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REPUBLIC ACT NO. 8174 - AN ACT
APPROPRIATING FUNDS FOR THE OPERATION OF THE GOVERNMENT OF THE REPUBLIC
OF THE PHILIPPINES FROM JANUARY ONE TO DECEMBER THIRTY-ONE, NINETEEN
HUNDRED AND NINETY-SIX, 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 ninety-six, except where otherwise specifically provided
herein: I. CONGRESS OF THE PHILIPPINES A. SENATE For legislative services and related general administration and support services, including locally-funded project as indicated hereunder P562,926,000 New Appropriations, by Program/Project Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAMS I. General Administration and Support a. General Administration and Support Services P127,324,000 P95,511,000 P13,000,000 P235,835,000 ___________ ___________ ___________ ___________ Sub-Total, General Administration and Support 127,324,000 95,511,000 13,000,000 235,835,000 ___________ ___________ ___________ ___________ II. Operations a. Legislative Services 202,141,000 119,950,000 2,000,000 324,091,000 ___________ ___________ ___________ ___________ Sub-Total, Operations 202,141,000 119,950,000 2,000,000 324,091,000 ___________ ___________ ___________ ___________ Total, Programs 329,465,000 215,461,000 15,000,000 559,926,000 ___________ ___________ ___________ ___________ B. PROJECT I. Locally-Funded Project(s) a. Operational requirement for the Congressional Oversight Committee on Education 1,500,000 1,500,000 3,000,000 ___________ ___________ ___________ ___________ Sub-Total, Locally-Funded Project(s) 1,500,000 1,500,000 3,000,000 ___________ ___________ ___________ ___________ Total, Project 1,500,000 1,500,000 3,000,000 ––––––––––– ––––––––––– –––––––––– ––––––––––– TOTAL, NEW APPROPRIATIONS P330,965,000 P216,961,000 P15,000,000 P562,926,000 =========== =========== ========== =========== PROGRAMS AND ACTIVITIES Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total I. General Administration and Support a. General Administration and Support Services 1. General Management and Supervision P127,324,000 P95,511,000 P13,000,000 P235,835,000 ___________ ___________ ___________ ___________ Sub-Total, General Administration and Support 127,324,000 95,511,000 13,000,000 235,835,000 ___________ ___________ ___________ ___________ II. Operations a. Legislative Services 202,141,000 119,950,000 2,000,000 324,091,000 ___________ ___________ ___________ ___________ Sub-Total, Operations 202,141,000 119,950,000 2,000,000 324,091,000 ––––––––––– ––––––––––– –––––––––– ––––––––––– TOTAL, PROGRAMS AND ACTIVITIES P329,465,000 P215,461,000 P15,000,000 P559,926,000 =========== =========== ========== =========== New Appropriations, by Object of Expenditures (In Thousand Pesos) A. Progress/Locally-Funded Projects Current Operating Expenditures Personal Services Salaries of Permanent Positions 201,977 Contractual, Casuals and Emergency Personnel 7,782 –––––––––– Total Salaries/Wages 209,759 –––––––––– Other Compensation Terminal Leave Benefits 8,746 PAG-IBIG Contributions 2,428 Medicare Premiums 910 Employees Compensation Insurance Premiums (ECIP) 728 Representation and Transportation Allowance 2,796 Honoraria 1,761 Bonuses and Incentives 19,635 Step Increments for Merit and Length of Service 790 Personnel Economic Relief Allowance 10,734 Additional P500 Allowance 11,634 Others 61,044 –––––––––– Total Other Compensation 121,206 –––––––––– 01 Total Personal Services 330,965 –––––––––– Maintenance and Other Operating Expenses 02 Travelling Expenses 40,042 03 Communication Services 8,837 04 Repair and Maintenance of Government Facilities 1,538 05 Repair and Maintenance of Government Vehicles 1,050 06 Transportation Services 144 07 Supplies and Materials 24,968 08 Rents 32,226 14 Water, Illumination and Power Services 7,377 15 Social Security Benefits, Rewards and Other Claims 15,067 17 Training and Seminar Expenses 3,510 18 Extraordinary and Miscellaneous Expenses 13,780 20 Anti-Insurgency/Contingency/Emergency Expenses 1,000 23 Gasoline, Oil and Lubricants 2,047 24 Fidelity Bonds and Insurance Premiums 1,482 29 Other Services 63,893 –––––––––– Total Maintenance and Other Operating Expenses 216,961 –––––––––– Total Current Operating Expenditures 547,926 –––––––––– Capital Outlays 35 Buildings and Structures Outlay 2,000 36 Furniture, Fixtures, Equipment and Books Outlay 13,000 –––––––––– Total Capital Outlays 15,000 –––––––––– TOTAL KEN APPROPRIATIONS 562,926 ========== A.1 SENATE ELECTORAL TRIBUNAL For adjudication of electoral contests involving members of the Senate, including general administration and support services as indicated hereunder P33,920,000 New Appropriations, by Program/Project Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAMS I. General Administration and Support a. General Administration and Support Services P7,469,000 P3,259,000 P200,000 P10,928,000 –––––––––– –––––––––– ––––––––– –––––––––– Sub-Total, General Administration and Support 7,469,000 3,259,000 200,000 10,928,000 –––––––––– –––––––––– ––––––––– –––––––––– II. Operations a. Adjudication of Electoral Contests Involving Members of the Senate 12,708,000 9,616,000 668,000 22,992,000 –––––––––– ––––––––––– ––––––––– –––––––––– Sub-Total, Operations 12,708,000 9,616,000 668,000 22,992,000 –––––––––– ––––––––––– ––––––––– –––––––––– Total, Programs 20,177,000 12,875,000 868,000 33,920,000 –––––––––– ––––––––––– ––––––––– –––––––––– TOTAL, NEW APPROPRIATIONS P20,177,000 P12,875,000 P868,000 P33,920,000 ========== =========== ========= ========== PROGRAMS AND ACTIVITIES Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total I. General Administration and Support a. General Administration and Support Services 1. General Management and Supervision P7,469,000 P3,259,000 P200,000 P10,928,000 –––––––––– –––––––––– –––––––––– –––––––––– Sub-Total, General Administration and Support 7,469,000 3,259,000 200,000 10,928,000 –––––––––– –––––––––– –––––––––– –––––––––– II. Operations a. Adjudication of Electoral Contests Involving Members of the Senate 12,708,000 9,616,000 668,000 22,992,000 –––––––––– –––––––––– –––––––––– –––––––––– Sub-Total, Operations 12,708,000 9,616,000 668,000 22,992,000 –––––––––– –––––––––– –––––––––– –––––––––– TOTAL, PROGRAMS AND ACTIVITIES P20,177,000 P12,875,000 P868,000 P33,920,000 ========== ========== ========== ========== New Appropriations, by Object of Expenditures (In Thousand Pesos) A. Programs/Locally-Funded Projects Current Operating Expenditures Personal Services Salaries of Permanent Positions 14,906 Contractual, Casuals and Emergency Personnel 200 –––––––––– Total Salaries/Wages 15,106 –––––––––– Other Compensation Terminal Leave Benefits 250 PAG-IBIG Contributions 205 Medicare Premiums 77 Employees Compensation Insurance Premiums (ECIP) 62 Representation and Transportation Allowance 288 Bonuses and Incentives 1,412 Step Increments for Merit and Length of Service 67 Personnel Economic Relief Allowance 996 Additional P500 Allowance 1,098 Clothing/Uniform Allowance 256 Others 360 –––––––––– Total Other Compensation 5,071 –––––––––– 01 Total Personal Services 20,177 –––––––––– Maintenance and Other Operating Expenses 02 Travelling Expenses 800 03 Communication Services 500 04 Repair and Maintenance of Government Facilities 200 05 Repair and Maintenance of Government Vehicles 200 06 Transportation Services 150 07 Supplies and Materials 1,150 08 Rents 900 14 Water, Illumination and Power Services 900 15 Social Security Benefits, Rewards and Other Claims 100 17 Training and Seminar Expenses 100 18 Extraordinary and Miscellaneous Expenses 1,750 24 Fidelity Bonds and Insurance Premiums 200 29 Other Services 5,925 –––––––––– Total Maintenance and Other Operating Expenses 12,875 –––––––––– Total Current Operating Expenditures 33,052 –––––––––– Capital Outlays 36 Furniture, Fixtures, Equipment and Books Outlay 868 –––––––––– Total Capital Outlays 868 –––––––––– TOTAL NEW APPROPRIATIONS 33,920 ========== B. COMMISSION ON APPOINTMENTS For review or confirmation of appointments submitted to the Commission and related general administration and support services as indicated hereunder P101,048,000 =========== New Appropriations, by Program/Project Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAMS I. General Administration and Support a. General Administration and Support Services P23,422,000 P24,273,000 P3,607,000 P51,302,000 –––––––––– –––––––––– –––––––––– –––––––––– Sub-Total, General Administration and Support 23,422,000 24,273,000 3,607,000 51,302,000 –––––––––– –––––––––– –––––––––– –––––––––– II. Operations a. Review or Confirmation of Appointments Submitted to the Commission 22,246,000 27,500,000 49,746,000 –––––––––– –––––––––– –––––––––– Sub-Total, Operations 22,246,000 27,500,000 49,746,000 –––––––––– –––––––––– –––––––––– –––––––––– Total, Programs 45,668,000 51,773,000 3,607,000 101,048,000 –––––––––– –––––––––– –––––––––– ––––––––––– TOTAL, NEW APPROPRIATIONS P45,668,000 P51,773,000 P3,607,000 P101,048,000 ========== ========== ========== =========== PROGRAMS AND ACTIVITIES Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total I. General Administration and Support a. General Administration and Support Services 1. General Management and Supervision P23,422,000 P24,273,000 P3,607,000 P51,302,000 –––––––––– –––––––––– –––––––––– –––––––––– Sub-Total, General Administration and Support 23,422,000 24,273,000 3,607,000 51,302,000 –––––––––– –––––––––– –––––––––– –––––––––– II. Operations a. Review or Confirmation of Appointments Submitted to the Commission 22,246,000 27,500,000 49,746,000 –––––––––– –––––––––– –––––––––– Sub-Total, Operations 22,246,000 27,500,000 49,746,000 –––––––––– –––––––––– –––––––––– ––––––––––– TOTAL, PROGRAMS AND ACTIVITIES P45,668,000 P51,773,000 P3,607,000 P101,048,000 ========== ========== ========= =========== New Appropriations, by Object of Expenditures (In Thousand Pesos) A. Programs/Locally-Funded Projects Current Operating Expenditures Personal Services Salaries of Permanent Positions 25,977 Contractual, Casuals and Emergency Personnel 1,621 –––––––––– Total Salaries/Wages 27,598 –––––––––– Other Compensation Terminal Leave Benefits 4,375 PAG-IBIG Contributions 295 Medicare Premiums 111 Employees Compensation Insurance Premiums (ECIP) 88 Representation and Transportation Allowance 2,972 Bonuses and Incentives 2,410 Step Increments for Merit and Length of Service 230 Personnel Economic Relief Allowance 1,218 Additional P500 Allowance. 