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Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 1177
PRESIDENTIAL DECREE NO. 1177 -
REVISING THE BUDGET PROCESS IN ORDER TO INSTITUTIONALIZE THE BUDGETARY
INNOVATIONS OF THE NEW SOCIETY
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WHEREAS,
the national budget is a major instrument for development, requiring
careful design of the preparation, legislation, execution, and
accountability phases of budgeting. chanroblesvirtualawlibrary
WHEREAS, the experience of the years has been reflected in various
improvements in the budget process, and embodied in C.A. No. 246, R.A.
No. 992, and P.D. No. 999;chanroblesvirtualawlibrary
WHEREAS, the budget process as implemented prior to September 21, 1972
was not able to fully support national objectives and plans;chanroblesvirtualawlibrary
WHEREAS, national interest calls for the institutionalization of
budgetary innovation realized during the New Society and developed
within the context of the Constitution of 1973.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
Order and Decree:cralaw:red
Section 1. Title. — This Decree shall be known as
"Budget Reform Decree of 1977."
Section 2. Definition of Terms. — When used in this
Decree:cralaw:red
a. "Budget" refers to the budget required to be
prepared pursuant to Section Sixteen (1), Article VIII of the
Constitution, and which is repeated in Section 13 of this Decree.
b. "Government" means the National Government,
including the Executive, the Legislative and the Judicial Branches, and
the Constitutional Commissions.
c. "Department and agency" and "department or agency"
mean all departments, bureaus, offices, boards, commissions, courts,
tribunals, councils, authorities, administrations, centers, institutes,
state colleges and universities, and all other establishments and
instrumentalities of the National Government as defined in the
preceding paragraph.
d. "Current operating expenditures" refer to
appropriations for the purchase of goods and services for current
consumption or within the fiscal year, including the acquisition of
furniture and equipment normally used in the conduct of government
operations, and for temporary construction for promotional, research
and similar purposes.
e "Capital outlays" or "capital expenditures" refer
to appropriations for the purchase of goods and services, the benefits
of which extend beyond the fiscal year and which add to the assets of
Government, including investments in the capital of government-owned or
controlled corporations and their subsidiaries. chanroblesvirtualawlibrary
f. "Expected results" mean services, products or
benefits that will accrue to the public, estimated in terms of
performance measures or targets.
g. "Government-owned or controlled corporations" are
corporations created by law as agencies of the State for narrow and
limited purposes, either owned wholly by the State or wherein the
Government is a majority stockholder, in cases of stock corporations,
or otherwise, agencies so created where no stocks are issued but whose
affairs are conducted by a duly constituted board and which perform
proprietary functions.
h. "Continuing appropriations" refer to
appropriations available to support obligations for a specified purpose
or project, even when these obligations are incurred beyond the budget
year. chanroblesvirtualawlibrary
i. "Appropriation" is an authorization under past
Acts of Congress, Presidential Decrees or other legislative enactment,
for payments to be made with funds of the government, under specified
conditions and/or for specified purposes.
j. "Allotments" are authorizations issued by the
Budget Commission to an agency, which allows it to incur obligations
within a specified amount that is within a legislative appropriation.
k. "Obligations" are amounts which are committed to
be paid by government which arise from an act of a duly authorized
administrative officer which binds the government to the immediate or
eventual payment of a sum of money.
l. "Program" refers to the functions and activities
necessary for the performance of a major purpose for which a government
entity is established.
m. "Project" means a component of a program covering
a homogeneous group of activities that result in the accomplishment of
an identifiable output.
n. "Commissioner" refers to the Commissioner of the
Budget.
BUDGET POLICY AND APPROACH
Section 3. Declaration of Policy. — It is hereby
declared the policy of the State to formulate and implement a National
Budget that is an instrument of national development, reflective of
national objectives, strategies and plans. The budget shall be
supportive of and consistent with the socio-economic development plan
and shall be oriented towards the achievement of explicit objectives
and expected results, to ensure that funds are utilized and operations
are conducted effectively, economically and efficiently. The national
budget shall be formulated within the context of a regionalized
government structure and of the totality of revenues and other
receipts, expenditures and borrowings of all levels of government and
of the government-owned or controlled corporations. The budget shall
likewise be prepared within the context of the national long-term plan
and of a long-term budget program.
Section 4. Planning and Budgeting Linkage. — The
budget shall be formulated as an instrument for the attainment of
national development goals and as part of the
planning-programming-budgeting continuum. Levels of revenue,
expenditure and debt shall be established in relation to macro-economic
targets of growth, employment levels, and price level change, and shall
be developed consistent with domestic and foreign debt, domestic credit
and Balance of Payments objectives for the budget period. The aggregate
magnitudes of the budget shall be determined in close consultation
among the planning and fiscal agencies of government. Budgetary
priorities shall be those specified in the approved national plans,
keeping in mind the capability and performance of the implementing
agencies concerned. Agency budget proposals shall explicitly state
linkage to approved agency plans.
Section 5. National Resource Budget. — The finances
of government shall be analyzed and determined as the aggregate of
revenue, expenditure and debt of all units of government, including the
national government and its agencies and instrumentalities, local
government units and government-owned or controlled corporations. The
national government budget shall be evolved within the framework of the
total impact of government activity on the national economy. The
budgets of government corporations and local governments shall be
consistent in form and timing with that of the national government, to
facilitate comprehensive evaluation.
Section 6. Regional Budgeting. — The budgets of
national government agencies shall take into full and explicit
consideration the goals, plans and requirements of their respective
regional offices, in the interest of full government response to local
thinking and initiative. The budget preparation process shall originate
at regional and local levels, and shall be consolidated and reviewed by
the central offices of the various national agencies. The regional
development strategies and plans, including physical framework and
resource-use plans, shall be considered in the preparation of the
budget. chanroblesvirtualawlibrary
Section 7. Long-Term Budgeting. — The annual budgets
of the national government shall be prepared as an integral part of a
long-term budget picture. The long-term economic and physical framework
plans of government, multi-year requirements of approved programs and
projects, organizational and personnel development strategies, and
other commitments entered into or otherwise assumed by government shall
be specified in the budget process.
Section 8. Development Projects. — The development
process requires the implementation of major development projects of
such size as to significant affect the infrastructure program, debt
ceilings, the Balance of Payments, domestic credit, and government
expenditure levels. The budget process shall formally consider the
timing of major national projects, in order to ensure the observance of
established fiscal, monetary, international payments, and other
constraints.
Section 9. Performance and Financial Review. — The
analysis of agency operating performance, the evaluation of performance
relative to costs incurred and the review of agency operating systems
and procedures are inherent parts of the budget process. Agencies shall
therefore design and implement (a) management information systems
yielding both performance and financial information which will
adequately monitor and control budget implementation, and (b)
improvements in operating systems, procedures and practices, so as to
ensure that the targets approved in budget authorization are in fact
attained at minimum cost.
Section 10. Compensation and Position Classification.
— The size of personnel services expenditure relative to the total
budget and the number of agencies and personnel in government call for
an effective national compensation and position classification policy.
The Constitutional principles of a single compensation scheme for the
government and its instrumentalities is one of the bases of the
government budget process.
