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BATAS PAMBANSA BILANG. 640BATAS PAMBANSA BLG. 640 - AN
ACT APPROPRIATING FUNDS FOR THE OPERATION OF THE GOVERNMENT OF THE
REPUBLIC OF THE PHILIPPINES FROM JANUARY ONE TO DECEMBER THIRTY-ONE,
NINETEEN HUNDRED AND EIGHTY-FOUR AND FOR OTHER PURPOSES
Section 1.
Appropriation of funds. — The following sums, or so much thereof as may
be necessary, are hereby appropriated out of any funds in the National
Treasury of the Philippines not otherwise appropriated, for the
operation of the Government of the Republic of the Philippines from
January one to December thirty-one, nineteen hundred and eighty-four
except where otherwise specifically provided herein:
[For the sake of brevity, the itemization under this Section of the
funds appropriated for the operation of the Government had been
deleted. Please refer to the unabridged version of the pertinent
General Appropriations Act for the details.]
GENERAL PROVISIONS
RECEIPTS AND INCOME
Sec. 2. Fees, Charges and Assessments. — All fees,
charges, assessments and other receipts or revenues collected by
ministries, bureaus, offices or agencies in the exercise of their
functions, at such rates as are now or may be approved by the Minister
concerned, shall be deposited with the National Treasury and shall
accrue to the General Fund pursuant to Sec. 50 of P.D. No. 1177 and
Sec. 3 of B.P. Blg. 325: Provided, That certain receipts may be
recorded as income of a Special Fund, a Fiduciary or a Trust Fund, or a
fund other than the General Fund, when authorized by law and following
such rules and regulations as may be issued by the Permanent Committee
created under Sec. 51 of P.D. No. 1177: Provided, further, That all
revenues or income accruing to special accounts in the General Fund may
be made available for expenditures subject to the Special Provisions in
this Act for the agencies concerned and to Special Budgets required
under Sec. 40 of P.D. No. 1177: and Provided, finally, That whenever
practicable and taking into account the cost reduction program of the
government when an agency arranges with another government office for
fabrication of furniture or equipment, or for computer, printing or
other services, the agency rendering such services may assess the
requesting agency for the cost of production and services rendered and
may utilize the said proceeds subject to Sec. 40 of P.D. No. 1177,
except as otherwise provided in this Act.
Sec. 3. Revolving Fund. — Receipts derived from
business-type activities of ministries, bureaus, offices, or agencies
which are authorized by law or by the Special Provisions in this Act to
be constituted into a Revolving Fund shall be separately recorded and
deposited in an authorized government depository bank, except as may
otherwise be determined by the Permanent Committee created under Sec.
51 of P.D. No. 1177, and may be made available for operational expenses
of the said activity of the agency concerned, subject to the conditions
prescribed under the Special Provisions of the agency concerned and the
rules and regulations as may be prescribed by the aforementioned
Permanent Committee. The Revolving Fund shall be considered
self-perpetuating and self-liquidating and all obligations or
expenditures incurred by virtue of said business-type activities shall
be charged against the Revolving Fund: Provided, That interest earned
shall accrue to and form part of the Revolving Fund to be issued for
the same purpose for which the fund is authorized.
The Agency concerned shall submit to the Office of Budget and
Management a monthly report of the income from the Fund and a quarterly
report of expenditure. In case of failure to submit said requirements,
the Office of Budget and Management shall order the suspension of all
transactions on this account until such time that said requirements are
complied with.
Sec. 4. Trust Receipts. — Receipts from non-tax
sources authorized by law for specific purposes which are
collected/received by a government office or agency acting as a
trustee, agent or administrator, or which have been received as
guaranty for the fulfillment of an obligation, and all other
collections classified by law or regulations as trust receipts shall be
treated as a trust liability of the agency concerned and deposited in
an authorized government depository bank or in the National Treasury,
as the case may be, subject to the conditions prescribed under the
Special Provisions of the agency concerned and to the rules and
regulations as determined by the Permanent Committee created under
Sec. 51 of P.D. No. 1177: Provided, That deposits in authorized
government depository banks shall be withdrawable on the joint
signatures of the authorized representatives of the agency and the
Commission on Audit without the needs of Special Budget or the issuance
of a Cash Disbursement Ceiling: Provided, further, That if the amount
is deposited in a savings account, the interest shall accrue to the
General Fund which shall be remitted to the National Treasury at the
end of each quarter.