1,470 Clothing/Uniform Allowance 368 Others 4,533 –––––––––– Total Other Compensation 18,070 –––––––––– 01 Total Personal Services 45,668 –––––––––– Maintenance and Other Operating Expenses 02 Travelling Expenses 740 03 Communication services 1,126 04 Repair and Maintenance of Government Facilities 12 05 Repair and Maintenance of Government Vehicles 261 06 Transportation Services 1 07 Supplies and Materials 2,602 08 Rents 7,068 14 Water, Illumination and Power Services 24 15 Social Security Benefits, Rewards and Other Claims 3,309 17 Training and Seminar Expenses 1,000 18 Extraordinary and Miscellaneous Expenses 420 23 Gasoline, Oil and Lubricants 126 24 Fidelity Bonds and Insurance Premiums 60 29 Other Services 35,024 –––––––––– Total Maintenance and Other Operating Expenses 51,773 –––––––––– Total Current Operating Expenditures 97,441 –––––––––– Capital Outlays 36 Furniture, Fixtures, Equipment and Books Outlay 3,607 –––––––––– Total Capital Outlays 3,607 –––––––––– TOTAL NEW APPROPRIATIONS 101,048 ========== C. HOUSE OF REPRESENTATIVES For legislative services and related general administration and support services as indicated hereunder P1,477,000,000 New Appropriations, by Program/Project Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAMS I. General Administration and Support a. General Administration and Support Services P623,095,000 P367,559,000 P80,000,000 P1,070,654,000 ––––––––––– ––––––––––– –––––––––– ––––––––––––– Sub-Total, General Administration and Support 623,095,000 367,559,000 80,000,000 1,070,654,000 ––––––––––– ––––––––––– –––––––––– ––––––––––––– II. Operations a. Legislative Services 86,146,000 320,200,000 406,346,000 –––––––––– –––––––––– –––––––––– Sub-Total, Operations 86,146,000 320,200,000 406,346,000 –––––––––– –––––––––– –––––––––– ––––––––––––– Total, Programs 709,241,000 687,759,000 80,000,000 1,477,000,000 –––––––––– –––––––––– –––––––––– ––––––––––––– TOTAL, NEW APPROPRIATIONS P709,241,000 P687,759,000 P80,000,000 P1,477,000,000 =========== =========== ========== ============= PROGRAMS AND ACTIVITIES Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total I. General Administration and Support a. General Administration and Support Services 1. General Management and Supervision P623,095,000 P367,559,000 P80,000,000 P1,070,654,000 ––––––––––– ––––––––––– –––––––––– –––––––––––– Sub-Total, General Administration and Support 623,095,000 367,559,000 80,000,000 1,070,654,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– II. Operations a. Legislative Services 86,146,000 320,200,000 406,346,000 ––––––––––– ––––––––––– ––––––––––– Sub-Total, Operations 86,146,000 320,200,000 406,346,000 ––––––––––– ––––––––––– ––––––––––– –––––––––––– TOTAL, PROGRAMS AND ACTIVITIES P709,241,000 P687,759,000 P80,000,000 P1,477,000,000 =========== =========== =========== ============= New Appropriations, by Object of Expenditures (In Thousand Pesos) A. Programs/Locally-Funded Projects Current Operating Expenditures Personal Services Salaries of Permanent Positions 331,130 Contractual, Casuals and Emergency Personnel 139,291 ––––––––––– Total Salaries/Wages 470,421 ––––––––––– Other Compensation Lump-sum for Creation of New Positions 1,942 Terminal Leave Benefits 25,700 PAG-IBIG Contributions 3,864 Medicare Premiums 1,449 Employees Compensation Insurance Premiums (ECIP) 1,159 Representation and Transportation Allowance 2,791 Honoraria 2,764 Bonuses and Incentives 40,939 Step Increments for Merit and Length of Service 2,479 Personnel Economic Relief Allowance 20,610 Additional P500 Allowance 21,288 Clothing/Uniform Allowance 5,400 Others 108,435 ––––––––––– Total Other Compensation 238,820 ––––––––––– 01 Total Personal Services 709,241 ––––––––––– Maintenance and Other Operating Expenses 02 Travelling Expenses 168,758 03 Communication Services 25,396 04 Repair and Maintenance of Government Facilities 11,334 05 Repair and Maintenance of Government Vehicles 1,420 06 Transportation Services 294 07 Supplies and Materials 68,951 10 Grants, Subsidies and Contributions 955 14 Water, Illumination and Power Services 28,063 15 Social Security Benefits, Rewards and Other Claims 12,670 17 Training and Seminar Expenses 7,055 18 Extraordinary and Miscellaneous Expenses 22,585 20 Anti-Insurgency/Contingency/Emergency Expenses 9,400 23 Gasoline, Oil and Lubricants 7,432 24 Fidelity Bonds and Insurance Premiums 1,694 29 Other Services 321,752 ––––––––––– Total Maintenance and Other Operating Expenses 687,759 ––––––––––– Total Current Operating Expenditures 1,397,000 Capital Outlays 35 Buildings and Structures Outlay 25,000 36 Furniture, Fixtures, Equipment and Books Outlay 55,000 ––––––––––– Total Capital Outlays 80,000 ––––––––––– TOTAL NEW APPROPRIATIONS 1,477,000 =========== C.1 HOUSE ELECTORAL TRIBUNAL For adjudication of electoral contests involving members of the House of Representatives including general administration support as indicated hereunder P38,821,000 New Appropriations, by Program/Project Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAMS I. General Administration and Support a. General Administration and Support Services P9,397,000 P4,483,000 P442,000 P14,322,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– Sub-Total, General Administration and Support 9,397,000 4,483,000 442,000 14,322,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– II. Operations a. Adjudication of Electoral Contests involving Members of the House of Representatives 13,015,000 10,926,000 558,000 24,499,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– Sub-Total, Operations 13,015,000 10,926,000 558,000 24,499,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– Total, Programs 22,412,000 15,409,000 1,000,000 38,821,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– TOTAL NEW APPROPRIATIONS P22,412,000 P15,409,000 P1,000,000 P38,821,000 =========== =========== =========== =========== PROGRAMS AND ACTIVITIES Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total I. General Administration and Support a. General Administration and Support Services 1. General Management and Supervision P9,397,000 P4,483,000 P442,000 P14,322,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– Sub-Total, General Administration and Support 9,397,000 4,483,000 442,000 14,322,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– II. Operations a. Adjudication of Electoral Contests involving Members of the House of Representatives 13,015,000 10,926,000 558,000 24,499,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– Sub-Total, Operations 13,015,000 10,926,000 558,000 24,499,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– TOTAL PROGRAMS AND ACTIVITIES P22,412,000 P15,409,000 P1,000,000 P38,821,000 =========== =========== =========== =========== New Appropriations, by Object of Expenditures (In Thousand Pesos) A. Programs/Locally-Funded Projects Current Operating Expenditures Personal Services Salaries of Permanent Positions 16,542 ––––––––––– Total Salaries/Wages 16,542 ––––––––––– Other Compensation Terminal Leave Benefits 102 Per Diems 428 PAG-IBIG Contributions 233 Medicare Premiums 87 Employees Compensation Insurance Premiums (ECIP) 70 Representation and Transportation Allowance 288 Honoraria 500 Bonuses and Incentives 1,570 Step Increments far Merit and Length of Service 146 Personnel Economic Relief Allowance 1,014 Additional P500 Allowance 1,140 Clothing/Uniform Allowance 292 ––––––––––– Total Other Compensation 5,870 ––––––––––– 01 Total Personal Services 22,412 ––––––––––– Maintenance and Other Operating Expenses 02 Travelling Expenses 996 03 Communication Services 412 04 Repair and Maintenance of Government Facilities 158 05 Repair and Maintenance of Government Vehicles 209 06 Transportation Services 150 07 Supplies and Materials 1,937 08 Rents 900 14 Water, Illumination and Power Services 1,134 15 Social Security Benefits, Rewards and Other Claims 890 17 Training and Seminar Expenses 100 18 Extraordinary and Miscellaneous Expenses 130 20 Anti-Insurgency/Contingency/Emergency Expenses 250 23 Gasoline, Oil and Lubricants 100 24 Fidelity Bonds and Insurance Premiums 500 29 Other Services 7,543 ––––––––––– Total Maintenance and Other Operating Expenses 15,409 ––––––––––– Total Current Operating Expenditures 37,821 ––––––––––– Capital Outlays 36 Furniture, Fixtures, Equipment and Books Outlay 1,000 ––––––––––– Total Capital Outlays 1,000 ––––––––––– TOTAL NEW APPROPRIATIONS 38,821 =========== Special Provisions applicable to
the Congress of the Philippines 1. Augmentation of Any Item in the Appropriations of the Congress of the Philippines. Pursuant to Sec. 25(5) of Article VI of the Constitution, the President of the Senate, with respect to the Senate and the Commission on Appointments, the Speaker, with respect to the House of Representatives and the Chairmen of the Senate and the House of Representatives Electoral Tribunals, are hereby authorized to augment any item in the general appropriations law for their respective offices from savings in other items of their respective appropriations. 2. Organizational Structure of the Senate, the House of Representatives, the Senate and House of Representatives Electoral Tribunals and the Commission on Appointments. Any provision of law to the contrary notwithstanding and within the limits of the appropriation authorized in this Act, the President of the Senate, with respect to the Senate and the Commission on Appointments, the Speaker, with respect to the House of Representatives and the Chairmen of the Senate and House of Representatives Electoral Tribunals, are authorized to formulate and implement the organizational structures of their respective offices, to fix and determine the salaries, allowances and other benefits of their respective members, employees and consultants, subject to Section 10, Article VI of the Constitution, and whenever public interest so requires, make adjustments and reorganization of positions in the regular personnel with the corresponding transfer of items of appropriations or create new ones in their respective offices: provided, that officers and employees whose positions are affected by such adjustments or reorganization shall be granted retirement gratuities and separation pay in accordance with existing laws, which shall be payable from any unexpended balance of, or savings in the appropriations of their respective offices. 3. Release of Appropriations. Appropriations authorized for the Congress shall be automatically and regularly released quarterly in accordance with the Work and Financial Plans of the Senate or House of Representatives, or the Senate and House of Representatives Electoral Tribunals and the Commission on Appointments, as the case may be. 4. Realignment of Allocation for Operational Expenses. A member of Congress may realign his allocation for operational expenses to any other expense category provided the total of said allocation is not exceeded. GENERAL SUMMARY Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. Senate 330,965,000 216,961,000 15,000,000 562,926,000 A.1 Senate Electoral Tribunal 20,177,000 12,875,000 868,000 33,920,000 B. Commission on Appointments 45,668,000 51,773,000 3,607,000 101,048,000 C. House of Representatives 709,241,000 687,759,000 80,000,000 1,477,000,000 C.1 House Electoral Tribunal 22,412,000 15,409,000 1,000,000 38,821,000 ––––––––––– ––––––––––– ––––––––––– ––––––––––– Total New Appropriations Congress of the Philippines 1,128,463,000 984,777,000 100,475,000 2,213,715,000 =========== =========== =========== =========== BUDGETS OF DEPARTMENT OF ENERGY ATTACHED CORPORATIONS Sec. 2. Approval of Annual Budgets of Corporations