Section 11. Contingent Liabilities. — The contingent
liabilities of government shall be evaluated as part of the budget
process, subject to such limits and guidelines as may be approved by
the President.
BUDGET PREPARATION
Section 12. Fiscal Year. — The fiscal year for all
branches, subdivisions, instrumentalities, departments, bureaus,
offices and agencies of the Government of the Republic of the
Philippines, including government-owned or controlled corporations and
local governments shall be the period beginning with the first day of
January and ending with the thirty-first day of December of each
calendar year.
Section 13. Submission of the Budget. — The President
shall, in accordance with section sixteen (1), Article VIII of the
Constitution, submit within thirty days from the opening of each
regular session of the National Assembly as the basis for the
preparation of the General Appropriations Act, a national government
budget of estimated receipts based on existing and proposed revenue
measures, and of estimated expenditures.
The President shall include in his budget submission the proposed
expenditure level of the Legislative and Judicial Branches and of
Constitutional bodies, which shall have undergone the same process of
evaluation and which shall have been subject to the same budgetary
policies and standards applicable to agencies in the Executive Branch.
The President may transmit to the National Assembly, from time to time,
such proposed supplemental or deficiency appropriations as are, in his
judgment, (a) necessary on account of laws enacted after the
transmission of the Budget, or (b) otherwise needed in the public
interest.
Section 14. Form and Content of the Budget. — The
budget proposal of the President shall include current operating
expenditures and capital outlays. It shall comprise such funds as may
be necessary for the operation of the programs, projects and activities
of the various departments and agencies. The proposed General
Appropriations Act and other Appropriations Acts necessary to cover the
budget proposals shall be submitted to the National Assembly to
accompany the President's budget submission.
The budget shall be presented to the National Assembly in such form and
content as may be approved by the President and may include the
following:cralaw:red
a. a budget message setting in brief the government's
budgetary thrusts for the budget year, including their impact on
developing goals, monetary and fiscal objectives, and generally on the
implications of the revenue, expenditures and debt proposals; and
b. summary financial statements setting forth:cralaw:red
(1) estimated expenditures and proposed
appropriations necessary for the support of the Government for the
ensuing fiscal year, including those financed from borrowings;chanroblesvirtualawlibrary
(2) estimated receipts during the ensuing fiscal year
under laws existing at the time the budget is transmitted and under the
revenue proposals, if any, forming part of the year's financing program;chanroblesvirtualawlibrary
(3) actual appropriations, expenditures, and receipts
during the last completed fiscal year;chanroblesvirtualawlibrary
(4) estimated expenditures and receipts and actual or
proposed appropriations during the fiscal year in progress;chanroblesvirtualawlibrary
(5) statements of the condition of the National
Treasury at the end of the last completed fiscal year, the estimated
condition of the Treasury at the end of the fiscal year in progress and
the estimated condition of the Treasury at the end of the ensuing
fiscal year, taking into account the adoption of financial proposals
contained in the budget and showing, at the same time, the unencumbered
and unobligated cash resources; chanroblesvirtualawlibrary
(6) essential facts regarding the bonded and other
long-term obligations and indebtedness of the Government, both domestic
and foreign, including identification of recipients of loan proceeds;
and chanroblesvirtualawlibrary
(7) such other financial statements and data as are
deemed necessary or desirable in order to make known in reasonable
detail the financial condition of the government.
Section 15. Budget Levels. — The ordinary income of
government shall be primarily to provide appropriations for current
operations, except in case of a national emergency or serious financial
stress, the existence of which has been duly proclaimed by the
President.
The level of aggregate revenue expenditure and debt shall be jointly
recommended to the President by the Budget Commission, the Department
of Finance, the National Economic and Development Authority and the
Central Bank of the Philippines, acting within the Development Budget
Coordination Committee of the National Economic and Development
Authority.
No appropriations for current operations and capital outlays of the
Government shall be proposed unless the amount involved is covered by
the ordinary income, or unless it is supported by a proposal creating
additional sources of funds or revenue, including those generated from
domestic and foreign borrowings, sufficient to cover the same.
Likewise, no appropriation for any expenditure, the amount of which is
not covered by the estimated income from the existing sources of
revenue or available current surplus, may be proposed, unless it is
supported by a proposal creating an additional source of funds
sufficient to cover the same.
Proposals creating additional sources of funds shall be prepared in the
form of revenue bills.
The provisions of this section shall not be construed as impairing in
any way the power of the National Assembly to enact revenue and
appropriation bills, nor the authority of the President to propose
special revenue and appropriation bills after the submission of the
budget. chanroblesvirtualawlibrary
Section 16. Budget Estimates. — Each head of
department, office or agency of the National Government, including the
Legislative and Judicial Branches, and including government-owned or
controlled corporations, shall submit his request for appropriations to
the Budget Commission in accordance with the budget calendar, format,
and such rules and regulations as may be issued in implementation of
this Decree.
The budget estimates of agencies shall include the following
informations:cralaw:red
a. Objectives, functions, activities, programs and
projects showing the general character and relative importance of the
work to be accomplished or the services to be rendered, and the
principal elements of cost involved;chanroblesvirtualawlibrary
b. Linkage of the work and financial proposals to
approved development plans;chanroblesvirtualawlibrary
c. Estimated current operating expenditures and
capital outlays, with comparative data for the preceding and current
budget years;chanroblesvirtualawlibrary
d. Identification by region, pursuant to policies on
the regionalization of government operations;chanroblesvirtualawlibrary
e. Financial sources, reflecting all revenues,
proceeds of foreign and domestic borrowings, and other sources,
particularly those which accrue to the General Fund;chanroblesvirtualawlibrary
f. Contingent liabilities, including national
government guarantees of obligations of government-owned or controlled
corporations and their subsidiaries;chanroblesvirtualawlibrary
g. Brief description of the major thrusts and
priority programs and projects for the budget year, results expected
for each budgetary program and project, the nature of work to be
performed, estimated costs per unit of work measurement, including the
various objects of expenditure for each project;chanroblesvirtualawlibrary
h. Organization charts and staffing patterns
indicating the list of existing and proposed positions with
corresponding salaries, and proposals for position classification and
salary changes, duly supported by adequate justification.
Consistent with the provisions of Article VIII, Section 16(3) of the
Constitution, the Commissioner shall review the budget estimates as
herein provided, including those of the Legislative and Judicial
Branches and of the Constitutional bodies and shall submit his
recommendations to the President.
Section 17. Regional Budgets. — The budgets of
national government agencies shall be prepared taking into full and
careful consideration the opportunities and requirements specific to
the various regions of the country. Where they are organized, regional
offices shall originate agency budget proposals, in accordance with
approved priorities and guidelines.
Agencies which are not regionalized shall nonetheless estimate the
amounts planned to be spent for each region of the country. chanroblesvirtualawlibrary
The Commissioner shall identify by region the expenditure programs of
the national government agencies in the national government budget, and
release funds to national government agencies in accordance with the
approved regional distribution of expenditures, specifying the region
of destination.
