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PRESIDENTIAL DECREE NO. 999
PRESIDENTIAL DECREE NO. 999 -
AMENDING REPUBLIC ACT NUMBERED NINE HUNDRED AND NINETY-TWO, KNOWN AS
THE REVISED BUDGET ACT
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chanroblesvirtualawlibrary
WHEREAS,
the National Budget should reflect the total national fiscal position,
provide for the regionalization of expenditures, and in other respects
be more supportive of agency organization and activities; and
WHEREAS, there is a need to update budgetary law and procedure to
enable the budget to more fully support governmental programs for
economic and social advancement; and
WHEREAS, the budget reporting and monitoring process can be improved
through the adoption and consistent application of a management
information system;chanroblesvirtualawlibrary
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. Section 2 of Republic Act No. 992 is
hereby amended to read as follows:cralaw:red
"Sec. 2. Declaration of Policy. — It is hereby
declared policy that the National Budget shall be formulated as an
instrument of national development and that government budgeting 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 budget shall reflect all
revenues, expenditures, domestic or foreign borrowings and donations,
of all levels of government, including those of government-owned or
controlled corporations and local governments. The budget shall
likewise provide for the regionalization of government operations."
Section 2. Section 3 of Republic Act No. 992 is
hereby amended to read as follows:cralaw:red
"Sec. 3. Definition of Terms. — When used in this Act:cralaw:red
a. The term "Budget" means the budget required by
Section Sixteen (1), Article VIII of the Constitution, and which is
referred to in Section Seven of this Act.
b. The term "Government" means the National
Government, including government-owned or controlled corporations and
their subsidiaries, and local governments.
c. The terms "department and agency" and "department
or agency" means any department, bureau, office, board, commission,
court, tribunal, council, authority, administration, center,
institution, state college or university, or any establishment and
instrumentality of the National Government as defined in the preceding
paragraph. chanroblesvirtualawlibrary
d. The term "current operating expenditures" refers
to appropriations spent for the purchase of goods and services for
current consumption or within the fiscal year, including the
acquisition of furniture and equipment usually used in the conduct of
normal government operations, and temporary construction used for
promotional and research purposes.
e. The term "capital outlays" or "capital
expenditures" refers to the purchase of goods and services of longer
life-expectancy extending beyond the fiscal year and which add to the
assets of the Government, including investments and the capital of
government-owned or controlled corporations and their subsidiaries.
f. The term "expected results" means services,
products, or benefits that will accrue to the public, together with the
estimated unit cost of each type of service, product or benefit.
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."
Section 3. Section 6 of Republic Act No. 992 is
hereby amended to read as follows:cralaw:red
"Sec. 6. Functions and Powers of the Commission. —
The functions and powers of the Commission shall be as follows:cralaw:red
a. To prepare the Budget and other appropriation
proposals under such policies as the President may adopt. To this end,
the Commission shall have authority to assemble, correlate, revise,
reduce or increase the requests for appropriations of the National
Government and to see how their respective programs are related to each
other and how they may be shaped into a harmonious program and fiscal
policy for the National Government.
b. To exercise functional supervision over financial
and management staffs of agencies particularly budget officers and
management analysts, and provide technical assistance and consultative
services, in the fields of budgeting, organization design, management
reporting and control, compensation and position classification,
management evaluation and other related areas. chanroblesvirtualawlibrary
c. To study departments and agencies, including
government-owned or controlled corporations and their subsidiaries, for
the purpose of enabling the President to determine what changes, with a
view to securing greater economy and efficiency in the conduct of the
public service, should be made in (1) the existing organization,
activities, and methods of business of such departments or agencies,
(2) the appropriation therefor, (3) the assignment of particular
activities to particular services, (4) the regrouping of services, and
(5) the evaluation of cost-benefit effectiveness of government agencies.
d. To develop a reporting system which will allow
the monitoring of fund releases, including the design of report forms
to be accomplished by agencies through their accounting, budgeting and
other units, and to issue rules and regulations applicable to the
accomplishment and submission of such forms.
e. To conduct training programs to be attended by
personnel of national and local governments and the private sector,
particularly for financial and management staffs of government
agencies, in budgeting, organization design, management reporting and
control, compensation and position classification, management
evaluation and other topics related to the agencies' work, acting under
guidelines as may be formulated by the Civil Service Commission."
Section 4. Section 8 of Republic Act No. 992 is
hereby amended to read as follows: chanroblesvirtualawlibrary
"Sec. 8. Form and Content. — The Budget shall consist
of two parts — (1) current operating expenditures, and (2) capital
outlays. Each part of the budget shall comprise such Funds as may be
necessary for the operation of the programs, projects and/or activities
of the different departments and agencies. The Budget shall embody as
appendices the proposed General Appropriations Act, the Public Works
Act, and other Appropriation Acts to cover the budget proposals.
