, puwede pala niyang ipa-release ang salary increase under SSL IV. Nagawa na niya ito ngayon sa LGUs at GOCC. Bakit di niya magawa sa iba pang offices?” said Andaya.

The House leader reiterated that there was no basis for the delay in the release and disbursement of funds as there are available alternative sources for the P42.7 billion necessary for the fourth tranche of personnel benefits—the Miscellaneous Personnel Benefits Fund (MPBF) and the savings from the 2018 budget.

He said the MPBF currently has P99.446 billion, which is “allowed to be used for payments of personal benefits, such as deficiencies in authorized salaries, bonuses, allowances, associated premiums and other similar personnel benefits of national government personnel, among others.”

He added at least P75 billion from the MPBF is allotted for “payment of compensation adjustment” and “funding requirements for staffing modifications and upgrading and salaries,” which could be used by the DBM for the fourth tranche of salary increases.

“Only P42,705,911,000 is needed by the DBM to fund the fourth tranche salary increase and adjustment for the year 2019, when it has a total amount of P99,446,295,000 in the MPBF. Even if DBM simply uses the P75,169,215,000 covering allocations for compensation adjustment and salary upgrades, it is still more than the required P42 billion requirements for the fourth tranche salary increase and adjustments,” he said.

Andaya further said the DBM may get just one-fourth of the required funding for the fourth tranche amounting to P10.676 billion to cover the first three months considering that the 2019 budget may still be passed within the first quarter of the year.

“Palagi kong sinasabi kay Sec. Diokno: Kung gusto, may paraan. Kung ayaw, maraming dahilan,” he said.

He said the latest DBM Circulars reinforce the petition for mandamus they filed before the Supreme Court to compel Diokno to release the fourth tranche of salary increase.

“The twin circulars strengthen our main argument: that Sec. Diokno has the legal basis and authority to release the salary increase for government workers under a reenacted budget. It is time for Sec. Diokno to come clean on this issue. He should stop lying to the President and to the Filipino people,” he said. —Ted Cordero/ LDF, GMA News