Departments and agencies shall sub-allot in full and without the
imposition of reserves, the approved budget allocation of their various
regional offices, except as may be authorized by the Commissioner, in
case realignment of expenditures prove to be necessary in the course of
budget execution. The Commissioner shall issue the rules and
regulations needed to implement the provisions of this section. chanroblesvirtualawlibrary
Section 18. Budget Evaluation. — Agency proposals
shall be reviewed on the basis of their own merits and not on the basis
of a given percentage or peso increase or decrease from a prior year's
budget level, or other similar rule of thumb that is not based on
specific justification. Proposed activities, whether new or ongoing,
shall be evaluated using a zero-base approach and on the basis of (a)
relationship with the approved development plan, (b) agency capability
as demonstrated by past performance, (c) complementarity with related
activities of other agencies, and (d) other similar criteria. The
realization of savings in a given budget year and the consequent
non-utilization of funds appropriated or released to a given agency
shall not be a negative factor in the budget evaluation for a
subsequent year.
Section 19. Foreign-Assisted Projects. — The
budgetary implications of foreign-assisted projects shall be explicitly
considered at the time of project design and financing negotiation. The
project study shall specify the cash flow requirements of the project,
among others, for (a) payment of principal and interest, (b) peso
component of capital costs and project preparation, (c) infrastructure
and support facilities needed to be directly financed by government,
(d) operating and other expenditures which will be ultimately required
for General Fund support when the project is implemented, and (e) peso
requirements needed as counterpart. The concurrence of the Budget
Commission shall be obtained with respect to peso requirements and
implication on expenditure ceilings.
Section 20. Organizational Changes. — The budget may
reflect reorganization proposals, including the rearrangement,
reassignment, and consolidation of organizational units as are approved
by the President, which will simplify government procedure, localize
decision-making and implementation, and otherwise facilitate government
service to the public.
Section 21. Coordinating Bodies. — The budgets of
coordinating agencies, councils, task forces, authorities, committees,
or other similar bodies shall be limited to and used to fund only such
planning, coordinating and monitoring functions as are assigned to it.
Funds for implementation shall be budgeted and released to the line
implementing agencies concerned: provided, that the budgets of
coordinating bodies may include a lump-sum for purposes related to
their assigned functions, which lump-sum shall be sub-allotted to
implementing agencies and not used by the agency for its own
operations: provided, further, that funds budgeted for a given agency
falling within the jurisdiction of a coordinating body, may be subject
to release upon approval by the coordinating agency of such release or
of the agency's work program.
Section 22. Budgetary Requirement of Government-Owned
or Controlled Corporations. — The internal operating budgets of
government-owned or controlled corporations and of chartered
institutions shall be approved by their respective governing boards in
accordance with a budget calendar and format as may be approved by the
President: provided, that such budgets shall be subject to review and
approval as part of the budget process in cases where national
government budgetary support is needed, in terms of (a) capital or
equity inputs, (b) operating contributions to support specific
activities undertaken by the institution as part of its regular
functions, and (c) guarantee of the national government for obligations
or contracts entered into by the corporations: provided, further, that
the submission of interim financial statements may be required by the
Commissioner. chanroblesvirtualawlibrary
Section 23. Tax and Duty Exemptions. — All units of
government, including government-owned or controlled corporations,
shall pay income taxes, customs duties and other taxes and fees as are
imposed under revenue laws: provided, that organizations otherwise
exempted by law from the payment of such taxes/duties may ask for a
subsidy from the General Fund in the exact amount of taxes/duties due:
provided, further, that a procedure shall be established by the
Secretary of Finance and the Commissioner of the Budget, whereby such
subsidiaries shall automatically be considered as both revenue and
expenditure of the General fund.
Section 24. Appropriation for Personal Services. —
Appropriations for personal services shall be considered as included in
the amount specified for each budgetary program and project of each
department, bureau, office or agency, and shall not be itemized. The
itemization of personal services shall be prepared by the Commissioner
for consideration and approval of the President as provided in Section
30 hereof: provided, that the itemization of personal services shall be
prepared for all agencies of the Legislative, Executive and Judicial
Branches and the Constitutional bodies, except as may be otherwise
approved by the President for positions concerned with national
security matters.
Section 25. Department Approval of Proposed
Appropriations. — No legislative proposal which, if enacted, would
authorize subsequent appropriations, shall be transmitted to the
President by any bureau or agency, without the prior approval of the
Head of the Department concerned or by the Chairman or Chief Executive
Officer of a Cabinet level body which coordinates the multi-sectoral
formulation and implementation of a particular program of expenditure
involving one or more departments. No legislative proposal involving
the appropriation of funds shall be transmitted to the National
Assembly without the approval of the President. chanroblesvirtualawlibrary
BUDGET AUTHORIZATION
Section 26. Focus on Budget Policy. — The National
Assembly shall, during the discussion of the budget, focus on policy,
budgetary levels, thrusts and strategy. Details of agency expenditures
shall be considered as proper concerns of Executive Branch decision and
action.
Section 27. Limitation of Budget Debate. — Within
seven (7) consecutive session days for the submission of the budget,
the National Assembly shall, in plenary session, start the discussion
of the budget, including both expenditure and revenue proposal. Debate
shall be terminated on or before the eighteenth consecutive session day
from the beginning of the discussions and final action shall be taken
within three (3) consecutive session days thereafter.
Section 28. Prohibition Against the Increase of
Appropriations. — The National Assembly shall in no case increase the
appropriation of any project or program of any department, bureau,
agency or office of the Government over the amount submitted by the
President in his budget proposal. In case of any reduction in the
proposed appropriation for a project or program, a corresponding
reduction shall be made in the total appropriation of the department,
office or agency concerned and in the total of the General
Appropriations Bill.
Section 29. Prohibition Against Enactment of
Additional Special Provisions. — The National Assembly shall not add
special provisions in the budget earmarking the use of appropriations
for specific programs or activities nor shall it increase the amounts
specified in special provisions, beyond those proposed by the President.
Section 30. Content of the General Appropriations
Act. — The General Appropriations Act shall be presented in the form of
budgetary programs and projects for each agency of the government, with
the corresponding appropriations for each program and project,
including statutory provisions of specific agency or general
applicability. The General Appropriations Act shall not contain any
itemization of personal services, which shall be prepared by the
Commissioner after enactment of the General Appropriations Act, for
consideration and approval of the President. chanroblesvirtualawlibrary
Section 31. Automatic Appropriations. — All
expenditures for (a) personnel retirement premiums, government service
insurance, and other similar fixed expenditures, (b) principal and
interest on public debt, (c) national government guarantees of
obligations which are drawn upon, are automatically appropriated:
provided, that no obligations shall be incurred or payments made from
funds thus automatically appropriated except as issued in the form of
regular budgetary allotments.
Section 32. Supplemental Appropriations. — All
appropriation proposals shall be included and considered in the budget
preparation process. After the President shall have submitted the
Budget, no supplemental appropriation measure supported from existing
revenue measures shall be passed by the National Assembly. However,
supplemental or deficiency appropriations involving the creation of new
offices, programs or activities may be enacted if accompanied and
supported by new revenue sources.