under R.A. No. 7638. — Pursuant to Section 13, Chapter III of Republic
Act No. 7638, the 1996 annual budgets of the National Electrification
Administration (NEA), the National Power Corporation (NPC) and the
Philippine National Oil Company (PNOC) are hereby approved as follows: Special Provisions 1. Audit of Government Funds — The status or use of all government funds received, whether in the form of equity, subsidy, grant, loan, contribution or any kind of assistance shall be subject to audit by the Commission on Audit up to and including any end-user entity. 2. Budget Flexibility and Report — The National Electrification Administration, through its Board of Administrators, is authorized to realign/reallocate the projects/programs and their corresponding budgetary requirements as contained in its submission pursuant to the 1996 Budget Call, as well as augment the requirements which may arise from factors beyond the Corporation's control. These may include, but shall not be limited to, currency depreciation, inflation, change in interest rate, new loans/financing that may be contracted or sourced, substitute projects and programs, and schedule of project implementation should condition warrant: provided, that augmentation funds shall not be used for the acquisition of motor vehicles and payment of travelling, representation and discretionary expenses: provided, FURTHER, that the Personal Services shall not be augmented by savings from Maintenance and Other Operating Expenses as well as Capital Outlays, or by new funding sources, except in cases when there is government-wide general salary increase. A report on the aforesaid budgetary adjustments shall be submitted to the House Committee on Appropriations and the Senate Committee on Finance, copy furnished the Department of Budget and Management, within thirty (30) days after such adjustments are made. II. NATIONAL POKER CORPORATION SOURCES AND USES OF FUNDS BY EXPENSE CLASS, CY 1996 (In Thousand Pesos) SUMMARY Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAM/ACTIVITY/PROJECT 1. General Administration and Support P805,216 836,968 P3,626,059 P5,268,243 ––––––––––– ––––––––––– ––––––––––– ––––––––––– A. Read Office Support Group 805,216 836,968 1,032,000 2,674,184 B. Engineering Admin./Surveys/Dev. Studies/Planning 2,594,059 2,594,059 2. Support to Operations 46,411 570,000 616,411 ––––––––––– ––––––––––– ––––––––––– ––––––––––– A. NPC Training Center/Test-Run Plants 46,411 570,000 616,411 3. Operations 4,466,585 50,912,838 5,772,000 61,151,423 ––––––––––– ––––––––––– ––––––––––– ––––––––––– A. Utility Operations/SO/ IBMG/SPUG 4,183,784 4,905,838 3,551,000 12,640,622 B. Small Island Grids 282,801 220,000 552,000 1,054,801 C. Spares 1,669,000 1,669,000 D. Production of Goods (Power Generation) 39,815,000 39,815,000 E. Other Expenses 5,972,000 5,972,000 4. Locally-Funded Projects 629,000 629,000 5. Foreign-Assisted Projects 27,829,641 27,829,641 ––––––––––– ––––––––––– ––––––––––– ––––––––––– A. Generation 5,737,000 5,737,000 B. Transmission Lines & Substation 19,108,641 19,108,641 C. Others 385,000 385,000 D. Interest during Construction 2,599,000 2,599,000 6. Debt Servicing 20,446,000 20,446,000 7. Other Expenditures 1,881,642 306,000 2,187,642 ––––––––––– ––––––––––– ––––––––––– ––––––––––– TOTAL P5,318,212 P74,647,448 P38,162,700 P118,128,360 =========== =========== =========== =========== SOURCES AND USES OF FUNDS BY EXPENSE CLASS, CY 1996 Schedule I (In Thousand Pesos) CORPORATE BORROWINGS Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAM/ACTIVITY/PROJECT 1. General Administration and Support P3,610,059 P3,610,059 ––––––––––– ––––––––––– A. Head Office Support Group 1,016,000 1,016,000 B. Engineering Admin./Surveys/Dev. Studies/Planning 2,594,059 2,594,059 2. Support to Operations A. NPC Training Center/Test-Run Plants 3. Operations 5,772,000 5,772,000 ––––––––––– ––––––––––– A. Utility Operations/SO IBMG/SPUG 3,551,000 3,551,000 B. Small Island Grids 552,000 552,000 C. Spares 1,669,000 1,669,000 D. Production of Goods (Power Generation) E. Other Expenses 4. Locally-Funded Projects 629,000 629,000 5. Foreign-Assisted Projects 26,757,641 26,757,641 ––––––––––– ––––––––––– A. Generation 5,737,000 5,737,000 B. Transmission lines & Substation 18,036,641 18,036,641 C. Others 385,000 385,000 D. Interest during Construction 2,599,000 2,599,000 6. Debt Servicing 7. Other Expenditures 602,000 306,000 908,000 ––––––––––– ––––––––––– ––––––––––– TOTAL P602,000 P37,074,700 P37,676,700 =========== =========== =========== SOURCES AND USES OF FUNDS BY EXPENSE CLASS, CY 1996 Schedule II (In Thousand Pesos) CORPORATE FUNDS Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAM/ACTIVITY/PROJECT 1. General Administration and Support P805,216 P836,968 P16,000 P1,658,184 ––––––––––– ––––––––––– ––––––––––– ––––––––––– A. Head Office Support Group 805,216 836,968 16,000 1,658,184 B. Engineering Admin./Surveys/Dev. Studies/Planning 2. Support to Operations 46,411 570,000 616,411 ––––––––––– ––––––––––– ––––––––––– A. NPC Training Center/Test-Run Plants 46,411 570,000 616,411 3. Operations 4,466,585 50,912,838 55,379,423 ––––––––––– ––––––––––– ––––––––––– A. Utility Operations/SO IBMG/SPUG 4,183,784 4,905,838 9,089,622 B. Small Island Grids 282,801 220,000 502,801 C. Spares D. Production of Goods (Power Generation) 39,815,000 39,815,000 E. Other Expenses 5,972,000 5,972,000 4. Locally-Funded Projects 5. Foreign-Assisted Projects 1,072,000 1,072,000 ––––––––––– ––––––––––– A. Generation B. Transmission Lines & Substation 1,072,000 1,072,000 C. Others D. Interest during Construction 6. Debt Servicing 20,446,000 20,446,000 7. Other Expenditures 1,279,642 1,279,642 ––––––––––– ––––––––––– ––––––––––– ––––––––––– TOTAL P5,318,212 P74,045,448 P1,088,000 P80,451,660 =========== =========== =========== =========== Special Provision 1. Restrictions on the Use of fund. In the event that certain NPC power plants have been completely subsidiarized and privatized before the end of 1996, any balance of the amounts earmarked for rehabilitation and other costs intended for said power plants as reflected in this Corporate Operating Budget, shall not be made available for such plants. III. PHILIPPINE NATIONAL OIL COMPANY SOURCES AND USES OF FUNDS BY EXPENSE CLASS, CY 1996 (In Thousand Pesos) SUMMARY Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAM/ACTIVITY/PROJECT 1. General Administration and Support P30,254 P165,583 P26,165 P222,002 2. Operations 5,399 487,721 4,192,238 4,685,358 3. Others Debt Servicing Principal 551,688 551,688 Interest Expense 131,786 131,786 ––––––––––– ––––––––––– ––––––––––– ––––––––––– TOTAL P35,653 P1,336,778* P4,218,403 P5,590,834 =========== =========== =========== =========== *MODE, net of allowance for depreciation of P21.911 M SOURCES AND USES OF FUNDS BY EXPENSE CLASS Schedule I (In Thousand Pesos) CORPORATE BORROWINGS Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAM/ACTIVITY/PROJECT 1. General Administration and Support 2. Operations P2,863,900 P2,863,900 3. Others Debt Servicing Principal Interest Expense ––––––––––– ––––––––––– TOTAL P2,863,900 P2,863,900 =========== =========== SOURCES AND USES OF FUNDS BY EXPENSE CLASS Schedule II (In Thousand Pesos) CORPORATE FUNDS Current Operating Expenditures Maintenance and Other Personal Operating Capital Services Expenses Outlays Total A. PROGRAM/ACTIVITY/PROJECT 1. General Administration and Support P30,254 P165,583 P26,165 P222,002 2. Operations 5,399 487,721 1,328,338 1,821,458 3. Others Debt Servicing Principal 551,688 551,688 Interest Expense 131,786 131,786 ––––––––––– ––––––––––– ––––––––––– ––––––––––– TOTAL P35,653 P1,336,778* P1,354,503 P2,726,934 =========== =========== =========== =========== *MODE, net of allowance for depreciation of P21.911 M Special Provision 1. Budget Flexibility and Report. The Philippine National Oil Company (PNOC), through its Board of Directors, is authorized to realign/reallocate the projects/programs and their corresponding budgetary requirements as contained in its submission pursuant to the 1996 budget call, as well as augment the requirements which may arise from factors beyond the Company's control. These may include, but shall not be limited to, increase in costs associated with the privatization of subsidiaries, increase in lending and equity infusion to subsidiaries, changes in foreign exchange rate, taxes, inflation, interest rates, payment of obligations as a result of final judgment of the court, and changes in programs/projects: provided, that augmentation funds shall not be used for the acquisition of motor vehicles and payment of travelling, representation and discretionary expenses: provided, FURTHER, that the Personal Services shall not be augmented by savings from Maintenance and Other Operating Expenses (MODE), as well as, Capital Outlays, or by new funding sources, except in cases when there is a government-wide salary increase. A report on the aforesaid budgetary adjustments shall be submitted to the House Committee on Appropriations and the Senate Committee on Finance, copy furnished the Department of Budget and Management, within thirty (30) days after such adjustments are made. 2. Dividends Accruing to the National Government. The Philippine National Oil Company and its subsidiaries shall declare and remit at least fifty percent (50%) of their annual earnings as dividends to the national government: provided, HOWEVER, that the additional cash dividends of PNOC for 1994 amounting to P3,440,602,117 pursuant to E.O. No. 260 shall form part of the total PNOC contribution to OPSF as herein provided. 3. Support to the OPSF. The Philippine National Oil Company shall remit to the Bureau of the Treasury, through the Secretary of Energy, the sum of Ten Billion Pesos (P10,000,000,000) or so much thereof as may be necessary, which amount is deemed automatically appropriated, to support the Oil Price Stabilization Fund (OPSF) established under Presidential Decree No. 1956. Special Provisions Applicable to All of the Above-named Corporations 1. Payment of Compensation. Payment of salaries, wages, and allowances or other forms of compensation shall be in accordance with Republic Act No. 6758 (Salary Standardization Law), as amended by Joint Resolution No. 1, s. 1994 of Congress and Executive Order No. 164, s. 1994, as well as Corporate Compensation Circular No. 10 and other pertinent implementing rules and regulations, unless the corporation is exempted therefrom by special law. 2. Compliance with the Attrition Law. Republic Act No. 7430 or the Attrition Law shall be strictly observed. 3. Remittance of Dividends. Dividends equivalent to at least fifty percent (50%) of annual net earnings shall accrue to the National Government and shall be remitted to the National Treasury pursuant to Republic Act No. 7656. 