In the first week of this month, the warring parties in the provincial government received a gentle reminder from the Department of the Interior and Local Government (DILG) regarding what was supposed to be the timely approval of the 2026 Annual Budget.
In a letter addressed to Governor Patrick Alain T. Azanza, Vice Governor Robert A. Fernandez and the members of the Sangguniang Panlalawigan, DILG Regional Director Atty. Arnaldo E. Escober, Jr. cited two DILG memorandum circulars providing guidance to LGUs on the timely submission and enactment of their annual budget and to prevent situations wherein LGUs will operate on a re-enacted budget.
He particularly emphasized DILG MC No. 2020-109, which states that “failure to submit the executive budget and to enact the ordinance within the prescribed period may result to the filing of administrative charges against the local government officials concerned.”
With the PLGU’s annual budget ordinance still unauthorized as of even date, Dir. Escober reminded that in accordance with Sec. 323 of the Local Government Code, the sanggunian concerned is deemed precluded from taking up any other business, pending the enactment of the annual budget ordinance.
Under said provision, the sanggunian shall continue to hold sessions, without additional remuneration for its members, until such ordinance is approved, and no other business may be taken up during said sessions.
If the SP still fails to approve the budget within the first 90 days of the year, or by June 1, 2026, the 2025 budget ordinance will be deemed reenacted and will remain in force and effect until the proposed appropriations for the current year is passed.
If this happens, only the annual appropriations for salaries and wages of existing positions, statutory and contractual obligations, and essential operating expenses authorized under the 2025 budget shall be deemed reenacted and available for disbursement.
The DILG regional director enumerated the disadvantages of having a reenacted budget: no new programs, projects, and activities shall be implemented; the increase in the National Tax Allotment (NTA) for the year cannot be utilized; no supplemental appropriations shall be enacted; no implementation of non-recurring activities no matter how vital they may be; and no creation of new positions.
Atty. Escober, who did not encounter any similar issues at the Capitol during his stint as DILG provincial director in Catanduanes, quoted several DILG opinions to stress that the Sanggunian cannot validly include or deliberate upon any other item in its order of business, including the approval of municipal budgets or authorization of the chief executive to enter into various Memoranda of Agreement (MOA) during sessions convened for the purpose of passing the annual budget.
“Such matters, regardless of their importance or urgency, must be deferred until the annual budget is approved or addressed in a legally distinct special session that does not contravene the intent of Section 323,” DILG Opinion No. 108, series of 2021, states.
As of this time, the provincial board has yet to call a special session to tackle the proposed annual appropriations as the matter is still with the Committee on Appropriations.
It is claimed that the said committee has yet to hear from the provincial governor or the Local Finance Committee on the issues raised by the members of the committee on the plan to purchase airconditioned buses for use in a similar Pasada Eskwela program and wing vans for each of the 11 towns for use in relief distribution, to the detriment of health services which it said will have to operate on reduced budgets.
Both the governor and the provincial board have exactly 48 days from today, Feb. 11, 2026, to agree on the 2026 budget and prevent a reenacted budget.
Perhaps, the parties involved, as well as their online trolls, should agree to cease and desist from posting disparaging statements on social media and elsewhere as a sign of sincerity before any real dialogue on the budget could be held.