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BATAS PAMBANSA BILANG. 40BATAS PAMBANSA BLG. 40 - AN ACT
APPROPRIATING FUNDS FOR THE OPERATION OF THE GOVERNMENT OF THE REPUBLIC
OF THE PHILIPPINES DURING THE PERIOD JANUARY ONE TO DECEMBER
THIRTY-ONE, NINETEEN HUNDRED AND EIGHTY AND FOR OTHER PURPOSES
Section 1.
Appropriation of funds. — The following sums, or so much thereof as may
be necessary, are hereby appropriated out of any funds in the National
Treasury of the Philippines not otherwise appropriated, for the
operation of the Government of the Republic of the Philippines from
January one to December thirty-one, nineteen hundred and eighty, except
where otherwise specifically provided:
For the sake of brevity, the itemization under this Section of the
funds appropriated for the operation of the Government had been
deleted. Please refer to the unabridged version of the pertinent
General Appropriations Act for the details.
GENERAL PROVISIONS
RECEIPTS and INCOME
Sec. 2. Fees and Charges. — Ministries, bureaus,
offices or agencies are authorized to collect fees for services
rendered in the exercise of their functions at such rates as may be
approved by the Minister concerned.
The income from such assessments, fees or charges shall be deposited
with the National Treasury and shall accrue to the General Fund
pursuant to P.D. No. 711: Provided, That receipts may be recorded as
being held in trust or as trust receipts or income only with the
approval of the Minister of Finance: Provided, further, That whenever
practicable and taking into account the cost reduction program of
government, when an agency arranges with another government
office for the printing of publications and other information
materials, production and fabrication of furniture or equipment or for
computer services, in such event, the agency rendering such services
shall assess the requesting agency for the cost of production and
services rendered and may utilize the said proceeds, subject to Sec. 40 of P.D. No. 1177, except as herein otherwise provided.
Sec. 3. Seminar Fees. — Ministries, bureaus,
offices or agencies which conduct training programs are authorized to
collect seminar and conference fees from government and private agency
participants, the rates of which shall be determined in accordance with
Letter of Instructions No. 565. The proceeds derived from seminars
approved jointly by the Civil Service Commission and the Ministry of
the Budget may be deposited in an authorized government depository bank
as a trust liability and shall be made available for expenditure
without the need for a Cash Disbursement Ceiling, to defray the costs
incurred for handouts, meals and other incidental expenses, including
speakers' honoraria at rates prescribed pursuant to P.D. No. 985,
withdrawable on the joint signatures of the authorized representatives
of the agency concerned and the Commission on Audit: Provided, That if
the income is deposited in a savings or time deposit account, the
interest thereon shall accrue to the General Fund. The Ministry of the
Budget and the Commission on Audit shall promulgate the necessary rules
and regulations to implement this provision.
Ministries, bureaus, offices or agencies concerned shall submit to the
Ministry of the Budget a monthly report of income and quarterly report
of expenditures, and in case of failure to submit said requirements,
the Commission on Audit, upon recommendation of the Minister of the
Budget, shall suspend withdrawals from the funds deposited until such
time that said requirements are complied with.
Sec. 4. Sale of Products. — Ministries, bureaus,
offices or agencies are authorized to sell products of agricultural,
industrial or other projects, including official publications, and the
proceeds derived therefrom shall be deposited in the National Treasury
and accrue to the General Fund, unless otherwise provided by law,
pursuant to P.D. No. 711.
Sec. 5. Donations. — Ministries, bureaus, offices
or agencies are authorized to accept donations, contributions, grants,
bequests, or gifts, in cash or in kind. Cash proceeds shall be
deposited with the National Treasury as a Special Account in the
General Fund and shall be used or expended only in accordance with the
wishes of, and purposes specified by the benefactor or donor, subject
to Sec. 40 of P.D. No. 1177. Contributions or gifts in kind intended
for beneficiaries, which are perishable in nature that would require
storage or distribution expenditures of more than forty per cent of
their current market value may be sold at public auction and the
proceeds derived therefrom shall be deposited in like manner as if they
were in cash, subject to the conditions imposed by the donor. All such
receipts, including equipment and other fixed assets, shall be recorded
in the books of government and subject to pertinent accounting and
auditing rules and regulations.