4. Acquisition of Equipment. The acquisition of equipment, whether funded from internally generated funds, budgetary support or authorized borrowings, shall be subject to existing statutory requirements and/or Presidential issuances. 5. Jurisdiction of the Commission on Audit. The constitutional jurisdiction of the Commission on Audit over government funds and resources shall remain unimpaired. GENERAL PROVISIONS Sec. 3. Fees, Charges and Assessments. — All fees, charges, assessments, and other receipts or revenues collected by departments, bureaus, offices or agencies in the exercise of their functions, at such rates as are now or may be approved by the Secretary concerned, shall be deposited with the National Treasury and shall accrue to the General Fund pursuant to Sec. 44 of Book VI, E.O. No. 292 and Sec. 3 of B.P. Blg. 325: provided, that certain receipts may be recorded as income of a Special Fund, a Fiduciary or a Trust Fund, or a fund other than the General Fund, when authorized by law and following such rules and regulations as may be issued by the Permanent Committee created under Sec. 45 of Book VI, E.O. No. 292: provided, FURTHER, that all revenues or income accruing to special accounts in the General Fund may be made available for expenditure, subject to the Special Provision in this Act for the agencies concerned and to Special Budgets required under Sec. 35 of Book VI, E.O. No. 292: AND PROVIDED, FURTHERMORE, that whenever practicable and taking into account the cost reduction program of the government, when an agency contracts with another government office for fabrication of furniture or equipment, or for computer, printing or other services, the agency rendering such services may assess the requesting agency for the cost of production and services rendered and may utilize the proceeds thereof, subject to Sec. 35 of Book VI, E.O. No. 292, except as otherwise provided in this Act: AND PROVIDED, FINALLY, that the schedule of fees, charges and assessments collectible by any government agency including government-owned and/or controlled corporations shall be posted in big bold characters in a conspicuous place in said government agency or corporation, including its branches or extension offices and that the updating and continuous display of said schedule shall be the responsibility of the head of the agency or corporation concerned. Sec. 4. Revolving Fund. — Revolving funds shall be established and maintained only in cases where said funds are expressly created and authorized by law. Revolving funds already in existence shall continue their operations, except those which are now reflected as "Use of Income" in this Act. Receipts derived from business-type activities of departments, bureaus, offices or agencies which are authorized by law to be constituted into a Revolving Fund shall be separately recorded and deposited in an authorized government depository bank, and may be made available for operational expenses of the said activity of the agency concerned, subject to the conditions prescribed under the special provision of the agency concerned and the rules and regulations as may be prescribed by the Permanent Committee created under Sec. 45 of Book VI, E.O. No. 292. The Revolving Fund shall be considered self-perpetuating and self-liquidating and all obligations or expenditures incurred by virtue of said business-type activities shall be charged against the Revolving Fund: provided, that interest and other income earned shall be deposited with the National Treasury and shall accrue to the General Fund pursuant to Sec. 65 of P.D. No. 1445 in relation to Sec. 29(1) of Article VI of the Constitution. The agency concerned shall submit to the Department of Budget and Management, copy furnished the House Committee on Appropriations and the Senate Committee on finance, a quarterly report of the income from this Fund and a quarterly report of expenditure. In case of failure to submit said requirements, no withdrawal in the subsequent quarter shall be allowed in audit except upon Certification of the Department of Budget and Management that said report was submitted. Sec. 5. Trust Receipts. — Receipts from non-tax sources authorized by law for specific purposes which are collected/received by a government office or agency acting as a trustee, agent or administrator, or which have been received as guaranty for the fulfillment of an obligation, and all other collections classified by law or regulations as trust receipts shall be treated as trust liability of the agency concerned and deposited with the National Treasury, subject to the conditions prescribed under the Special Provisions of the agency concerned and to the rules and regulations as determined by the Permanent Committee created under Sec. 45 of Book VI, E.O. No. 292. All existing balances of trust receipts deposited with authorized government depository banks or any forthcoming trust receipts which are intended to be deposited with authorized government depository banks are hereby required to be deposited also with the National Treasury. Payment out of such funds shall be made in accordance with the purpose for which the fund is created and subject to accounting and auditing regulations. Sec. 6. Performance Bonds and Deposits. — Performance bonds and deposits filed or posted by private persons or entities with agencies of the government shall be deposited with an authorized government depository bank as trust liabilities and under the name of the agency concerned. Upon faithful performance of the undertaking or termination of the obligation for which the bond or deposit was required, any amount due shall be returned to the filing party and the office or agency concerned, withdrawable in accordance with accounting and auditing rules and regulations: provided, that any interest accruing on deposit accounts and any forfeited amounts shall be recorded as income of the General Fund and shall be remitted to the National Treasury at the end of each quarter. This provision shall apply to bonds posted in cash, such as bidder's bond, guaranty bonds, bail bonds, judicial deposits for the benefit of clients, cash under litigation deposited in court or quasi-judicial bodies and other refundable and judicial bonds, and all bonds and deposits required by law, rules and regulations to be posted to ensure the faithful performance of an activity or undertaking. Sec. 7. Seminar and Conference Fees. — Departments, bureaus, offices or agencies which conduct training programs in relation to their mandated functions are authorized to collect seminar and conference fees from government and private agency participants, at such standard rates as the Department of Budget and Management and the Civil Service Commission shall deem appropriate. The proceeds derived from such seminars or conferences may be made available for the conduct of such seminars and conferences, subject to pertinent budget, accounting and auditing rules and regulations: provided, that any excess there from shall be remitted to the National Treasury and shall accrue to the General fund: provided, FURTHER, that upon the conclusion of the seminar or conference, the office authorized to conduct the same shall submit to the Department of Budget and Management a report of the income realized and of the expenses incurred: provided, FINALLY, that no appropriation authorized in this Act shall be used to support or augment expenses for seminars or conferences. Sec. 8. Sale of Products. — Departments, bureaus, offices or agencies are hereby authorized to sell products of agricultural, industrial or other projects. The proceeds derived there from shall be deposited with the National Treasury and shall accrue to the General Fund, pursuant to Sec. 44 of Book VI, E.O. No. 292, unless otherwise provided by law or by Special Provision in this Act. Sec. 9. Sale of Official Publications. — Departments, bureaus, offices or agencies are hereby authorized to sell their official publications. The proceeds derived therefrom shall be deposited with the National Treasury and shall accrue to the General Fund. Such proceeds may be made available to defray the cost of printing of such official publications subject to Special Budget pursuant to Sec. 35, Book VI of E.O. No. 292. Sec. 10. Sale of Non-Serviceable, Obsolete and Other Unnecessary Equipment. — Departments, bureaus, offices or agencies are hereby authorized to sell non-serviceable, obsolete, and other unnecessary equipment, including cars, vans and the like. The proceeds from the sale of equipment of the agency shall be deemed automatically appropriated for the purchase of new ones and for the repair or rehabilitation of existing vital equipment: provided, that the purchase of new cars and vans shall be subject to pertinent laws, rules and regulations. Sec. 11. Donations. — Departments, bureaus, offices
or agencies may accept donations, contributions, grants, bequests or
gifts, in cash or in kind, from various sources, domestic or foreign,
for purposes relevant to their functions: provided, that in cases of
donations from foreign governments, acceptance thereof shall be subject
to the prior clearance and approval of the President of the Philippines
upon recommendation of the Secretary of Foreign Affairs. Receipts from
donations shall be accounted for in the books of the government in
accordance with pertinent accounting and auditing rules and
regulations. Such donations, whether in cash or in kind, shall be
deemed automatically appropriated for purposes specified by the donor. Sec. 12. National Internal Revenue Taxes, and Import
Duties of National and Local Government Agencies as well as
Government-Owned And/Or Controlled Corporations, Including Armed Forces
of the Philippines Commissary Exchange Service (AFPCES) and Philippine
National Police Storage Store System (PNPSSS). — National internal
revenue taxes and import duties payable by national government agencies
to the National Government as well as customs duties and taxes for the
importation of equipment by local government units, are deemed
automatically appropriated. Tax expenditure subsidy to various
government-owned and/or controlled corporations, including AFPCES, thru
the Department of National Defense, and PNPSSS thru the Department of
the Interior and Local Government, shall likewise be deemed
automatically appropriated, subject to approval by the Fiscal
Incentives Review Board (FIRB) pursuant to Executive Order No. 93, as
amended. The amounts pertaining to such taxes and duties shall be
considered as revenue and expenditure of the government. Sec. 13. Loan Agreements. — Departments, bureaus,
offices or agencies, including government-owned and/or controlled
corporations, shall in no case enter into foreign or domestic loan
agreements, whether in cash or in kind except upon concurrence of the
