Question & AnswerQ&A (DBM NATIONAL BUDGET CIRCULAR NO. 427)
The main objective is to streamline agency operations and organizations to improve efficiency by rationalizing, refocusing, and improving agency functions, projects, activities, structure, staffing patterns, and budgetary allocations.
Program refers to the functions and activities necessary for the performance of a major purpose for which a government agency is established, including functions, activities, and projects with corresponding budgetary allocations under the General Appropriations Act.
Abolition means the one-time elimination or discontinuance of the operation of a function, activity, or project.
Phase-out refers to the gradual elimination or discontinuance of a function, activity, or project through sequential or selective abolition of its component parts until it ceases to exist, unlike abolition which is a one-time elimination.
They may be abolished or phased out if they are no longer relevant to agency mandates or government priorities, duplicate or overlap other functions, are redundant or outdated, fail to produce desired effects, are not cost-efficient, or unnecessarily compete with the private sector.
Functions, activities, and projects may be expanded or strengthened by increasing target outputs, widening clientele or geographic coverage, improving service quality, or infusing additional resources, especially if they are priority activities or those previously not undertaken but related to existing functions.
Organic units are offices, bureaus, staffs, services, divisions, and other units integral to the internal organization structure of a department or agency.
Yes, the internal structure can be expanded by establishing, merging, consolidating, rendering dormant, or abolishing organic units, provided the total structural size does not increase beyond its present number of organic units.
Attached agencies are entities not part of a department’s organic structure but are attached for operational and policy coordination, having separate budgets as provided in the General Appropriations Act.
No, no new agencies shall be created. Existing attached agencies with independent budgets may not be merged, consolidated, abolished, or rendered dormant or inoperational.
Modifications should conform with RA 6758 and compensation laws, enhance management policies like unity of command, prioritize front-line and substantive functions, and not increase the number of key positions or the budget for salaries beyond FY 1992 levels.
Savings may be used to augment other programs, projects, and activities with priority given to salary standardization, bonuses, retirement, and terminal leave benefits, subject to prohibitions such as purchase of certain vehicles, unauthorized travel expenses, and investments.
Departments must submit a Department Streamlining Report covering all organic units and attached agencies using the form prescribed in Section 5.1 of Memorandum Order No. 27 by October 3, 1992.
The Department of Budget and Management provides technical assistance to agencies upon request to help implement the provisions of Memorandum Order No. 27.