Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

FIFTEENTH CONGRESS
First Regular Session

nouse sino, 1494

Introduced by: REP. MEL SENEN S. SARMIENTO.

EXPLANATORY NOTE

Under our system of government, Congress has the power of the purse. We alone
have the authority to approve appropriations and expenditures needed by the Government to
perform its duties, and provide services for the people.

It is, however, lamentable that the power of Congress over the State’s purse has
systematically deteriorated. Foremost is our power to appropriate expenditures for interest
payment and principal amortization of the Government’s loans and borrowings. Section 31 of
Presidential Decree No. 1177 and Section 26, Book V1 of Executive Order No. 292, series of
1987 effectively emasculated the Congressional power of the purse. The automatic
appropriations for interest payments and principal payments for public debts and borrowings
precluded Congress from reviewing and accounting for the use of public money.

Governance is a joint effort between the Executive and the Legislature. While it is the
President who implements policies enacted by the Congress, we have a swom duty as
representatives of the people to account for the actions of the Executive Branch, especially if
it involves the expenditure of public funds. Foremost of these duties is to ensure the judicious
appropriation and expenditure of public funds drawn from the people through taxes and
tariffs. Public monies should be spent in pursuance of State policies. Taxation without
representation is bad policy, and thus cannot be the basis of a vibrant democracy. As
representatives of the people, we therefore claim what is rightfully a congressional power.

To bring back the power of the purse to the Congress and to strengthen this institution
as a genuine representative of the people, approval of this measure is earnestly sought.

MEL wou SARMIENTO

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

FIFTEENTH CONGRESS
First Regular Session

1494

HOUSE BILL NO.

AN ACT
GIVING CONGRESS BACK THE POWER OF THE PURSE, AMENDING FOR THE
PURPOSE SECTION 31 OF PRESIDENTIAL DECREE 1177 AND SECTION 26,
BOOK VI OF EXECUTIVE ORDER NO. 292.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Title. - This Act shall be known as the “Power of the Purse Act of 2010.”

SECTION 2. Declaration of Policy. - It is a declared State policy that Congress shall have

the power to approve appropriations and expenditures of Government.

Pursuant to the mandate of the Constitution, Congress, as guardian of the State's purse, shall
ensure the judicious use of all public monies. It shall account for the use and expenditure of

the same by the Government.

SECTION 3. Review of Appropriations. — (a) All appropriations submitted by the President

to Congress, including appropriations for interest payments and principal amortization of debt

servicing shall pass through the review and approval of the Congress. No interest payments

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and principal amortization of debt servicing shall be made without the concurrence of
Congress.

(b) Congress may adjust the levels of expenditures appropriated for interest payments
and principal amortization of debt servicing: Provided, that it may not increase the said

appropriations above those recommended by the President in the General Appropriations Act.

For this purpose, Section 31 (2) and (3) of Presidential Decree No. 1177 and Section

26 (2) and (3), Book VI of Executive Order No. 292, series of 1987 are hereby repealed.

SECTION 4, Congressional Oversight in Contracting Loans. ~ At the beginning of each
fiscal year, the President shall submit to the Congress a list of loans to be contracted or
guaranteed for specific projects and programs, the interest rate and amortization period for
the said loans, and the sources of revenues to support the payment of these loans. The
Congress, through a concurrent resolution, shall approve or amend the list in its entirety or

parts thereof.

SECTION 5. Separability Clause. — If any provision of this Act is declared
unconstitutional, the same shall not affect the validity and effectivity of the other provisions

not affected thereby.

SECTION 6. Repealing Clause. ~ All laws, decrees, rules and regulations, and other
issuances inconsistent with the provisions of this Act are hereby repealed or modified

accordingly.

SECTION 7. Effectivity Clause. — This Act shall take effect fifteen (15) days after

publication in newspapers of general circulation.

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2 Approved,

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