· , 
FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHlILlPPINES 
First Regular Session 
SENATE 
8. B. No. 2177 
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INTRODUCED BY HONORABLE RALPH G. RECTO 
EXPLANATORY NOTE 
One of the key elements of public sector management reform is the 
institutionalization of fiscal discipline and accountability in the public sector. This is 
precisely what the proposed fiscal responsibility bill intends to accomplish. 
The 
proposed bill introduces a series of reforms with far reaching implications intended to 
initiate the long delayed public sector reform in our country. 
The bill prescribes principles of responsible fiscal management that will direct thSl 
country's macroeconomic policy settings. 
A legislated set of principles promotes a 
secure and sound political environment ripe for sustainable long-term growth. Policy 
guidelines on a balanced budget, reduction in financing costs, controlled borrowings, 
prioritization of capital investments, sound asset management, protection of fiscal gain 
and prudent risk management are designed not only to resuscitate the country's ailing 
economy but to achieve a sustainable. economic growth. 
To implement said principles, crucial institutional changes must be adopted. 
Central to this is the establishment of sustainable levels of consolidated non-financial 
public sector and national debt. The adoption of a formal debt policy in the form of a 
debt cap signals the country's sincerity in resolving our fiscal woes. The steady growth 
of our public debt increases the country's vulnerability to economic and financial shocks. 
A manageable level of public debt will help us weather financial shocks and eventually 
improve the fiscal position of the country. 
The proposed bill offers a framework of burden sharing among the three branches 
of the government. Aside from the debt cap, the bill also introduces a deficit neutral 
measure designed to address the proliferation of unfunded laws. The concept is straight 
forward: no expenditure measure shall be passed and take effect without the new revenue 
generation or expenditure reduction measure. This measure shall foster an atmosphere of 
mutual respect, coordination and cooperation between the executive and legislative 
branches of government. 
Another burden sharing feature of the proposed bill is the provision on Personal 
Services Cap or PS Cap. A concept introduced under the Local Government Code of 
1991, a PS Cap establishes over-all limit on the personal service expenditures as a 
percentage of the net current or operating revenue of the national or local government, 
including GOCCs. In the national government, PS Cap is set at forty-five percent (45%) 
of net current revenue beginning 2013. The intervening years are meant to give 
government the time to gradually 
adjust on the said limit. A PS Cap, to be later 
determined by the DBCC shall likewise be imposed on the GOCCs. To set the 
parameters, the bill incorporates a set of policy guidelines in the determination ofa viable 


benchmark, taking into consideration the inherent peculiarity in the nature and operations 
of each GOCC. 
. 
Finally, the proposed bilI highlights the importance of transparency and 
accountability on the government's fiscal operations. The transparency provisions in the 
bill plays a catalytic role in strengthening the effectiveness of the government's fiscal 
policies by making known to the public its goals, targets, and accomplishments. 
Likewise, transparency enhances good governance through greater accountability of 
public institutions directly involved in setting up the country's fiscal and monetary 
policies. 
The bill also rationalizes the use of savings from operations of the agencies 
including the use of over-all savings. 
In the light of the current fiscal and debt pfroblenTIn~erienced by our country, it 
is but imperative that this bill be approved wit 
t delay. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. B. No. 217'7 
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Introduced by Senator Ralph G. Recto 
AN ACT 
INSTILLING FISCAL DISCIPLINE IN THE PUBLIC SECTOR BY ESTABLISHING 
PRINCIPLES OF RESPONSIDLE FINANCIAL MANAGEMENT AND PROMOTING 
FULL TRANSPARENCY AND ACCOUNTABILITY IN GOVERNMENT REVENUE, 
EXPENDITURE AND BORROWING PROGRAMS. 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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TITLE I 
2 
Preliminary Provisions 
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Section 1. Title. - This Act shall be known as the "Fiscal Responsibility Act." 
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Sec. 2. Declaration of Policy - It is hereby declared a policy of the State to instill fiscal 
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discipline in the public sector by prescribing principles of responsible financial management, 
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establishing control mechanisms on spending, and adopting preventive measures against .the 
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erosion of its tax base. The State shall ensure overall macroeconomic stability and long-term 
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sustainable growth through aggressive forward planning and continuous coordination between 
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the executive and legislative branches of government. The State shall likewise strengthen the 
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budgetary process as a planning tool and afford full transparency and accountability in all 
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government revenue, expenditure and borrowing operations. 