Secretary of Budget and Management with respect to peso requirements
and implications on expenditure ceilings and prior approval of the
President of the Philippines, with the prior concurrence of the
Monetary Board, subject to such limitations as may be provided by law:
provided, that the Monetary Board shall within thirty days from the end
of every quarter of the calendar year, submit to the Congress of the
Philippines a report of its decisions on applications for loans to be
contracted or guaranteed by the government or government-owned and/or
controlled corporations which have the effect of increasing the foreign
debt. Loans shall not be contracted by agencies of the national
government unless the full amount of the loan is covered by an
Obligational Authority issued by the Secretary of Budget and
Management. For this purpose, the budgetary implications of
foreign-assisted projects shall be explicitly considered by the
Secretary of Budget and Management and the office or agency concerned
at the time of project design and financing negotiations. 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. EXPENDITURES Sec. 14. Restrictions on the Use of Government Funds. — No government funds shall be utilized for the following purposes: a. To purchase motor vehicles, except: (a) medical ambulances, military and police patrol vehicles, motorcycles, other utility vehicles, road construction equipment, motorized bancas and those used for mass transport when necessary in the interest of the public service, upon authority of the department or agency head and the Secretary of the Department of Budget and Management; and (b) those authorized by the President, the Senate President, the Speaker of the House of Representatives, or the Chief Justice of the Supreme Court; b. To defray foreign travel expenses of any government official or employee, except in the case of training seminar or conference abroad when the officials and other personnel of the foreign mission cannot effectively represent the country therein and travels necessitated by international commitments: provided, that no officials or employees, including uniformed personnel of the Department of the Interior and Local Government and Department of National Defense will be sent to foreign training, conference or attend to international commitments when they are due to retire within one year after the said foreign travel; c. To provide fuel, parts, repair and maintenance to any government vehicle which is not permanently marked "For Official Use Only" with the name or logo of the agency, nor otherwise properly identified as a government vehicle and does not carry its official government plate number, except official vehicles assigned to the President, Vice-President, Senate President, Speaker of the House of Representatives, Chief Justice of the Supreme Court and Chairmen of the Constitutional Commissions and those used by personnel performing intelligence and national security functions: provided, that in case of transport crisis, such as that occasioned by street demonstrations, welgang bayan, floods, typhoons and other emergencies, all government vehicles of any type whether luxury cars or utility vehicles, shall be made available to meet the emergency and utilized to transport for free the commuters on a round-the-clock basis; d. To pay honoraria, allowances or other forms of compensation to any government official or employee, except those specifically authorized by law; e. To be invested in non-government securities, money market placements and similar investments or deposited in private banking institutions. The provisions of this section shall apply to local government units, political subdivisions and government-owned and/or controlled corporations. The implementation of this Section shall be in accordance with the rules and regulations issued by the Department of Budget and Management, in coordination with the emission on Audit. Sec. 15. Mandatory Expenditures. — The amounts
released, particularly for, but not limited to, petroleum, oil and
lubricants as well as for water, illumination and power services,
telephone and other communication services, rents, retirement gratuity
and terminal leave requirements shall be disbursed solely for such
items of expenditures in accordance with the Work and Financial Plan as
approved by the Secretary of Budget and Management: provided, that any
savings generated from these items may be realigned only in the last
quarter upon prior approval of the Secretary of the Department of
Budget and Management. Sec. 16. Intelligence and Confidential Funds. — No
amount appropriated in this Act shall be released or disbursed for
confidential and intelligence activities unless specifically identified
and authorized as such intelligence or confidential fund in this Act. Sec. 17. Prohibited Expenses in Revolving funds and Use of Income. — No amount of the revolving funds or agency income authorized in this Act for use by the agency shall be used for the payment of discretionary and representation expenses. Sec. 18. Purchase of Supplies, Materials and Equipment Spare Parts for Stock. — The stock on hand of supplies, materials and equipment spare parts to be acquired through 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 departments, bureaus, offices or agencies or other instrumentalities of the government may approve the build-up of stocks on hand of critical supplies and materials as defined or specified by the Department of Budget and Management in anticipation of cost increases, or requirement of a national emergency, or of an impending shortage in the items concerned, specifying maximum quantities of individual items. Unless otherwise approved by the President, upon the joint recommendation of the Secretary, concerned and the Chairman of the Commission on Audit, these stocks shall not exceed one year's need. Sec. 19. Emergency Purchases. — Unless otherwise provided in this Act, departments, bureaus, offices or agencies of the National Government are authorized to make emergency purchases of supplies, materials and spare parts of motor transport equipment that are urgently needed for the repair of ambulances, motor vehicles, vessels and aircrafts or to meet an emergency which may involve the loss of, or danger to, life and/or property, or are to be used in connection with a project or activity which cannot be delayed without causing detriment to the public service, in a monthly amount not exceeding four percent (4%) of the annual agency expenditure program for supplies and materials out of the appropriations allotted for maintenance and other operating expenses of the agency concerned, except as may be authorized by the President of the Philippines upon the joint recommendation of the Department of Budget and Management and the Commission on Audit. Sec. 20. Domestic Purchases and Foreign Importations. — All appropriations for the procurement of equipment, supplies and materials and other products and services authorized in this Act shall be used only for the purchase of equipment, parts, accessories, medicines and drugs, supplies and materials and other products and services locally available: provided, that importation may be made when none of the desired quality or standard is available in the market or when the price of the local product or service is more than fifteen percent (15%) of that of a similar product offered by an enterprise other than a domestic entity pursuant to Sec. 4 of the Flag Law (Commonwealth Act No. 138, as amended): provided, FURTHER, that purchases under foreign military sales agreements, heavy equipment imports for infrastructure projects and other importations of agencies which are financed by foreign borrowings may be made, subject to the requirements of LOI No. 880 and to pertinent budget, accounting and auditing laws, rules and regulations. Sec. 21. Cultural and Athletic Activities. — Out of the appropriations authorized in this Act for maintenance and other operating expenses for each department, bureau, office or agency, an amount not exceeding One Thousand Two Hundred Pesos (P1,200.00) may be used for the purchase of costume or uniform for each participant and other related expenses in the conduct of cultural and athletic activities. Sec. 22. Extraordinary and Miscellaneous Expenses. —
Appropriations herein authorized may be used for extraordinary expenses
not exceeding: Sec. 23. Information Outlay. — The appropriations pertaining to information activities of various departments, bureaus, offices or agencies shall be released upon presentation of an appropriate program of activities prepared by their respective Heads, copies of which shall be furnished the House Committee on Appropriations and the Senate Committee on Finance. Sec. 24. Science and Technology Research. — The appropriations pertaining to research and development in the natural, agricultural, technological and engineering sciences for various departments, bureaus, offices or agencies within the Science and Technology Agenda for National Development (STAND) shall be released upon recommendation of the Secretary of the Department of Science and Technology. For this purpose, the Department of Science and Technology shall issue the necessary guidelines for the implementation of this provision. Sec. 75. Training Programs. — Departments, bureaus, offices or agencies shall review and formulate their training programs to make the same responsive to the organizational needs and manpower requirements of agencies and the need to train personnel in skills and attitudes. Such training programs shall be consistent with the rules and regulations issued by the Training Coordination Committee created under LOI No. 754, which shall review and evaluate training activities. Sec. 26. Health Financial Assistance Program. — Subject to the enactment of a law for the purpose, the amount necessary to cover increases authorized in medicare benefits for GSIS Medicare beneficiaries shall be taken from budgetary savings of national government agencies. For this purpose, the Department of Budget and Management is hereby authorized to set aside the amount necessary to cover this year's financial assistance program from the appropriations provided in this Act for the current operating expenses of the national government agencies concerned. In subsequent years, the requirement for the Health Financial Assistance Program shall be included in the respective budgets of the agencies concerned. The Department of Budget and Management, the Philippine Health Insurance Corporation and the Government Service Insurance System shall jointly promulgate the necessary rules and regulations to implement this Section . Sec. 27. Gender-Responsive Projects. — All
departments, bureaus, offices and agencies shall set aside a minimum
amount of five percent (5%) out of their 1996 appropriations to be used
for projects designed to address gender issues in accordance with R.A.