Sec. 5. Seminar and Conference Fee. — Ministries,
bureaus, offices or agencies which conduct training programs approved
jointly by the Office of Budget and Management and the Civil Service
Commission are authorized to collect seminar and conference fees from
government and private agency participants, the rates of which shall be
determined in accordance with Letter of Instructions No. 565. The
proceeds derived from such seminars or conferences may be deposited in
an authorized government depository bank as a trust liability and shall
be made available for expenditure without the need for a Cash
Disbursement Ceiling, to defray the costs incurred for handouts, meals
and other incidental expenses, including speakers' honoraria at rates
prescribed pursuant to P.D. No. 985, but not for entertainment or
representation expenses, withdrawable on the joint signatures of the
authorized representatives of the agency concerned and the Commission
on Audit: Provided, That if the income is deposited in a savings or
time deposit account, the interest thereof shall accrue to the General
Fund and shall be remitted to the National Treasury at the end of each
quarter: Provided, further, That no appropriations authorized in this
Act shall be used to support or augment expenses of seminars or
conferences for which fees are collected: and Provided, finally, That
any income remaining in the bank account at the end of the fiscal year
shall be withdrawn and deposited with the National Treasury as income
of the General Fund. The Office of Budget and Management and the
Commission on Audit shall promulgate the necessary rules and
regulations to implement this provision.
Ministries, bureaus, offices or agencies concerned shall submit to the
Office of Budget and Management a monthly report of collections and
deposits and quarterly report of expenditures and financial status of
its training operations, and in case of failure to submit said
requirements, the Office of Budget and Management shall order the
suspension of all withdrawals from the funds deposited until such time
that said requirements are complied with.
Sec. 6. Sale of Products. — Ministries, bureaus,
offices or agencies are authorized to sell products of agricultural,
industrial or other projects, including official publications, and the
proceeds derived therefrom shall be deposited with the National
Treasury and accrue to the General Fund, pursuant to Sec. 50 of P.D.
No. 1177, unless otherwise provided by law or authorized by Special
Provision in this Act.
Sec. 7. Donations. — Ministries, bureaus, offices,
or agencies are authorized to accept donations, contributions, grants
bequests or gifts, in cash or in kind from foreign governments,
international agencies, private entities or individuals for purposes
relevant to their functions. Cash proceeds shall be deposited with the
National Treasury as a Special Account in the General Fund and shall be
used or expended only in accordance with the wishes of, and purposes
specified by the benefactor or donor, subject to Sec. 40 of P.D. No.
1177. Contributions or gifts in kind intended for specified
beneficiaries, but which are perishable in nature and would require
storage of distribution expenditures of more than forty per cent of
their current market value may be sold at public auction and the
proceeds derived therefrom shall be deposited in like manner as if they
were in cash, and shall be used or expended for the same purpose,
subject to the conditions imposed by the donor and Sec. 40 of P.D.
No. 1177. All such receipts, including equipment and other fixed assets
shall be recorded in the books of the government and shall be subject
to pertinent accounting and auditing rules and regulations.
The agency concerned shall submit to the Office of Budget and
Management and to the Commission on Audit quarterly/monthly report of
the proceeds from such donations, contributions, grants, bequests or
gifts, in cash or in kind, including a quarterly report of expenditures
or disbursements thereof.
Sec. 8. Performance Bonds and Deposits. —
Performance bond and deposits filed or posted by private persons or
entities with agencies of the government shall be deposited with an
authorized government depository bank as trust liabilities and under
the name of the agency concerned. Upon faithful performance of the
undertaking or termination of the obligation for which the bond or
deposit was required, any amount due shall be returned to the filing
party and the office of the agency concerned, withdrawable on the joint
signatures of the authorized representatives of the agency and the
Commission on Audit without the need for Cash Disbursement Ceiling:
Provided, That any interest accruing on deposit account and any
forfeited amounts shall be recorded as income of the General Fund and
shall be remitted to the National Treasury at the end of each quarter.
This provision shall apply to bonds posted in cash, such as bidder's
bond, guaranty bonds, bail bonds, judicial deposits for the benefit of
clients, cash under litigation deposited in court or quasi-judicial
bodies and other refundable and judicial bonds, and all bonds and
deposits required by law, rules and regulations to be posted to ensure
the faithful performance of an activity or undertaking.
AUTHORIZED EXPENDITURES
Sec. 9. Reorganization of the Executive Branch. —
The President may adjust, realign or modify key budgetary inclusions
and appropriations authorized in this Act as may be necessary to
implement the reorganization of ministries and agencies of the
government as approved by law or pursuant to Presidential Decree No.
1416 granting continuing authority to the President of the Philippines
to reorganize the administrative structure of the National Government:
Provided, That the total amount as realigned does not exceed the grand
total of all the appropriations of the ministries concerned.
Sec. 10. Use of Savings. — Ministries, bureaus,
offices and agencies are hereby authorized, subject to Letter of
Implementation No. 29 and P.D. No. 1177, to use savings realized from
appropriations actually released for the settlement of the following
obligations and activities incurred during the current year:
a. Payment of hazard duty pay and of retirement
gratuity or separation pay of employees who are entitled thereto under
existing law or are laid off as a result of the elimination of their
positions under authorized procedures;
b. Payment of the shares of the National Government
in the salaries of officials and employees in newly created and/or
reclassified local government units where no appropriation has been
provided in this Act or where the authorized appropriations is not
sufficient to cover the salaries of the said officials and employees;
c. Provisions for social and economic opportunities
and such other activities intended for the welfare of the cultural
minorities as may be undertaken by the Presidential Assistant on
National Minorities;
d. Organization, activation, training operation of
military units for the purpose of implementing agency development
projects in areas adversely affected by peace and order problems,
including salaries and allowances of all military personnel assigned
thereto;
e. Payment of obligations of the National Government
or any of its ministries or agencies arising from perfected and valid
contracts, or international agreements;
f. Purchase or repair of equipment and furniture,
including motor vehicles, to replace those lost or destroyed through
theft or robbery, accident, fire, typhoon and other natural calamities,
and to replace unserviceable and condemned items;
g. Expansion of essential facilities and services,
including the opening of additional classes in elementary, secondary
and vocational schools, as may be approved by the President;
h. Funding of foreign exchange and peso requirements
of foreign-assisted projects; and
i. Augmentation of operational expenses.
