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SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
F ir s t R e g u la r S e s s io n )
*17 MAY 11 P3-45
SENA TE p >
RECEIVED BY;
I n tr o d u c e d b y S e n a to r LOREN LEGARDA
E xplanatory Note
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SENA TE
S e n a te Bill No.4A5 0
I n tr o d u c e d by S e n a to r LOREN LEGARDA
PART 1
PRELIMINARY PROVISIONS
10
The P resid en t sh all su b m it for inform ation of C ongress, th e S ta te m e n t of
2 Fiscal Policy n o t la te r th a n n inety (90) days u p o n c o m m en cem en t of h is /h e r
3 term of office a n d u p d a te th e m ea su ra b le fiscal objectives se t forth th erein
4 th ree (3) y e a rs th ereafter.
5
6 S e c tio n 16. M e d iu m -te rm F is c a l S tr a te g y .- The DBM, in coordination
7 with th e DOF, NEDA, a n d OP in the DBCC, sh all p rep a re, su b je ct to
8 approval of th e P resid en t, a M edium -term Fiscal S trategy a n d its a n n u a l
9 u p d a te s. The S trategy a n d its u p d a te s shall be c o n siste n t w ith th e approved
10 S ta te m en t of Fiscal Policy a n d Long-Term Vision R eport. It sh all include a
11 su m m ary of the fiscal policies for revenue, debt, deficit, ex p en d itu re, an d
12 fiscal risk m an a g em en t, su p p o rte d by a m ed iu m -term fiscal su sta in ab ility
13 an aly sis, c o n siste n t w ith th e m ea su ra b le fiscal objectives e sta b lish e d in the
14 approved S ta te m e n t of Fiscal Policy. The IRR of th is Act shall detail the
15 o th er specifications for th e M edium -term Fiscal S trategy a n d its u p d a te s.
16
17 The P resid en t sh all su b m it for th e inform ation of C ongress, th e M edium -
18 term Fiscal S trateg y for th e following fiscal y e ar n o t la te r th a n M arch 15 of
19 the c u rre n t y e a r an d shall publish the said report on a governm ent website
20 not later th a n seven (7) days after it is subm itted to Congress.
21
22 S e c tio n 17. F is c a l R e p o rts . - The DBM, in co o rd in atio n w ith the DOF,
23 NEDA, a n d OP in th e DBCC, shall produce a M id-year Fiscal R eport (MFR),'
24 covering th e first h a lf of th e c u rre n t fiscal y e ar a n d a n A n n u al Fiscal R eport
25 (AFR) on th e governm ent s m acroeconom ic a n d fiscal perform ance covering
26 the p receding fiscal year.
27
28 The MFR a n d AFR shall include inform ation on m acroeconom ic a n d fiscal
29 o u ttu rn s for th e period covered a s com pared a g a in st fo recasts a n d objectives
30 stated in the M edium -term Fiscal Strategy; a s well a s rep o rtin g on b udget
31 execution, a t lea st in th e aggregate a n d by agency level, com pared a g a in st
32 approved a p p ro p ria tio n s a n d o th e r sp en d in g a u th o ritie s. The IRR of th is Act
33 shall detail th e o th e r specifications for the c o n te n ts of th e MFR a n d AFR.
34
35 The P resid en t sh all su b m it th e MFR to C ongress n o t later th an
36 S eptem ber 30 of each y e a r while the AFR shall be su b m itte d together with
37 the Proposed N ational B udget. Said rep o rts shall be published on a
38 governm ent w ebsite not later th a n seven (7) days after they are subm itted to
39 Congress.
40
41 S e c tio n 18. L o n g -te rm V ision R e p o rt. - The NEDA, in co o rd in atio n with
42 the DOF, DBM a n d OP in the DBCC, shall su b m it a Long-term Vision
43 R eport to th e P re sid e n t a n d C abinet, a n d C ongress not la te r th a n O ctober
44 31 a n d Novem ber 30, respectively. Said R eport shall a s s e s s th e long-term
45 su sta in ab ility of existing governm ent policies over th e nex t twenty-five (25)
46 years, tak in g into a c c o u n t dem ographic, env iro n m en tal, a n d o th e r changes.
47
11
1 The first L ong-term Vision R eport sh all be su b m itte d to th e P resid en t a n d
2 C abinet, a n d C ongress w ithin two (2) y e ars from th e effectivity of th is Act, to
3 be u p d a te d every six (6) y e a rs th ereafter.
4 The NEDA sh all c a u se th e p u b licatio n of th e Long-term Vision R eport on
5 a governm ent w ebsite no t later th a n seven (7) d ay s u p o n su b m issio n to
6 C ongress.
7 S e c tio n 19. D e v ia tio n s f r o m F is c a l O bjectives. — The governm ent m ay
8 deviate from the m ed iu m -term fiscal objectives in th e approved S ta te m e n t of
9 Fiscal Policy on a tem p o rary b asis, w here su c h deviation is d u e to a m ajor
10 n a tu ra l d isa ste r, u n a n tic ip a te d severe econom ic shock, or o th e r significant
11 unforeseeable event th a t c a n n o t be accom m odated th ro u g h accessin g the
12 C ontingent F u n d a n d /o r th e N ational D isa ste r Risk R eduction a n d
13 M anagem ent F u n d , a s m ay be applicable or p ru d e n t fiscal policy
14 a d ju stm e n ts, or th e u se of o th e r flexibilities provided in th is Act.
15
16 The P resid en t sh all su b m it a rep o rt to th e C ongress, sta tin g th e re a so n s
17 for any su c h deviations, th e p la n s a n d the expected tim e to a d d re ss su c h
18 deviations, a s p a rt of th e succeeding M edium -term Fiscal Strategy or its
19 a n n u a l u p d a te , or in th e M id-year or A nnual Fiscal R eport, w hichever is the
20 next rep o rt d u e a n d w ithin th e p rescrib ed period u n d e r th is Act.
21 S e c tio n 2 0 . S h a r e d F is c a l D isc ip lin e . - All proposed revenue eroding a n d
22 ex p en d iture bills shall include a F inancial a n d B udgetary Inform ation S heet
23 u p o n filing of th e bill co n ta in in g a n e stim ate of the financial a n d b u d g etary
24 im plications of said proposal for the initial y e ar of im p lem en tatio n a n d the
25 next five (5) years. E x p en d itu re bills refer to th o se w hich will re s u lt in a
26 red u ctio n of revenue collections or a n in crease in n a tio n al governm ent
27 ex p en d itu res, inclu d in g th o se m a n d a tin g th e creatio n of recu rrin g
28 ex p en d itures.
29 E ach H ouse of C ongress shall provide guidelines p rescrib in g th e form,
30 co n te n t of th e F inancial a n d B udgetary Inform ation S heet, a s well a s the
31 a p p ro p riate offices from w hich su c h inform ation sh all be acq u ired , a n d the
32 im plications of non-com pliance w ith said su b m issio n .
33 PART IV
34 BUDGET PREPARATION, EXECUTION, AND ADJUSTM ENT
35
36 S e c tio n 2 1 . G o v e rn in g P r in c ip le s in B u d g e t P r e p a r a t io n . - T here is
37 hereby e stab lish ed a se t of governing principles to be observed by th e NGAs,
38 GOCCs, a n d LGUs in th e p rep a ratio n of th eir a n n u a l b u d g et pro p o sals, an d
39 by the DBM in th e p rep a ra tio n , a n d th e p re se n ta tio n to C ongress, of the
40 Proposed N ational Budget:
41
42 (a) C a sh -b ased e stim a te s shall be ad o p ted in th e proposed general a n d
43 special a p p ro p ria tio n s bills to prom ote faster a n d m ore effective
44 delivery of services;
45
46 (b) The overall ex p en d itu re program of th e governm ent for a given fiscal
47 y ear sh all be included, identifying th o se req u irin g approval by
48 C ongress a n d th o se a u th o rized u n d e r existing laws;
49
12
1 (c) All so u rc e s of fu n d s a n d a u th o rized u s e s available to th e agency shall
2 be co n sid ered in th e ev aluation of agency p ro p o sa ls a n d d eterm in atio n
3 of agency b u d g et levels, a n d sh all likewise be disclosed in the
4 Proposed N ational B udget a n d reports;
5
6 (d) E valuation of agency p ro p o sals m ay in clude th e an aly sis of a
7 developm ent p lan , m a s te r plan or road m ap, agency capability a s
8 d e m o n stra te d by previous y e a rs ’ perform ance, its c o n trib u tio n to
9 projects a n d activities of o th e r agencies, u tilizatio n of fu n d s
10 a p p ro p ria te d or released, a n d su c h o th e r criteria a s m ay be
11 d eterm ined by th e DBM. The perform ance sh all be ev alu ated b ased on
12 th e a c tu a l d isb u rse m e n ts a n d c o n tra c tu a l co m m itm en ts a s com pared
13 to th e ap p ro p ria tio n s;
14
15 (e) All a p p ro p ria tio n s sh all be valid for one fiscal y e a r i.e., from the
16 effectivity of th e a p p ro p ria tio n s a c t u n til th e en d of th e fiscal y ear
17 co ncerned w ith no provision for carryover, except for a th ree m o n th
18 E xtended P aym ent Period in the following fiscal y e ar to allow agencies
19 to settle p a y m e n ts for goods a n d services delivered d u rin g the
20 previous fiscal year;
21
22 (f) Item s of a p p ro p ria tio n s shall be p rese n te d in su c h a way a s to identify
23 both th e en tity resp o n sib le for th e ex p en d itu re a n d th e intended
24 re s u lts from th e u se of th e a p p ro p riatio n in o rd er to ev alu ate the
25 perform ance of th e agency;
26
27 (g) B oth th e financial a n d n o n-financial p erform ance of ag en ciessh all be
28 p resen te d in th e Proposed N ational B udget a n d th e G eneral
29 A p propriations Act to e n su re a perform ance-inform ed budget; a n d
30
31 (h) Item s of a p p ro p ria tio n s sh all be reflected by d e p a rtm e n t, agencies,
32 b u re a u s, a n d offices, a n d sh all be p resen te d for inform ation p u rp o se s,
33 by region a n d province, a n d eventually, by city or m unicipality.