Sec. 6. Performance Bonds and Deposits. —
Performance bonds and deposits filed or posted by private persons or
entities with offices or agencies of the government shall be deposited
with authorized government depository banks as trust liabilities of the
office or agency concerned, withdrawable upon the joint signatures of
the authorized representatives of the agency and the Commission on
Audit. Upon faithful performance of the undertaking or termination of
the obligation for which the bond or deposit was required, any amount
due shall be returned to the filing party and the office or agency
concerned is authorized to withdraw said amount without the need for
Cash Disbursement Ceiling: Provided, That if the amount is deposited in
a savings account, the interest accruing thereto, including any
forfeited amount shall be recorded as income of the General Fund. This
provision shall apply to all other bonds posted in cash, such as
bidder's bond, guaranty bonds, bail bonds, judicial deposits for the
benefit of clients, cash under litigation deposited in court and other
refundable deposits and judicial bonds, and all bonds and deposits
required by law, rules or regulations to be posted to insure the
faithful performance of an activity or undertaking.
SAVINGS
Sec. 7. Compulsory Savings. — All Ministries,
bureaus, offices or agencies, including state universities and
colleges, shall institute a cost reduction program for the purpose of
reducing cost of operations. The Heads of Ministry shall submit a
report to the President (Prime Minister), covering agencies within
their jurisdiction. The Ministry of the Budget shall provide technical
and other necessary assistance.
Sec. 8. Transfer of Salary Savings Prohibited. —
The provisions of Sec. 7 (c) of C.A. No. 186, as amended, to the
contrary notwithstanding, no savings from personal services shall be
transferred to the Government Service Insurance System for payment of
benefits.
Sec. 9. Conditions for Reprogramming of Savings in
Appropriations. — Any provision in this Act to the contrary
notwithstanding, the authority granted in the special budgetary
provisions of the different Ministries, bureaus, offices or agencies
under Executive Branch to utilize, by way of transfer, savings in
appropriations to augment other items of appropriation in the same
Ministry, bureau, office or agency, shall be subject to the approval
of, or upon authority by, the President (Prime Minister), pursuant to
Sec. 45, P.D. No. 1177 and Letter of Implementation No. 29.
Sec. 10. Use of Savings. — The President (Prime
Minister) of the Philippines is authorized to use savings in the
current appropriations for the Ministries provided in this Act for the
settlement of the following obligations incurred during the budget year:
a. Energy research, exploration, development, and
implementation activities;
b. Payment of hazard duty pay and of gratuity or
separation pay of employees who are entitled thereto under existing law
or are laid off as a result of the elimination of their position under
authorized procedures;
c. Payment of the share of the National Government in
the salaries of officials and employees in newly created and/or
reclassified local government units where no appropriation has been
provided in this Act or where the authorized appropriation is not
sufficient to cover the salaries of the said officials and employees;
d. Provision for social and economic opportunities
and such other activities intended for the welfare of the minorities as
may be undertaken by the Presidential Assistant on National
Minorities;
e. Rural improvement and community development
projects such as feeder roads, artesian wells, spring development,
river and flood control, sea walls, communal irrigation, schoolhouses,
bridges, environmental sanitation, and health projects to promote the
economic well-being of the rural areas, including support for the
solution of energy, agricultural, health, and agrarian problems;
f. Organization, activation, training and operation
of military units for the purpose of implementing agency development
projects in areas adversely affected by peace and order problems,
including salaries and allowances of all military personnel assigned
thereto;
g. Payment of obligations of the National Government
or any of its Ministries or agencies arising from perfected and valid
contracts or international agreements;
h. Payment to the Government Service Insurance System
of annual life insurance premiums of barangay officials and Kabataang
Barangay Chairmen as authorized by law;
i. Purchase of equipment, including motor vehicles,
to replace those lost through theft or robbery, accident, fire or
typhoon and other natural calamities, and to replace unserviceable and
condemned items;
j. Expansion of essential facilities and services,
including the opening of additional classes in elementary, secondary
and vocational schools, as may be approved by the President (Prime
Minister);
k. Funding of foreign exchange and peso requirements
of foreign-assisted projects; and
l. Implementation of the provisions of Proclamation
No. 1081, dated September 21, 1972 and all Presidential Orders, Decrees
and Instructions issued as a consequence of said Proclamation.