The Budget shall be presented in such form and content as may be
approved by the President and may include the following:cralaw:red
a. a budget message setting forth in brief the
significance of the appropriations proposed;chanroblesvirtualawlibrary
b. a brief summary of the functions and activities of
the Government; and
c. 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 revenues, domestic
or foreign borrowings, and donations;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, contained in the Budget;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) balanced 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, if the financial proposals contained in the Budget
are adopted, showing, at the same time, the unencumbered and
unobligated cash resources;chanroblesvirtualawlibrary
(6) all essential facts regarding the bonded and
other long-term obligations and indebtedness of the Government, both
domestic and foreign; and chanroblesvirtualawlibrary
(7) such other financial statements and data as are
deemed necessary or desirable in order to make known in all practicable
detail the financial condition of the government, including (a)
regional breakdowns of the government budget, (b) sectoral allocation
of the same, (c) local government share of the total resources and (d)
government corporations allocations."
Section 5. Section 10 of Republic Act No. 992 is
hereby amended to read as follows:cralaw:red
"Sec. 10. Budget Estimates. — Each head of department
or agency of the National Government shall submit his request for
appropriations to the Budget Commission in accordance with the Budget
calendar and such rules and regulations as may be issued in accordance
with this Act.
The budget estimates shall include the following:cralaw:red
a. Major 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 costs involved.
b. Current operating expenditures and capital
outlays.
c. Identification by region, pursuant to existing
policies or regionalization of government operations.
d. Financing sources reflecting all revenues,
foreign and domestic borrowings, and donations.
e. Contingent liabilities, including national
government guarantees of obligations of government-owned or controlled
corporations.
f. Brief description of the nature of work to be
performed and the significance and scope of each program by activity,
service, end-product or benefit, and major thrusts for the ensuing
fiscal year. "
Section 6. A new Section 15-A is added after Section
15 of Republic Act No. 992 to read as follows:cralaw:red
"Sec. 15-A. Cash Budget System. — To ensure the
availability of cash resources for priority development projects and to
establish a better rationale for recommending the level, type and
timing of public borrowing, an operational cash budget shall be
followed in accordance with the procedure as approved by the President
upon recommendation of the Secretary of Finance, the Commissioner of
the Budget and Commission on Audit."
Section 7. Section 23 of Republic Act No. 992 is
hereby amended to read as follows:cralaw:red
"Sec. 23. Reversion of Unexpended Balances of
Appropriations. —chanroblesvirtualawlibrary
(a) The unexpended balances of annual appropriations
authorized in the General Appropriations Act shall revert to the
unappropriated general fund in the National Treasury at the end of the
fiscal year for which such appropriations are authorized, and shall not
thereafter be available for expenditure except by subsequent
legislative enactment. chanroblesvirtualawlibrary
(b) The balances of continuing appropriations shall
be reviewed as part of the annual budget preparation process, and the
Commissioner of the Budget may recommend for the President's approval
the reversion of funds no longer necessary to complete the activities
funded by said appropriations."
Section 8. Sections 24 and 25 of Republic Act No. 992
are hereby renumbered Sections 26 and 27, respectively, and new
Sections 24 and 25 are hereby added to read as follows:cralaw:red
"Sec. 24. Budget Monitoring and Information System. —
The Commission shall identify 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, timing of submission, and other components
of the 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."
"Sec. 25. Miscellaneous Provisions. —chanroblesvirtualawlibrary
"Sec. 25-A. Restrictions on Salary Increases. — No
portion of the appropriations provided in the General Appropriations
Act shall be used for payment of salary 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 by the Compensation and Position
Classification Plans, be paid unless the positions have been classified
by the Office of Compensation and Position Classification.
"Sec. 25-B. Authority to Use Savings for Certain
Purposes. — Savings in the appropriations provided in the General
Appropriations Act for the Executive Department may be used for the
settlement of the following obligations incurred during a current
fiscal year or previous fiscal years as approved by the Commissioner of
the Budget in accordance with rules and procedures as may be issued by
the President:cralaw:red
A. Personal Services
(1) Claims of officers, employees and laborers who
died or were injured in line of duty, including burial benefits
provided under existing law;chanroblesvirtualawlibrary
(2) 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
(3) Payment of retirement gratuities or separation
pay of employees separated from the service due to government
organization;chanroblesvirtualawlibrary
(4) Payment of salaries of employees who have been
suspended or dismissed as a result of an administrative case 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 authorities;chanroblesvirtualawlibrary
(5) Cash awards to deserving officers and employees
in accordance with the Civil Service Law; and
(6) Salary adjustment of officers and employees as a
result of classification action under the Compensation and Position
Classification Plans.