Sec. 11. Key Budgetary Inclusions. — The Key
Budgetary Inclusions (KBI) of ministries, bureaus, offices or agencies
shall be released and used only for the indicated purposes and
conditions, except as may be otherwise approved by the President,
pursuant to P.D. No. 1177: Provided, That the amounts herein
appropriated and funded from loan proceeds or donations shall be
released only to the extent of actual loan availments or receipts, as
the case may be, and shall not be used for any purpose other than that
specified in the loan agreement or in the deed of donation.
Sec. 12. Expenditure Components. — No change or
modification shall be made in the expenditure items referred to in the
General Appropriations Act and other appropriations laws except by the
act of the Batasang Pambansa or of the President, as the case may be,
upon recommendation of the Office of Budget and Management.
Sec. 13. Cash Advances for Foreign-Assisted
Projects. — Any provision of law to the contrary notwithstanding, cash
advances may be authorized to meet the expenditure requirements of
foreign-assisted projects in cases where the approved project/loan
agreement provides specifically for a reimbursement mechanism for
expenses incurred, subject to the approval of the Office of Budget and
Management and to applicable accounting and auditing regulations.
Sec. 14. Foreign Purchases and Other Importations.
— Purchases under foreign military sales agreements, heavy equipment
imported for infrastructure projects and other importations of agencies
which are financed by foreign borrowings or by Central Bank
consolidated borrowing programs shall be subject to the requirement of
certification of availability of appropriations released for the
purpose, to the requirements of LOI No. 880 and to applicable laws,
rules and regulations.
Sec. 15. Foreign Exchange Requirements. — Except
as otherwise provided in this Act, the appropriations for ministries,
bureaus, offices or agencies allotted for maintenance and other
operating expenses may be used for foreign exchange requirements of
duly approved activities, including payment of dues to international
organizations, subject to the prior approval of the Office of Budget
and Management.
Sec. 16. Condition on the Use of Regular Budgetary
Allocations for Importations. — Funds appropriated for ministries,
bureaus, offices, or agencies, state universities and colleges and
government-owned and controlled corporations may be used to finance the
importation of any commodity or service, including payments for
equipment, supplies and consultancy fees only upon prior approval of a
Special Budget for the purpose under Sec. 40 of P.D. No. 1177.
Sec. 17. Release and Disbursement of Funds for
Foreign Mission. — The maintenance and other operating expenses of
foreign missions an attaches shall be released and/or disbursed only in
accordance with a Special Budget specifically intended for foreign
posts and approved under Sec. 40 of P.D. No. 1177.
For this purpose, no personnel of any ministry, bureau, office or
agency who is not included in said Special Budget shall be assigned or
attached to foreign missions except upon prior approval of the Office
of Budget and Management.
Sec. 18. Legal Assistance. — With the approval of
the President and upon recommendation of the Minister of Justice and
the Presidential Commission on Reorganization, the funds herein
appropriated for legal assistance activities, including those in the
Ministry of Justice, Ministry of Labor and Employment, Ministry of
Agrarian Reform, Ministry of Agriculture, and other agencies, may be
realigned so as to ensure a fully integrated legal assistance program.
Sec. 19. Purchase of Computer Equipment. — The
appropriations authorized in this Act for the purchase of computer
equipment shall be released only with the approval of the President
upon recommendation of the National Computer Center and the Office of
Budget and Management.
Sec. 20. Purchase of Motor Transport Equipment. —
No appropriations authorized in this Act shall be used directly or
indirectly for the purchase of motor transport equipment unless
otherwise directly authorized by the President or as approved by the
Executive Committee upon recommendation of the Office of Budget and
Management as provided by Letter of Instructions No. 1220 and Letter of
Implementation No. 29.
Sec. 21. Purchase of Supplies, Materials and
Equipment Spare Parts. — The stock on hand of supplies, materials and
equipment spare parts, to be acquired thru ordinary purchase out of
appropriations herein provided, shall at no time exceed normal
three-month requirements, subject to pertinent rules and regulations
issued by competent authority: Provided, That heads of ministries,
bureaus, offices or agencies of other instrumentalities of the
government may approve the build-up of stocks on hand of critical
supplies and materials and defined or specified by the Office of Budget
and Management in anticipation of cost increases, of requirements of a
national emergency, or of an impending shortage in the items concerned;
specifying maximum quantities of individual items, but in no case shall
these stocks exceed more than one year's need, unless otherwise
approved by the President, upon the joint recommendation of the
Minister concerned and the Chairman of the Commission on Audit.