AUTHORIZED EXPENDITURES
Sec. 11. Expenditure Components. — Any provision
of law to the contrary notwithstanding, any change or modification in
the definition of items and objects of expenditure referred to in the
General Appropriations Act and other Appropriation Laws or
Executive issuances promulgated pursuant thereto shall require the
concurrence of the Minister of the Budget: Provided, however, That no
change or modification shall be allowed which shall alter the program
or project thrusts included in this Act.
Sec. 12. Expenditures and Disbursement of Special
Funds or Income. — Except as otherwise provided in this Act, no portion
of any special fund and/or special income of an agency which are
automatically appropriated shall be disbursed or released which will
exceed at any one time the amount actually deposited in the same fiscal
year in the National Treasury from the same funds or income, except
when in the opinion of the President (Prime Minister) such expenditure
or disbursement is required by the exigency of the service and
sufficient receipts are expected to accrue to such funds or income
within the same fiscal year to cover said expenditure or disbursement,
in which case the necessary amount may be advanced from the General
Fund.
Sec. 13. Key Budgetary Inclusions. — The Key
Budgetary Inclusions (KBI) of Ministries, bureaus, offices or agencies
shall be released and used only for the indicated purposes and
conditions, except as may be otherwise approved by the President (Prime
Minister), pursuant to P.D. No. 1177: Provided, That the amounts herein
appropriated, with funding from loan proceeds or donations, shall be
released only to the extent of actual drawdowns or receipts, as the
case may be, and shall not be used for any purpose other than that
specified.
Sec. 14. Proceeds from Economic Assistance. —
Proceeds from economic aid derived from the Military Bases Agreement
shall accrue to the General Fund and shall be made available to finance
the Bagong Lipunan Improvement of Sites and Services (BLISS) Program,
school building program, and for other priority projects that may be
approved by the President (Prime Minister).
Sec. 15. Cash Advances for Foreign-Assisted
Projects. — Any provision of law to the contrary notwithstanding, cash
advances may be authorized to meet the expenditure requirements of
foreign-assisted projects in cases where the approved project/loan
agreement provides specifically for a reimbursement mechanism for
expenses incurred, subject to the approval of the Minister of the
Budget and to applicable accounting and auditing regulations.
Sec. 16. Foreign Military Purchases and Other
Importations. — Purchases under foreign military sales agreements,
heavy equipment imports for infrastructure projects and other
importations of agencies which are financed by foreign borrowings or by
Central Bank consolidated borrowing programs shall be subject to the
requirement of certification to the availability of appropriations
released for the purpose and to applicable rules and regulations.
Sec. 17. Foreign Exchange Requirements. — Except
as otherwise provided in this Act, the appropriations for Ministries,
bureaus, offices or agencies allotted for maintenance and other
operating expenses may be used to pay for foreign exchange requirements
of duly approved activities.
Sec. 18. Legal Assistance. — With the approval of
the President (Prime Minister) and upon recommendation of the Minister
of Justice and the Presidential Commission on Reorganization, the funds
herein appropriated for legal assistance activities, including those in
the Ministry of Justice, Ministry of Labor, Ministry of Agrarian
Reform, Ministry of Agriculture, the assistance to the Integrated Bar
of the Philippines provided in the Judiciary, and other agencies, may
be realigned so as to ensure a fully integrated legal assistance
program.
