December 15th, 2008
Tacloban City (December 15) – President Gloria Macapagal Arroyo has given her approval to authorize the Local Government Units to grant additional benefits or extra cash gifts to their personnel for Fiscal Year 2008.
The additional benefits or extra cash gift will be chargeable against savings of the respective Local Government Units, subject to pertinent budgeting, accounting and auditing rules and regulations.
The Provincial Governors, City and Municipal Mayors, Barangay Chairmen, Members of the Local Sanggunian, Other Local Officials, Members of the Local Finance Committees and all other concerned have been informed of the President’s approval through Local Budget Memorandum No. 58, dated December 11, 2008 signed by Budget and Management Secretary Rolando G. Andaya, Jr.
Secretary Andaya said that the additional benefits or extra cash gift shall be within the Personal Services limitation under Sections 325 and 331 of Republic Act 7160 otherwise known as the Local Government Code of 1991.
The Personal Services limitations shall be computed in accordance with Local Budget Circular No. 75 dated July 12, 2002, Secretary Andaya said.
Secretary Andaya added that no other additional benefits, bonus or cash gifts shall be granted.
Under Section 325 (a) of the Local Government Code of 1991, it is provided that the total appropriations, whether annual or supplemental, for personal services of a local government unit for one (1) fiscal year shall not exceed forty-five percent (45%) in the case of first to third class provinces, cities, and municipalities, and fifty-five percent (55%) in the case of fourth class or lower, of the total annual income realized in the next preceding fiscal year.
The term ”personal services” is a broad term which includes such items as representations, travel and other allowances, bonuses, and the like, which when
taken together with the basic salaries or wages of employees, amount to a sizable sum.
Under Section 331 (b) of the Local Government Code of 1991, it is provided that the total annual appropriations for personal services of a barangay for one (1) fiscal year shall not exceed fifty-five percent (55%) of the total annual income actually realized from local sources during the next preceding fiscal year. (PIA 8)
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