DBM: MBPF to be used for bureaucracy rightsizing plan, staffing needs of new agencies

The Department of Budget and Management (DBM) on Friday said the increase in the proposed budget for the Miscellaneous Personnel Benefits Fund (MPBF) in 2023 will be utilized for the government’s bureaucratic rightsizing initiative as well as personnel needs of newly created agencies.

The National Expenditure Program 2023 shows the government is proposing P89,041,479,000 for the MPBF, higher than the over P27 billion allocated in 2022.

The MPBF will be utilized "for the payment of miscellaneous personnel benefits to or on behalf of national government officials and employees."

Budget Undersecretary for Media Affairs, Community Relations, and Internal Audit Goddes Libiran told GMA News Online that “the increase shall allow government to efficiently fund personnel benefits in case of deficiencies in authorized salaries, bonuses, and allowances of National Government personnel.”

“Every year, we run short in funding benefits for government personnel. In fact, this year alone, we have already released around P21 billion for the grant of the performance-based bonus (PBB) of employees, such as teachers and health workers, even though we have just allocated P10 billion,” Libiran said.

Further, the Budget official said the MPBF “will support the funding requirements for the pursuit of organizational and staffing modifications in departments/agencies that will be covered by the implementation of the National Government Rightsizing Program (NGRP).”

She said that the NGRP “is primarily aimed at enhancing government’s institutional capacity to improve public service delivery, strengthen performance of core functions, simplify systems and processes, and implement transformational reform initiatives.”

President Ferdinand “Bongbong” Marcos Jr. earlier called on Congress to prioritize the passage of the NGRP, saying that the rightsizing measure will enhance the government’s institutional capacity to perform its mandate and provide better services while ensuring optimal and efficient use of resources.

"Compared to previous government reorganization efforts, the NGRP will entail a comprehensive strategic review of the functions, operations, organization, systems and processes of the different agencies, and massive and transformational initiatives in agencies concerned, such as merger, consolidation, splitting, transfer, and abolition of some offices," the President said.

"The rightsizing efforts will also involve the conduct of a comprehensive strategic review of functions, programs and projects that will cut across various agencies," Marcos added.

Budget Secretary Amenah Pangandaman earlier explain that the administration’s plan to rightsize the bureaucracy does not automatically mean a reduction in the number of personnel in government agencies.

Pangandaman said that rightsizing may also mean strengthening the requirements of an agency.

The DBM will be checking 187 agencies, departments, offices, and bureaus, including government-owned and controlled corporations (GOCCs)—which employ an estimated two million personnel—for redundant or overlapping functions.

Meanwhile, MPBF’s special provisions include the payment of personnel benefits, which "shall be used for deficiencies in authorized salaries, bonuses, allowances, associated premiums, and other similar personnel benefits of National Government personnel, including Personnel Services requirements for the filling and creation of positions as may be authorized by law, the President of the Philippines, or the DBM."

Libiran said the MPBF will also be used for the personnel services budget that will be required by newly created offices and departments such as the Department of Migrant Workers, National Commission of Senior Citizens, National Authority for Child Care, among others.

“The increase will also support the Personnel Services (PS) cost for the upgrading of faculty positions in the state universities and colleges (SUCs), as well as the creation of critical positions in the different agencies such as non-teaching/support staff positions in the Department of Education and SUCs, and medical and allied medical items for hospitals and other health facilities under the Department of Health,” she said.

Under the proposed MPBF budget for 2023, a total of P65,306,448,000 is allotted for Funding Requirements for Staffing Modifications and Upgrading of Salaries while P13,259,139,000 was allocated for Funding Requirements for the Filling Up of Unfilled Positions.

A legal defense fund, on the other hand, will have P200 million. The amount, according to NEP 2023, will be used for actual expenses, including payment of premiums for posting of bail bonds and cash advance for expense of officials and employees of department, bureaus, and offices, in relation to the defense of administrative, civil, or criminal cases filed against them in courts for acts committed in the performance of their actual functions.—AOL, GMA News