Sec. 19. Dues to International Organizations. —
Except as otherwise provided in this Act, specific appropriations
covered by key budgetary inclusions and allotted for maintenance and
other operating expenses may be used for the payment of dues to
international organizations, membership in which is duly approved by
competent authority.
Sec. 20. Seminar Expenses. — Ministries, bureaus,
offices or agencies are authorized to conduct seminars, workshops,
conferences, and in-service training courses for their respective staff
members, including employees of other government agencies and the
private sector. The expenses incurred shall be chargeable to the
appropriations of their respective offices and to the proceeds from
fees collected under Sec. 3 hereof. Per diems and allowances of
employees attending such courses may be withheld to the extent of the
amount paid by the agency for board, lodging and/or transportation from
its appropriation.
Sec. 21. Repair of Buildings. — Ministries,
bureaus, offices or agencies, including public schools, Courts of
justice and hospitals, are authorized to use their appropriations
allotted for maintenance and other operating expenses for minor repairs
of their offices and buildings.
Sec. 22. Limitation on Purchase of Supplies,
Materials and Equipment Spare Parts. — The stock on hand of supplies,
materials and equipment spare parts, to be acquired thru ordinary
purchase out of appropriations herein provided shall at no time exceed
normal three-month requirements, subject to pertinent rules and
regulations issued by competent authority: Provided, That heads of
Ministries, bureaus, offices or agencies or other instrumentalities of
the government may approve the build-up of stocks on hand of critical
supplies and materials, in anticipation of cost increases, of
requirements of a national emergency, or of an impending shortage in
the items concerned, specifying maximum quantities of individual items,
but in no case shall these stocks exceed more than one year's need,
unless otherwise approved by the President (Prime Minister) upon the
recommendation of the Ministry of the Budget and the Commission on
Audit.
Sec. 23. Purchase of Locally Manufactured
Products. — All appropriations for the purchase of equipment, supplies
and materials authorized in this Act shall be available preferably 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 exceeds
those determined by the Flag Law.
Sec. 24. Emergency Purchases. — Unless otherwise
provided in this Act, Ministries, bureaus, offices or agencies of the
National Government are authorized to make emergency purchases of
supplies, materials and spare parts of equipment that are urgently
needed to meet an emergency which may involve the loss of, or danger
to, life and/or property or are to be used in connection with a project
or activity which cannot be delayed without causing detriment to the
public service, in a monthly amount not exceeding four per centum
of the annual agency expenditure program for supplies and materials out
of the appropriations allotted for maintenance and other operating
expenses of the agency concerned, except as may be authorized by the
Office of the President (Prime Minister) upon the join recommendation
of the Chairman, Commission on Audit and the Minister of the Budget.
Sec. 25. Cultural and Athletic Activities. —
Except as otherwise provided in this Act, appropriations allotted for
maintenance and other operating expenses not exceeding P15,000 per
annum for each non-regionalized bureau, office or agency, or P30,000
for each regionalized bureau, office or agency, may be used for
cultural and athletic activities, including purchase of uniforms at not
more than P150 for each participant, and for supplies and necessary
expenses for said activities, subject to Sec. 40, P.D. No.
1177.
Sec. 26. Extraordinary and Miscellaneous Expenses.
— Except as otherwise provided in this Act, appropriations herein
authorized may be used for extraordinary expenses not exceeding: (a)
P30,000 for each Minister or equivalent; (b) P10,000 for each Deputy
Minister or equivalent; (c) P4,000 for each Assistant Secretary,
Director or head of bureau, office, or central organization of equal
rank; (d) P3,000 for each Ministry Regional Director, and (e) P2,000
for each Bureau Regional Director. Each bureau, office or central
organization of equal rank is also authorized to use an amount not
exceeding P6,000 per annum for official entertainment and other
miscellaneous expenses. These expenditures shall be payable on
reimbursement basis upon presentation of receipts and chargeable to
appropriations allotted for maintenance and other operating expenses of
the corresponding office.