34
35 S e c tio n 2 2 . P la n n in g -B u d g e tin g L in k a g e . - D evelopm ent strateg ies
36 identified in th e Philippine D evelopm ent Plan (PDP) sh all be a prim ary
37 co n sid eration in th e form ulation of th e b u d g et priorities fram ew ork. T hese
38 shall also be th e b a sis for draw ing u p strategic a n d prioritized p ro g ram s a n d
39 projects in the m u lti-y ear public in v estm en t program , w hich in tu rn will be
40 considered in th e form ulation of th e a n n u a l agency b u d g e ts th a t conform to
41 the a n n u a l b u d g et ceilings approved by the P resident.
42
43 The im p lem en tatio n of p ro g ram s a n d projects fu n d ed u n d e r th e a n n u a l
44 agency b u d g e ts sh all be m onitored to e n su re econom y, efficiency, an d
45 effectiveness in th e u se of public fu n d s. M onitoring a n d ev alu atio n of th ese
46 projects sh all cover, am ong o th ers, the p lan n ed a n d a c tu a l perform ance of
47 agencies, citing re a so n s for deviation a n d /o r poor ab sorptive capacities. The
48 re s u lts of th e project evalu atio n shall inform the a s s e s s m e n t of s u b s e q u e n t
49 p lan s an d b u d g et p ro p o sa ls of agencies.
13
1
2 S e c tio n 2 3 . B u d g e t P r i o r i ti e s F ra m e w o rk . - The DBM, in coordination
3 with the DOF, NEDA a n d OP in th e DBCC, shall p re s e n t to the P residen t
4 an d C abinet, on or before April of each year, a B udget Priorities F ram ew ork
5 w hich shall guide th e form ulation of th e B udget for th e following y e a r by
6 co n tain ing th e m ed iu m -term fiscal strateg y a n d ta rg e ts u n d erly in g th e
7 budget; th e priority a re a s for governm ent sp en d in g reflected in th e PDP,
8 estim ated a m o u n t a n d p lan n e d allocation of th e fiscal space; a n d o th er
9 req u irem en ts laid dow n in th e IRR.
10
11 S e c tio n 2 4 . T he B u d g e t P r e p a r a t io n P ro c e s s . - The DBM sh all d eterm in e
12 the b u d g et p re p a ra tio n p ro cess an d calen d ar. The b u d g et p rep a ratio n
13 process shall cover: (i) NGAs; (ii) GOCCs w ith re sp e c t to th e ir im p act on
14 revenues, e x p en d itu re s, a sse ts, a n d liabilities a n d risk s of th e governm ent;
15 an d (iii) LGUs a s to th e ir im p act on rev en u es a n d e x p e n d itu re s of the
16 governm ent.
17
18 S e c tio n 2 5 . T he P ro p o s e d N a tio n a l B u d g e t. - The P resid en t sh all su b m it
19 to C ongress, n o t later th a n th irty (30) days from th e fourth M onday of J u ly
20 of every year, th e Proposed N ational B udget, w hich shall be th e b a sis of the
21 G eneral A ppropriations Bill.
22
23 The P resid en t sh all determ in e th e form a n d c o n te n t of th e Proposed
24 N ational B udget w hich shall include, b u t not lim ited, to th e following:
25
26 (a) P re sid e n t’s B udget M essage -p ro v id es a preview of th e Proposed
27 N ational B udget, explaining th e principles, objectives a n d policy
28 fram ew ork a d o p ted a n d th e sp en d in g priorities for th e fiscal year;
29
30 (b) B udget of E x p en d itu re s a n d S ources of F in an cin g (BESF) -c o n ta in s
31 the m acroeconom ic p a ra m eters; d im en sio n s of th ree -y ea r (3-year)
32 e x p en d itu re program , revenues, financing, a n d o u tsta n d in g debt;
33 overview of th e financial p o sitio n s of GOCCs, LGUs, a n d public-private
34 p a rtn e rsh ip projects, a s well a s th e o th e r item s listed in th e IRR;
35
36 (c) N ational E x p en d itu re Program (NEP) - in clu d es th e strateg ic
37 objectives, d e ta ils of the th ree -y ea r (3-year) ex p en d itu re program ,
38 perform ance inform ation, su c h a s key strateg ies, o u tp u ts a n d
39 o u tco m es for agencies in relation to th e ir b u d g ets, a n d staffing
40 sum m ary;
41
42 (d) Fiscal Risk S ta te m e n t - p re s e n ts a consolidated sta te m e n t of th e fiscal
43 risk s th a t th e n a tio n al governm ent faces, inclu d in g th o se from the
44 co n tin g en t liabilities of G overnm ent Agencies a n d o th e r item s listed in
45 the IRR.
46
47 As required u n d e r Section 17 of th is Act, th e P re sid e n t sh all likewise
48 su b m it for c o n sid era tio n of C ongress, the A nnual Fiscal R eport for the
49 preceding fiscal y e a r n o t la te r th a n th e abovem entioned date, a n d th e Mid-
14
1 y ear Fiscal R eport for th e c u rre n t y e ar n o t later th a n S ep tem b er 30 of every
2 year.
3
4 C ongress m ay n o t in crease th e a p p ro p ria tio n s recom m ended by the
5 P resid ent for th e o p e ra tio n s of governm ent a s specified in th e Proposed
6 N ational B udget.
7
8 The P resid en t sh all p u b lish th e Proposed N ational B udget on a
9 G overnm ent w ebsite on th e sam e day a s it is p rese n te d to C ongress.
10
11 S e c tio n 2 6 . P r o g r a m C la s s if ic a tio n . - The Proposed N ational B udget shall
12 ad o p t a s tru c tu re b ased on a program classification th a t g ro u p s line item s
13 u n d e r the objectives or ou tco m es to w hich they c o n trib u te to. Perform ance
14 inform ation shall be provided for each program to facilitate th e ev aluation of
15 the cost effectiveness of the pro g ram s a n d provide b e tte r inform ation for
16 an aly sis a n d feedback for p la n n in g a n d prioritization of e x p en d itu re s.
17
18 S e c tio n 2 7 . L u m p S u m A p p r o p r ia tio n s . - To prom ote the tra n s p a re n t a n d
19 detailed d isclo su re of all proposed governm ent sp en d in g , lu m p sum
20 ap p ro p ria tio n s a n d special p u rp o se fu n d s (SPFs) in th e Proposed N ational
21 B udget shall be lim ited to: (1) th e N ational D isa ste r Risk R eduction a n d
22 M anagem ent F u n d (NDRRMF); (2) the C ontingent F und; (3) S ta tu to ry S h a re s
23 of LGUs; a n d (4) o th e r SPFs n o t falling u n d e r a n y of th e preceding p u rp o se s
24 an d the details of w hich could not be d eterm in ed d u rin g the b udg et
25 p rep a ratio n stage.
26
27 S e c tio n 2 8 . N a tio n a l D i s a s te r Risk. R e d u c tio n a n d M a n a g e m e n t F u n d .
28 - T h e NDRRMF shall be u se d for: (1) d isa ste r risk red u c tio n or m itigation,
29 prevention a n d p re p a re d n e ss activities, su c h as, b u t n o t lim ited to, train in g
30 of p erso nnel, p ro c u re m e n t of eq u ip m en t, a n d cap ital ex p en d itu re s; a n d (2)
31 relief, recovery, re c o n stru c tio n a n d o th e r w ork or services in connection with
32 n a tu ra l or h u m a n in d u ced calam ities w hich m ay o c cu r d u rin g th e b udg et
33 year or those th a t o ccu rred in th e preceding two (2) years.
34
35 The NDRRMF m ay include the Q uick R esponse F u n d (QRF) of agencies,
36 w hich shall be u se d a s a sta n d b y fund in o rd er th a t th e situ a tio n a n d living
37 conditions of people in c o m m u n ities or a re a s strick e n by calam ities,
38 epidem ics, crises, a n d c a ta s tro p h e s m ay be norm alized a s quickly a s
39 possible. The QRF shall be released directly to th e agencies co n cern ed u p o n
40 approval of th e DBM.
41
42 R eleases from th e NDRRMF, o th er th a n the QRF, shall be su b je ct to the
43 prior approval of the P resident, who m ay tak e into c o n sid eratio n the
44 reco m m endation of th e N ational D isa ste r Risk R eduction a n d M anagem ent
45 Council a n d th e a p p ro p ria te agency for local a n d in te rn a tio n a l d isa ste rs an d
46 calam ities.
47
48 S e c tio n 2 9 . C o n tin g e n t F u n d . - The C on tin g en t F u n d sh all cover the
49 funding re q u ire m e n ts of new a n d /o r u rg e n t projects a n d activities of
15
1 n atio n al governm ent agencies a n d GOCCs th a t need to be im plem ented or
2 paid d u rin g th e year, su c h a s, legal obligation of th e governm ent arisin g
3 from final a n d executory d ecisions by co m p e te n t a u th o rity , including
4 a rb itratio n aw ard s, m ediation settlem en t, or com prom ise ag reem en ts,
5 req u irem en ts of newly created offices, or deficiencies in th e a p p ro p ria tio n s
6 for local a n d e x tern al travels of the P resid en t of the P hilippines.
7
8 R eleases from the C ontin g en t F u n d shall be su b je c t to approval by the
9 P resid ent of th e P hilippines, o th er th a n p ay m en t re su ltin g from final an d
10 executory decisions pro m u lg ated by co m p eten t a u th o ritie s, w hich sh all be
11 su b ject to approval by th e DBM.
12
13 The DBM sh all inform C ongress of all rele ases from th e C o n tin g en t F u n d
14 in the q u arterly a n d a n n u a l fiscal rep o rts in cluding inform ation on th e d ate
15 of release, th e a m o u n t covered, co rresp o n d in g p u r p o s e /s a n d recipient
16 agency.
17
18 S e c tio n 3 0 . S t a t u t o r y S h a r e s o f L o c a l G o v e rn m e n t U n its. - The sh a re s
19 of LGUs in th e pro ceed s from n atio n al tax es a n d o th e r tra n s fe rs to LGUs
20 au th o rized by law sh all be released to th e LGUs in a cc o rd an ce w ith the
21 provisions on th e u se , allocation, a n d release of th e fu n d s a s m ay be
22 provided in p e rtin e n t law s, ru les a n d regulations.
