Bohol mayors ask DBM to amend basis for LGU workers’ yearend incentive

TAGBILARAN CITY, Bohol – The League of Municipalities of the Philippines (LMP)-Bohol Chapter has asked the Department of Budget and Management (DBM) to remove a requirement for local government units (LGUs) to have obligated at least 75 percent of their annual development fund as of September 30 to qualify for the 2026 Collective Negotiation Agreement (CNA) incentive.

In Resolution No. 020, Series of 2026, adopted on Monday, Nov. 9, the LMP-Bohol Chapter said the requirement under DBM Budget Circular No. 2026-1, issued on Nov. 4, was impractical and difficult for many municipalities to meet.

The resolution was signed by LMP-Bohol Chapter president and Carmen Mayor Conchita Toribio-Delos Reyes and certified by Secretary-General Ongie Grace B. Lim.

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The mayors said municipalities receive their National Tax Allotment (NTA) on a monthly basis, meaning only nine months’ worth of their annual allocation had been released by September.

They said the time required for project preparation, procurement, bidding, contract award and fund obligation made it difficult for municipalities, particularly those heavily dependent on NTA, to meet the 75-percent threshold.

The league also raised concerns over the accountability of municipal accountants, treasurers and budget officers, who are required to ensure that public funds are obligated in accordance with government accounting, auditing and procurement rules.

It said these officials could not be expected to certify fund availability or accelerate financial commitments without sufficient and verifiable funding.

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“The obligation of Development Fund appropriations must be undertaken with due regard to established procurement procedures, sound fiscal management, and actual readiness of development projects, and should not be unnecessary accelerated merely to satisfy a condition for the grant of employee incentives,” the resolution said.

The LMP-Bohol Chapter stressed that the CNA incentive was intended to recognize the dedication and contributions of government employees, particularly rank-and-file personnel who continue to deliver essential public services despite limited resources and challenging working conditions.

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It said the requirement could deprive otherwise qualified municipal employees of the incentive, which many were looking forward to receiving as additional financial assistance for their families during the Christmas season.

The league acknowledged the DBM’s objective of promoting fiscal responsibility, accountability and efficient use of public funds but said these should be pursued through reasonable and attainable requirements.

It is asking the DBM, through Acting Secretary Kim Robert C. De Leon, to delete the second paragraph of Item 4.1(d) of the circular, particularly the 75-percent obligation requirement.

It also urged the agency to give immediate and favorable consideration to the request so that qualified LGUs could grant the incentive to eligible employees, subject to other applicable requirements, lawful funding sources and government accounting and auditing rules.

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Copies of the resolution were to be furnished to the DBM, the Department of the Interior and Local Government and other concerned government agencies. INQ