Sec. 22. Emergency Purchases. — Unless provided in
this Act, ministries, bureaus, offices or agencies of the National
Government are authorized to make emergency purchases of supplies,
materials and spare parts of motor transport equipment that are
urgently needed for the repair of ambulances, motor vehicles, vessel
and aircrafts or to meet an emergency which may involve the loss of, or
danger to, life and/or property, or are to be used in connection with a
project or activity which cannot be delayed without causing detriment
to the public service, in a monthly amount not exceeding four per
centum of the annual agency expenditure program for supplies and
materials out of the appropriations allotted for maintenance and other
operating expenses of the agency concerned, except as may be authorized
by the President, upon the joint recommendation of the Office of Budget
ad Management and the Commission on Audit.
Sec. 23. Repair of Buildings. — Ministries,
bureaus, offices or agencies, including public schools, courts of
justice and hospitals may use their appropriations allotted for
maintenance and other operating expenses for minor repairs of their
offices and buildings which are government-owned.
Sec. 24. Cultural and Athletic Activities. — An
amount not exceeding P15,000 per annum out of the appropriations each
ministry, bureau, office or agency, and P5,000 for each regional office
of each regionalized ministry, bureau, office or agency, may be used
for cultural and athletic activities, including purchase of uniforms at
not more than P250 for each participant, and for supplies and necessary
expenses for said activities. The amounts fixed in this section
constitute the allowable maximum to be expended by any bureau, office
or agency for its cultural and athletic activities, except as otherwise
approved by the President: Provided, That these amounts may be pooled
by the Minister concerned into one fund, programmed and controlled to
best serve the needs all the offices, bureaus and agencies therein.
Sec. 25. Extraordinary and Miscellaneous Expenses.
— Appropriations herein authorized may be used for extraordinary
expenses not exceeding: (a) P30,000 for each Minister of equivalent;
(b) P10,000 for each Deputy Minister or equivalent; (c) P4,000 for each
Assistant Minister/Secretary or head of bureau or organization of equal
rank to a bureau and for each Ministry Regional Director; and (d)
P2,000 for each Bureau Regional Director. In addition, official
entertainment and other miscellaneous expenses not exceeding P6,000 per
annum shall be authorized for each of the following offices:
1. Office of the Minister;
2. Office of the Deputy Minister;
3. Office of the Assistant Minister/Secretary;
4. Bureau of Organizations of Equal Rank to a Bureau;
5. Office of the Ministry Regional Director; and
6. Office of the Bureau Regional
Director.
These expenditures shall be payable on a reimbursement basis upon
presentation of receipts and chargeable to appropriations allotted for
maintenance and other operating expenses of the corresponding office.
For purposes of this Section , extraordinary and miscellaneous expenses
shall include, but not limited to, expenses incurred for or during
meetings, seminars and conferences, official entertainment, public
relation, educational, athletic and cultural activities, contributions
to civic or charitable institutions, membership fees in government
associations, subscription to professional technical journals and
informative magazines, library books and materials, office equipment
and supplies and other similar expenses that are not supported by the
regular budget allocation: Provided, That no portion of the amounts
authorized herein shall be used for the creation of positions, nor for
salaries, wages, allowances, intelligence and confidential expenses.
Sec. 26. Release of Intelligence and Confidential
Funds. — Intelligence and confidential funds provided for in the
budgets of ministries, bureaus, offices or other agencies of the
National Government, including amounts from savings authorized by
special provisions to be used for intelligence and counter-intelligence
activities, shall be released only on a project basis upon approval of
the President.
Sec. 27. Information Outlay. — The appropriations
pertaining to information activities of the various ministries,
bureaus, offices or agencies shall be released upon presentation of an
appropriate program of activities prepared in coordination with the
Office of Media Affairs, copies whereof shall be furnished the Members
of the Batasang Pambansa: Provided, That each ministry, bureau, office
or agency shall include in its program of information dissemination,
the administrative issuance for distribution to its lowest field
organizational units, including those units over which it exercise,
supervision; Provided, further, That assistance of the office of Media
Affairs in printing such documents shall be made to achieve economical,
efficient and effective dissemination thereof.
Sec. 28. Loans Outlay. — The amounts authorized
for loans outlay in the budgets of ministries, bureaus, offices and
other agencies, including accumulated balances and receivables, shall
be remitted to government financial institutions to be constituted and
administered as a trust fund under such terms and conditions as may be
agreed upon by the head of the agency and the government financial
institution concerned.
The rules and regulations governing the use of the trust fund shall be
formulated by the Office of Budget and Management.