For purposes of this Section , extraordinary and miscellaneous expenses
shall include, but not be limited to, expenses incurred for or during
meetings, seminars and conferences, official entertainment, public
relations, educational, athletic and cultural activities, contributions
to civic or charitable institutions, membership fees in government
associations, subscription to professional technical journals and
informative magazines and materials, and other similar expenses that
are not supported by the regular budget allocation: Provided, That no
portion of the amounts authorized herein shall be used for the creation
of positions, nor for salaries, wages or allowances.
Sec. 27. Intelligence and Confidential Funds. —
Intelligence and confidential funds provided for in budgets of agencies
of the National Government shall be released only with the approval of
the President.
Sec. 28. Information Outlay. — The appropriations
pertaining to information activities of the various Ministries,
bureaus, offices, or agencies shall be released upon presentation of an
appropriate program of activities prepared in coordination with the
Ministry of Public Information.
Sec. 29. Computer Equipment. — The appropriations
authorized in this Act for the purchase of computer equipment shall be
released only with the approval by the President (Prime Minister) upon
recommendation of the National Computer Center.
CONTRACTS
Sec. 30. Loan Agreements. — Ministries, bureaus,
offices or agencies shall in no case enter into foreign or domestic
loan agreements, whether in cash or in kind, unless the whole amount of
the loan component is covered by the programmed appropriations of the
contracting agency. The proceeds of such foreign or domestic borrowings
shall not be utilized unless covered by an advice of appropriations
allotment.
Sec. 31. Funding for Contracts. — Notwithstanding
the availability of deferred payment terms, Ministries, bureaus,
offices or agencies concerned, before entering into a contract
involving the expenditure of public funds, including contracts for
services or consultancy, contracts of lease, equipment rental,
construction of partitions or improvements in a leased building, or
contracts involving an increase in the approved contract price shall
secure a certification of availability of funds for the purpose,
subject to applicable rules and regulations as may be issued by the
Ministry of the Budget, and to Sec. 64, P.D. No. 1177: Provided,
however, That any appropriations authorized in this Act for rental of
buildings shall be disbursed only upon approval by the Minister
concerned.
Sec. 32. Future Payment of Contractual
Obligations. — Ministries, bureaus, offices or agencies, before
entering into contracts for the present delivery of goods or services
against promises of future payment, shall first secure fund
certification for the full contracted amount for such goods or services
out of the agency's appropriations. No work may be undertaken without
such fund availability. When such appropriation is not available or is
insufficient, the necessary funds may be charged to the Special
Activities Fund, upon approval of a Special Budget provided under
Sec. 40 of P.D. No. 1177, and the required payments shall then be
charged to the Debt Service Fund provided in this Act when the
obligation falls due.
Sec. 33. Conditions for Lease-Purchase Agreement.
— Ministries, bureaus, offices or agencies may enter into agreements or
contracts for lease-purchase of equipment in accordance with the
approved equipment program of the agency, subject to the pertinent
accounting and auditing regulations and to the condition that such
contracts or agreements will be more advantageous to the government
than contracts of outright purchase. The details of payment shall be
indicated in the lease-purchase agreement and accompanied with
certification of availability of funds to cover the full contract cost:
Provided, That all lease-purchase agreements of equipment in excess of
P100,000 shall be subject to the approval of the President (Prime
Minister) upon recommendation of the Minister of the Budget.