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Sec. 3. Principles of Responsible Fiscal Management - The State shall pursue its policy 
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objectives in accordance with the following principles of responsible fiscal management: 
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a. Continuously strive for a balanced budget by adopting a diminishing yearly deficit 
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target over the medium term. Once a balanced budget or at least an acceptable 
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budget deficit level has been achieyed, maintain this level by ensuring that, on 
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average, total operating expenses of the government do not exceed its total 
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operating revenues. 
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b. In order to decrease dependence on borrowed funds and minimize financing costs, 
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reduce consolidated public sector debt and national government debt to 
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sustainable levels through prudent debt management and the adoption of a 
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comprehensive fiscal plan. 
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c. Borrow from domestic resources in order to limit the vulnerability of the 
government's fiscal position to foreign exchange fluctuations, but without unduly 
affecting adversely domestic interest rates by keeping its borrowings to a level 
that can be absorbed by the market, 
d, Promote budget flexibility by reducing non-discretionary portions of the budget such 
as allocations for personal services and interest payments in order to channel more 
resources to growth inducing capital investments. 
e. Preserve the relative value of government assets by ensuring that the total value of 
liabilities is congruent to any adjustment in its tax revenues and other assets, The 
State shall not use proceeds from the sale or transfer of properties to finance 
current or operating expenditures of the public sector. 
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To protect any fiscal gain that may be achieved and prevent backsliding, the 
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government shall continuously adopt control mechanisms on spending, pass only 
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deficit-neutral measures to prevent the erosion of the revenue or tax base, and 
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rationalize incentive mechanisms. 
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g, Manage prudently all fiscal risks facing the government. 
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Sec. 4. Definition of Terms - When used in this Act, the following terms or words' and 
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phrases shall mean or be understood as follows: 
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a. 
Annual Budget Strategy shall have the meaning provided under Section 8. 
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b, 
Build-Operate-and-Transjer or BOT refers 
to 
build-operate-and-transfer 
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arrangements or any of its variants as defined and enumerated under Section ~ of 
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Republic Act No, 6957, as amended by Republic Act No, 7718, 
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c, 
d, 
e, 
f 
Budget refers to an estimated schedule of expenditures, based on either 
obligations or cash concepts and sources of financing, either from revenues, 
borrowings or cash balance drawdowns, 
Budget of Expenditure and Sources of Financing or BESF refers to a document 
submitted by the President in accordance with Section 22, Article VII of the 
Philippine Constitution. It contains the annual program of estimated expenditures 
accompanied by an estimate of expected sources of financing, proposed by the 
executive branch to the legislature for spending authority, 
Consolidated Non-Financial Public Sector Debt refers to the total indebtedness, 
whether foreign or domestic, of the national government, local government, 
monitored non-financial government owned and controlled corporations, social 
security institutions, as well as the cost of restructuring the defunct Central Bank, 
except those incurred by government financing institutions, 
Consolidated Public Sector Deficit refers to the combined deficit of the national 
government, local governments, monitored non-financial government owned and 
controlled corporations and financial institutions, social security institutions, as 
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well as the cost of restructuring the defunct Central Bank, and the financial 
position of the present Bangko Sentral ng Pilipinas. 
Constitutional Offices refer to the Civil Service the Commission, Commission on 
Audit, the Commission on Elections, the Commission on Human Rights and the 
Office of the Ombudsman. 
Contingent Liabilities refer to either of the following: 
possible obligations that arise from past GOCC and BOT operations whose 
existence will only be confirmed upon the occurrence or non-OCCUrrence of 
one or more uncertain future events not wholly within the control of the 
enterprise; or 
11. present obligations that arise from past events but are not recognized because 
it is not probable that an outflow of resources embodying economic benefits 
will be required to settle the obligation or the amount of the obligation cannot 
be measured with sufficient reliability. 
Examples of these are the future 
projects of actuarial deficiencies of the government social security institutions. 
Credit Operations refer to the act of contracting funds from financial institutions 
whose principal plus interest and other financial charges shall be paid at a iitter' 
agreed upon date. 
Debt refers to the stock of total liabilities or obligations at any given time, 
whether of the national government or the consolidated non-financial public 
sector, or both. 
Debt Service refers to the sum of loan repayments, interest payments, 
commitment fees and other charges on foreign and domestic borrowings. 
Deficit refers to the shortfall or deficiency of revenues over expenditures of the 
government classified into: 
1. 
Budgetary deficit, which is the deficiency of total revenues over expenditures 
excluding debt repayments and payments of non-budgetary accounts. 
11. Financial deficit, which is the deficiency of total receipts over the sum of 
current and capital expenditures. 