Section 33. Reversion of Unexpected Balances of
Appropriations, Continuing Appropriations. — Unexpected balances of
appropriations authorized in the General Appropriation Act shall revert
to the unappropriated surplus of the General Fund at the end of the
fiscal year and shall not thereafter be available for expenditure
except by subsequent legislative enactment: provided, that
appropriations for capital outlays shall remain valid until fully spent
or reverted: provided, further, that continuing appropriations for such
current operating expenditures may be specifically recommended and
approved as such in support of projects whose effective implementation
calls for multi-year expenditure commitments: provided, finally, that
the President may authorize the use of savings realized by an agency
during a given year to meet non-recurring expenditures in a subsequent
year.
The balances of continuing appropriations shall be reviewed as part of
the annual budget preparation process and the President may approve
upon recommendation of the Commissioner, the reversion of funds no
longer needed in connection with the activities funded by said
continuing appropriations.
Section 34. Loan Proceeds. — Expenditures funded by
foreign and domestic borrowings shall be included within the
expenditure program of the agency concerned. Loan proceeds, whether in
cash or in kind, shall not be used without the corresponding release of
funds through a Special Budget as herein provided.
Section 35. Contingent Liabilities. — Government
agencies, particularly government-owned or controlled corporations,
shall periodically report to the Secretary of Finance and to the
Commissioner of the Budget on the status of obligations they have
entered into and which are the subject of government guarantees.
Section 36. Liability for Unauthorized Printing Press
Revisions. — It shall be unlawful for any person to make any
unauthorized revision of any figure, text or provision in the General
Appropriations Act and in the other budget documents during or in the
process of the printing. Any unauthorized change made either by
addition, modification or deletion, shall be null and void.
Persons who, in violation of this section, make any unauthorized
revision in the budget documents, shall be criminally liable for
falsification of legislative documents under the Revised Penal Code.
When the offender is a government official or employee, he shall, in
addition to criminal prosecution, be dismissed from the service.
BUDGET EXECUTION
Section 37. Use of Appropriated Funds. — All moneys
appropriated for functions, activities, projects and programs shall be
available solely for the specific purposes for which these are
appropriated.
Section 38. Allotment of Appropriations. — Authorized
appropriations shall be allotted in accordance with the procedure
outline hereunder:cralaw:red
a. Appropriations authorized for any department,
office or agency of the Government may be made available for
expenditure when the head of each department, office or agency submits
to the Commissioner a request for allotment of funds showing the
estimated amounts needed for each function, activity, or purpose for
which the funds are to be expended, during the applicable allotment
period. The form and the time of submission of the request for
allotment showing the proposed quarterly allotments of the whole
authorized appropriation for the department, office, or agency, shall
be prescribed by the Commissioner.
b. In the administration of the allotment system
herein provided, each fiscal year shall be divided into four quarterly
allotment periods beginning, respectively, on the first day of January,
April, July, and October: provided, that in any case where the
quarterly allotment period is found to be impractical or otherwise
undesirable, the Commissioner may prescribe a different period suited
to the circumstances.
c. Request for allotments shall be approved by the
Commissioner who shall ensure that expenditures are covered by
appropriations both as to amount and purpose and who shall consider the
probable needs of the department, office or agency for the remainder of
the fiscal year or period for which the appropriation was made. Acting
under guidelines as may be issued by the President, the Commissioner is
authorized to approve amounts different from agency estimates where
necessary in order to conform with the terms of the appropriation and
the prospective needs of the department, office or agency. The
Commissioner shall act promptly upon all request for allotment and
shall notify every department, office, or agency of its allotments at
least five days before the beginning of each allotment period. The
notification, which will be sufficient authority for the Chief
Accountant to enter the allotment in the books, shall include an
explanation for any change or modification in the request of the head
of the department, office or agency. chanroblesvirtualawlibrary
d. At the end of every quarter, each department,
office or agency shall report to the Commissioner the current status of
its appropriations, the cumulative allotments, obligations
incurred/liquidated, total disbursements, and unliquidated obligations,
unobligated and unexpected balances, and the results of expanded
appropriations. Such department, office, or agency may initiate or
request for a change in allotments in order to adjust to altered
conditions, subject to such rules and regulations as may be issued by
the Commissioner.
e. Releases of funds appropriated for a given agency
may be made to its Regional Offices where dictated by the need and
urgency of regional activities.
f. The Commissioner shall have authority to modify or
amend any allotment previously issued. In case he shall find at any
time that the probable receipts from taxes or other sources of any fund
will be less than anticipated and that as a consequence the amount
available for the remainder of the term of the appropriations or for
any allotment period will be less than the amount estimated or allotted
therefor, he shall, with the approval of the President and after notice
to the department or agency concerned, reduce the amount or amounts
allotted so as to conform with targeted budgetary goals. chanroblesvirtualawlibrary
g. The Commissioner shall maintain control records
showing quarterly by funds, accounts, and other suitable
classifications as he may find necessary, the amounts appropriated, the
estimated revenues, the actual revenues or receipts, the amounts
allotted and available for expenditures, the unliquidated obligations,
actual balances on hand, and the unencumbered balances of the
allotments for each department, office or agency of the
Government. chanroblesvirtualawlibrary
Section 39. Program of Expenditure. — The
Commissioner shall recommended to the President the year's program of
expenditure for each agency of the government on the basis of
authorized appropriations. The approved expenditure program shall
constitute the basis for fund release during the fiscal period, subject
to such policies, rules and regulations as may be approved by the
President. chanroblesvirtualawlibrary
Section 40. Special Budgets for Lump-Sum
Appropriations. — Expenditures from lump-sum appropriations authorized
for any purpose or for any department, office or agency in any annual
General Appropriations Act of other Act and from any fund of the
national Government, shall be made in accordance with a special budget
to be approved by the President, which shall include but shall not be
limited to the number of each kind of position, the designations, and
the annual salary proposed for which an appropriations is intended.
This provision shall be applicable to all revolving funds, receipts
which are automatically made available for expenditure for certain
specific purposes,ds and donations for carrying out certain activities,
or deposits made to cover the cost of special services to be rendered
to private parties. Unless otherwise expressly provided by law, when
any Board head of department, chief of bureau or office, or any other
official, is authorized to appropriate, allot, distribute or spend any
lump-sum appropriation or special, bond, trust, and other funds, such
authority shall be subject to the provision of this section.
In case of any lump-sum appropriation for salaries and wages of
temporary and emergency laborers and employees, including contractual
personnel, provided in any General Appropriation Act or other Acts, the
expenditure of such appropriation shall be limited to the employment of
persons paid by the month, by the day, or by the hour.
Section 41. Cash Budgets. — An operational cash
budget shall be implemented to ensure the availability of cash
resources for priority development projects and to establish a sound
basis for determining the level, type and timing of public borrowings.
The procedure, format, accounts, and other details necessary for the
execution, monitoring and control aspects of the system shall be
determined jointly by the Secretary of Finance, the Commissioner of the
Budget and the Chairman, Commission on Audit.
Section 42. Creation of Appropriation Reserves. — The
Commissioner may establish reserves against appropriations to provide
for contingencies and emergencies which may arise later in the fiscal
year and which would otherwise require a deficiency appropriations.
The establishment of appropriation reserves shall not necessarily mean
that such portion of the appropriation will change during the fiscal
year justifying the use of the reserve, necessary adjustments may be
made by the Commissioner when requested by the department, office or
agency concerned.