PERSONAL SERVICES AND BENEFITS
Sec. 34. Transportation and Representation
Allowances. — The following officials and those of equivalent rank as
may be determined by the Ministry of the Budget are hereby granted
monthly commutable transportation and representation allowances which
shall be paid from the programmed appropriations provided for their
respective offices, not exceeding the rates indicated below, which
shall apply to each type of allowance:
a. At P450 for Ministers;
b. At P400 for Career Executive Service Rank I
officials;
c. At P350 for Career Executive Service Rank II
officials;
d. At P300 for Career Executive Service Rank III
officials;
e. At P250 for Career Executive Service Rank IV
officials;
f. At P200 for Career Executive Service Rank V
officials; and
g. At P150 for Chiefs of Divisions, identified as
such in the Personal Services Itemization.
The transportation allowance herein authorized shall not be granted to
officials who use government motor transportation, except as may be
approved by the President (Prime Minister). Unless otherwise provided
by law, no amount appropriated in this Act shall be used to pay for
representation and or transportation allowances, whether commutable or
reimbursable, which exceed the rates authorized under this Section .
Previous administrative authorizations not consistent with the rates
and conditions herein specified shall no longer be valid and payment
shall not be allowed.
Sec. 35. Official Vehicles and Transport. —
Government motor transportation may be used by the following officials,
and those who may be specifically authorized by the President (Prime
Minister), with costs chargeable to the appropriations authorized for
their respective offices:
a. The President (Prime Minister) of the Philippines;
b. The Chief Justice of the Supreme Court;
c. The Speaker of the Batasang Pambansa;
d. The Deputy Prime Minister;
e. The Ministers, Deputy Ministers and officials of
equivalent rank;
f. The Presiding Justice of the Court of Appeals;
g. The Ambassadors, Ministers Plenipotentiary and
Consuls in charge of Consulates, in their respective stations abroad;
h. The Chief of Staff, the Vice Chief of Staff, and
the Commanding Generals of the major services of the Armed Forces of
the Philippines; and
i. The Heads of Constitutional Offices.
Sec. 36. Uniform/Clothing Allowance. — Except as
otherwise provided in this Act, or as may be authorized by the
President (Prime Minister), appropriations for each Ministry, bureau or
office at such sums as may be necessary, may be used for uniform and/or
clothing allowance of employees at not more than P150 each per annum.
Savings in the appropriations for each Ministry, bureau or office may
be used for this purpose where no amount is specifically appropriated
in this Act. The allowance herein authorized shall be used for the
purchase of clothing material of the same quality, cut and style as may
be prescribed by the Minister concerned for each office or group of
employees, subject to such rules and regulations as may be promulgated
by the Commission on Audit to ensure that the highest quality of
material at the lowest cost are obtained for such clothing
materials.
Employees occupying positions which require the wearing of specialized
uniform, such as security guards, prisons guards, customs police,
quarantine officers, road maintenance men, street sweepers, hospital
attendants and other employees as may be determined by the Minister of
the Budget shall also be entitled to uniform allowance herein provided,
subject to the availability of agency funds.
Sec. 37. Hazardous Duty Pay. — The Minister of the
Budget and the Minister of National Defense shall review from time to
time authorizations for the payment of hazardous duty pay and shall
terminate authorizations earlier issued if conditions no longer justify
the continuation of hazardous duty pay. The rates of hazardous duty pay
in strife-torn and/or embattled areas shall be based on the following
classification:
a. Hazardous Area. Site of armed encounters between
government troops and enemy forces and/or enemy-initiated attacks,
raids or ambuscades. It is also an area where enemy
concentration/training camps are reported.
b. Less Hazardous Area. Area where insurgent/rebel
activities are mainly non-violent such as agitation/propaganda,
recruitment and expansion and to a limited extent harassment and forced
solicitation of material/financial support from civilians.
Sec. 38. Honoraria. — Ministries, bureaus, offices
or agencies are authorized to pay from their respective appropriations,
honoraria to resource speakers, researchers, experts, and specialists
who are acknowledged authorities in their field of specialization, for
services rendered at such rates as the Minister of the Budget may
authorize, unless otherwise specifically provided by law.