Development Budget and Coordinating Committee or DBCC refers to the 
committee created under Executive Order No. 232, s. 1970, as amended. 
Discretionary Fund refers to lump-sum appropriations for general purposes 
whose specific allocation shall be determined by an authorized public official or 
entity. 
Economic Enterprises refer to income generating establishments created by local 
governments for the purpose of improving production and delivery of basic goods 
and services for a specific market or client group, such as public markets, 
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slaughter houses, cemeteries, sports, cultural and recreation centers, parking lots, 
ice plants, hospitals, and special and tertiary schools. 
Executive Department or' branch refers to all national government agencies, 
including state universities and colleges and other instrumentalities, whether or 
not receiving funding support through the General Appropriations Act, falling 
under the control and supervision of the President of the Philippines. 
Fiscal Indicators refer to measures such as numerical ceilings, whether or not set 
as a percentage of the gross domestic product, as may be prescribed, for the 
evaluation of the fiscal po~ition of the government. 
Government Financial Institutions or GFls are GOCCS that are primarily 
engaged in both incurring liabilities and acquiring financial assets in the market, 
and any acceptance of demand, time or savings deposits. 
Government Owned and/or Controlled Corporations or GOCCs refer to a stock or 
non-stock corporation, 
whether performing governmental or proprietary 
functions, which is directly chartered by a special law, or if organized under the 
general corporation law is owned or controlled by the government directly or 
through a parent corporation or subsidiary corporation, to the extent of at leasia:-
majority of its outstanding capital stock or of its outstanding voting capital stock. 
Government Subsidiaries refers to those created in accordance with law where at 
least a majority of the outstanding capital stock or outstanding voting capital stock 
is owned by parent government corporations andlor other government-owned 
subsidiaries. 
Gross Domestic Product or GDP refers to the value of all goods and services 
produced domestically; ~he sum of the gross value added of all resident 
institutional units engaged in production, plus any taxes and minus any subsidies, 
on products not included in the values of their outputs_ 
Guarantee refers to an arrangement whereby the government promises to pay the 
debt of another entity if certain conditions are met, such as the liability of the 
entity to pay. 
Joint Resolution refers to a formal declaration or expression from both the Senate 
and the House of Representatives voting separately. Like bills, joint resolutions 
shall embrace only one subject and must pass three readings on separate days, 
except when the President certifies to its urgency. 
Judiciary Department or branch refers to the Supreme Court, Court of Appeals, 
Sandiganbayan, Court of. Tax Appeals, Shari'ah Appellate Court and all lower 
courts. 
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y. 
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aa. 
bb. 
cc. 
dd. 
ee. 
ff. 
gg. 
hh. 
ll. 
Internal Revenue Allotment or IRA refers to the share of local governments in the 
national internal revenue taxes as prescribed under Sections 284 and 285 of 
Republic Act No. 7160, or the Local Government Code. 
Legislative Department or branch refers to the Senate and House' of 
Representatives. 
Medium Term Fiscal Accord or MlFA shall have the meaning provided under 
Section 5. 
National Government refers to the executive, legislative and judiciary branches of 
the government, including~he constitutional offices. 
National Government Debt refers to all security issuances and loans of the 
national government, excluding assumed liabilities from the Philippine National 
Bank and the Development Bank of the Philippines, as well as promissory notes 
issued to the different international financial institutions and loans under the 
Consolidated Borrowings Program. 
Net lending refers to advances by the national government for the servicing of 
government guaranteed corporate debt during the year, net of repayments and 
such advances, including loans, outlays or proceeds from program loans relent to 
GOCCs. 
Net current revenue refers to the sum of all tax and non-tax collections less the 
following: 
1. 
Proceeds from privatization and recovery of ill-gotten wealth; 
11. Internal Revenue Allotment; 
iii. Interest payments on national government debt; and 
IV. Net lending to government corporations. 
Other Government Corporate Entities or OGCEs refer to those who by judicial 
decree are considered GOCCs, including those which by legal definition· are 
treated as such, as well as private corporations acquired by the government either 
by voluntary transfer or sequestration. 
Personnel Expenditures shall have the meaning provided under Section 26. 
Public sector entity refers to an individual office, agency, bureau, or court, as may 
be appropriate, falling under the executive, legislative, and judicial branches of 
government, including constitutional offices. 
Public utilities refer to revenue raising undertakings created by local governments 
for the purpose of providing a basic need or service to the general public which 
otherwise cannot be proviqed adequately by the private sector, such as water and 
sewerage services, garbage collection and disposal, telephone system, electric and 
power services, public transport and terminal station services. 