B. Authorized Projects and Activities
(1) Peso support to any undertaking that may be
received by the government from foreign entities and organizations,
including administrative and other incidental expenses; chanroblesvirtualawlibrary
(2) Covering any deficiency in counterpart fund
commitments for foreign-assisted projects as may be approved by the
President;chanroblesvirtualawlibrary
(3) Priority activities that will promote the
economic well-being of the people such as food production, energy
development, and disaster relief and rehabilitation;chanroblesvirtualawlibrary
(4) Repair, improvement and renovation of government
buildings and infrastructures and other capital assets that have been
damaged by natural calamities; and
(5) 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 official or special holidays which may be declared.
C. Legal Obligations
(1) Payment of obligations of the Government or any
of its departments or agencies as a result of final judgment of the
Courts; and
(2) Payment of valid prior years' obligations of
government agencies with any other government office.
"Sec. 25-C. 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 of each approved program
and project of any Department of the Executive Branch of the Government
and those of the bureaus and offices under the same Department, may,
with the approval of the President be used to cover a deficit in any
other item of the regular appropriations except for the creation of new
positions or increase of salaries under the same Department: Provided,
however, That whenever authorized positions are transferred from one
program or project to another within the same Department, the
corresponding amounts appropriated for personal services are also
deemed transferred, without increasing the total outlay for personal
services of the Department concerned.
"Sec. 25-D. Suspension of Expenditures of
Appropriations and Transfer Thereof— Except 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 the expenditures
or any other expenditure authorized in the General Appropriations Act
as the President may determine, except for personal services: Provided,
however, That whenever authorized positions are transferred from one
program to another, the corresponding amounts appropriated for personal
services are also deemed transferred, without increasing the total
outlay for personal services of the office concerned.
"Sec. 25-E. Substitutionary Service. — Any provision
of law to the contrary notwithstanding and subject to the approval of
the Commissioner of the Budget, savings in the appropriations of a
department, bureau or office, when authorized by the department head
concerned and upon issuance of a duly approved temporary appointment,
may be used for the payment of the salary differential of a substitute
officer or employee who takes the place and performs the duties of
another who is temporarily absent from his post with pay. chanroblesvirtualawlibrary
"Sec. 25-F. Adjustment of Appropriations for
Reorganized Agencies and Salaries of Personnel Thereof— The
appropriations provided in the General Appropriations Act for agencies
to be reorganized in accordance with the approved reorganization plans
as well as those to be reorganized pursuant to later law issued but not
yet implemented are deemed appropriated and shall be available for the
agencies as reorganized and approved by the President. The Commissioner
of the Budget is hereby authorized to make necessary adjustments in the
appropriations to carry out the provisions of this Section.
Furthermore, the department head concerned, with the approval of the
Commissioner of the Budget, is hereby authorized to make necessary
salary adjustment 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 made in the interim and make necessary
adjustments resulting from changes in the staffing patterns authorized
by the Commissioner of the Budget, to correct mistakes, discrimination
or injustices that may in his opinion, have been committed in the
preparation thereof: Provided, however, That any such adjustments in
the staffing patterns of reorganized agencies which have been or may be
authorized but not yet reflected in the General Appropriations Act
shall be given due course by adjusting the corresponding appropriations
herein authorized.
"Sec. 25-G. Cost Reduction. — Subject to the approval
of the respective department heads, every head of bureau, office or
agency shall institute a cost reduction program for his bureau, office
or agency for the purpose of reducing cost or operations and shall
submit to the Commissioner of the Budget reports on the results of the
implementation thereof. 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 saving resulting therefrom. chanroblesvirtualawlibrary
"Sec. 25-H. 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 or departments, bureaus, and offices to
submit trial balances, work and financial plans, special budgets,
reports of operation and income, current agency plantilla of personnel,
and such other reports as may be necessary and required by the
Commissioner of the Budget and/or the Chairman, Commission on Audit
shall automatically cause the suspension of payment of their salaries
until they shall have complied with the requirements of the Budget
Commission and the Commission on Audit. No appropriation authorized in
the General Appropriations Act shall be 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 officer or employee.
"Sec. 25-I. Motor Vehicles. — Officials entitled to
government motor transportation and the purchase, use, operation, and
maintenance of government motor transportation and the purchase, use,
operation and maintenance of government motor transport equipment shall
be governed by such rules and regulations as may be issued by the
President.
"Sec. 25-J. Service Fees. — The Budget Commission is
hereby authorized to charge fees, including honoraria and other
reasonable allowances, against agencies requesting consultative or
technical services beyond the normal scope of such services."
Section 9. Repealing Clause. — All laws, rules and
regulations which are inconsistent with the provisions of this Decree
are hereby repealed.
Section 10. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 16th day of September, in the year of Our Lord, nineteen hundred
and seventy-six.
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