OFFICE OF REP. ISIDRO T.

UNGAB
Chairman, Committee on Appropriations

Oct. 30, 2014



CLARIFICATION ON THE FALSE AND ERRONEOUS REPORT RE AMENDED DEFINITION
OF SAVINGS IN 2015 GAB


There were several news reports stating that under Section 67 of the
GAB, the definition of savings includes funding for projects that have
been discontinued "for justifiable causes at any given time, and that
such was being opposed to by some members of the minority.

This is another false and absolutely erroneous claim just like the
supposed Php 423 BILLION DBM errata previously being challenged, as
the correct, true and actual amount of such amendment/errata was only
Php 4.7 Billion.

Again, for the record and in order to clarify these false information
being disseminated about the 2015 GAB, the actual definition of
savings as submitted and provided in the 2015 GAB, does not include
the phrase for justifiable causes at any given time".

Nowhere in the 2015 GAB does it state such phrase or provision and
this fact could easily be verified and confirmed if checked with the
approved GAB, Section 67 thereof.

Please note that the use and definition of savings as provided in the
approved 2015 GAB was amended in consideration of the constitutional
provisions and latest SC rulings on the matter and ensured that the
same will be effective and practical for the operations of the
government departments/offices.

Specifically, Section 68 of the General Provisions of HB 4968 provides
the definition of "Savings," referring to it as "portions or balances
of any programmed appropriations in this Act which have not been
released or obligated as a result of any of the following:

a) Discontinuance or abandonment of the program, activity or project
(P/A/P) resulting from natural or man-made calamities which would
render it not possible for the agency to implement the said P/A/P at
any time during the validity of the appropriations;

b) Non-commencement of the P/A/P for which the appropriations is
released at the beginning of the year unless the implementing agency
shows that the P/A/P may still be undertaken or accomplished in FY
2015. For this purpose, non-commencement shall refer to the inability
of the agency or its duly authorized procurement agent to obligate an
allotment within the first semester of FY 2015;

c) Decreased cost resulting from improved efficiency during the
implementation or after the completing by agencies of their P/A/Ps to
deliver the targets and services approved in this Act;

d) Difference between the approved budget for the contract and the
contract/bid price.

Savings may likewise refer to available balances of appropriations
arising from unused compensation and related costs pertaining to : (i)
unfilled, vacant or abolished positions; (ii) non-entitlement to
allowance and benefits; and (iii) leaves of absence without pay."