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Tax breaks refer to any of the following: amnesty, subsidy, presumed credit, 
exemptions, changes in tax rate or tax base which results in reduction of taxes or 
contributions, and other beneficial treatments. 
Voluntary Transfer refers to the transfer of current or capital resources to other 
branches, agencies, offices, local governments, and other instrumentalities in the 
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form of cooperation, aid or financial assistance, sourced from any discretionary 
fund. 
TITLE II 
Fiscal Planning and Accord 
Chapter 1 
Medium Term Fiscal Accord 
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Sec. 5. Definition - The Medium Term Fiscal Accord (MTFA) is an agreement between 
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the executive and legislative branches of government on the fiscal targets sought to be 
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accomplished over a period of three (3) years. It shall contain the agreed upon fiscal indicators 
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and their underlying assumptions, including the following: 
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a. deficit targets, quantified as a percentage of GDP; 
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b. revenue and tax targets, quantified as a percentage of GDP ; 
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c. expenditure targets, measured as a percentage of GDP; 
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d. financing strategy to be adopted; 
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e. new revenue measures to be enacted in order to correct an identified weakness in the 
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tax structure or to promote an economic or social objective; 
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new expenditure measures to be implemented; and 
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g. additional measures to accomplish fiscal targets and sustain reforms. 
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Sec. 6. Term - Each MTF A shall be valid for a period of three (3) years starting from the 
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second to the third year of a congressional term and the first year of the succeeding congressional 
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term. 
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Sec. 7. Preparation - At the start of every congressional tenn, the President, through the 
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Development Budget Coordinating Committee (DBCC), shall prepare the proposed MTFA and 
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submit it to Congress, through the ChairpIen of the Committee on Appropriations, on Economic 
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Affairs and on Ways and Means of the House of Representatives and the Chairmen of the 
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Committee on Finance, on Economic Affairs, and on Ways and Means of the Senate, within 
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thirty (30) days from the opening of the regular session. 
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Within one hundred and eighty (180) days from its submission, the Executive 
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Department and Congress shall agree on the terms and content of the MTF A through a Joint 
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Resolution to be signed by the Senate President, the Speaker of the House of Representatives, 
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and the President of the Philippines, which shall have the force and effect of a law. 
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If no MTF A shall have been agreed upon within the prescribed period, then the MTF A 
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for the preceding congressional term shall be deemed reenacted and shall remain in force and 
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effect until the MTF A is passed. 
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Chapter II 
Annu'al Budget Strategy 
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Sec. 8. Definition - The Annual Budget Strategy is an agreement between the executive 
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and legislative branches of government on the macro-economic policies and fiscal targets sought 
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to be achieved as well as financial strategies to be implemented during one fiscal year. It shall 
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be consistent with the MTF A and include, among others, revenue forecasts calculated in 
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accordance with Section 18. 
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Sec. 9. Preparation - Together with the submission of the Budget of Expenditures and 
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Sources of Financing as mandated under Section 22, Article VII of the Philippine Constitution, 
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the President shall likewise submit to Congress the proposed Annual Budget Strategy for the 
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ensuing fiscal year. 
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Within one hundred and twenty (120) days from its submission or upon the enactment 01 
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the General Appropriations Act (GAA), whichever comes earlier, the Executive Department and 
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Congress shall agree on the Annual Budget Strategy to be implemented for the succeeding fiscal 
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year through a Joint Resolution to be signed by the Senate President, the Speaker of the House of 
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Representatives, and the President of the Philippines, which shall have the force and effect of a 
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law. 
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In the event that Congress passes the GAA without approving the Annual Budget 
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Strategy, the Annual Budget Strategy submitted by the President shaH likewise be deemed 
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approved. If Congress fails to pass the GAA for the ensuing fiscal year and the GAA for the 
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preceding fiscal year shan be deemed reenacted under Section 25· (7), Article VI of the 
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Constitution, then the Annual Budget Strategy approved in the preceding year shall likewise be 
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deemed reenacted, unless Congress and the Executive Department deem it fit to pass an Annual 
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Budget Strategy in order to provide guidelines for the implementation of the reenacted budget. 
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Sec. 10. General Appropriations Act - The GAA must be consistent with the MTFA and 
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based on the Annual Budget Strategy 
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The GAA shall likewise be accompanied by a regionalized al1ocation of expenditures 
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including those for the autonomous regions that may be derived from budgets of regular agencies 
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with nationwide projects. 