Section 43. Suspension of Expenditure of
Appropriations. — Except as otherwise provided in the General
Appropriations Act and whenever in his judgment the public interest so
requires, the President, upon notice to the head of office concerned,
is authorized to suspend or otherwise stop further expenditure of funds
allotted for any agency, or any other expenditure authorized in the
General Appropriations Act, except for personal services appropriation
used for permanent officials and employees. chanroblesvirtualawlibrary
Section 44. Authority to Approve Fund Transfers. —
The President shall have the authority to transfer any fund
appropriated for the different departments, bureaus, offices and
agencies of the Executive Department which are included in the General
Appropriations Act, to any program, project, or activity of any
department, bureau or office included in the General Appropriations Act
or approved after its enactment.
The President shall, likewise, have the authority to augment any
appropriation of the Executive Department in the General Appropriations
Act, from savings in the appropriations of another department, bureau,
office or agency within the Executive Branch, pursuant to the
provisions of Article VIII, Section 16 (5) of the Constitution.
Section 45. Authority to Use Savings in
Appropriations to Cover Deficits. — Except as otherwise provided in the
General Appropriations Act, any savings in the regular appropriations
authorized in the General Appropriations Act for programs and projects
of any department, office or agency, may, with the approval of the
President, be used to cover a deficit in any other item of the regular
appropriations: provided, that the creation of new positions or
increase of salaries shall not be allowed to be funded from budgetary
savings except when specifically authorized by law: provided, further,
that whenever authorized positions are transferred from one program or
project to another within the same department, office or agency, the
corresponding amounts appropriated for personal services are also
deemed transferred, without, however increasing the total outlay for
personal services of the department, office or agency concerned.
Section 46. Certification of Availability of Funds. —
No funds shall be disbursed, and no expenditures or obligations
chargeable against any authorized allotment shall be incurred or
authorized in any department, office or agency without first securing
the certification of its Chief Accountant or head of accounting unit as
to the availability of funds and the allotment to which the expenditure
or obligation may be properly charged. chanroblesvirtualawlibrary
No obligation shall be certified to accounts payable unless the
obligation is founded on a valid claim that is properly supported by
sufficient evidence and unless there is proper authority for its
incurrence. Any certification for a non-existent or fictitious
obligation and/or creditor shall be considered void. The certifying
official shall be dismissed from the service, without prejudice to
criminal prosecution under the provisions of the Revised Penal Code.
Any payment made under such certification shall be illegal and every
official authorizing or making such payment, or taking part therein or
receiving such payment, shall be jointly and severally liable to the
government for the full amount so paid or received.
Section 47. Prohibition Against the Incurrence of
Overdraft. — Heads of departments, bureaus, offices and agencies shall
not incur nor authorize the incurrence of expenditures or obligations
in excess of allotments released by the Commissioner for their
respective departments, offices and agencies. Parties responsible for
the incurrence of overdrafts shall be held personally liable therefor.
Section 48. Adjustment of Appropriations for
Reorganization. — When under authority of law, a function or an
activity is transferred or assigned from one agency to another, the
balances of appropriations which are determined by the head of such
department to be available and necessary to finance or discharge the
function or activity so transferred or assigned may, with the approval
of the President, be transferred to and be made available for use by
the agency to which said function or activity is transferred or
assigned for the purpose for which said funds were originally
available. Balances so transferred shall be credited to any applicable
existing appropriation account or to new appropriation accounts which
are hereby authorized to be established, and shall be merged which any
fund already in the applicable existing or newly established
appropriation account or accounts and thereafter accounted for as one
fund.
The funding requirement of agencies reorganized in accordance with
approved reorganization plans or reorganized pursuant to law enacted
after the approval of the general Appropriations Act, are deemed
appropriated and shall be available for expenditure as soon as the
reorganization plans are approved. The Commissioner is hereby
authorized to make necessary adjustments in the appropriations to carry
out the provisions of this section. The department head concerned, with
the approval of the Commissioner, is hereby authorized to make
necessary salary adjustments resulting from final selection of
personnel to fill the positions in the staffing patterns of reorganized
agencies, to make necessary salary adjustments resulting from new
appointments, promotions or salary increases, subject to the provisions
of P.D. No. 985.
Section 49. Liability for Illegal Expenditure. —
Every expenditure or obligation authorized or incurred in violation of
the provisions of this Decree or of the general and special provisions
contained in the annual General or other Appropriations Act shall be
void. Every payment made in violation of said provisions shall be
illegal and every official or employee authorizing or making such
payment, or taking part therein, and every person receiving such
payment shall be jointly and severally liable to the Government for the
full amount so paid or received.
Any official or employee of the Government knowingly incurring any
obligation, or authorizing any expenditure in violation of the
provisions herein, or taking part therein, shall be dismissed from the
service, after due notice and hearing by the duly authorized appointing
official. If the appointing official is other than the President and
should he fail to remove such official or employee, the President may
exercise the power of removal.
Section 50. Accrual of Income to Unappropriated
Surplus of the General Fund. — Unless otherwise specifically provided
by law, all income accruing to the departments, offices and agencies by
virtue of the provisions of existing laws, orders, and regulations
shall be deposited in the National Treasury or in and duly authorized
depository of the Government and shall accrue to the unappropriated
surplus of the General Fund of the Government: provided, that amounts
received in trust and from business-type activities of government may
be separately recorded and be disbursed in accordance with such rules
and regulations as may be determined by the Permanent Committee created
in section 51 hereof. chanroblesvirtualawlibrary
Section 51. Special, Fiduciary and Trust Funds. —
Receipts shall be recorded as income of Special, Fiduciary or Trust
Funds or Funds other than the General fund, only when authorized by law
and following such rules and regulations as may be issued by a
Permanent Committee consisting of the Secretary of Finance as Chairman,
and the Commissioner of the Budget and the Chairman, Commission on
Audit, as members. The same Committee shall likewise monitor and
evaluate the activities and balances of all Funds of the national
government other than the General fund and may recommend for the
consideration and approval of the President, the reversion to the
General fund of such amounts as are (a) no longer necessary for the
attainment of the purposes for which said Funds were established, (b)
needed by the General fund in times of emergency, or (c) violation of
the rules and regulations adopted by the Committee: provided, that the
conditions originally agreed upon at the time the funds were received
shall be observed in case of gifts or donations or other payments made
by private parties for specific purposes.
Section 52. Service Fees and Honoraria. — Agencies
are authorized to charge fees, including honoraria and other reasonable
allowances, as compensation for consultation, seminars or training
programs, or technical services rendered to other government agencies
or private parties. Such fees or honoraria shall be recorded as income
of the government and subject to the usual accounting, auditing and
other pertinent requirements and to the provisions of section 40 of
this Decree.
Section 53. Administration of Lump-Sum Funds. — The
Budget Commission shall administer the Lump-Sum Funds appropriated in
the General Appropriations Act, except as otherwise specified therein,
including the issuance of Treasury Warrants covering payments to
implementing agencies or other creditors, as may be authorized by the
President.