No. 7192. Sec. 28. Human Resource Development. — All departments, bureaus, offices and agencies shall set aside an amount out of their 1996 appropriations to be used for Human Resource Development. Sec. 29. Human and Ecological Security Concerns. —
All departments, bureaus, offices and agencies shall set aside an
amount out of their 1996 appropriations to be used for projects
designed to address human and ecological security concerns. Sec. 30. Contracting Multi-Year Projects. — In the
implementation of multi-year projects, no agency shall enter into a
multi-year contract without a multi-year Obligational Authority issued
by the Department of Budget and Management for the purpose. PERSONNEL AMELIORATION Sec. 31. Funding of Personnel Benefits. — The personnel benefits costs of government officials and employees shall be charged against the respective funds from which their compensations are paid. All authorized supplemental or additional compensation, fringe benefits and other personal services costs of officials and employees whose salaries are drawn from special accounts or special funds, such as salary increases and adjustments, merit increases, incentive and service fees, vacation and sick leaves, retirement and life insurance premiums, compensation insurance premiums, health insurance (Medicare) premiums, HDMF contributions, hospitalization and medical benefits, scholarship and educational benefits, training and seminar expenses, all kinds of allowances, whether commutable or reimbursable, in cash or in kind, and other personnel benefits and privileges authorized by law, including the payment of retirement gratuities, separation pay and terminal leave benefits, shall similarly be charged against the corresponding fund from which their basic salaries are drawn and in no case shall such personnel benefits costs be charged against the General Fund of the national government. Officials and employees on detail with other offices, including the representatives and support personnel of auditing units assigned to serve other offices or agencies, shall be paid their salaries, emoluments, allowances and the foregoing supplemental compensation, fringe benefits and other personal services costs from the appropriations of their parent agencies, and in no case shall such be charged against the appropriations of the agencies where they are assigned or detailed, except when authorized by law. Sec. 32. Personnel Benefits Fund. — The Employees
Compensation Insurance Premium Fund, the National Government
Contributions to the Health Insurance (Medicare) Fund and the
Employers' Share in the Home Development Mutual Fund (Peg-IBIG) shall
be released directly by the Department of Budget and Management to the
Government Service Insurance System and the Home Development Mutual
Fund. Sec. 33. Authorized Deductions, Incentive and Service
Fees. — Deductions from salaries, emoluments or other benefits accruing
to any government employee may be allowed for the payment of
obligations due or owing to government lending institutions such as
government basks, the Government Service Insurance System, duly
licensed insurance companies, savings and loans associations, and those
organized for, and managed by, government employees. Deductions under
Sec. 21 of R.A. No. 4670, otherwise known as the Magna Carta for
Public School Teachers may be allowed, including such deductions
representing amortizations arising from educational loan for tuition
fees, reasonable amount for textbooks and other school obligations
granted by insurance companies duly licensed by the Insurance
Commission: provided, that such deductions shall not reduce the
employee's take home pay to an amount lower than one thousand pesos
(P1,000.00), after deducting all other statutory deductions: provided,
FURTHER, that the agencies and offices with existing deductions
arrangements with private lenders shall continue such deductions until
the credits/loans outstanding or the premiums of the policies in force
at the date of passage of this Act shall have been fully paid. Sec. 34. Travelling Expenses. — Officials and
employees of the government may be allowed full payment of claims for
reimbursement of travelling and related expenses incurred in the course
of official travel, certified by the head of the agency concerned as
absolutely necessary in the performance of an assignment and supported
by receipts, chargeable to the allotment for travelling expenses. Sec. 35. Representation and Transportation
Allowances. — The following officials and those of equivalent rank as
may be determined by the Department of Budget and Management while in
the actual performance of their respective functions are hereby granted
monthly commutable representation and transportation allowances payable
from the programmed appropriations provided for their respective
offices not exceeding the rates indicated below, which shall apply to
each type of allowance: Sec. 36. Official Vehicles and Transport. —
Government motor transportation may be used by the following officials
with costs chargeable to the appropriations authorized for their
respective offices: Sec. 37. Honoraria. — Departments, bureaus, offices or agencies, are authorized to use their respective appropriations for payment of honoraria for services rendered by researchers, experts and specialists who are acknowledged authorities in their field of specialization, agency personnel performing activities or discharging duties in addition to or over and above their regular function as well as military personnel who are rendering security service to the Congress of the Philippines, including its Committees, at such rates as the Department of Budget and Management may authorize, unless otherwise specifically provided by law: provided, that such persons who are hired as consultants and who are paid professional consultancy fees for services rendered shall not be entitled to such honoraria. Sec. 38. Employment of Contractual Personnel. — Heads
of departments, bureaus, offices or agencies, when authorized in their
respective appropriations provided in this Act, may hire contractual
personnel as part of the organization to perform regular Agency
functions and specific vital activities or services which cannot be
provided by the regular or permanent staff of the hiring agency. Sec. 39. Uniform and Clothing Allowance. — The appropriations herein provided for each department, bureau, office or agency may be used for uniform and clothing allowance of employees at not more than One Thousand Eight Hundred Pesos (P1,800) each per annum which may be given in kind, subject to the discretion of the department head concerned. In case of deficiency, or in the absence of appropriation for the purpose, the requirements may be charged against savings in the appropriations of each department, bureau, office or agency. Sec. 40. Hazard Duty Pay. — Upon recommendation of the Department Head and approval of the Department of Budget and Management, hazard pay may be allowed to officials and employees who are actually assigned in hardship or difficult areas, strife-torn or embattled areas, distressed or isolated stations, prison camps, mental hospitals, radiation-exposed clinics or laboratories, or disease infested areas or in areas declared under state of calamity or emergency for the duration thereof which expose them to great danger, contagion, radiation, volcanic activity/eruption, occupational risks or perils to life, chargeable to savings in the appropriations of the department/agency concerned, which shall not be less than P400 nor more than P600 each per month, except in cases where the rates are specifically provided for under special laws, charters or enabling acts, in which case such rates shall govern, or where more incentives are needed to attract applicants, in which case the sum may be augmented at the rates to be determined by the Department Heads as may be necessary: provided, that hazard pay by reason of strife-torn or embattled areas shall be subject to the certification issued by the Secretary of National Defense and the rates thereof shall be determined by the Secretary of Budget and Management on the basis of the area classification certified by the Secretary of National Defense. The Secretary of Budget and Management and the Secretary of National Defense shall review from time to time authorizations for the payment of hazard pay in strife-torn and embattled areas earlier issued and shall terminate such authorizations in areas where conditions no longer justify the continuation of hazard duty pay. Sec. 41. Special Counsel Allowance. — Lawyer-personnel, including those designated to assume the duties of a legal officer and those deputized by the Office of the Solicitor General in the legal staffs of departments, bureaus, offices or agencies of the National Government to appear in Court as special counsel in collaboration with the Solicitor General or Fiscals concerned are hereby authorized an allowance of P450 for each appearance, chargeable to savings in the appropriations of their respective offices, but not exceeding P1,800 per month. Sec. 42. Quarters Allowance. — Except as may be authorized by law, government officials and employees who, by virtue of their positions, are provided free quarters, furnished quarters, or are charged only nominal rate for the use of government-owned buildings such as dormitories or living quarters in state colleges and universities, schools, offices and elsewhere, shall forfeit their entitlement to any quarters allowance. Directors or their equivalent who are assigned or transferred from one Regional Office to another and do not own rooms or houses therein shall be provided free quarters within their office premises. Where there is not enough space to be used as quarters, the agency concerned may rent buildings or rooms which shall serve as quarters for officials and employees concerned. For those who desire more extensive quarters other than those provided by their agencies or by rental in the authorized amount appropriated for the purpose, such preferred quarters may be secured provided that the difference between the rental cost shall be paid by the former. Officials and employees who enjoy free quarters in government-owned buildings but are not entitled to quarters privileges, shall be charged the corresponding cost of rentals therefor. Unless fixed by law, the rate of quarters allowance or rental, as the case may be, shall be determined by the Department of Budget and Management. Sec. 43. Entitlement to Personnel Economic Relief
Allowance (PERA). — The Personnel Economic Relief Allowance (PERA) in
the amount of Five Hundred Pesos (P500.00) per month shall be granted
to all appointive national and local government employees occupying
itemized plantilla positions with Salary Grade 23 or below, or Salary
Grade 24 without representation and/or transportation allowance, to
casual and contractual employees of equivalent grade who have rendered
at least twelve (12) months continuous or uninterrupted service and to
company grade officers and non-commissioned and enlisted personnel of
the Armed Forces of the Philippines who are receiving regular pay and
to their counterpart uniformed personnel of the Department of the
Interior and Local Government: provided, that employees of
government-owned and/or controlled corporations shall be paid from
their respective corporate fund: provided, FURTHER, that appointive
local government employees, except members of local legislative bodies,
shall be paid from their respective internal revenue allotment and