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. TITLEllI 
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Debt Cap 
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Sec. 11. Coverage - The provisions under this Title shall apply to all public sector 
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entities, including national and local governments, as weIJ as GOCCs, but excluding Government 
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Financial Institutions, since their indebtedness form part of the consolidated non-financial public 
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sector debt. 
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Sec. 12. 
Debt Cap 
To ensure overall macroeconomic stability and long-term 
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sustainable growth, the following debt targets are hereby established. 
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By the end of 2014, the national government shall endeavor to gradually reduce 
consolidated non-financial public sector debt to below 60% of GDP. The government shaH 
likewise endeavor to reduce national government debt to 40% ofGDP. 
After 2014, or when the debt targets have been achieved, whichever occurs later, the 
national government shall maintain the same at a sustainable level taking into account the 
prevailing economic condition as well as changes in the underlying assumptions that may affect 
the fiscal position of the country. Thereafter, the medium-term and annual deficit targets for 
consolidated non-financial public sector and national government debt shall be embodied in the 
MTF A and Annual Budget Strategy, respectively, and shall be intended to facilitate the steady 
reduction of debt over a six-year period. ' 
In the event that the national government anticipates a fall in the nominal GDP, or upon 
the occurrence of other events, which are due to extraneous factors beyond its control,. the 
President is hereby authorized, upon the recommendation of the DBCC, and subject to 
consultation with the presiding officers of both Houses of Congress and the Chairmen of the 
Committee on Appropriations, on Economic Affairs and on Ways and Means of the House of 
Representatives and the Chairmen of the Committee on Finance, on Economic Affairs, and on 
Ways and Means of the Senate, to make the necessary adjustments on the applicable debt target. 
Sec. 13. Debt Restructuring - Should the consolidated non-financial public sector and 
national government debt exceed their respective annual limits, the DBCC must identifY the 
public sector entity or entities who contributed most to such violation. The identified public 
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sector entity or entities must then reduce their indebtedness in order that the established limits 
will be met within one year from the end of the twelve-month period. 
Sec. 14. Sanctions -
As long as the debt targets have not been achieved, the pUblic 
sector entity or entities identified by the DBCC to have contributed the most to such violation 
shall: 
a. 
b. 
be prohibited from contracting internal or external borrowing operations, 
including revenue anticipations, except for the refinancing or amortization of the 
debt; and 
restrict funding commitments. 
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Sec. 15. Additional Sanctions - Once the period for bringing the debt target within the 
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limit has expired, and as long as the exceSs persists, the public sector entity or entities identified 
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by the DBCC to have contributed the most to such violation shall be prohibited from: 
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a. 
b. 
receiving voluntary transfers; and 
qualifying as a beneficiary of a foreign-assisted project. 
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Sec. 16. Excusable Breach - The deficit targets provided herein may be temporarily 
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breached when the same is absolutely necessary to counter catastrophic emergencies of national 
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proportion as may be declared by the President. The presidential certification must specifY the 
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urgency and necessity of such breach, the period of time within which the government should 
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offset the breach, as well as measures to cushion the effects of said breach to the national 
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economy. 
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Sec. 17. Debt Monitoring - The Debt and Risk Management Office, created under the 
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DOF, shall supervise the borrowing operations of the national government. It shaH likewise 
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monitor and evaluate compliance by any public sector entity concerned with the specified targets 
IS 
under this chapter. 
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The DOF must submit to Congress, on a quarterly basis, a report on the consolidated non-
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financial public sector and national government debt. In the event that the quarterly report of the . 
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DOF discloses the possibility of exceeding the limits set forth herein, the DOF in coordination 
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with the public sector entity concerned shall impose measures to prevent the eventual violation 
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of the debt cap. 
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TITLE IV 
23 
National Government 
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Chapter 1 
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Compliance with Fiscal Targets 
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Sec. 18. Annual Revenue Forecast - The revenue forecast, as embodied in the ~ual 
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Budget Strategy, must consider historical data, taking into account the effects of changes in 
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legislation, price index variations, economic growth or any other relevant factor. It must be 
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accompanied by a statement of revenue evolution in the last three years, a projection for the next 
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two years, and the calculation methodology and premises adopted. Revenue forecasts may only 
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be revised due to technical error or omission. 
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Sec. 19. Quarterly Revenue Targets - Within thirty (30) days from the passage or 
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reenactment of a Joint Resolution adopting the Annual Budget Strategy, estimated revenues 
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reflected in the Annual Budget Strategy must be broken down by the DBCC into quarterly 
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collection targets, including, if applicable, a separate description of measures to combat tax fraud 
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and evasion and the number and amounts of judicial suits for the collection of outstanding tax 
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debts. 