Section 54. Cost Reduction. — Each head of
department, bureau, office or agency shall implement a cost reduction
program for his department, bureau, office or agency for the purpose of
reducing cost of operations and shall submit to the President reports
on the results of the implementation thereof. The Budget Commission
shall provide technical and other necessary assistance in the design
and implementation of cost reduction activities. An incentive award not
exceeding one month's salary may be granted to any official or employee
whose suggestion for cost reduction has been adopted and shall have
actually resulted in cost reduction, payable from the savings resulting
therefrom.
Section 55. Authority to Use Savings for Certain
Purposes. — Savings in the appropriations provided in the General
Appropriations Act may be used for the settlement of the following
obligations incurred during a current fiscal year or previous fiscal
years as may be approved by the Commissioner in accordance with rules
and procedures as may be approved by the President:cralaw:red
a. Claims of officials, employees and laborers who
died or were injured in line of duty, including burial expenses as
authorized under existing law;chanroblesvirtualawlibrary
b. Commutation of terminal leaves of employees due to
retirement, resignation or separation from the service through no fault
of their own in accordance with the provisions of existing law,
including unpaid claims for commutation of maternity leave of absence;chanroblesvirtualawlibrary
c. Payment of retirement gratuities or separation pay
of employees separated from the service due to government
reorganization;chanroblesvirtualawlibrary
d. Payment of salaries of employees who have been
suspended or dismissed as a result of administrative or disciplinary
action, or separated from the service through no fault of their own and
who have been subsequently exonerated and/or reinstated by virtue of
decisions of competent authority;chanroblesvirtualawlibrary
e. Cash awards to deserving officials and employees
in accordance with the civil service law;chanroblesvirtualawlibrary
f. Salary adjustments of officials and employees as a
result of classification action under, and implementation of, the
provisions of the Compensation and Position Classification Act,
including positions embraced under the Career Executive Service;chanroblesvirtualawlibrary
g. Peso support to any undertaking that may be
entered into by the government with international organizations,
including administrative and other incidental expenses;chanroblesvirtualawlibrary
h. Covering any deficiency in peso counterpart fund
commitments for foreign-assisted projects, as may be approved by the
President;chanroblesvirtualawlibrary
i. Priority activities that will promote the economic
well-being of the nation, including food production, agrarian reform,
energy development, disaster relief, and rehabilitation;chanroblesvirtualawlibrary
j. Repair, improvement and provision of government
buildings and infrastructure and other capital assets damaged by
natural calamities;chanroblesvirtualawlibrary
k. Expenses in connection with official participation
in trade fairs, civic parades, celebrations, athletic competitions and
cultural activities, and payment of expenses for the celebration of
regular or special official holidays;chanroblesvirtualawlibrary
l. Payment of obligations of the government or any of
its departments or agencies as a result of final judgment of the
Courts, and
m. Payment of valid prior year's obligations of
government agencies with any other government office or agency,
including government-owned or controlled corporations.
Section 56. Appointment of Budget Officers. — No
person shall be appointed as budget officer in any department, bureau,
office or agency unless he meets qualification and/or training
requirements established by the Budget Commission as prerequisite to
appointment, in addition to other qualification requirements prescribed
by the Civil Service Commission for the position.
BUDGET ACCOUNTABILITY
Section 57. Evaluation of Agency Performance. — The
President, through the Commissioner, shall evaluate on a continuing
basis the quantitative and qualitative measures of agency performance
as reflected in the units of work measurement and other indicators of
agency performance, including the standard and actual costs per unit of
work.
Section 58. Budget Monitoring and Information System.
— The Commissioner shall determine accounting and other items of
information, financial or otherwise, needed to monitor budget
performance and to assess effectiveness of agencies' operations and
shall prescribe the forms, schedule of submission, and other components
of reporting system, including the maintenance of subsidiary and other
records which will enable agencies to accomplish and submit said
information requirements: provided, that the Commission on Audit shall,
in coordination with the Budget Commission, issue rules and regulations
that may be applicable when the reporting requirements affect
accounting functions of agencies: provided, further, that the
applicable rules and regulations shall be thus issued by the Commission
on Audit within a period of thirty (30) days after the Budget
Commission prescribes the reporting requirements. chanroblesvirtualawlibrary
Section 59. Monitoring of Expenditures. —
Expenditures of national government agencies shall be recorded so as to
identify expenditures as classified into such categories as may be
determined by the Budget Commission, including but not limited to the
following: (a) agency incurring the obligation, (b) program, project
and activity, (c) object of expenditure, including personal services,
operating and maintenance expenditures, equipment, and capital outlays,
(d) region or locality of use, (e) economic or functional
classification of the expenditure, (f) obligational authority and cash
transactions arising from fund releases, and such other classifications
as may be necessary for the budget process. The Commissioner of the
Budget shall determine the data and information requirements thus
needed and the Commission on Audit shall formulate the accounting rules
and regulations, including changes in the Chart of Accounts and the
general or subsidiary accounting records, as may be necessary to
generate the desired data and information. The Chief Accountants of
agencies and where necessary, accountants of regional offices, shall
submit the data needed by the Budget Commission in accordance with such
rules and regulations as it may formulate.
Section 60. Standard Costs. — The Budget Commission
through the Management Office and National Accounting Office, shall
develop standard costs for duly approved units of work measurement for
each agency's budgetary projects or activities. These standards costs
shall be compared with actual unit costs and utilized in the evaluation
of agency budgetary performance. chanroblesvirtualawlibrary
Section 61. Review of Budgetary Programs. — The
Commissioner shall conduct a continuing review of the budgetary program
and project structure of each department, office or agency, the result
of which shall be the basis for modifying or amending such structure
for incorporation in the President's budget proposals to the National
Assembly.
Section 62. Semi-Annual Report on Accomplishments of
Government Agencies. — The heads of departments, bureaus, offices or
agencies of the government shall submit a semi-annual report of their
accomplishments, both work and financial results, in accordance with
such content and format as may be prescribed by the Commissioner. These
reports shall be designed and used for the purpose of monitoring the
efficiency and effectiveness with which budgeted funds are being
utilized, and generally for verifying the attainment of
Section 63. Failure to Submit Reports. — Failure on
the part of agency heads, chief accountants, budget officers, cashiers,
disbursing officers, administrative and/or personnel officers, and
other responsible officers of departments, bureaus, offices and
agencies to submit trial balances, work and financial plans, budgets,
reports of operation and income, plans, special budgets, reports of
operation and income, current agency plantilla of personnel and such
other report as may be necessary and required by the Budget Commission
shall automatically cause the suspension of payment of their salaries
until they have complied with the requirements of the Budget
Commission. No appropriation authorized in the General Appropriations
Act shall be made available to pay the salary of any official or
employee who violates the provisions of this section, in addition to
any disciplinary action that may be instituted against such erring
official or employee. chanroblesvirtualawlibrary
EXPENDITURE OF APPROPRIATED FUNDS
Section 64. Contracting of Activities. — Agencies may
enter into contracts with individuals or organizations, both public and
private, subject to provisions of law and applicable guidelines
approved by the President: provided, that contracts shall be for
specific services which cannot be provided by the regular staff of the
agency, shall be for a specific period of time, and shall have a
definite expected output: provided, further, that implementing,
monitoring and other regular and recurring agency activities shall not
be contracted for, except for personnel hired on an individual and
contractual basis and working as part of the organization, or as
otherwise may be approved by the President: provided, finally, that the
cost of contracted services shall not exceed the amount that would
otherwise be incurred had the work been performed by regular employees
of government, except as may be authorized under this section.