23
24 S e c tio n 3 1 . U n p ro g ra m m e d A p p r o p r ia tio n s . - C ongress m ay authorize
25 stan d b y a p p ro p ria tio n s to cover the funding re q u ire m e n ts of o th e r priority
26 projects a n d activities or contingencies, a s well a s provide a p p ro p ria tio n s
27 cover for fo reig n -assisted projects (FAPs) no t specifically included in the
28 program m ed c o m p o n en t of the A ppropriations Law. The U nprogram m ed
29 A ppropriations sh all have th e sam e level of d e tails a s in th e program m ed
30 com p o n ent of th e A ppropriations Law. The a m o u n t a u th o rize d u n d e r the
31 U nprogram m ed A ppropriations shall n o t exceed two p e rc en t (2%) of th e total
32 proposed ex p en d itu re in th e program m ed co m p o n en t of th e A ppropriations
33 Law.
34
35 The U nprogram m ed A ppropriations sh all tak e effect only w hen su p p o rted
36 by excess collections g en erated in any one of th e p a rtic u la r tax or n o n -tax
37 revenue source from its co rresp o n d in g revenue collections ta rg e t in the
38 BESF a s certified by th e BTr, or w hen th ere are new loan ag re em e n ts for
39 FAPs. In no case sh all the U nprogram m ed A ppropriations be activated or
40 released w hen th ere is a risk of b reach in g th e m ea su ra b le fiscal objectives
41 for the b u d g et b a lan ce (including a deficit) or d eb t for the financial y e ar or
42 fu tu re y e ars a s provided in th e S tatem en t of Fiscal Policy a n d M edium -term
43 Fiscal S trategy or if th ere is a risk of b reach in g an y of th e Fiscal
44 R esponsibility Principles.
45
16
1 Priority p ro jects a n d activities or contin g en cies sh all p e rta in to
2 ex p en d itu res, th e p a y m e n t of w hich are n o t covered u n d e r th e C onting en t
3 F u n d an d could n o t be delayed u n til th e su cceed in g b u d g e t y e a rs w itho u t
4 h arm in g public in te re s t or a risin g from th e g o v ern m en t’s legal obligation
5 su c h a s com pliance w ith a governm ent g u a ra n te e or se ttle m e n t of final an d
6 executory decisions by c o m p eten t au th o ritie s.
7
8 R eleases from th e U nprogram m ed A ppropriations sh all be su b je ct to the
9 prior approval of th e P resid en t of the P hilippines, o th e r th a n final an d
10 executory decisions, w hich shall be su b je ct to approval of th e DBM.
11
12 The DBM sh all inform C ongress of all rele ases from th e U nprogram m ed
13 A ppropriations in th e q u a rte rly a n d a n n u a l rep o rts inclu d in g inform ation on
14 the d ate of release, th e a m o u n t covered, c o rresp o n d in g p u rp o s e /s a n d
15 recipient agency.
16
17 S e c tio n 3 2 . B u d g e t w ith A c c o u n t C odes. - All item s of a p p ro p ria tio n s in
18 the A ppropriations Law shall be given a c c o u n t codes p u r s u a n t to th e Unified
19 A ccount Code S tru c tu re th a t ap p lies to all th e a s s e ts , liabilities, equities,
20 incom e, a n d e x p en ses of th e governm ent. T his a c c o u n t code s tru c tu re shall
21 be u sed in the release of th e a p p ro p ria tio n s in th e A ppropriations Law for a
22 unified acco u n tin g , a u d itin g an d reporting of all the financial tra n s a c tio n s of
23 the governm ent.
24
25 S e c tio n 3 3 . R e e n a c te d B u d g e t. - If, by th e end of a n y fiscal year.
26 C ongress shall have failed to e n a c t the G eneral A ppropriations Bill for the
27 en su in g fiscal year, th e G eneral A ppropriations Law for th e preceding fiscal
28 year shall be deem ed re-e n ac ted a n d shall rem ain in force a n d effect u n til
29 the said G eneral A pp ro p riatio n s Bill is p a sse d by th e C ongress.
30 C o n sisten t w ith th e Fiscal R esponsibility P rinciples, the Re
31 en acted B udget sh all be enforced a s follows:
32
33 (a) The aggregate level of th e R e-enacted B udget sh all be lim ited to the
34 total a m o u n t a p p ro p ria te d in the preceding y e a r’s A ppropriations
35 Law, b u t shall in no case exceed th e level of th e so u rc es of financing
36 u n d e r th e BESF of th e Proposed N ational B udget;
37
38 (b) The a p p ro p ria tio n s for the following shall be lim ited to th e a m o u n t
39 a u th o rized u n d e r the R e-enacted B udget, b u t in no c ase exceed the
40 a m o u n t proposed by th e P resid en t in the Proposed N ational Budget:
41
42 1. O ngoing p ro g ram s, projects a n d activities;
43 2. P ersonnel benefits, including retire m e n t g ra tu itie s, p en sio n s,
44 term in al leave pays a n d related expenses;
45 3. NDRRMF, C o n tin g en t F u n d , S ta tu to ry S h a re s of LGUs, an d
46 o th e r SPFs; a n d
47 B udgetary s u p p o rt to GOCCs for th e ir o p eratio n al req u ire m e n ts.
48
17
1 (c) In no case sh all th e following be considered p a rt of th e R e-enacted
2 Budget:
3
4 1. C om pleted p rogram s, projects a n d activities fu n d ed in th e
5 G eneral A ppropriation Law for th e preceding fiscal year;
6 2. B udgetary s u p p o rt for GOCCs for s u p p o rt to p rogram s,
7 activities or projects; a n d
8 3. E quity c o n trib u tio n of th e N ational G overnm ent to GOCCs.
9
10 The item s a n d /o r a m o u n t of a p p ro p ria tio n s n o t covered u n d e r the Re
11 en acted B udget a s provided above sh all not be released, d isb u rse d ,
12 or utilized for th e p u rp o se previously au thorized.
13
14 The DBM sh all issu e guidelines on th e aggregate a n d agency levels of
15 ap p ro p ria tio n s au th o rize d u n d e r the R e-enacted B udget in a cco rd an ce w i:h
16 th e foregoing, su p p o rtin g req u ire m e n ts to determ in e a c tu a l needs, a n d o th er
17 p e rtin e n t ru le s in th e im plem en tatio n of the R e-enaeted B udget.
18
19 Upon e n a c tm e n t of th e G eneral A ppropriations Law anytim e d u rin g th e
20 c u rre n t fiscal year, all releases u n d e r a R e-enacted B udget c o n siste n t w ith
21 th is Section shall be deem ed to have been im plem ented p u r s u a n t to, an d
22 charged a g ain st, for a c c o u n t recording p u rp o se s, the G eneral A ppropriations
23 Law for th e c u rre n t fiscal year.
24
25 S e c tio n 3 4 . S p e c ia l A p p r o p r ia tio n s B ill. - A Special A ppropriations Bill
26 is a proposal su b m itte d by th e P resident, a s reco m m en d ed by th e DBM,
27 before C ongress to provide a u th o riza tio n for e x p e n d itu re s for a specific
28 p u rp o se n o t in clu d ed or n o t covered u n d e r th e a n n u a l a p p ro p ria tio n s laws.
29 It shall specify th e p u r p o s e /s for w hich it is in te n d ed a n d be valid u n til the
30 end of th e fiscal y e ar of its e n ac tm en t.
31
32 A Special A ppropriations Bill shall be su p p o rte d by fu n d s actu ally
33 available or those w hich are not included in th e fiscal y e a r’s so u rc es of
34 financing u n d e r th e BESF a s certified by th e N ational T re a su re r, or to be
35 raised by a c o rresp o n d in g revenue m ea su re proposed th erein . The a m o u n t
36 to be a u th o rized by C ongress in a Special A ppropriations Bill m ay be m ore
37 th a n th a t originally proposed for a s long a s the sam e is su p p o rte d by an y or
38 a com b ination of th e above so u rc es a n d is c o n siste n t w ith th e Fiscal
39 R esponsibility P rinciples a n d th e M edium -term Fiscal Strategy. A Special
40 A ppropriations Bill m ay only be proposed after th e p a ssa g e of th e G eneral
41 A ppropriations Law, except for the following: (1) d isa ste r-re la te d p u rp o ses;
42 (2) u rg e n t projects a n d /o r activities; a n d (2) u n fo resee n re q u ire m e n ts of the
43 governm ent.
44
45 A Special A ppropriations Bill m ay likewise refer to a p roposal su b m itte d
46 by the P resid en t, a s recom m ended by the DBM, before C ongress for
47 additional a p p ro p ria tio n s for existing or new pro g ram s, activities or projects
48 of a n NGA or GOCC w ith fast in-year d isb u rse m e n t rate. In th is case, th e
49 bill m ay be su p p o rte d by th e c u rre n t fiscal y e a r’s so u rc e s of financing a s
18
1 certified by th e N ational T re a su re r d u e to reversion of fu n d s of NGAs or
2 GOCCs re su ltin g from slow im p lem en tatio n of p ro g ram s, activities o r
3 projects.
4
5 S e c tio n 3 5 . R e le a s e a n d E x p e n d itu r e o f P u b lic F u n d s . —The governm ent
6 shall com m ence rele ases of Public F u n d s covered by a n A ppropriations Law
7 a s soon a s su c h Law com es into force to e n su re tim ely a n d efficient
8 d isb u rse m e n t by th e a p p ro p ria te im plem enting agencies, su b je ct to
9 p e rtin en t b u d g etin g a n d a u d itin g ru le s a n d reg u latio n s. U pon th e
10 im plem entation of c a sh -b a se d ap p ro p ria tio n s, th e A pp ro p riatio n s Law shall
11 be considered th e a u th o rity of th e agencies to c o n tra c t o u t a n d d isb u rse
12 fu n d s, except for in sta n c e s provided in th e IRR.
13
14 S e c tio n 3 6 . A v a ila b ility o f C a sh -B a se d A p p r o p r ia tio n s . - All
15 a p p ro p riatio n s sh all be available for release, c o n tra c tu a l c o m m itm en t an d
16 d isb u rse m e n t u n til th e end of the fiscal year. However, G overnm ent
17 Agencies m ay still d isb u rse fu n d s n o t la te r th a n the th ree (3) m o n th s
18 E xtended P ay m en t Period from th e end of th e fiscal y e a r for goods or
19 services w hich have already been delivered or ren d e red w ithin th e fiscal
20 year. Said p a y m e n ts sh all be charg eab le a g a in st th e au th o rized
21 ap p ro p ria tio n s of the said preceding fiscal year.