CONTRACTS
Sec. 29. Funding of Contracts. — Notwithstanding
the availability of deferred payment terms, ministries, bureaus,
offices or agencies concerned, before entering into a contract
involving the expenditure of public funds, including contracts for
services or consultancy, contracts of lease, equipment rental,
construction of partitions or improvements in leased buildings, or
contracts involving an increase in the approved contract price shall
secure a certification of availability of funds for the purpose from
the agency Chief Accountant, subject to applicable rules and
regulations as may be issued by the Office of Budget and Management and
to Sec. 46 and 64, P.D. No. 1177: Provided, That the certification
of availability of funds sufficient to cover the cost of the contracted
activities shall be contained in and made part of the contract duly
signed by the Chief Accountant of the contracting agency, as provided
for by LOI No. 968.
Sec. 30. Loan Agreement. — Ministries, bureaus,
offices, or agencies may enter into foreign or domestic loan
agreements, whether in cash or in kind: Provided, That such loan
agreements shall be in accordance with the provisions of R.A. No. 245,
as amended, LOI No. 880 and LOI No. 1307. Report of such agreement
shall be furnished the Members of the Batasang Pambansa.
Foreign borrowings shall not be incurred except for purposes and under
conditions authorized under LOI No. 1307 and R.A. No. 4860, as amended.
Sec. 31. Contracts for Security and Janitorial
Services. — Ministries, bureaus, offices or agencies are authorized to
contract for security and janitorial services with private firms after
public bidding of which the cost thereof may be paid from savings in
the appropriations of the ministry, bureau, office or agency concerned:
Provided, That the execution of the contract for security and
janitorial services shall not operate to automatically abolish or
render vacant any existing occupied security or janitorial position in
the contracting office or agency: Provided, further, That when said
security or janitorial position shall subsequently become vacant, said
position shall be considered automatically abolished.
Sec. 32. Future Payment of Contractual
Obligations. — Ministries, bureaus, offices, or agencies, before
entering into contracts for delivery of goods or services against
future payment, shall first secure a certification of the availability
of the full contracted amount for such goods or services out of the
agency's appropriations. No contracts shall be entered into nor work
shall be undertaken without such certification of fund availability.
Sec. 33. Lease-Purchase Agreements. — Ministries,
bureaus, offices or agencies may enter into agreements for
lease-purchase of equipment to public bidding and to the approval of
the Office of Budget and Management, and other pertinent accounting and
auditing regulations. Details of the payment shall be indicated in the
lease-purchase agreement and accompanied with certification of
availability of equipment outlay authorized for the agency in this Act
to cover the full contract cost: Provided, That lease-purchase
agreements may be entered into only for specialized equipment with high
unit costs and not for such equipment as typewriters, adding machines,
automobiles the purchase price of which is at least P50,000.00: and
Provided, further, That all lease-purchase agreements of equipment with
a total value in excess of P200,000.00 shall be subject to the approval
of the President.
PERSONAL SERVICES BENEFITS
Sec. 34. Funding of Personnel Benefits. — The
personnel benefits costs of government officials and employees shall be
charged against the respective funds from which their compensation
and/or salaries are paid.
All authorized supplementary/additional compensation, fringe benefits
and other personal services costs of officials and employees whose
salaries are drawn from special accounts or special funds, such as
salary increases and adjustments, merit increases, incentive/service
fees, vacation and sick leaves, retirement and life insurance premiums,
compensation insurance premiums, health insurance (Medicare) premiums,
Pag-IBIG contributions, hospitalization and medical benefits,
scholarship and educational benefits, training and seminar expenses,
all kinds of allowances, whether commutable or reimbursable, in cash or
in kind, and other personnel benefits and privileges gratuities,
separation pay and terminal leave benefits shall be charged against the
corresponding fund from which their basic salaries are drawn and in no
case shall such personnel benefits costs be charged against the General
Fund of the National Government.
Official and employees on detail with other offices, including the
representatives and support personnel of auditing units assigned to
serve other offices or agencies, shall be paid their salaries,
emoluments, allowances and the foregoing supplemental compensation,
fringe benefits and other personal services costs from the
appropriations of their parent agencies and in no case shall such be
charged against the appropriations of the agencies where they are
assigned or detailed, except when authorized by law.
Sec. 35. Transportation and Representation
Allowances. — The following officials and those of equivalent rank as
may be determined by the Office of Budget and Management are hereby
granted monthly commutable transportation and representation allowances
payable from the programmed appropriations provided for their
respective offices, not exceeding the rates indicated below, which
shall apply to each type of allowance:
a. At P1,000 for Ministers;
b. At P750 for Career Executive Service Rank I
officials,
c. At P650 for Career Executive Service Rank II
Officials;
d. At P550 for Career Executive Service Rank III
Officials;
e. At P475 for Career Executive Service Rank IV
Officials;
f. At P400 for Career Executive Service Rank V
Officials; and
g. At P325 for Chiefs of Divisions, identified as
such in the Personal Services Itemization.
The transportation allowance herein authorized shall not be granted to
officials who are assigned a government vehicle or use government motor
transportation, except as may be approved by the President. Unless
otherwise provided by law, no amount appropriated in this Act shall be
used to pay for representation and/or transportation allowances,
whether commutable or reimbursable which exceed the rates authorized
under this Section . Previous administrative authorizations not
consistent with the rates and conditions herein specified shall no
longer be valid and payment shall not be allowed.