Section 65. Authority to Receive Additional
Compensation. — Officials and employees who are duly appointed by
competent authority to any position in another government office or
agency in a current capacity, may, in the discretion of the President,
be allowed to receive additional compensation in the form of allowance
or honorarium at such rates he shall fix and subject to such conditions
as he may prescribe. Such additional compensation shall be paid from
the appropriations of the office or agency benefiting from the
concurrent service.
Section 66. Restriction on Salary Increases. — No
portion of the appropriations provided in the General Appropriations
Act shall be used for payment of any salary increase or adjustment
unless specifically authorized by law or appropriate budget circular
nor shall any appropriation for salaries authorized in the General
Appropriations Act, save as otherwise provided for under the
Compensation and Position Classification Act, be paid unless the
positions have been classified by the Budget Commission. chanroblesvirtualawlibrary
Section 67. Merit Increases. — The budgets of
national government agencies may provide for a lump-sum for merit
increases, subject to such terms and conditions as may be approved by
the President. Such lump-sum shall be used to fund salary increases
approved by the head of agency in recognition of meritorious
performance: provided, that the Civil Service Commission and the Budget
Commission shall jointly issue the rules and regulations governing the
granting of such merit increases.
Section 68. Salary for Substitutionary Service. —
When an official or employee is issued a duly approved appointment in a
temporary or acting capacity to take the place and perform the duties
of another who is temporarily absent from his post with pay, savings in
the appropriations of the department, bureau or office may be used for
the payment of his salary or differential, subject to the approval of
the Commissioner.
Section 69. Prohibition Against Payment of Salaries
or Wages of Officials and Employees on Strike Against the Government. —
Subject to existing civil service rules and regulations and the proper
administrative proceedings, no part of the funds of, or available for
expenditures by, any department, office or agency of the Government
shall be used to pay the salaries or wages of any official or employee
engaging in a strike against the Government of the Republic of the
Philippines, or who is a member of any organization of government
employees that, in the opinion of the Secretary of Justice, asserts the
right to strike against the Government of the Philippines.
Section 70. Additional Compensation for Overtime
Service. — Officials and employees of the National Government, when
required to work overtime after regular working hours during ordinary
days, during half-day sessions, or on Saturdays, Sundays and holidays,
by the heads of departments concerned, to finish work that must be
completed within a specified time, may be paid overtime compensation
from any unexpended balance of the appropriation for salaries and wages
authorized in the General Appropriations Act and under such guidelines
as may be issued by the President. chanroblesvirtualawlibrary
Section 71. Compensation of Persons Receiving
Pension. — A person receiving life pension, annuity, or gratuity as a
result of service in the national government of any local government
unit, or from any government-owned or controlled corporation, who is
reappointed to any position, the appropriation for the salary of which
is provided from funds of the office, shall have the option to receive
either the compensation for the position, or the pension, gratuity or
annuity, but in no case shall he receive both.
Section 72. Prohibition of Voluntary Service. —
Unless otherwise specifically approved by the President, no person
shall be employed or appointed in the government under the guise of
voluntary service, with compensation below the authorized hiring rate
for the position, but with privilege of transportation and/or
representation expenses in any form, or of receiving per diems,
allowances, honoraria, subsistence, quarters in cash or in kind,
payable from government funds: provided, that the application of this
provision may be waived to authorize voluntary service in the Armed
Forces of the Philippines or in connection with relief operations.
Section 73. Additional Compensation for School
Faculty Members. — Professors, instructors, teachers, or members of the
faculty of government schools, colleges and universities, when required
to teach more than their regular teaching loads may be paid additional
compensation not exceeding seventy-five per centum of their basic
salary.
Section 74. Laundry. — At the discretion of the
department head concerned, any official or employees of the national
government serving in any hospital, penal institution, or other similar
institution, who is required to wear a uniform during the performance
of his duties, may be granted laundry allowance in kind, or which may
be commuted at such rates as may be authorized by the Budget
Commission. chanroblesvirtualawlibrary
Section 75. Hazard Pay. — Upon recommendation of the
department head concerned and approval of the Commissioner, hazard pay
may be allowed to employees who are actually assigned to danger or
strife-torn areas, disease-infested places, or in distressed or
isolated stations and camps, which expose them to great danger of
contagion or peril to life. Such hazard pay shall be paid from savings
of the department concerned at such rates, terms and conditions as the
Commissioner may prescribe.
Section 76. Subsistence. — No official or employee of
the national government shall be given subsistence, the cost of which
is payable from any fund, except the following and only when an
appropriation therefor is specifically provided:cralaw:red
a. Marine officers, engineers and crew of government
vessels, launches, and motorboats, who shall take their meals on the
mess when aboard the said vessels, launches, or motorboats;chanroblesvirtualawlibrary
b. Lightkeepers and other employees in light stations
duly authorized by the head of the department to receive subsistence,
who shall be furnished raw canned, or preserved food supplies;chanroblesvirtualawlibrary
c. Officials and employees who are required to render
service within the premises of hospitals, penal institutions, leper
institutions, military installations, and other similar institutions,
for a continuous period that includes meal time, may be allowed full
subsistence when required to live in said premises to make their
services available at any and all times;chanroblesvirtualawlibrary
d. Laborers temporarily fielded to isolated or
unsettled districts shall be furnished the usual rations or the
equivalent in cash, at the expense of the government.
In hospitals and leper institutions where there are no mess halls or
whenever these are inadequate personnel entitled to subsistence
allowance in kind may commute such subsistence upon request of the
personnel concerned subject to the approval by the department head at
authorized rates chargeable against the appropriation for supplies and
materials authorized in the General Appropriations Act.
Section 77. Subsistence of Crew of Government
Vessels. — The subsistence allowance for the officers and crew of the
coast guard and revenue cutters and lighthouse tenders and other large
vessels operated by the Government shall be spent for conducting a mess
under the charge and administration of one or more members of the
complement in each vessel to be designated by the corresponding head of
department, and in accordance with regulations to be issued by him. The
person or persons so designated shall keep an account of the advances
of funds received and expenditures made therefrom for the operation of
the mess and shall render such report to the corresponding Accounting
Officer promptly at the end of each month.
Section 78. Furnished Quarters. — When the position
of any official or employee is provided with "furnished quarters", such
official or employee shall be entitled to the use of such
government-owned furniture and equipment as are necessary for his board
and lodging and those for his family including children below
twenty-one years of age.
Section 79. Per Diems of Government Officials and
Employees. — When a government official or employee is authorized to
travel on official business outside of his permanent station, he shall
be entitled to per diems to cover his board and lodging in accordance
with his schedule: provided, that in addition to per diems, the
official or employee may be entitled to transportation expenses in
going to and coming from his destination and to daily allowance while
in the field: provided, further, that officials and employees on travel
status whose expenses for board and lodging are paid directly or
indirectly by government may not be entitled to receive the per diems
and allowances corresponding to such payments.