22
23 S e c tio n 3 7 . M u lti-y e a r C o n tra c ts . - The DBM sh all identify th e
24 req u irem en ts a n d /o r p rescrib e guidelines before agencies m ay e n te r into
25 m ulti-year c o n tra c ts su c h a s th e issu a n c e of a M ulti-year C o n trac tu a l
26 A uthority (MYCA).
27
28 In the c ase of GOCCs, they shall secu re prior a u th o rity from their
29 respective governing b o a rd s before en terin g into m u lti-y ear c o n tra cts.
30
31 For solicited m u lti-y ear Public-Private P a rtn e rsh ip p ro jects approved
32 u n d e r Republic Act (R.A.) No. 6957, a s am en d ed by R.A. No. 7718, the
33 N ational G overnm ent responsibility shall be covered by a letter of
34 com m itm ent issu e d in acco rd an ce w ith the guidelines issu e d by th e DBM.
35
36 In all in sta n c e s, th e d isb u rse m e n ts to be in c u rre d for m ulti-year
37 c o n tra cts sh all in no c ase exceed the c a sh a p p ro p ria tio n s for th e p u rp o se
38 d u rin g the year. P ro c u rem e n t of m u lti-y ear projects sh all be su b je c t to the
39 provisions of R.A. No. 9184 a n d its IRR a n d th e guidelines issu e d by the
40 G overnm ent P ro c u rem e n t Policy B oard (GPPB).
41
42 S e c tio n 3 8 . E a r ly P r o c u r e m e n t A c tiv itie s. - To e n su re full b u d g et
43 utilization, tim ely c o n tra c t im p lem en tatio n a n d efficient delivery of services,
44 agencies are au th o rize d to u n d e rta k e p ro c u re m e n t activities from p re
45 p ro cu rem en t conference u n til p ost-qualification of bids b a sed on th eir
46 proposed b u d g et in th e NEP, COBs or A ppropriations O rd in an ce, in
47 accordance w ith th e guidelines issu e d by the GPPB.
48
19
1 For m u lti-y ear p rojects, th e issu a n c e of a MYCA by th e DBM is required
2 prior to co m m en cem en t of a n y p ro cu re m en t activity. All existing M ulti-Year
3 O bligational A uthority sh all be u n d e rsto o d to refer to MYCA.
4
5 Agencies m ay only proceed w ith th e aw arding of c o n tra c t u p o n approval
6 or e n a c tm e n t of th e ir respective a p p ro p ria tio n s or b u d g e t au th o riza tio n
7 d o cu m ent, a s th e case m ay be, a n d b ased on th e a m o u n t authorized
8 therein.
9
10 S e c tio n 3 9 . Im p o u n d m e n t o f A p p r o p r ia tio n s . - The P re sid e n t of the
11 Philippines, u p o n reco m m en d atio n of the DBM m ay propose th e rescissio n
12 of a p p ro p ria tio n s from b oth h o u se s of C ongress, u n d e r an y of th e following;
13
14 (a) If the a p p ro p ria tio n s are no longer req u ired to fulfill th e objectives
15 originally so u g h t to be achieved by th e p ro g ram s, activities a n d
16 projects covering th e sam e; or
17 (b) In case of a n u n m a n a g e a b le N ational G overnm ent b u d g et deficit.
18 U nm anageable N ational G overnm ent b u d g et deficit a s u se d in th is
19 section shall be c o n stru e d to m ean th at: (i) the a c tu a l N ational G overnm ent
20 budget deficit h a s exceeded th e q u a rte rly b u d g et deficit ta rg e ts c o n siste n t
21 with the full-year targ et deficit a s indicated in th e BESF su b m itte d by the
22 P resid en t to C ongress p u r s u a n t to Section 22, Article Vll of th e C onstitutio n ;
23 or (ii) th ere are clear econom ic in d icatio n s of a n im pending o ccu rren ce of
24 su c h condition, a s d eterm in ed by the DBCC a n d approved by th e P resident.
25
26 Both H ouses of C ongress shall a c t on the proposed rescissio n w ithin
27 forty-five (45) d ay s after the receipt of th e im p o u n d m e n t pro p o sal from the
28 P resid en t by issu in g a jo in t Im p o u n d m e n t R esolution. W ithin the sam e
29 period of forty-five (45) c a le n d a r days, th e a p p ro p ria tio n s covered by the
30 Im p o u n d m en t P roposal sh all not, in any way, be rescin d ed in relation to the
31 p u rp o se s a n d objectives for w hich it w as a p p ro p ria te d . C ongressional
32 inaction after th e 4 5 -d ay period, is equiv alen t to a n approval of the
33 im p o u n d m e n t proposal.
34
35 Im pounded fu n d s sh all revert to th e N ational T rea su ry a n d sh all n o t
36 th ereafter be available for ex p en d itu re except by s u b s e q u e n t legislative
37 en actm en t.
38
39 S e c tio n 4 0 . A u th o r ity to D e c la re a n d Use S a v in g s . - The P resid en t of the
40 Philippines, th e P resid en t of the S enate of the Philippines, th e S p eak er of
41 the H ouse of R ep resen tativ es, the C hief J u s tic e of th e S u p rem e C ourt, the
42 O m b u d sm an , th e H eads of the Civil Service C om m ission, th e C om m ission
43 on Elections, a n d the COA are hereby a u th o rized to d eclare a n d u se savings
44 in th eir respective a p p ro p ria tio n s to a u g m e n t a c tu a l deficiencies in cu rre d for
45 the c u rre n t y e a r in an y item of th eir respective a p p ro p ria tio n s. An item of
46 ap p ro p riatio n sh all p e rta in to the a m o u n t a p p ro p ria te d for a program ,
47 activity or project in th e A ppropriations Law. In th e c ase of p ro g ram s w ith
48 several activities a n d /o r projects, each activity a n d /o r project sh all be
49 considered a n item of ap p ro p riatio n .
20
1
2 The foregoing c o n stitu tio n a l officers a u th o rized to u se savings shall be
3 responsible for e n su rin g th a t a sem estra l a n d a n n u a l rep o rt on th eir
4 respective u se of savings sh all be su b m itte d to th e P re sid e n t of th e S en ate of
5 the Philippines a n d th e S p eak er of th e H ouse of th e R epresentatives, copy
6 fu rn ish ed th e DBM. The rep o rt shall indicate am ong o th e rs, th e a m o u n t of
7 savings g en erated , th e so u rc e s a n d g ro u n d s u se d therefor, a n d th e existing
8 program , activity or project in th e ir respective a p p ro p ria tio n s au g m en ted .
9 They shall likewise e n su re th a t said rep o rts are posted on th e ir respective
10 w ebsites.
11
12 The DBM sh all d eterm in e th e p rocedure, a s well a s th e su p p o rtin g
13 d o c u m e n ts n eeded in th e d eclaratio n a n d u se of savings au th o rize d in th is
14 Act.
15
16 S e c tio n 4 1 . M e a n in g o f S a v in g s . - Savings refer to p o rtio n s or b a la n ce s of
17 any released a p p ro p ria tio n s in th is Act w hich have n o t been obligated a s a
18 resu lt of an y of th e following:
19
20 (a) C om pletion, final d isc o n tin u a n c e , or a b a n d o n m e n t of a program ,
21 activity or p roject for w hich th e ap p ro p ria tio n is au th o rized ; or
22
23 (b) Im plem entation of m e a su re s resu ltin g in im proved sy stem s an d
24 efficiencies a n d th u s enabled a n agency to m eet a n d deliver the
25 required or p la n n e d targ e ts, p ro g ram s a n d services approved in th is
26 Act a t a lesser cost.
27
28 In case final d isc o n tin u a n c e or a b a n d o n m e n t is u se d a s b a sis in th e
29 declaration of savings, su c h d isc o n tin u ed or a b a n d o n e d program , activity or
30 project shall no longer be proposed for funding in th e n ex t two (2) fiscal
31 years.
32
33 A llotm ents th a t w ere n o t obligated d u e to th e fau lt of th e agency
34 concerned shall no t be co n sid ered savings.
35
36 S e c tio n 42. R u le s o n A u g m e n ta tio n . - A ugm entation is th e a c t of the
37 c o n stitu tio n al officers au th o rize d to u se savings in th e ir respective
38 ap p ro p ria tio n s to cover a deficiency in any existing program , activity or
39 project w ithin th e ir respective offices. A deficiency in a program , activity or
40 project m ay re s u lt from:
41
42 (a) U nforeseen m odifications or a d ju s tm e n ts in th e program , activity or
43 project; or
44 (b) R e -a sse ssm e n t in th e u se , prioritization a n d /o r d istrib u tio n of
45 reso u rces.
46 The p a rtic u la rs of th e e x p e n d itu re s to be fun d ed from savings sh o u ld be
47 w ithin the scope of, or covered by a n existing program , activity or project.
48 The existence of a program , activity or project reg ard less of th e availability of
49 allo tm en t c la s s /e s is sufficient for the p u rp o se of a u g m e n ta tio n .
21
1
2 In no case sh all a n o n -e x iste n t program , activity or project be fun d ed by
3 au g m e n ta tio n from savings or by th e u se of a n a p p ro p ria tio n s otherw ise in
4 th is Act.
5
6 S e c tio n 4 3 . R u le s o n M o d ific a tio n in th e A llo tm e n t. - M odification in the
7 allotm ent is th e lim ited flexibility given to NGAs to m odify or ch an g e th e
8 allo tm ent w ithin a n existing program , activity or project w hich shall n o t
9 en tail any a u g m e n ta tio n of the a m o u n t a p p ro p ria te d for th e said program ,
10 activity or project d u rin g b u d g et execution. In th e case of p ro g ram s will"
11 several activities a n d /o r projects, m odification m ay only be u n d e rta k e n
12 w ithin each activity a n d /o r project.
13
14 M odification in th e allo tm en t m ay be u n d e rta k e n in an y of th e c a se s
15 specified in th e ru le s a n d reg u latio n s issu e d by th e DBM to e n su re th e
16 uniform im p lem en tatio n am ong th e v ario u s b ra n c h e s of governm ent, th e
17 pro p er recording of m odifications, a n d the tim ely su b m issio n of rep o rts by
18 all the offices concerned.