Allowances of those officials who are receiving salaries from special
accounts or special funds shall be charged against the corresponding
fund from which their salaries are charged. Officials on detail with
other offices, including officials of the Commission on Audit assigned
to serve other offices or agencies, shall be paid the allowance herein
authorized from the appropriations of their parent agencies.
Sec. 36. Official Vehicles and Transport. —
Government motor transportation may be used by the following officials,
and those who may be specifically authorized by the President with
costs chargeable to the appropriations authorized for their respective
offices:
a. The President of the Philippines;
b. The Prime Minister;
c. The Speaker of the Batasang Pambansa;
d. The Chief Justice of the Supreme Court;
e. The Deputy Prime Minister;
f. The Ministers, Deputy Ministers and officials of
equivalent rank;
g. The Ministers of State;
h. The Presiding Justice of the Intermediate
Appellate Court;
i. Ambassadors, Ministers Plenipotentiary and Consuls
in charge of Consulates, in their respective stations abroad;
j. The Chief of Staff, the Vice Chief of Staff, and
the Commanding Generals of the major services of the Armed Forces of
the Philippines; and
k. The Heads of Constitutional Offices.
Sec. 37. Uniform/Clothing Allowance. — The
appropriations herein provided for each ministry, bureau or office may
be used for uniform and/or clothing allowance at not more than P250
each per annum of female employees and employees occupying positions
which require the wearing of specialized uniform such as security
guards, prison guards, customs police/guards, quarantine officers,
letter carriers, hospital attendants, road maintenance men, street
sweepers, and other employees as may be determined by the Office of
Budget and Management. Savings in the appropriations for each ministry,
bureau of office may be used for this purpose where no amount is
specifically appropriated in this Act.
Sec. 38. Hazardous Duty Pay. — Upon recommendation
of the Ministry Head and approval of the Office of Budget and
Management, hazard pay may be allowed to officials and employees who
are actually assigned in hardship or difficult areas, strike-torn or
embattled areas, distressed or isolated stations, prison camps, mental
hospitals, radiation exposed clinics or laboratories or
disease-infected areas which expose them to great danger, contagion,
radiation, volcanic activity/eruption, occupational risks or perils to
life, chargeable to savings in the appropriations of the
ministry/agency concerned, which shall not be less than P50 nor more
than P150 each per month, except in cases where the rates are
specifically provided for under special shall govern: Provided, That
hazard pay by reason of strife-torn or embattled areas shall be subject
to the certification issued by the Minister of National Defense and the
rates thereof shall be determined by the Office of Budget and
Management and the Minister of National Defense shall review from time
to time authorizations for the payment of hazardous duty pay in
strife-torn and embattled areas earlier issued and shall terminate such
authorizations in areas if conditions no longer justify the
continuation of hazardous duty pay.
Sec. 39. Honoraria. — Ministries, bureaus, offices
or agencies are authorized to use their respective appropriations for
payment of honoraria as compensation for services rendered by
researchers, experts and specialists who are acknowledged authorities
in their field of specialization, at such rates as the Office of Budget
and Management may authorize, unless otherwise specifically provided by
law.
Sec. 40. Incentive or Service Fees. — Incentive or
service fees paid by the Government Service Insurance System or by
private companies which are intended for employees servicing them shall
be deposited with the National Treasury and shall accrue to the General
Fund, pursuant to Sec. 50 of P.D. No. 1177. Such fees may be made
available for payment of incentive or service fees of the employees of
the agency in accordance with rates approved by the Minister concerned,
subject to Sec. 40 of P.D. No. 1177: Provided, That the share of any
employee may not, in the aggregate, exceed fifty per centum of his
annual salary.
Sec. 41. Special Counsel Allowance. —
Lawyer-personnel in the legal staffs of ministries, bureaus, offices or
agencies of the National Government appearing in Court as special
counsel in collaboration with the Solicitor-General and/or Fiscals
concerned are hereby authorized an allowance of P100 for each
appearance, chargeable to savings in the appropriations allotted for
personal services of their respective offices, but not exceeding P400 a
month.
Sec. 42. Quarters Allowance. — Except as may be
authorized by law, government officials and employees who, by virtue of
their positions, are furnished free quarters or are charged only a
nominal rate in government-owned buildings, such as dormitories or
living quarters in hospitals, state colleges, universities and schools,
foreign posts and elsewhere, shall forfeit entitlement to any quarters
allowance. Where portions of rented private buildings are authorized to
be utilized for officials quarters, the excess of rental cost over the
quarters allowance of the official shall be borne by him. Those who
enjoy free quarters in government-owned or rented buildings but who are
not entitled to quarters privilege shall be charged the corresponding
cost of rentals therefor. Unless fixed by law or regulations, the rate
of quarters allowance or rental, as the case may be shall be determined
by the Office of Budget and Management.