local funds in accordance with the following schedule: Sec. 44. Additional Compensation of P500.00 Per Month. — The additional compensation in the amount of Five Hundred Pesos (P500.00) per month granted under Administrative Order No. 53 dated May 17, 1993 shall continue to be granted to (1) public school teachers occupying positions allocated to Salary Grade 25 and below; (2) uniformed personnel of the Department of the Interior and Local Government up to the rank of Superintendent and of the Armed Forces of the Philippines up to the rank of Lieutenant Colonel; and (3) the rest of government personnel occupying positions allocated to Salary Grade 25 and below, whether regular personnel or full-time casual, those on temporary status or contractual personnel whose employments are in the nature of a regular employee pursuant to said Order, shall continue to be given, chargeable against the appropriations provided for the purpose under this Act. Sec. 45. Pay Adjustment of DND and DILG Uniformed Personnel. — The President of the Philippines is authorized to adjust the basic pay of the uniformed personnel of the Departments of National Defense and the Interior and Local Government upon the recommendation of the Secretaries of National Defense, the Interior and Local Government and Budget and Management: provided, that the fund requirements for the implementation of such adjustment for Fiscal Year 1996 shall be drawn from the Compensation Adjustment Fund, Organizational Adjustment Fund and other appropriate funding sources authorized in this Act and from savings in the appropriations of the agencies concerned. Sec. 46. Use of Appropriations for Retirement
Gratuity and Terminal Leave. — Release of appropriations authorized in
this Act to cover retirement gratuity benefit claims shall be made on
the basis of the Work and Financial Plan of offices and agencies. In no
case shall payment be made except on the basis of creditable services
as computed by the Government Service Insurance System in accordance
with the provisions of existing retirement laws. Unless otherwise
authorized by law, no amount appropriated in this Act shall be used for
payment of retirement gratuity under the provisions of Section 12 (c)
of C.A. No. 186, as amended by R.A. No. 1616 and terminal leave
benefits of retiring officials and employees which include in the
computation thereof additional compensation as defined under retirement
laws such as bonuses, per diems, allowances and overtime pay, or
salary, pay or compensation given in addition to the base pay of the
position or rank as fixed by law or regulation. Sec. 47. Unauthorized Pre-Retirement Promotions and
Salary Increases. — No portion of the appropriations provided in this
Act shall be used for automatic promotions or for salary increases and
adjustments granted to retiring officials and employees, which are not
authorized by law and duly formalized in a National Compensation
Circular. Sec. 48. Personal Liability of Officials far Payment
of Unauthorized Personal Services Cost. — No official or employee of
the National Government, including those of government-owned and/or
controlled corporations, shall be paid any unauthorized personal
services benefits charged against the appropriations in this Act, other
appropriations laws or income of the government. CHANGES IN EXPENDITURE ITEMS Sec. 49. Modification of Expenditure Components. — Except as may be authorized by law, no change or modification shall be made in the expenditure items authorized in this Act and other appropriations laws unless in cases of augmentations from savings in appropriations as authorized under Sec. 25(5) of Article VI of the Constitution. Sec. 50. Use of Savings. — The President of the Philippines, the President of the Senate, the Speaker of the House of Representatives, the Chief Justice of the Supreme Court, the Heads of Constitutional Commissions under Article IX of the Constitution, the Ombudsman, and the Commission on Human Rights are hereby authorized to augment any item in this Act for their respective offices from savings in other items of their respective appropriations. Sec. 51. Meaning of Savings and Augmentation. —
Savings refer to portions or balances of any programmed appropriation
in this Act free of any obligation or encumbrance still available after
the satisfactory completion or unavoidable discontinuance or
abandonment of the work, activity or purpose for which the
appropriation is authorized, or arising from unpaid compensation and
related costs pertaining to vacant positions and leaves of absence
without pay. Sec. 52. Priority in the Use of Savings. — In the use of savings, priority shall be given to the augmentation of the amounts set aside for compensation, bonus, retirement gratuity, terminal leave, old-age pension of veterans and other personnel benefits authorized by law and those expenditure items authorized in agency Special Provisions and in other sections of the General Provisions of this Act. Sec. 53. Use of Savings for the Implementation of the Magna Carta of Public Health Workers. — In case of deficiency in the funds needed to implement the Magna Carta of Public Health Workers pursuant to R.A. No. 7305, the requirements shall be charged against savings in the appropriations authorized for each department, bureau, office or agency concerned, subject to the guidelines jointly prescribed by the Department of Health and the Department of Budget and Management. Sec. 54. Prohibition in the Use of Savings. — No savings from the appropriations authorized in this Act shall be realigned and utilized for any referendum, plebiscite or electoral activity, for the purpose of amending the Constitution. Sec. 55. Augmentation of MOOE Items. — Agencies may augment an item of expenditure within Maintenance and Other Operating Expenses (MOOE) from savings in other items of MOOE in an amount not exceeding one-third (1/3) of the appropriated amount to be augmented without prior approval of the Department of Budget and Management. Sec. 56. Realignment/Relocation of Capital Outlays and Public Works Projects. — The amount appropriated in this Act for construction, replacement, rehabilitation and completion of school buildings, hospitals, sanitaria, health centers, clinics, herbal processing plants, warehouses, and health stations, as well as waterworks/supply and other public works projects under the current year infrastructure program in this Act may be realigned/relocated in cases of imbalanced allocation of projects within the district, duplication of projects, overlapping of funding source and similar cases: provided, that such request for realignment/relocation shall be made within forty-five (45) days after the receipt of the original General Allotment Release Order (GARO)/Special Allotment Release Order (SARO) by the agency concerned as the case may be, except in cases of duplication of projects and overlapping of funding source: provided, FURTHER, that such realignment/relocation is within the congressional district for which the funds were originally allocated: provided, FURTHERMORE, that the realignment shall be for projects within the same category and shall not exceed the total amount originally allocated for the congressional district: AND PROVIDED, FINALLY, that, with the exception of the Countrywide Development Fund (CDF) and initiatives of Senators, the realignment/relocation shall be made upon the initiative and consent of the representative of the district concerned and with the concurrence of any one of the following: The District Engineer, the Regional Director or Secretary of the Department concerned, regardless of the cost of the project being realigned or relocated. Thereafter, such realignment/relocation shall be implemented by the appropriate agencies. Sec. 57. Realignment of Foreign-Assisted Projects. — The amount appropriated in this Act for the implementation of foreign-assisted projects, including loan proceeds and local counterpart, shall not be realigned except to other foreign-assisted projects. Sec. 58. Use of Fund and Releases to the Autonomous Region in Muslim Mindanao. — The lump-sum appropriations provided in the various departments of the national government intended for the Autonomous Region in Muslim Mindanao shall be used for regular programs and specific activities identified upon the initiative of the respective Representatives of the congressional districts therein. No portion of the lump-sum appropriation provided herein shall be released without the concurrence of the said Representative of the congressional districts. Sec. 59. Availability of Appropriations. — Appropriations for capital outlays authorized in this Act shall be available for release and obligation for the purpose specified for a period extending to one fiscal year after the end of the year in which appropriated. Likewise, the unutilized balances of the maintenance and other operating expenses of the different departments, offices, bureaus, and agencies at the end of the year, starting with fiscal year 1995, shall be made available during the succeeding fiscal year subject to auditing rules and regulations to be prescribed for the purpose. Sec. 60. Use of MOOE Unutilized Balances. — At least
fifty percent (50%) of the total unutilized balances of maintenance and
other operating expenses (MOOE) made available pursuant to the
preceding Sec. 59 shall be used to fund the operating requirements
of (1) DECS-supervised post-secondary degree-offering schools and other
higher education schools transferred to the Commission on Higher
Education (CHED) as well as technical-vocational schools converted by
law to higher education schools and any other educational institution,
including high schools, affected by the implementation of R.A. No. 7722
and R.A. No. 7796, (2) upgraded and newly created hospitals and (3)
newly established economic zones and administrative regions: provided,
that priority shall be given to augmenting the fund requirements of
such new programs, projects or activities that are actually implemented
during the year. The Department of Budget and Management shall issue
the guidelines to implement this program. RELEASE AND USE OF FUNDS Sec. 61. Simplified Fund Release System. — The amount herein appropriated shall be released to concerned departments, bureaus, offices, agencies, including government-owned and/or controlled corporations in accordance with the simplified fund release system prescribed by the Department of Budget and Management. Sec. 62. Appropriations of Agencies Vested with Fiscal Autonomy. — Any provision of law to the contrary notwithstanding, the appropriations authorized in this Act for the Judiciary, Congress of the Philippines, the Commission on Human Rights, the Office of the Ombudsman, the Civil Service Commission, the Commission on Audit and the Commission on Elections shall be automatically and regularly released in accordance with the Work and Financial Plan. Sec. 63. Prohibition on the Release of Funds for Unfilled Positions. — No amount herein appropriated for salaries of authorized itemized positions which are unfilled except those in the Judiciary, schools and educational institutions, and hospitals shall be released by the Department of Budget and Management. Amounts generated from unfilled positions shall be used to augment the Compensation Adjustment Fund for increase of salaries and wages of all national government personnel, including uniformed personnel of the Armed Forces of the Philippines, Philippine National Police, Bureau of Fire Protection, Bureau of Jail Management and Penology and the Philippine Public Safety College and the Miscellaneous Personnel Benefits Fund. Sec. 64. Direct Release of Funds to Regional Offices.