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Sec. 20. Compliance with Fiscal Targets - If at the end of three (3) months, the DBCC 
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shall conclude that the revenue inflow for the next quarter will not meet the quarterly revenue 
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targets indicated in the Annual Budget Strategy, all branches of the national government, 
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including constitutional offices, must at their own initiative, and in the required amounts as may 
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be determined by the DBCC, individually take measures within the next thirty (30) days to 
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restrict commitments and financial operations as reflected in the GAA. 
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Should the forecasted revenues· be re-established, as determined by the DBCC, the 
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appropriations for which funding commitments were restricted must be replenished in proportion 
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to the reductions previously made. 
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, Chapter 2 
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Deficit-Neutral Measures 
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Sec. 21. Fiscal Incentives - The granting or broadening of tax incentives or benefits 
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resulting in tax breaks shall in no case be in an amount equal to or lower than their respective 
18 
collection costs. It must also be consistent with the provisions of the Annual Budget Strategy. 
19 
Prior to the deliberation of any such measure, the legislative or executive branch, as the 
20 
case may be, must ensure that the proposed measure is accompanied by a report prepared by the 
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Department of Finance (DOF) assessing its budgetary and financial impact for the next three (3) 
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years. 
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Sec. 22. Conditions Precedent - The effectivity of an executive or legislative measure 
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granting or broadening tax incentives 01' benefits resulting in tax breaks shall be conditioned on 
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the issuance by the DOF of a certification that said measure complies with the requiremen~s of 
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the preceding section and at least one of the following: 
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a. DOF certification specifying that the tax breaks have been considered in the revenue 
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estimate reflected in the Annual Budget Strategy; or 
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b. Imposition and implementation of countervailing mechanisms, through revenue 
30 
generation programs, such as tax rate raises, expansion of tax base, or increase in, or 
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creation of, taxes or contributions. 
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Sec. 23. Expenditure Bills - Except for debt service and cost of living adjustments for 
33 
government employees, all increases in national government expenditures especially those 
34 
mandating the creation of recurrent expenditures must be offset by a permanent increase in 
35 
revenue or permanent reduction in other expenditures. 
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Hence, for all bills proposing an increase in public expenditures, the Department of 
37 
Budget and Management (DBM) is required to submit to Congress a position paper providing 
10 


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among other information the estimates of the budgetaty and financial impact for the next three 
2 
(3) years. 
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Sec. 24. Unfunded Laws - All laws with budgetaty implications that are passed without 
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identified supporting revenue measures nor identified expenditure reduction shall be considered 
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harmful to public finances and may remain unfunded. 
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The effectivity of existing legal provisions whose mandates remain unfunded, whether 
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partially or in full, shall be suspended ulltil the requirements of first paragraph of Sections 23 
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shall have been complied with. For this purpose, the Committee on Oversight of the House of 
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Representatives together with its counteJ;part in the Senate, in coordination with the DBM, shall 
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prepare a list of existing legal provisions that remain unfunded as of the effectivity of this Act. 
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Chapter 3 
13 
Personnel Expenditures 
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Sec. 25. Definition - For the purpose of this Chapter, total personnel expenditure is 
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defined as the sum of expenditures incurred for wages and salaries, fixed and variable benefits or 
17 
allowances, subsidies, pensions, including any additional payments, bonuses, overtime--/irid' 
18 
fringe benefits of any kind, as well as social security charges and contributions withheld by .and 
19 
on behalf of the social security agencies for permanent, temporary, casual, contractual employees 
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and retirees, including elective officials. 
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It shall likewise include personnel expenditures incurred as a result of final and executory 
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judicial decisions. 
23 
Sec. 26. 
Personnel Cop - Consistent with the principles of responsible fiscal 
24 
management, total personnel expenditures ofthe national government shall not exceed forty-five 
25 
percent (45%) of net current revenues starting 2014. 
26 
By the end of2014, the national government shall continually maintain and manage its 
27 
total personnel expenditure at an optimum level, which shall in no case exceed forty-five percent 
28 
(45%) of its net current revenues. For this purpose, the Annual Budget Strategy shall specify the 
29 
optimum level of total personnel expenditures for the succeeding years. 
30 
Sec. 27. Personnel Cap Distribution - The overall limits for the national government 
31 
set in the preceding section shall be shared as follows: 
32 
a. 
Executive - ninety-four percent (94%); 
33 
34 
35 
b. 
Legislative - one percent (1%); 
c. 
