, 
THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
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S. NO. 
Introduced by Senator Flavier 
EXPLANATORY NOTE 
The Constitution clearly confers the power of the purse to Congress. 
Thus, 
All appropriation, revenue or tariff bills, bills authorizing increase of 
the public debt, bills of local application and private bills shall originate 
exclusively in the House of Representatives, but the Senate may propose 
or concur with amendments. (Sec. 24, Article VI); 
No rnoney shall be paid out of the Treasury except in pursuance of 
an appropriation made by law. (Sec. 29 [I], Article VI) 
Moreover, unlike the 1935 Constitution where legislative sessions 
were limited to 100 session days per year, under the present Constitution, the 
sessions are held continuously throughout the year. 
Sec. 15, Article VI, provides that “The congress shall convene once every 
year on the fourth Monday of July for its regular session, unless a different date 
is fixed by law, and shall continue to be in session for such number of days as it 
may determine until thirty (30) days before the opening of its next regular 
session.. . 
I’ 
Hence, even without automatic appropriation, Congress which is in 
continous sessions can now attend to any legislation and/or appropriation as the 
need arises. 
Through this bill, we now restore the full power of the purse to Congress. 
Hence, the urgent passage of this bill. 
I 
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THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINE 
1 
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Introduced by Senator Flavier 
AM ACT 
AMENDING SECTION 31 OF P.D. NO. 9177, SECTION 26 BOOK BH OF E.Q. 
NO. 
292 AND REQf34LING BROWSIONS OF LAW AWTHORlZlNG 
AUTOMATIC APPROPRIATION 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Section 31 of Presidential Decree No. 11 77, as codified in 
Section 26, Book VI of Executive order No. 292, is hersby amended to read as 
follows: 
"Section 31 [Automatic] Appropriations. 
All expenditures for [(a) 
personnel retirement premiums, government sewice insurance and athsr similar 
fixed expenditures, (b)] (A) principal and interest on public debt [(c)] (B) national 
government guarantees of obligations which are drawn upon [are automatically 
appropriated] shall be subject to the regular annual congrassional appropriations: 
PROVIDED, That no obligation shall be incurred or interests made from funds, 
thus [automatically] appropriated except a issued in the farm of regular budgetary 
ai lotments. 
SEC. 2. Repealing Clause. - All provisions of laws which specifically 
provide for an automatic appropriation are hereby repealed, as follows: (I) 
Section 24 of commonwealth Act No. I 3  
si amended by Section 22 of 
Republic Act No. 660 and renumbered as Section 27 tkereot (2) section 9 ~f 
Republic Act No. 245, otherwise known as the Local Borrowing Act; (3) Section 6 
of Republic A d  No. 4860, otherwise known a the foreign Borrowing Act, as 
nded by Section 7 of Presidential Decree No. 81; and (4) PrQsidential 
Decree No. 1967, otherwise known as the Net Lending Decree. 


SEC. 3. Effectivity. - This Act shall take effect upon its approval. 
Aprroved,