Sec. 39. Incentive or Services Fees. — Incentive
or service fees paid by the Government Service Insurance System or by
private companies which are intended for employees servicing them shall
be deposited with the National Treasury and shall accrue to the General
Fund, pursuant to P.D. No. 711. Such fees shall be made available for
payment to employees in accordance with rates approved by the Minister
concerned, subject to Sec. 40 of P.D. No. 1177: Provided, That the
share of any employee may not, in the aggregate, exceed fifty per
centum of his annual salary.
Sec. 40. Special Counsel Allowance. —
Lawyer-personnel in the legal staffs of Ministries, bureaus, offices or
agencies of the National Government appearing in Court as special
counsel in collaboration with the Solicitor-General and/or Fiscals
concerned are hereby authorized an allowance of P100 for each
appearance, chargeable to savings in the appropriations allotted for
personal services of their respective offices, but not exceeding P400 a
month.
Sec. 41. Per Diems Abroad. — No per diem in excess
of fifty U.S. dollars shall be paid to any official or employee
traveling outside of the Philippines, except as may be approved under
Sec. 79, P.D. No. 1177.
Sec. 42. Conditions for Entitlement to Quarters
Allowance. — Except as may be authorized by law, government officials
and employees who, by virtue of their positions, are furnished free
quarters or are charged only a nominal rate, in government-owned
buildings, such as dormitories or living quarters in hospitals, state
colleges, universities and schools, foreign posts, and elsewhere, shall
forfeit entitlement to any quarters allowance. Where rented private
buildings are utilized for an official's quarters, the excess of rental
cost over the quarters allowance of the official shall be borne by him.
Those who enjoy free quarters in government-owned or rented buildings
but who are not entitled to quarters privilege shall be charged the
corresponding costs of rentals therefor. Unless fixed by law or
regulations, the rate of quarters allowance or rental, as the case may
be, shall be determined by the Minister of the Budget.
Sec. 43. Compensation of Contractual Personnel. —
Heads of Ministries, bureaus, offices or agencies, when authorized in
their respective appropriations as herein provided under this Act, may
hire consultants, experts and other contractual personnel to perform
specific vital activities or services which cannot be provided by the
regular staff of the agency, limited to such period when their services
are reasonably required and to activities that shall have a definite
expected output. Such contractual personnel may be paid compensation,
inclusive of fees, honoraria, per diems and allowances not exceeding
120% of the minimum salary of an equivalent position in the National
Classification and Compensation Plan, except as may be authorized by
the Minister of the Budget in the following instances: (a) when the
consultant or expert is an acknowledged authority in his field of
specialization; and (b) where the consultant or expert is hired to
perform a specific activity or service that requires technical skill
and expertise which local labor force cannot provide, or if such
expertise is available, the supply is limited: Provided, That in no
case shall such compensation exceed the salary of his immediate
superior, except as may be otherwise approved by the Civil Service
Commission and the Ministry of the Budget: Provided, further, That
services rendered under contractual employment shall not be credited
nor the compensation received for the period be used as basis for
computation of gratuity benefits for retirement purposes or for
the computation of all leave benefits, the provisions of Sec. 12(c)
of C.A. No. 186, as amended, and other laws to the contrary
notwithstanding.
For purposes of this Section , appointments to positions funded from
lump-sum appropriations for personal services for the payment of
consultants, technical, professional and expert services, confidential
assistants or other similar positions, or from capital outlays,
feasibility studies fund, special projects fund, and other funds which
may be used for personal services, are considered contractual in
nature. Appointments which are funded from special lump-sum
appropriations, subsidies and contributions from other agencies, shall
likewise be considered as contractual in nature from the effectivity of
this Act, except as may be determined by the Minister of the
Budget.