Sec. 43. Compensation of Contractual Personnel. —
Heads of ministries, bureaus, offices or agencies, when authorized in
their respective appropriations as provided under this Act, may hire
consultants, experts and other contractual personnel to perform
specific vital activities or services which cannot be provided by the
regular staff of the agency, limited to such period when their services
are reasonably required and to activities that shall have a definite
expected output. Such contractual personnel may be paid compensation
inclusive of fees, honoraria, per diems and allowances not exceeding
120% of the minimum salary of an equivalent position in the National
Classification and Compensation Plan, except as may be authorized by
the Office of Budget and Management in the following instances: (a)
when the consultant or expert is an acknowledged authority in his field
of specialization, and (b) where the consultant or expert is hired to
perform a specific activity or service that requires technical skill
and expertise which local labor force cannot provide, or if such
expertise is available, the supply is limited: Provided, That in no
case shall such compensation exceed the salary of his immediate
superior, except as may be otherwise approved jointly by the Civil
Service Commission and the Office of Budget and Management: Provided,
further, That no amount appropriated in this Act shall be used for
payment or retirement gratuity under Section 12(c) of C.A. No. 186, as
inserted by R.A. No. 1616, as amended, nor for leave benefits
pertaining to services rendered under contractual employment, nor use
the compensation received for the same period as basis for computation
of leave benefits, except where specifically provided by law.
For purposes of this Section , appointments to positions funded from
lump-sum appropriations for personal services for the payment of
consultants, technical, professional and expert services, confidential
assistants or other similar positions, or from capital outlays,
feasibility studies fund, subsidies, donations, special projects fund,
either funded by the General Fund and/or supported by domestic or
foreign loans, and other similar funds which may be used for personal
services, are considered contractual in nature. Appointments which are
funded from special lump-sum appropriations, subsidies and
contributions from other agencies, shall likewise be considered as
contractual in nature, and subject to the above restrictions and
limitations, except as may be determined by the Office of Budget and
Management.
Sec. 44. Restriction on the Use of Appropriations
for Retirements Gratuity and Terminal Leave. — Unless otherwise
authorized by law, no amount appropriated in this Act shall be used for
payment of retirement gratuity under the provisions of Sec. 12(c) of
C.A. No. 186, as inserted by R.A. No. 1616, as amended, and terminal
leave benefits of retiring officials and employees which include in the
computation thereof additional compensation received for: (a) overtime
services rendered beyond regular office of school hours; (b) per diem
for attendance in board or committee meetings or conferences or for
travel outside official stations; (c) mid-year, Christmas, thirteenth
month and other bonuses; (d) allowances for cost of living,
subsistence, quarters, housing, laundry, clothing/uniform, family,
education, hazardous, occupation, overseas duty, post/station,
medical/dental/hospitalization, representation, transportation,
extraordinary and miscellaneous, amelioration; inflation, incentive and
such other similar allowances; (e) fees on per capita basis as
members/examiners of professional regulation and other examination
boards; (f) honoraria as resource speaker or lecturer in conferences or
seminars or as instructors in classrooms for excess teaching loads
granted over basic pay rendered at night or on Saturdays, holidays and
summer vacation; (g) fees for consultancy or similar services rendered
to committee, boards, offices or agencies; and (h) service fees for
extra services and other similar compensation paid for rendition of
additional services.
Sec. 45. Unauthorized Pre-Retirement Promotions
and Salary Increase. — No portion of the appropriations provided in
this Act shall be used for automatic promotions or for salary increases
and adjustments granted to retiring officials and employees, which are
not authorized by law and duly formalized in the form of a National
Compensation Circular.
Sec. 46. Personal Liability of Officials for
Payment of Unauthorized Personal Services Cost. — No official or
employee of any ministry, bureau, office, agency, commission, board,
state university or college, of the National Government, including
those of government-owned or controlled corporations shall be granted
and/or paid any unauthorized compensation, either basic, additional or
supplementary, or fringe benefits and allowances of any kind, including
payment of retirement benefits and terminal leaves computed in
violation of the General Provisions in this Act or other existing laws,
which are chargeable against the appropriations authorized in this Act
or under other appropriation laws or from other income of the
Government.
The payment of any unauthorized compensation, allowance, fringe
benefits or personal services costs made in violation of the Section or
of the General Provisions in this Act is null and void and is the
personal liability of the head of the office or agency who authorized
such payment, the Resident Auditor, other officials and employees who
participated or took part therein, and the person who received such
payments, who shall be jointly and severally liable for the refund of
the full amount so paid and received, in addition to any disciplinary
action that may be instituted against such erring officials under the
provisions of Sec. 49 and 87 of P.D. No. 1177 and to any criminal
action under the Revised Penal Code and other penal laws.
LOCAL GOVERNMENT UNITS
Sec. 47. Sharing of National Revenues. — The
computation of appropriations herein authorized for local government
revenues sharing establishment under P.D. Nos. 144 and 436 (as amended)
shall be based on revenues excluding income recorded but charges to the
General Fund Adjustments and Customs Duties Fund provided in this Act
assessed on otherwise tax-exempt government agencies and corporations.