Judiciary - three percent (3%); and 
d. 
Constitutional Offices - two percent (2%). 
36 
The foregoing limits, pegged as a percentage of the overall limit, shall be further broken 
37 
down among the different courts, bureaus, offices, and other agencies under each branch or 
38 
constitutional office in proportion to their average personnel expenditure, expressed as a 
11 


1 
percentage of net current expenditure, incurred in the three fiscal years preceding the effectivity 
2 
of this Act. 
3 
Sec. 28. 
Determination of Compliance - Total personnel expenditures must be 
4 
determined on an annual basis, by adding expenditures incurred in the base month with those 
5 
incurred in the preceding eleven months. 
6 
Compliance with the limits established in the preceding sections shall be evaluated at the 
7 
end of each four-month period. 
8 
Sec. 29. Sanctions - If total personnel expenditures exceed ten percent (10%) of the 
9 
prescribed limit, the branch or constitutional office which exceeded the limit, as well as the 
10 
courts, agencies, or offices under said violating branch or constitutional office, shall be 
11 
prohibited from: 
12 
a. granting any increase, adjustment or correction of remuneration for any reason, other 
13 
than those ariSing from law or any final and executory judicial decision; 
14 
b. creating a position, job, or function; 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
c. increasing the number of personnel in its plantilla; 
d. implementing any career path changes if this implies an increase III personnel 
expenditures; 
e. offering public employment positions, admitting or hiring personnel for any reason, 
except when the replacement results from retirement or death of public servants in the 
education, health, and security areas; and 
f 
contracting overtime work, unless overtime is compensated through time/days off 
work in lieu of overtime pay in accordance with guidelines jointly issued by the DBM 
and the Civil Service Commission. 
In addition, the following measures may be adopted: 
a. 
abolition of positions and functions; and 
b. 
temporary reduction in working hours, if wages may be adapted to the new work 
schedule. 
Sec. 30. Remedy Period - Without prejudice to the measures in the preceding section, if 
total personnel expenditures exceed the limits set in Sections 27 and 28, the excess percentage 
must be eliminated in the two subsequent four-month periods, with at least one-third of such 
excess being eliminated in the first four-month period. 
Sec. 31. Additional Sanctions - If the reduction is not completed within the remedy 
period, and until such time as the excess continues, the branch or constitutional office which 
exceeded the limit, as well as the courts, agencies or offices under said violating branch or 
constitutional office, shall be prohibited iJom: 
a. 
b. 
receiving vo luntary transfers; and 
qualifying as a beneficiary of a foreign-assisted project, except those aimed at 
reducing personnel expenditures. 
12 


1 
2 
3 
4 
5 
Chapter 4 
Treatment of Savings 
6 
Sec. 32. Reversion of Savings. As a general rule, savings from appropriations of the 
7 
departments/agencies shall be reverted to the unappropriated surplus at the end of the fiscal year 
8 
in order to restrict expenditures and to maintain or attain the desired level of budget deficit. 
9 
Sec. 33. Authority to Use Savings. Notwithstanding the provisions of Section 32, the 
10 
President of the Philippines, the Senate President, the Speaker of the House of Representatives, 
11 
the Chief Justice of the Supreme Court, the Heads of Constitutional Commissions, enjoying 
12 
fiscal autonomy, and the Ombudsman are hereby authorized to augment any item in their 
13 
respective budgets under the General Appropriations Act (GAA). 
14 
For departments/agencies not enumerated in the preceding paragraph, the use of savings 
15 
shall be computed and released not earlier than June 30 and December 31 of the pertinent Fiscal 
16 
Year. A full report shall be submitted to Congress on the use of savings indicating the 
17 
department/agency, the program/projects which generated savings and those which will be 
18 
augmented, the amount of savings and justifications. 
19 
Sec. 34. Meaning of Savings and Augmentation. Savings refer to portions or balances 
20 
of any programmed appropriations free ~om any obligation or encumbrance which are (i) still 
21 
available after the completion or final discontinuance or abandonment of the work, activity or 
22 
purpose for which the appropriation is authorized; (ii) from appropriations balances arising from 
23 
unpaid compensation and related costs pertaining to vacant positions and leaves of absences 
24 
without pay; and (iii) from appropriations balances realized from the implementation of 
25 
measures resulting in improved systems and effiCiencies and thus enables an agency to meet and 
26 
deliver the required or planned targets, programs and services approved in the GAA at a lesser 
27 
cost. 