Department secretaries, heads of Constitutional bodies,
undersecretaries and all other positions of equivalent rank are
authorized the reimbursement of actual expenses supported by receipts,
within such limits as may be imposed under the provisions of this
section.
Officials and employees authorized to travel abroad may be granted
clothing allowance: provided, that no official or employ shall be
granted such clothing allowance oftener than once every twenty-four
months.
The rates of per diems and other allowances as authorized in this
section shall be determined by the President. The rates may be changed
from time to time upon recommendation of a Travel Rates Committee which
is hereby created, consisting of the Commissioner of the Budget as
Chairman and the Secretary of Foreign Affairs, the Secretary of Tourism
and the Chairman, Commission on Audit, or their representatives, as
members. chanroblesvirtualawlibrary
The Committee shall review travel rates and shall recommend to the
President for consideration and approval modification in rates and
policy when found to be warranted by actual domestic or foreign travel
costs, as the case may be.
Government-owned or controlled corporations shall observe the rates
established under this section: provided, that profit-making
corporations may adopt their own scales as may be approved by the
President.
The Travel Rates Committee shall issue the necessary rules and
regulations to enforce the provisions of this section.
Section 80. Additional Conditions for Payment of
Travel Expenses. — When travel is done by water and subsistence is not
included in the transportation cost, the amount actually and
necessarily spent for subsistence during such travel time shall be
paid, and no per diems shall be allowed in lieu thereof.
Per diems and travel allowances shall not be granted to members of
field parties or others for whom subsistence and/or allowances in kind
are supplied or other special provision made to cover travel expenses.
The travel expenses of a government official or employee who is
assigned to render a special service to any private person or entity,
the expenses for which are payable by the latter, shall be paid from a
deposit which the private party shall be required to make before the
performance of the special service is commenced, subject to the
limitations and requirements herein provided for travel expenses
payable from government funds. chanroblesvirtualawlibrary
No official or employee of the Government who remains temporarily at
one station for a period longer than one month shall be paid per diems
in excess of one month, except upon the approval of the head of
department, and, in case his temporary stay in any one place exceeds
three months, payment of per diems in excess of three months shall be
made only upon the previous approval of the Commissioner.
Section 81. Transportation of Members of Family of an
Employee Transferred from One Station to Another. — Whenever, due to
the exigencies of the service and not at his own request, an official
or employee is transferred from one station to another, said official
or employee and his spouse and children below twenty-one years of age
shall be entitled to transportation and freight for reasonable and
necessary baggage and household effects, at the expense of the
Government, to be paid from the appropriation for traveling expenses of
the bureau or office concerned.
Section 82. Purchase, Use, Operation and Maintenance
of Motor Transport Equipment. — No appropriation for equipment
authorized in the General Appropriations Act shall be used directly or
indirectly for the purchase of automobiles, jeeps, jitneys, station
wagons, motorcycles, trucks, launches, speedboats,rplanes, helicopters
and other types of motor transport equipment unless otherwise
specifically authorized by the President.
All departments, bureaus, offices, and agencies authorized to purchase
motor transport equipment including those acquired through donations,
gifts or gratuitous title are likewise authorized to use, operate and
maintain them for purposes of carrying out the official functions and
activities of the agency. These motor vehicles shall be used strictly
for official business, bear government plates only, and after office
hours to kept in a garage provided therefor by the office or agency to
which they belong, except, when in use for official business outside
office hours. The President, however, may authorize exceptions from
these provisions for officials of government who work under extended
hours or whose activities call for special security arrangements. Any
violation of the provisions of this section shall subject the erring
official or employee to administrative disciplinary action and he shall
be personally liable for any loss or damage caused to the government or
third persons.
The Commission on Audit shall issue rules and regulations governing the
use, operation and maintenance of government motor transport equipment.
Section 83. Limitation of Rental or Motor Vehicles. —
No appropriations authorized in the General Appropriations Act shall be
used for renting motor transport equipment for a continuous period of
more than fifteen days, except as may be authorized by the Commissioner.
Section 84. Limitation of Purchase of Supplies,
Materials, and Equipment Spare Parts. — Except as otherwise provided in
the General Appropriations Act, the stock on hand of supplies,
materials and equipment spare parts, acquired through ordinary and
emergency purchase, shall at no time exceed normal three-month
requirements, subject to the pertinent rules and regulations issued by
competent authority: provided, that department heads may approve the
build-up of stocks on hand of critical supplies and materials, in
anticipation of cost increases or requirements of a national emergency,
and specifying maximum quantities of individual items, but in no case
shall these stocks exceed more than one year's supply, unless otherwise
approved by the President.
Section 85. Purchase of Locally Manufactured
Products. — All appropriations for the purchase of equipment, supplies
and materials authorized in the General Appropriations Act shall be
available only for locally manufactured equipment, parts, accessories,
medicines and drugs, supplies and materials, except when none is
available in the market or when the price of the locally manufactured
article exceed those determined by the Flag Law.
Section 86. Availability of Appropriations for Rental
for Building and Grounds. — Any appropriation authorized in any Act for
rental of buildings and grounds for any department, bureau, office or
agency shall be available for expenditure only when authorized by the
department head concerned. Such appropriation may also be used for
lease purchase arrangements.
With the concurrence of the Commissioner and the Secretary of Finance,
the head of the department may contract with any government financial
institution for loans intended for the acquisition of land for the
construction of an office building for any of the agencies under the
department. The annual amortization of the loans shall be taken from
the appropriations for rental authorized under any Act for the
department, bureau or office concerned. chanroblesvirtualawlibrary
Section 87. Misuse of Government Funds and Property.
— Any public official or employee who shall apply any government fund
or property under his administration or control to any use other than
that for which such fund or property is appropriated by law, shall
suffer the penalty imposed under the appropriate penal laws.
Section 88. Guidelines on Use of Appropriations. —
The President may supplement, change, adjust, modify or amend those
provisions of this Decree and other pertinent laws which govern the
expenditure of appropriated funds, including changes in rates otherwise
specified. The Budget Commission shall conduct on a continuing basis
and as part of its regular functions, studies and analyses needed to
improve upon existing guidelines and shall submit these to the
President with appropriate recommendations and for promulgation as
provided for under this section.
FINAL PROVISIONS
Section 89. Rules and Regulations. — The Budget
Commission shall issue the rules and regulations governing the
implementation of this Decree.
Section 90. Repealing Clause. — The provision of
Sections 1656 and 1657 of the Revised Administrative Code, Commonwealth
Act No. 246, Republic Act No. 992, Presidential Decrees No. 75 and 999
and all laws, decrees, executive orders, rules and regulations or parts
thereof which are inconsistent with the provisions of this Decree are
hereby repealed and/or modified accordingly.
Section 91. Separability Clause. — If for any reason,
any section or provision of this Decree is declared to be
unconstitutional or invalid, other sections or provisions thereof which
not affected thereby, shall continue in full force and effect. chanroblesvirtualawlibrary
Section 92. Effectivity. — This Decree shall take
effect immediately. chanroblesvirtualawlibrary
Done in the City of Manila,
this 30th day of July in the year of Our Lord, nineteen hundred and
seventy-seven.
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Since 19.07.98
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