19
20
21 PART V
22 FINANCIAL MANAGEMENT
23
24 S e c tio n 4 4 . G e n e ra l F u n d . - All m onies received by NGAs, w h e th er
25 com ing from taxes, fees, ch arg es, penalties, incom e, dividends, in te re st
26 earn in g s, loan proceeds, g ra n ts, d o n a tio n s, a s s e t sale pro ceed s a n d su c h
27 o th er receivables, sh all a cc ru e to th e G eneral F u n d a n d be rem itted to the
28 N ational T reasu ry , u n le s s otherw ise provided by law or stip u la te d by
29 covering loan or g ra n t ag reem en ts. M onies u n d e r th e G eneral F u n d sh all be
30 m ade available to s u p p o rt the re q u ire m e n ts of th e N ational G overnm ent
31 au th o rized in a n A ppropriations Law.
32
33 A Special A ccount in the G eneral F u n d (SAGF) sh all be e stab lish ed by
34 law only u n d e r exceptional e irc u m sta n e e s to record tax es, fees, charges,
35 penalties, incom e, dividend, in te re st earn in g s, g ra n ts, a n d d o n a tio n s
36 collected, e a rn e d or received by NGAs for specified p u rp o se s. All laws
37 au th o rizin g th e e sta b lis h m e n t of SAGFs sh all specify th e period of u se
38 thereof w hich sh all n o t exceed th ree (3) y ears, or if no period is specified,
39 shall be deem ed to be u n til th e fulfilm ent of th e p u rp o se for w hich th e SAGF
40 w as au th o rized or for th ree y ears, w hichever com es earlier. All in te re sts
41 earn ed by SAGFs shall a cc ru e to the G eneral F und. The b a lan ce of SAGFs
42 u p o n th eir term in a tio n sh all form p a rt of the G eneral F und.
43
44 All e a rm ark e d rev en u es w ith significant inflows, a large portion of w hich
45 are n o t or not expected to be program m ed for d is b u rs e m e n t d u rin g th e year
46 shall be trea te d a s T ru st F u n d s a n d recorded a s tr u s t receipts. Proceeds
47 from th ese T ru st F u n d s shall be recorded only a s rev en u e inflow in the
48 G eneral F u n d w hen program m ed to be sp e n t for th e year.
49
22
1 The P e rm an e n t C om m ittee c reated u n d e r Executive O rd er No. 292, s.
2 1987 shall recom m end for approval of the P resid en t th e ch an g e in the
3 tre a tm e n t of existing SAGFs th a t sh all be converted into T ru st F u n d s by
4 virtue of the foregoing. The recording of revenue inflows from th ese SAGF's
5 shall be governed by th e guidelines to be issu e d by th e P erm an en t
6 C om m ittee.
7
8 S e c tio n 4 5 . S p e c ia l F u n d s . - In exceptional c a se s w hen a SAGF is not
9 su itab le for th e o p e ra tio n s of a fund, Special F u n d s sh all be a u th o rized by
10 law an d lim ited to the following:
11
12 (a) T ru st F u n d - c o n stitu te d from identified revenue so u rc e s a n d o th er
13 receipts by NGAs or public officials a ctin g a s tru s te e s , a g en ts, or
14 a d m in istra to rs for th e fulfillm ent of co m m itm en ts or acco m p lish m en t
15 of specified p u rp o se s. T ru st F u n d s shall be dep o sited in th e TSA;
16
17 (b) Revolving F u n d - c o n stitu te d from receipts derived from b u sin e ss-ty p e
18 activities of NGAs to be u se d for th e o p eratin g re q u ire m e n ts of said
19 b u sin e ss-ty p e activities a n d a s su c h are considered self-liquidating
20 Revolving F u n d s sh all be deposited in th e TSA or in a n A uthorized
21 G overnm ent D epository B an k (AGDB) u p o n a u th o rity of th e N ational
22 T reasu rer; a n d
23
24 (c) R etained F u n d — c o n stitu te d from taxes, fees, c h arg es, penalties,
25 incom e, dividends, or in te re st e a rn in g s collected, e a rn e d or received
26 by NGAs w hich a re expressly a u th o rized by law to be retain ed by
27 NGAs a n d utilized for specified p u rp o se s. R etained F u n d s shall be
28 deposited in th e TSA or in a n AGDB u p o n a u th o rity of th e N ational
29 T reasu rer.
30
31 N o tw ithstanding th e provisions of law s to th e c o n trary . Special F u n d s
32 m ay only be e sta b lish e d after ev aluation by th e P e rm a n e n t C om m ittee, a s to
33 th eir p roper category a n d com pliance w ith th e foregoing conditions. Any
34 in te rest e arn ed by Special F u n d s shall a cc ru e to said F u n d s.
35
36 S e c tio n 4 6 . R ev iew by th e P e r m a n e n t C o m m itte e . - The P e rm an e n t
37 C om m ittee sh all review all existing SAGFs a n d Special F u n d s to validate
38 th eir com pliance w ith th e foregoing req u irem en ts. U pon ev aluation, the
39 P erm an en t C om m ittee sh all recom m end for approval of th e P resid en t the
40 m odification a n d /o r term in a tio n of said fu n d s a s m ay be n ecessary .
41
42 It sh all likewise review all SAGFs created u p o n th e p a ssa g e of th is Act
43 a n d m ay recom m end to extend th eir validity period, b u t in no case shall the
44 extension exceed th ree (3) y e a rs a t an y one tim e, su b je c t to approval of the
45 President.
46
47 The P e rm a n e n t C om m ittee shall Jointly issu e guidelines for the
48 e stab lish m en t, review a n d evaluation, a c c o u n tin g a n d reporting, a n d
49 term in atio n of SAGFs a n d Special F u n d s.
23
1
2 S e c tio n 4 7 . E s c ro w F u n d . - E scrow F u n d s a re c o n stitu te d from fu n d s for
3 w hich the g o v ern m en t’s legal rig h t to u se is co n tin g en t u p o n a fu tu re event
4 w hich m ay or m ay n o t occur. E scrow F u n d s sh all be d ep o sited in the TSA or
5 an AGDB u p o n a u th o rity of th e N ational T rea su rer, a n d sh all su b seq u e n tly
6 be p a rt of th e G eneral F u n d u p o n th e o ccu rren ce of th e fu tu re co n tin g en t
7 event. Any in te re s t e a rn e d by a n Escrow F u n d sh all a c c ru e to the said
8 Fund. The a m o u n ts u n d e r escrow , including in te re s t e a rn e d sh all form p a rt
9 of the G eneral F u n d u p o n th e o ccu rren ce of th e fu tu re c o n tin g en t event.
10
11 S e c tio n 4 8 . W aiver, A b a te m e n t, R e fu n d a n d C o m p ro m ise A g re e m e n ts . -
12 No public official sh all waive, a b ate, refund, or e n te r into a com prom ise
13 ag reem ent on a tax liability or th e p ay m en t of fees or c h a rg e s except in
14 accordance w ith law. All w aivers, a b a te m e n ts, re fu n d s or com prom ise
15 ag reem en ts m ade by a n NGA sh all be properly a c c o u n te d for a n d reported.
16 Refund of tax es a n d o th e r rev en u es shall be tre a te d a s a red u ctio n in
17 revenue collections.
18
19 S e c tio n 4 9 . G ra n ts . - NGAs m ay accept, w ith prior c o o rd in atio n w ith DOF,
20 g ran ts, in c a sh or in kind, from dom estic or foreign so u rces, for purpos(js
21 relevant to th eir functions. In th e case of g ra n ts, in c a sh or in kind, from
22 g o v ern m en ts of foreign c o u n trie s, th e ir agencies a n d in s tru m e n ta litie s a n d
23 in te rn a tio n a l or m u ltila te ra l in s titu tio n s or o rg a n iz a tio n s, accep tan ce
24 thereof sh all be su b je c t to th e prior clearan ce a n d approval by th e P residen t
25 or h is au th o rize d rep re se n ta tiv e b a sed on th e reco m m en d atio n of the
26 S ecretary of F inance.
27
28 The provisions of th is Section sh all not apply to: (1) a n y g ra n t received by
29 LGUs or GOCCs, except w here th e g ra n t is received by th em on b eh alf of the
30 NG; or (2) any g ra n t au th o rize d or covered in acco rd an ce w ith existing law.
31
32 G ra n ts received in kind sh all be valued a n d reg istered in th e pro p er
33 registry of th e N ational G overnm ent.
34
35 S e c tio n 5 0 . T r e a s u r y S in g le A c c o u n t. - The TSA refers to th e b an k in g
36 a rra n g e m e n t m an ag ed by the BTr w herein th e governm ent tra n s a c ts all
37 m onies collected, received or paid by NGAs in one b a n k a c c o u n t or a se t of
38 linked b a n k a c c o u n ts a n d gets a consolidated view of its c a sh position on a t
39 least, a daily b asis.
40
41 The TSA sh all cover re m itta n c e s, releases or d isb u rse m e n ts from the
42 G eneral F u n d , SAGFs, Special F u n d s, a n d any o th e r fu n d m an ag ed by the
43 BTr, except in a n y of th e following in stan c es:
44
24
1 (a) W hen m onies u n d e r th e G eneral F u n d are placed u n d e r in v estm en ts;
2
3 (b) W hen th e BTr is req u ired to hold foreign c u rre n cy a c c o u n ts; or
4
5 (c) W hen a u th o rize d by th e S ecretary of Finance.
6
7 The BTr, in co o rd in atio n w ith NGAs a u th o rized by law to u n d e rta k e
8 revenue collection a n d a d m in istra tio n , sh all m ake th e n e cessary
9 a rra n g e m e n ts w ith au th o rize d ag en t b a n k s (AABs) to facilitate th e collection
10 a n d tra n sfe r of said rev en u es to th e TSA. AABs sh all d ep o sit said collections
11 to TSA w ithin th e period a n d in the m a n n e r p rescrib ed by law s, ru les a n d
12 regulations.