— Funds allotted for regional offices but included in the budgets of
their central offices or which are specifically allocated for the
different regions shall be released directly to said regional offices.
Imposition of any retention or deduction as reserves shall not be
allowed except as may be authorized by the Department of Budget and
Management. For this purpose, the Department of Budget and Management
shall identify by region the expenditure programs of agencies in the
national government budget and shall release funds intended for them in
accordance with the approved regional distribution of expenditures
specifying the region of destination. Sec. 65. Utmost Priority to 19 Provinces. — All departments, bureaus, offices and agencies shall give utmost priority in the utilization of their funds for basic services to the nineteen (19) most depressed provinces as identified by the Philippine Council for Sustainable Development. Sec. 66. Prohibition Against Deduction/Retention of Allotment. — Fund releases from appropriations provided in this Act for any function/project shall be transmitted intact or in full to the office or agency concerned and no retention or deduction as reserves or overhead shall be made, except as authorized by law or upon direction of the President of the Philippines. The Commission on Audit shall ensure compliance with this provision to the extent that sub-allotments by departments and/or central agencies to their subordinate offices are in conformity with allocations in the General Allotment Release Order (GARO)/Special Allotment Release Order (SARO) as the case may be, as issued by the Department of Budget and Management. Sec. 67. Notice of Release of Funds. — Release of
funds for construction, repair and maintenance, rehabilitation,
replacement, completion, betterment or improvement of roads and
bridges, port works, flood control, waterworks/supply and government
buildings and structures as well as for Internal Revenue Allotment and
other financial support to local government units shall be made with at
least ten (10) days prior written notice to the Representative of the
district concerned. Sec. 68. Certification of Availability of Funds. — Before entering into contracts involving the expenditure of public funds, all departments, bureaus, offices or agencies shall secure a certification of availability of funds for the purpose from the agency Chief Accountant, subject to applicable rules and regulations as may be issued by the Department of Budget and Management and to Section s 40 and 58 of Book VI, E.O. No. 292: provided, that the certification of availability of funds sufficient to cover the cost of the contracted activities shall be contained in and made part of the contract duly signed by the Chief Accountant of the contracting agency, as provided for by LOI No. 968. Departments, bureaus, offices or agencies, before entering into contracts for delivery of goods or services against future payment, shall likewise first secure a certification of the availability of the full contracted amount for such goods or services out of the agency's appropriations. No contracts shall be entered into nor work undertaken without such certification of fund availability. Sec. 69. Disbursement of Funds. — All appropriated funds shall be disbursed only through the National Treasury and/or originally-chartered government-owned or controlled banks. Sec. 70. Treatment of Releases to Local Government
Units from Special Purpose Funds. — Except those funds earmarked by
Special Laws to LGUs, all releases made direct to local government
units from the Calamity Fund, Countrywide Development Fund, the Mt.
Pinatubo Assistance Resettlement and Development Fund, and other
special purpose funds shall be used exclusively for the
projects/purposes for which they are intended and the same shall be
treated as a Special Account under the General Fund of the Local
Government Units concerned: provided, that any unutilized balances
thereof except those released as subsidy shall be reverted to the
General Fund of the National government upon completion and/or
abandonment of the projects or purposes. Sec. 71. Government Compulsory Contribution. — The
government shares of the compulsory contribution due under Presidential
Decree No. 1146, Republic Act No. 6111 and Presidential Decree No. 626,
as amended, shall be automatically released by the DBM to the GSIS at
the beginning of every quarter. A quarterly report of such releases
shall be submitted to the Chairman of the Senate Committee on Finance
and the Chairman of the House Committee on Appropriations within thirty
(30) days after the end of each quarter. ADMINISTRATIVE PROCEDURES Sec. 72. Organizational Changes. — Unless otherwise created by law or directed by the President of the Philippines, no organizational unit or changes in key position in any department or agency shall be authorized in their respective organization structures and be funded from appropriations provided by this Act. Sec. 73. Implementation of Reorganization. — Pursuant to Sec. 42, Chapter 5, Book VI of the Administrative Code of 1987, the appropriations including the functions, projects, purposes and activities authorized in this Act may be realigned as may be necessary to implement the reorganization of departments, bureaus, offices or agencies of the government as mandated by law. Any unexpended balances or savings in appropriations may be made available for the payment of retirement gratuities and separation benefits as authorized under existing laws to personnel affected by the reorganization. Sec. 74. Scaling Down and Phase-Out of Activities of
Agencies Within the Executive Branch. — The heads of departments,
bureaus, offices and agencies are hereby directed to identify their
respective activities which are no longer essential in the delivery of
public services and which may be scaled down, phased-out or abolished,
subject to Civil Service rules and regulations. Said activities shall
be reported to the Office of the President through the Department of
Budget and Management and to the Chairman, Committee on Appropriations
of the House of Representatives and the Chairman, Committee on Finance
of the Senate. Actual scaling down, phase-out or abolition of the
activities shall be effected pursuant to Circulars or Orders issued for
the purpose by the Office of the President. Sec. 75. Recruitment of the Philippine National Police (PNP), Bureau of Jail Management and Penology (BJMP) and Bureau of Fire Protection (BFP). — In the recruitment of uniformed personnel for PNP, BJMP and BFP, one third (1/3) of its recruits shall be from the qualified applicants of the twenty most depressed provinces and 5th and 6th class municipalities. Sec. 76. Service Contracts. — Departments, bureaus,
offices or agencies of the National Government are hereby authorized to
enter into contracts including professional consultancy services
contracts with other government agencies, private firms or individuals
and non-governmental organizations for services related or incidental
to their respective functions and operations, whether on part-time or
full-time basis, through public bidding or negotiated contracts,
whenever it is impractical or more expensive for the government to
directly undertake such functions and operations, subject to pertinent
accounting and auditing rules and regulations. Sec. 77. Implementation of Infrastructure Projects. — In the hiring of workers needed for the implementation of infrastructure projects as authorized in this Act, priority, shall be given to unemployed, unskilled and indigent inhabitants of the local government unit where the project is located. Sec. 78. Funding of National Government Agencies in
the Autonomous Regions. — National government offices and agencies in
the Autonomous Region of Muslim Mindanao which are not excluded under
paragraph (9), Sec. 2, Article V of R.A. No. 6734, together with
their personnel, equipment, properties and budgets shall be placed
under the control and supervision of the Regional Government, pursuant
to a schedule prescribed by the Oversight Committee in accordance with
its mandate under the provisions of R.A. No. 6734. Sec. 79. Construction Standards and Guidelines. — Construction projects funded from capital outlays authorized in this Act under the various departments, bureaus, offices or agencies of the national government, including the construction of buildings for state universities, colleges, schools, hospitals, sanitaria, health centers and health stations, roads and bridges, shall be implemented only in accordance with the appropriate standards and specifications for the planning, survey, design and construction of the project as prescribed by the Department of Public Works and Highways or the Department of Transportation and Communications as the case may be. In addition, land use and zoning guidelines as prescribed by existing laws, rules and regulations shall be strictly observed. In the implementation of the construction projects, Section s 2, 3, 4, 5, 6, 7, 9, 10 & 12 of Executive Order No. 182, entitled "Rationalizing Public Works Measures, Appropriating Funds for Public Works, and for Other Purposes", and other legislations on public works shall be strictly complied with, except as otherwise provided in this Act and except further for projects of the Department of Public Works and Highways, for which Sec. 8, 9, 10, 11 and 12 of Republic Act No. 8051, otherwise known as the "Public Works and Highways Infrastructure Program Act of 1995" shall be adopted. Sec. 80. Implementing Agency for Nationally Funded Projects. — Pursuant to Sec. 17 (c) of R.A. No. 7160, the Local Government Code of 1991, projects, facilities, programs and services funded under the General Appropriations Act shall be implemented by the appropriate national government department or agency irrespective of the nature and location of such projects, facilities, programs and services: provided, that a memorandum of agreement may be entered into with the implementing national government agency designating a particular local government unit to undertake the project or activity. Sec. 81. Report on Compliance with COA Recommendations. — All departments, agencies, bureaus, offices and instrumentalities of the government, including government-owned or controlled corporations and local government units shall submit to the Commission on Audit (COA) within sixty (60) days from their receipt of the COA annual audit report, a status report on the actions they have taken on the audit findings and recommendations made by the COA pertaining to each of said departments, agencies, instrumentalities, corporations and local government units. Sec. 82. Submission of Quarterly Reports. — Within
thirty (30) days after the end of each quarter, each department,
bureau, office or agency shall submit a quarterly report to the House
Committee on Appropriations and the Senate Committee on Finance, copy
furnished the Department of Budget and Management, the Commission on
Audit, and the appropriate Committee Chairman of the House of
Representatives on their cumulative allotments, obligations
incurred/liquidated, total disbursements, unliquidated obligations,
unobligated and unexpended balances, and the results of expended
appropriations. Sec. 83. Separability Clause. — If for any reason any section or provision of this Act is declared unconstitutional or invalid, other sections or provisions hereof which are not affected thereby shall continue to be in full force and effect. Sec. 84. Effectivity. — The provisions of this Act shall take effect on
January one, nineteen hundred and ninety-six unless otherwise provided
herein. Approved: December 29,1995 |
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