Compliance with the sharing formula as provided by law shall be
determined taking into account all funds allocated and released for
local government units, except for the budgetary aid fund herein
appropriated pursuant to Item No. 7. of P.D. No. 144.
ADMINISTRATIVE PROCEDURES
Sec. 48. Release of Funds for Training Programs. —
Ministries, bureaus, offices or agencies shall formulate and review
their training programs in light of the need to train personnel in
skills and attitudes. Such training programs shall be submitted to the
Training Coordination Committee created under LOI No. 754, which shall
review and evaluate the training activities. No appropriation for
training shall be released without such review and evaluation.
Sec. 49. Direct Release of Funds to Regional
Offices. — Funds allotted for regional offices but included in the
budgets of their central offices or which are specifically allocated
for the different regions shall be released directly to said regional
offices when dictated by the need and urgency of regional activities,
pursuant to Sec. 38(e) of P.D. No. 1177. Imposition of any retention or
deduction as reserves shall not be allowed except as may be authorized
by the Office of Budget and Management. For this purpose, the Office of
Budget and Management shall identify by region the expenditure programs
of agencies in the national government budget and shall release funds
intended for them in accordance with the approved regional distribution
of expenditures, specifying the region of destination.
Sec. 50. Prohibition Against Deduction/Retention
of Allotment. — Fund releases from appropriations provided in this Act
for any project or activity shall be transmitted intact or in full to
the office or agency concerned and no retention or deductions as
reserves or overhead shall be made, except as authorized by law or upon
direction of the President. The Commission on Audit shall ensure
compliance with this provision of the extent that sub-allotments by
ministries and/or central agencies to their subordinate offices are in
conformity with allocations in budgetary Advice of Allotments issued by
the Office of Budget and Management.
Sec. 51. Release of Appropriations to Local
Government Units. — Funds appropriated herein for local government
units shall be released only after the approval of their respective
budgets pursuant to the provisions of P.D. No. 1375, except as may be
authorized jointly by the Ministry of Local Government and the Office
of Budget and Management.
Sec. 52. Administration of the Releases of Funds
Allotted for Operating Expenses and Equity Investments in Government
Corporations. — Funds herein appropriated for operating expenses
contributions and equity investments in government-owned or controlled
corporations and other public corporate bodies shall be under the
administration of the Office of Budget and Management. Said funds shall
be directly released to the recipient corporation through the Bureau of
the Treasury on the basis of a Work and Financial Plan prepared and
submitted by the Corporation concerned, subject to Sec. 40 of P.D. No.
1177 and Letter of Implementation No. 29.
Sec. 53. Corporate Equity Investments. — The
appropriations herein authorized for equity investments may be used by
the National Treasurer for the payment of loans relent to corporations,
including the obligations incurred by the said corporations for the
reimbursement of advances made by the National Treasury on obligations
guaranteed by the Government of the Republic of the Philippines,
subject to the approval of the President upon recommendation of the
Office of Budget and Management.
Sec. 54. Submission of Financial Statement. — All
government-owned or controlled corporation shall submit to the Office
of Budget and Management and to the Members of the Batasan their
respective financial statements, including plans, programs, targets and
other reports as may be required from time to time. The annual reports
shall be done and submitted as herein provided on or before March 31,
of the succeeding year.
Sec. 55. Unauthorized Organizational Units. —
Unless otherwise created by law or directed by the President, no
organizational unit in any ministry, bureau, office or agency shall be
authorized in the respective organizational structures and be funded
from appropriations provided by this Act, without authority from the
Presidential Commission on Reorganization and the Office of Budget and
Management. Organizational units created by administrative
authorizations shall be considered as ad hoc arrangements that shall be
staffed by contractual personnel or staff members on detail.
Sec. 56. Implementation of Construction Projects.
— Construction projects funded from capital outlays authorized in this
Act under the various ministries, bureaus, offices or agencies of the
National Government, including the construction of buildings for state
universities, colleges, schools, hospitals, sanitaria, health centers
and health stations, roads and bridges, shall be implemented only in
accordance with the appropriate standards and specifications for the
planning, survey, design and construction of the projects as prescribed
by the Ministry of Public Works and Highways or the Ministry of
Transportation and Communications, through either of said ministries as
the case may be. In addition, land use and zoning guidelines shall be
prescribed by the Ministry of Human Settlements. In the prosecution of
the construction projects, Section s 2, 3, 4, 5, 6, 7, 9 and 10 of Batas
Pambansa Blg. 50 entitled "An Act Appropriating Funds for Public Works
and Highways Projects and for Other Purposes", and other legislations
on public works shall be strictly complied with whenever
applicable.
CONCLUDING PROVISIONS
Sec. 57. Separability Clause. — If for any reason
any section or provision of this Act is declared unconstitutional or
invalid, other sections or provisions hereof which are not affected
thereby shall continue to be in full force and effect.
Sec. 58. Effectivity. — The provisions of this Act
shall take effect on January one, nineteen hundred and eighty-four
unless otherwise provided herein.
Approved: September 14, 1983.
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