13
14 S e c tio n 5 1 . O v e rs ig h t o n G o v e rn m e n t B a n k A c c o u n ts. -N o tw ith stan d in g
15 any provision of law to th e co n trary , the BTr shall u n d e rta k e an y of the
16 following in case of violation of a provision in th is Act a n d guidelines issu e d
17 on the im p lem en tatio n of th e TSA:
18
19 (a) T ran sfer b a la n c e s of NGA b a n k a c c o u n ts to th e TSA;
20
21 (b) Close a n y NGA b a n k acco u n t; a n d /o r
22
23 (c) Revoke th e a u th o rity to open an y NGA b a n k acc o u n t.
24
25 The NGA or GOCC w hich h a s opened a b a n k a c c o u n t, a s well a s th e
26 b a n k concerned sh all prom ptly disclose inform ation reg ard in g su c h
27 a cc o u n t to the BTr.
28
29 S e c tio n 5 2 . T r e a s u r y C a s h M a n a g e m e n t. - The BTr sh all issu e o rd ers for
30 the c o n d u ct of c a sh m an a g em en t including th e re q u ire m e n t to provide
31 projections on th e tim ing of fu tu re tra n s a c tio n s of NGAs tak in g into
32 co n sid eration th a t th e a p p ro p ria tio n s law is co n sid ered th e a u th o rity of the
33 agencies to c o n tra c t o u t a n d d isb u rse fu n d s, except for in sta n c e s provided
34 in the IRR.
35
36 S e c tio n 5 3 . In v e s tm e n ts . - The BTr m ay invest p o rtio n s of th e fu n d s held
37 in the TSA for su c h periods a s th e BTr m ay deem p ru d e n t consid erin g cash
38 m an ag em en t re q u ire m e n ts a n d b ased on term s a n d co n d itio n s a s m ay be
39 set by th e IRR of th is Act. In v estm e n ts are au th o rize d to be m ade in any of
40 the following:
41
42 (a) D eposit w ith an y highly rep u ta b le b a n k following a selection criteria to
43 be issu e d by th e S ecretary of F inance in c o n su lta tio n w ith the BSP;
44
45 (b) S overeign-issued se cu ritie s w ith a n in v estm en t grade rating; or
46
47 (c) O ther fixed incom e se cu rities w ith a n AAA cred it ra tin g issu e d by at
48 least two (2) re p u ta b le in te rn a tio n a l credit ra tin g agencies acceptable
49 to th e S ecretary of Finance.
25
1
2 The BTr m ay a p p o in t a fund m an a g er a s a n a g en t of th e N ational
3 G overnm ent to u n d e rta k e th e in v estm en t of th e fu n d s.
4
5 In tere st e arn e d a n d o th e r incom e from in v estm en ts sh all a ccru e to the
6 G eneral F u n d , u n le s s otherw ise provided by law.
7
8 S e c tio n 5 4 . M a n a g e m e n t o f N a tio n a l G o v e rn m e n t B o rro w in g s. -
9 Borrowings by th e N ational G overnm ent shall be for an y of th e following
10 p urposes:
11
12 1. F inan cin g b u d g et deficits a n d liquidity shortfalls;
13 2. R efinancing a n d pre-fin an cin g m a tu rin g d eb ts;
14 3. O btain in g foreign c u rre n cy on beh alf of th e BSP;
15 4. O n-lending to a n approved entity;
16 5. F in an cin g all su m s of m oney paid to fulfill g u a ra n te e s;
17 6. R egulating in te rn a l m o n etary cond itio n s sh o u ld th e n ecessity arise;
18 7. Providing financing to rem edy th e effects of n a tu ra l calam ities; or
19 8. D efraying e x p e n d itu re s covered by a p p ro p ria tio n s.
20
21 Borrowing u n d e r th is Act sh o u ld ad h ere to th e Fiscal R esponsibility
22 Principles a n d m e a su ra b le fiscal objectives in the S ta te m e n t of Fiscal Policy.
23
24 S e c tio n 5 5 . B o rro w in g s by G o v e rn m e n t -O w ned o r -C o n tro lle d
25 C o rp o ra tio n s . - Before th e end of each fiscal year, th e H ead of a GOCC
26 shall p rep are a borrow ing program for the following fiscal y e a r w hich shall
27 su p p o rt th e COB a n d for the m edium term , b oth of w hich sh all include a
28 full financial p lan w ith th e details of the loans, refinancing a n d rep ay m en t
29 th a t th e GOCC in te n d s to take. Said borrow ing program , in clu d in g c h an g es
30 thereon, sh all be su b je c t to th e approval of the H ead of th e NGA overseeing
31 the GOCC, a n d sh all be su b m itte d to DOF for inform ation, a n d shall be
32 p u b lish ed in th e co n cern ed GOCC w ebsite.
33
34 GOCCs sh all seek approval of DOF for th e ir borrow ing activities a s
35 defined in th e IRR.
36
37 Nothing in th is Section shall be c o n stru e d a s cre atin g a governm ent
38 g u a ra n tee on an y borrow ing, lo an s or refinancing a n d re p a y m en t th a t the
39 GOCC in te n d s to take.
40
41 S e c tio n 5 6 . L o c a l G o v e rn m e n t B o rro w in g s. - An LGU m ay borrow fu n d s
42 from dom estic a n d foreign so u rc es in acco rd an ce w ith th e Local G overnm ent
43 Code of 1991 or an y o th e r applicable law. The financial p lan includ in g
44 borrow ing program sh all be p u b lish ed in th e a p p ro p ria te governm ent
45 w ebsite w ithin seven (7) days after th e borrow ing pro g ram h a s been
46 approved.
47
26
1 S e c tio n 5 7 . D eb t R e p o rtin g . - The DOF, th ro u g h th e BTr, sh all e n su re th a t
2 the records include inform ation on th e principal, term s of repaym en t,
3 a m o u n ts draw n, in te re s ts a n d service c h arg es a c c ru e d , principal an d
4 in te re sts paid, a n d th e b alan ce o u tsta n d in g , a n d sh all m ake th e record s
5 available in a tim ely way to th e P resident, C ongress a n d COA w hen
6 req u ested a n d in a cco rd an ce w ith the reporting re q u ire m e n ts in th is Act.
7
8 E ach LGU a n d GOCC sh all m a in tain records a n d provide rep o rts to the
9 DOF on lo an s a s req u ired by relevant law s, ru les a n d reg u latio n s.
10
11 S e c tio n 5 8 . G u a r a n te e s . - G u a ran tee , indem nity or secu rity sh all be
12 provided to a n NGA or a GOCC a s provided by law, a n d su b je ct to the
13 a n n u a l g u a ra n te e ceiling p rescrib ed in th e G eneral A ppropriations Law, a n d
14 u p o n su c h te rm s a n d cond itio n s a s th e S ecretary of F inance m ay
15 recom m end c o n siste n t w ith relevant law s, ru le s a n d reg u latio n s. The overall
16 level of g u a ra n te e , indem nity or secu rity sh all a d h ere to the Fiscal
17 R esponsibility P rinciples laid dow n in th is Act an d th e fiscal objectives in the
18 S ta te m en t of Fiscal Policy.
19
20 The DOF sh all ch arg e a risk -b a se d fee for an y g u a ra n te e , indem nity,
21 security, relending or sim ilar financial accom m odation it m ay extend to a
22 GOCC.
23
24 In no case shall th e N ational G overnm ent be liable for an y borrow ings by
25 any agency of th e governm ent except for explicit g u a ra n te e s a s provided by
26 law.
27
28 S e c tio n 5 9 . L im ita tio n o n th e L ia b ility o f th e N a tio n a l G o v e rn m e n t F o r
29 D eb ts o f O th e r E n titie s . - The N ational G overnm ent sh all n o t be liable for
30 any im plied g u a ra n te e s a sse rte d by any p erso n or entity, b u t only for
31 explicit g u a ra n te e s extended in acco rd an ce w ith existing law s, an d
32 g u a ra n te e s in favor of th e G overnm ent Service In su ra n c e System , Home
33 D evelopm ent M utual F u n d , Philippine H ealth In su ra n c e C orporation, an d
34 the Social S ecurity System in th eir respective c h a rte rs.
35
36 S e c tio n 6 0 . P a y m e n ts M ad e f o r C o n tin g e n t L ia b ilitie s . - Any m oney paid
37 by the DOF p u r s u a n t to an y g u a ra n te e , indem nity, or se cu rity a u th o rized by
38 law an d th e e x p en ses a sso c iated w ith th e sam e sh all c o n stitu te a d eb t d u e
39 the N ational G overnm ent from the entity for w hose benefit th e p ay m en t on
40 the g u a ra n te e , indem nity, or security w as m ade.
41
42 S e c tio n 6 1 . I n f o r m a tio n o n C o n tin g e n t L ia b ilitie s . - The DOF shall keep
43 a com plete a n d u p d a te d registry of all co n tin g en t liabilities of th e N ational
44 G overnm ent, a n d provide th e OCG w ith a rep o rt on c o n tin g en t liabilities a s
45 of the fiscal year.
46
47
27
1 PART VI
2 ACCOUNTABILITY AND REPORTING
3
4 S e c tio n 6 2 . F i n a n c i a l M a n a g e m e n t a n d I n t e r n a l C o n tro l. - The H ead of
5 Agency shall be resp o n sib le an d acc o u n ta b le for th e financial m an a g em en t
6 of the agency w hich sh all include m eeting perform ance targ e ts, controlling
7 costs, m itigating ad v erse risk s to agency o p e ra tio n s, a n d e n su rin g th a t
8 b u d g ets are m an ag ed w ith integrity a n d in com pliance w ith applicable laws.
9 A dequate in te rn a l co n tro ls sh all be e n su re d a n d a n in te rn a l a u d it function
10 shall be m ain tain ed .
11
12 S e c tio n 6 3 . I n t e g r a t e d F i n a n c i a l M a n a g e m e n t I n f o r m a tio n S y stem . -
13 There shall be a n in teg rated financial m an a g em en t inform ation system ,
14 w hich shall be th e single p ortal of all financial tra n s a c tio n s a n d rep o rts to
15 be u se d by NGAs, GOCCs a n d LGUs to in te g rate budgeting, c a sh
16 m an ag em en t, a cc o u n tin g a n d a u d itin g processes.