ADMINISTRATIVE PROCEDURES
Sec. 44. Review of Training Programs. —
Ministries, bureaus, offices or agencies shall formulate and review
their training programs in the light of their organizational needs to
provide their personnel at all levels with the necessary training,
skills development and employee attitudes geared towards national
development. Such training programs shall be submitted to the Training
Coordination Committee created under LOI No. 754, which shall evaluate
the training activities and no appropriation for training shall be
released without such evaluation.
Sec. 45. Direct Release of Funds to Regional
Offices. — Funds allotted for regional offices but included in the
budgets of their central offices or which are specifically allocated
for the different regions may be released directly to said regional
offices when dictated by the need and urgency of regional activities to
give impetus to regional development, pursuant to Sec. 38(e) of P.D.
No. 1177 and without the imposition of any reduction except the usual
budgetary reserves imposed by the Ministry of the Budget nor prejudice
to augmentation of shares from common funds released to the Central
Office. For this purpose, the Minister of the Budget shall identify by
region the expenditure programs of agencies in the national government
budget and shall release funds intended for them in accordance with the
approved regional distribution of expenditures, specifying the region
of destination.
Sec. 46. Release of Appropriations to Local
Government Units. — Funds appropriated herein for local government
units shall be released only when these local government units have an
approved budget pursuant to the provisions of P.D. No. 1375, except as
may be authorized jointly by the Ministry of Local Government and
Community Development, Ministry of Finance and Ministry of the
Budget.
Sec. 47. Unauthorized Organizational Units. —
Unless otherwise created by law or directed by the President (Prime
Minister), no organizational unit in any Ministry, bureau, office or
agency shall be authorized in their respective organizational
structures and be funded from appropriations provided by this Act,
without authority from the Presidential Commission on Reorganization
and the Ministry of the Budget. Organizational units created by
administrative authorizations shall be considered as ad hoc
arrangements that shall be staffed by contractual personnel, staff
members on detail or by temporary personnel where authorized.
Sec. 48. Construction Outlays. — In the
implementation of construction projects covered by appropriations
authorized in this Act under the various Ministries, bureaus, offices
or agencies of the National Government, including the construction of
buildings for state universities, colleges, schools, hospitals,
sanitaria, health centers and health stations, roads, and bridges, the
appropriate standards and specifications for the planning, survey,
design, and construction of the projects shall be prescribed by the
Ministry of Public Works, the Ministry of Transportation and
Communications, or the Ministry of Public Highways, as the case may be,
and in addition, land use and zoning guidelines shall be prescribed by
the Ministry of Human Settlements and Section s 2, 3, 4, 5, 6, 7, 9, and
10 of Batas Pambansa Blg. 13, entitled "An Act Appropriating Funds for
Public Works and Public Highways Projects and for Other Purposes,"
shall be strictly complied with wherever applicable.
Sec. 49. Implementation of Capital Outlays. — The
implementation of appropriations for capital outlays provided in this
Act for the various Ministries, bureaus, offices or agencies, which are
intended for capital projects, may be effected through the Ministry of
Public Works, the Ministry of Transportation and Communications, or the
Ministry of Public Highways, as the case may be, upon direction of the
President (Prime Minister).
Sec. 50. Motor Transport Equipment. — No
appropriations for equipment authorized in this Act shall be used
directly or indirectly for the purchase of motor transport equipment
unless otherwise specifically authorized by the President (Prime
Minister) upon recommendation of the Minister of the Budget as provided
by Letter of Implementation No. 29.
CONCLUDING PROVISIONS
Sec. 51. Repealing Clause. — All laws, rules and
regulations inconsistent with this Act except for P.D. No. 711 and
1177, as amended, are hereby repealed or modified accordingly.
Sec. 52. Separability Clause. — If for any reason,
any section or provision of this Act is declared unconstitutional or
invalid, other sections or provisions thereof which are not affected
thereby shall continue to be in full force and effect.
Sec. 53. Effectivity. — This Act shall take effect
on January one, nineteen hundred and eighty, unless otherwise provided.
Approved: September 7,
1979.
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