17
18 S e c tio n 6 4 . NGA A n n u a l P l a n s a n d P ro p o s e d B u d g e ts . - The H ead of
19 each NGA sh all pro d u ce a n A nnual Plan w hich sh all have a m edium term
20 scope, w ith d e tails for th e following fiscal year, a n d sh all include inform ation
21 on the strategic priorities for th e m ed iu m -term , c o n siste n t w ith the
22 Philippine D evelopm ent Plan; perform ance inform ation; su m m a ry proposed
23 b u dget inclu d in g financial forecasts a s s u m p tio n s a n d highlighting
24 significant cap ital projects; a n d o th er inform ation a s req u ired in th e IRR, a s
25 well a s the B udget Call a n d o th e r related o rd ers from th e DBM. The A nnual
26 Plan shall be su b m itte d to DBM d u rin g the b u d g et p re p a ra tio n p ro cess
27 c o n sisten t w ith the tim etable a n d o th er guidelines in th e B udget Call.
28
29 The A nnual Plan of a D e p artm en t sh all in co rp o rate th e A n n u al P lans of
30 its a tta c h e d NGAs a n d GOCCs su b je ct to guidelines p rescrib ed in th e IRR.
31
32 S e c tio n 6 5 . NGA R e p o rtin g R e q u ire m e n ts . - For g re a te r tra n sp a re n c y
33 and acco untability, each H ead of a n NGA shall:
34
35 (a) S u b m it m on th ly a n d q u a rte rly rep o rts on th e ag en cy ’s financial an d
36 n on-financial perform ance to the DBM a n d OCG, n o t la te r th a n thirty
37 (30) days after th e en d of every m o n th a n d q u a rte r in th e form at
38 specified by th e DBM a n d shall p u b lish th e sam e on a governm ent
39 w ebsite w ithin th e sam e reglem entary period;
40
41 (b) Prepare a n A nnual R eport w hich sh all in clude y e ar-en d financial
42 sta te m e n ts, rep o rtin g on n o n-financial p erform ance com pared a g ain st
43 the A nnual Plan, a n d o th e r inform ation a s req u ired in th e IRR; su b m it
44 the said R eport to th e DBM, OCG, a n d C ongress no la te r th a n six (6)
45 m o n th s after the en d of the fiscal year; a n d p u b lish th e said R eport in
46 a governm ent w ebsite no later th a n seven (7) d ay s afte r its su b m issio n
47 to C ongress.
28
1
2 The m onthly, q u arterly , a n d a n n u a l rep o rts of a D e p a rtm e n t sh all
3 in co rp o rate th e rep o rts of its a tta c h e d NGAs a n d GOCCs su b je ct to
4 guidelines p rescrib ed in th e IRR.
5
6 S e c tio n 6 6 . S e rv ic e A g re e m e n ts . - The H ead of a n NGA m ay e n te r into a
7 service a n d /o r p erform ance ag reem en t w ith a n o th e r agency for th e la tte r to
8 provide services ch arg ed a g a in st th e b u d g et of said p rin cip al agency.
9
10 S e c tio n 6 7 . C o rp o ra te O p e ra tin g B u d g e t. — The B oard of D irectors or
11 T ru stee s of a GOCC sh all p rep are a n d su b m it a COB to th e H ead of th e NGA
12 overseeing said GOCC, th e DBM, a n d the DOF, n o t later th a n n inety (90)
13 days prior to th e co m m en cem en t of th e fiscal year, w hich sh all include, the
14 objectives of th e GOCCs a n d its su b sid ia rie s, th e activities to be u n d e rta k e n ,
15 perform ance ta rg e ts a n d risk s; fo recasts of financial s ta te m e n ts for th e next
16 th ree (3) years; an d o th e r inform ation a s m ay be req u ired in th e IRR.
17
18 The Head of th e NGA overseeing said GOCC sh all en d o rse th e B oard-
19 approved COB to th e DBM, for th e la tte r’s approval. The H ead of a GOCC
20 shall p u b lish th e D BM -approved COB of th e GOCC on th e official w ebsite of
21 the C orporation n o t la te r th a n fourteen (14) d ay s afte r th e approval of the
22 COB.
23
24 S e c tio n 6 8 . GOCC R e p o rtin g R e q u ire m e n ts . - For g re a te r tra n sp a re n c y
25 an d acco u n tab ility , eac h Head of GOCCs shall:
26
27 (a) Provide q u a rte rly rep o rts on financial a n d n o n -fin an cial perform ance
23 to th e DOF, GCG a n d the DBM, no la ter th a n th irty (30) days after the
29 end of th e q u a rte r, in th e form at a n d tim e specified by th e DOF, GCG
30 a n d DBM a n d sh all p u b lish it on th e ir official w ebsite w ithin th e sam e
31 period; an d
32
33 (b) P repare a n A nnual R eport, w hich shall in clude y e ar-en d financial
34 sta te m e n ts, rep o rtin g on n o n-financial perform ance co m p ared a g ain st
35 th e COB, a n d o th e r inform ation a s required in th e IRR; su b m it the
36 sam e to th e overseeing NGA, DBM, GCG, DOF a n d C ongress no later
37 th a n six (6) m o n th s after the end of th e fiscal year; a n d p u b lish the
38 said R eport in a governm ent w ebsite no later th a n seven (7) d ay s after
39 its su b m issio n to C ongress.
40
41 GOCCs w ith su b sid ia rie s shall reflect in its q u a rte rly a n d a n n u a l rep o rts
42 the aforem entioned req u ired inform ation for th e whole co rp o rate group,
43 c o n sisten t w ith guidelines p rescrib ed in th e IRR.
44
29
1 S e c tio n 6 9 . S e rv ic e A g re e m e n t f o r a GOCC. - W here GOCCs im plem en t
2 governm ent non-com m ercial p rogram s, su c h a s h o u sin g provision,
3 irrigation a n d electrification, a n d receive g o vernm ent funding, a service
4 ag reem ent w ith the NGA overseeing said GOCC sh all specify th e term s of
5 delivery of goods or services th a t the GOCC m u s t provide, a n d th e fu n d s
6 th a t the g o vernm ent will pay. Program fu n d s shall be u n d e r th e b u d g et of
7 the NGA overseeing said GOCC.
8
9 S e c tio n 7 0 . L o c a l G o v e rn m e n t U nits. - The Local C hief E xecutives (LCEs)
10 shall e n su re th a t a d e q u a te in te rn al co n tro ls a n d a n in te rn a l a u d it function
11 are m ain tain ed .
12
13 The LCEs sh all provide financial a n d n o n -fin an cial perform ance
14 inform ation of th e ir respective LGUs to th e OCG, DILG, a n d th e BLGF u n d e r
15 the DOF, su b je ct to th e guidelines to be issu e d th ereo n .
16
17 S e c tio n 7 1 . A p p lic a tio n o f A c c o u n tin g a n d A u d itin g R e q u ire m e n ts . -
18 Any ex p en d itu re of public m oney, including governm ent a s s e ts or liabilities
19 in cu rred by a n d for th e G overnm ent reg ard less of the so u rce of funding,
20 shall be su b je ct to a cc o u n tin g a n d a u d itin g ru le s a n d reg u latio n s
21 prom ulgated by th e COA.
22
23 S e c tio n 7 2 . A c c o u n tin g S t a n d a r d s . - The OCG sh all specify th e basis,
24 s ta n d a rd s a n d guidelines for a p p ro p ria tio n s rep o rtin g while th e COA shall
25 co n tin u e to se t th e b asis, s ta n d a rd s a n d guidelines for financial acco u n tin g
26 for u se by th e NGAs, GOCCs a n d LGUs.
27
28 The H eads of A gencies sh all e n su re th a t full, a c c u ra te a n d p ro p er records
29 are k ept for th e ir respective agencies on financial m a tte rs a n d for
30 perform ance in th e p ro d u ctio n of goods a n d services.
31
32 The DBM, OCG a n d COA sh all e n su re th a t com plete, a c c u ra te a n d
33 a p p ro p riate reco rd s of th e governm ent are k ep t on b oth financial a n d non-
34 financial perform ances.
35
36
30
1 S e c tio n 7 3 . G o v e rn m e n t C o n s o lid a te d R e p o rtin g . - The OCG shall
2 su b m it a q u a rte rly rep o rt on the consolidated financial perform ance of the
3 governm ent to th e P resident, w hich in clu d es inform ation show ing
4 perform ance a g a in st th e A ppropriations Law, n o t later th a n sixty (60) days
5 after the end of e ach q u a rte r. T his rep o rt shall be p u b lish ed in a governm ent
6 w ebsite w ithin seven (7) d ay s after th e rep o rt is su b m itte d to th e P resident.
7
8 The OCG sh all p rep a re th e consolidated a n n u a l financial sta te m e n ts, not
9 later th a n six (6) m o n th s after the end of the fiscal year, for su b m issio n to
10 the P resident, C ongress a n d COA.
11
12 S e c tio n 7 4 . I n t e r n a l A u d it S t a n d a r d s . —The OCG, in co o rd in atio n w ith
13 COA, shall specify th e s ta n d a rd s for in te rn al a u d it in the NGAs, GOCCs
14 an d LGUs.
15
16
17 PART VII
18 TRANSPARENCY AND PARTICIPATION
19
20 S e c tio n 7 5 . P e o p le ’s A c c e ss to P u b lic F i n a n c i a l In fo rm a tio n . - Before
21 the s ta rt of each fiscal year, th e DBM shall pro m u lg ate a C a len d ar of
22 D isclosures, a n d shall p u b lish th is on the governm ent w ebsite a n d su c h
23 calen d a r sh all co n ta in the sch ed u le of release of all b u d g e t d o c u m e n ts an d
24 inform ation required by th is Act an d its IRR. The DBM sh all m onitor an d
25 periodically rep o rt to C ongress a n d th e public on th e com pliance of agencies
26 with the C a le n d ar of D isclosures a n d o th e r fiscal tra n s p a re n c y requirem ents
27 u n d e r th is Act a n d its IRR.
28
29 All d o c u m e n ts a n d rep o rts required to be p u b lish ed by th is Act a n d its
30 IRR shall au to m atically be m ade available electronically in a governm ent
31 w ebsite. C u rre n t a n d h isto rical d a ta on governm ent rev en u es, e x p en d itu res,
32 an d borrow ings, shall be m ade available electronically, in open d a ta form at,
33 on a governm ent w ebsite, su b je ct to guidelines in th e IRR.
34
35 S e c tio n 7 6 . T he P e o p le ’s B u d g e t. - The DBM shall, for every fiscal year,
36 p u b lish citizen-friendly su m m a rie s of the following, su b je c t to guidelines
37 a n d o th er specifications in th e IRR;
38
39 (a) The S ta te m e n t of Fiscal Policy in the y e a r of th e P re sid e n t’s election
40 a n d an y u p d a te s th ere a fte r w ithin th irty (30) d ay s from su b m issio n to
41 C ongress;
42
43 (b) The P roposed N ational B udget, to be p u b lish ed in electronic form at
44 w ithin th irty (30) d ay s from su b m issio n to C ongress of the Proposed
45 N ational B udget;
46
47 (c) The G eneral A ppropriatio ns Law, to be p u b lish ed in electronic form at
48 in a g o vernm ent w ebsite w ithin th irty (30) d ay s from its effectivity; an d
49
31
1 (d) The A n n u al Fiscal R eport, to be p u b lish ed in electronic form at in a
2 governm ent w ebsite w ithin th irty (30) d ay s from su b m issio n i:o
3 C ongress;
4
5 S e c tio n 7 7 . P e o p le ’s P a r t i c i p a t i o n in th e B u d g e t P ro c e s s . - The
6 governm ent shall e sta b lish a n d im plem ent su itab le p articip ato ry b udg et
7 m ech an ism s to facilitate th e open, inclusive, a n d m eaningful engag em en t of
8 citizens th ro u g h o u t th e b u d g et p ro cess—from b u d g et p re p a ratio n , to
9 legislation, to execution, a n d to a cco u n tab ility a n d a u d it. S u c h p articip ato ry
10 m ec h an ism s m ay include c o n su lta tio n s a n d p a rtn e rs h ip s w ith civil society
11 o rg an izations (CSOs), acad em ics a n d ex p erts, a n d o th e r individual a n d
12 organized sta k e h o ld e rs th ro u g h o u t the a n n u a l b u d g et process.
13
14 To aid th e em p o w erm en t of g rassro o ts o rg an izatio n s a n d co m m u n ities in
15 the n atio n al b u d g e t p ro cess, th e DBM, DILG, a n d o th e r relev an t agencies
16 sh all facilitate a p ro cess w herein CSOs, com m unity o rg an izatio n s a n d LGUs
17 can jointly identify local priority poverty red u ctio n a n d developm ent n eed s
18 w hich will serve a s in p u t to th e form ulation of th e Proposed N ational
19 Budget. S u ch p ro ce ss shall co n sid er th e p u rs u it of m eaningful local
20 devolution a n d local acco u n tab ility , a s well a s th e stre n g th e n in g of regional
21 an d local developm ent c o u n c ils’ roles in th e n a tio n al b u d g e t process.
22
23 Policies a n d reg u latio n s for th e e sta b lish m e n t of p articip ato ry budgeting
24 m ech an ism s e sta b lish e d by law s shall be form ulated a n d enforced by:
25
26 (a) The DBM, to g eth er w ith o th e r relev an t agencies of th e executive, w hen
27 it com es to p articip a tio n in b u d g et p re p a ra tio n , execution, and
28 accountability;
29
30 (b) The H ouse of R ep resen tativ es a n d th e S en ate, th ro u g h th e ir relevant
31 com m ittees, w hen it com es to p articip atio n in b u d g e t legislation; an d
32
33 (c) The COA, w hen it com es to p articip atio n in th e c o n d u c t of a u d it.
34
35
36 PART VIII
37 ENFORCEMENT
38
39 S e c tio n 7 8 . S a n c tio n s a n d P e n a ltie s . - W ithout prejudice to the
40 provisions of o th e r law s, th e following sa n c tio n s a n d liabilities in case of
41 failure to com ply w ith th e reporting a n d posting re q u ire m e n ts u n d e r th is
42 Act, shall be im posed:
43
44 (a) The DBM sh all n o t approve any re q u e st for release of allo tm e n ts for
45 item s of a p p ro p ria tio n s covered in th e negative list or m odification in
46 the allo tm en t n o r recom m end th e u se of savings by th e P resid en t u n d l
47 su c h tim e a s the n o n -co m p lian t agency h a s su b m itte d th e re p o r t/s
48 required u n d e r th is Act;
49
32
1 (b) The COA m ay disallow an y e x p en d itu re ch arg ed a g a in st a u g m e n ta tio n
2 u sin g savings, a n d an y e x p en d itu re d u e to m odification in the
3 allotm ent, w hich w ere m ade w ithin th e period su cceed in g the
4 reporting period w hen th e agency failed to com ply w ith th e reporting
5 re q u ire m e n ts u n d e r th is Act;
6
7 (c) Failure to rep o rt on th e incom e a n d /o r fu n d s reta in e d a t th e end of a
8 reporting period sh all re n d e r all d isb u rse m e n ts a g a in st su c h incom e
9 or fu n d s in s u b s e q u e n t rep o rtin g periods a s void, a n d will re n d e r the
10 responsible official liable u n d e r existing laws; a n d
11
12 (d) The C ongress m ay motu proprio or u p o n th e re q u e st of COA a n d /o r
13 DBM th ro u g h its a p p ro p ria te oversight com m ittee com pel th e h ead of
14 the n o n -co m p lia n t agency, u n d e r p ain of c o n tem p t, to pro d u ce the
15 required r e p o r t/s a n d to explain re a so n s for failure to su b m it a n d
16 disclose said re p o rt/s .
17
18 W ithout prejudice to th e provisions of o th e r laws:
19
20 (a) Every c o n tra c tu a l com m itm ent, e x p en d itu re or p a y m e n t a u th o rized or
21 in cu rred in violation of the provisions of th is Act sh all be void a n d
22 shall re n d e r the public official a n d /o r em ployee a u th o rizin g or m aking
23 su c h p ay m en t a n d every p erso n in collusion w ith said official or
24 em ployee sh all jo intly a n d severally be held liable to th e governm ent
25 for th e full a m o u n t so paid or received. The public official or em ployee
26 who know ingly in c u rs any c o n tra c tu a l c o m m itm en t or a u th o riz e s any
27 e x p en d itu re in violation of th e provisions of th is Act or ta k e s p a rt
28 th erein shall likewise be rem oved or d ism issed from office, after du e
29 notice a n d hearin g , even if no crim inal charge is in stitu te d a g a in st
30 him;
31
32 (b) Any public official or em ployee, holding office or em ploym ent in a
33 c a su a l, tem porary, holdover, p e rm a n e n t or re g u la r capacity, who shall
34 cau se the in clu sio n of fra u d u le n t inform ation in any a cco u n tab ility
35 report, sh all be penalized w ith im p riso n m e n t n o t exceeding five (5)
36 y ears, or a fine n o t exceeding One Million Pesos (P I,0 0 0 ,0 00.00), or
37 both, w ith o u t p rejudice to disallow ances th a t m ay be m ade by COA
38 a g a in st e x p e n d itu re s related to su c h fra u d u le n t inform ation, provided,
39 th a t th is fine is reviewed a n d a d ju ste d periodically to be reasonable;
40
41 (c) A conviction u n d e r th is Act shall carry w ith it civil liability, w hich m ay
42 eith er c o n sist of re stitu tio n for the dam age done or forfeiture in favor
43 of th e governm ent of any u n w a rra n te d benefit derived from th e a c t or
44 a c ts in q u e stio n , or b oth, a t th e discretion of th e c o u rts, in ad dition to
45 possible a d m in istrativ e liability; a n d
46
33
1 (d) Private ind iv id u als who shall conspire w ith th e erring Public
2 Officials or Em ployees, w h eth er a s co -principals, accom plices or
3 accesso ries, in th e com m ission of any violation of th is Act shall be
4 su b je ct to th e sam e p en alties a s th e Public Officials or Em ployees
5 an d shall be tried jointly w ith them .
6
7 S e c tio n 7 9 . J u r i s d i c ti o n . - A ctions u n d e r th is Act sh all be cognizable by
8 the c o u rts, trib u n a ls , bodies, agencies or a u th o ritie s w ith a p p ro p ria te
9 ju risd ic tio n u n d e r existing laws.
10
11
12 PART IX
13 FINAL PROVISIONS
14
15 S e c tio n 8 0 . Im p le m e n tin g R u le s a n d R e g u la tio n s . - The DBM in
16 co n su lta tio n w ith the DOF, BTr, NEDA an d COA, a n d in coordination with
17 agencies co n cern ed , shall issu e the IRR n e ce ssa ry for the proper
18 im plem entation of th is Act, w ithin ninety (90) days from th e effectivity of th is
19 Act. The IRR m ay be am en d ed by the DBM, in co o rd in atio n w ith the
20 agencies co n cern ed , a s th e need arises.
21
22 S e c tio n 8 1 . T r a n s ito r y P ro v isio n s . - The DBM, DOF, BTr, NEDA a n d COA
23 shall p ro duce a n d su b m it w ithin th irty (30) d ay s from p rom ulgation of the
24 IRR, a T ran sito ry Plan for inform ation, to th e J o in t C ongressional O versight
25 C om m ittee on Public E x p en d itu re s to e n su re th e p ro p er im p lem en tatio n of
26 the provisions of th is Act, p resen tin g the S ections th a t will not be
27 im plem ented on th e p a ssin g of th is Act a n d those req u irin g com pliance with
28 certain co n d itio n s or th e h a p p en in g of events before th e provisions herein
29 m ay be im plem ented.
30
31 S e c tio n 8 2 . R e p e a lin g C la u s e . - Any law, p resid en tia l decree or issu a n c e,
32 executive order, letter of in stru c tio n , ad m in istrativ e order, proclam ation,
33 c h arter, rule or regulation a n d /o r p a rts th ereo f c o n tra ry to or in co n siste n t
34 with the provisions of th is Act is hereby repealed, m odified or am ended
35 accordingly.
36
37 S e c tio n S 3 .S e p a r a b i li t y C la u s e . - If for any reaso n , an y section or
38 provision of th is Act is declared u n c o n stitu tio n a l or invalid, o th e r sectio n s or
39 provisions w hich a re n o t affected th ereb y shall c o n tin u e to be in full force
40 an d effect.
41
42 S e c tio n 84. E ffe c tiv ity C la u se . - T his Act shall take effect fifteen (15) days
43* following its p u b licatio n in the Official G azette or in two (2) n e w sp ap ers of
44 general circulation.
45
46
47 A p p ro v ed ,
34