28 
Augmentation implies the existence of a program, activity, or project with an 
29 
appropriation, which upon implementation, or subsequent evaluation of needed resources, is 
30 
determined to be deficient. In no case shall a non-existent program, activity, or project, be 
31 
funded by augmentation from savings. • 
32 
Sec. 35. Priority in the Use of Savings. In the use of savings priority shall be given to 
33 
the augmentation of the personnel benefits authorized by law and the funding oflaws that have 
34 
not yet complied with the requirements of Section 23. 
35 
36 
Chapter 5 
37 
Creation of National Entities 
38 
13 


Sec. 36. Scrap and Build Policy. - The national government may not create or form new 
2 
agencies, bureaus, offices, including GOCCs and state universities and colleges unless existing 
3 
agencies, bureaus, offices, GOCCs and state universities of substantially the same size in terms 
4 
of manpower and budget resources have been abolished. 
5 
Sec. 37. Conditions Precedent - The effectivity of any law creating or forming new 
6 
agencies, bureaus, offices including GOCCs and state universities and colleges shall be 
7 
conditioned on the compliance of the requirements prescribed in Sections 23 and 24 of this Act. 
8 
9 
10 
11 
12 
13 
14 
TITLE V 
Government Owned and Controlled Corporations 
Chapter I 
Government Guarantees 
15 
Sec. 38. Coverage - For clarity, the provisions of this Title shall apply to all GOCCs, 
16 
GFIs, OGCEs and government subsidiaries. 
As such, the term "government owned and 
• 
17 
controlled corporations" or "GOCC" shall include GFIs, OGCEs and Government Subsidiarie·s .. 
18 
Sec. 39. Repeal of Automatic Guarantees - All provisions oflaw, presidential decree, 
19 
or executive order requiring the State to guarantee payment, both of the principal and interest, of 
20 
loans, bonds, debentures, collateral, notes, or other forms of indebtedness, as well as the 
21 
fulfillment of any other obligation incurred by GOCCs, are hereby repealed. 
22 
The guarantee referred to herein pertains to all kinds of government guarantee, whether 
23 
the same be express or implied, solidary or subsidiary, automatic or subject to approval or the 
24 
performance of such other acts. 
25 
Sec. 40. Grant of Guarantee - In cases where government guarantee is determined to 
26 
be necessary in order to protect the greater interest of the State, or where the economic benefits 
27 
of its issuance outweighs the financial drawback:, the President may, upon favorable 
28 
recommendation of the nOF and payment of a guarantee fee, grant government guarantee to 
29 
GOCCs or assume its liabilities. The amount of the guarantee fee to be collected shall be 
30 
determined by the nOF and based on its assessment of the financial risks involved. 
31 
Sec. 41. Disclosure of Government Guarantees - As far as practicable and consistent 
, 
32 
with the principle of full disclosure, the DOF shall report, on a quarterly basis, all contingent 
33 
liabilities, created by way of guarantees, including claims and commitments by the national 
34 
government for and in behalf of government corporations, with a statement of its budgetary and 
35 
financial implications. 
36 
37 
38 
Chapter 2 
Creation of Subsidiaries 
14 


• 
2 
Sec. 42. Scrap and Build Policy - GOCCs may only create or form new corporations or 
3 
subsidiaries upon the abolition of substantially similar corporations or subsidiaries in terms of 
4 
manpower and budget resources. 
5 
The validity and existence of any corporation or subsidiary hereafter formed or created 
6 
shall be conditioned on the issuance by the DBM of a certification that all the requirements 
7 
prescribed in this section shaH have been complied with. 
8 
9 
Chapter 3 
10 
Government Corporate Performance 
11 
12 
Sec. 43. Performance Agreement - To improve government corporate performance, 
13 
every member of the board of directors or trustees appointed by the President shall execute a 
14 
performance agreement with the DOF. 
15 
The performance agreement shaH prescribe, among others, the responsibilities, 
16 
expectations, performance targets and review, remuneration, grounds for termination including 
17 
removal from office for failure to accomplish the prescribed targets, and other ternis "and 
18 
conditions ofthe officer's appointment. 
19 
20 
21 
22 
Chapter 4 
23 
Personnel Expenditures 
24 
Sec. 44. Salary Increase - All increases in salaries, per diems, allowances, or other 
25 
fringe benefits granted by the corporation's governing board shall only take effect after the 
26 
expiration ofthe full term of all the directors and trustees approving such increase,. 
27 
28 
Sec. 45. Increases in Salaries, Allowances, Honoraria, and Other Fringe Benefits -
29 
All increases in salaries, allowances, honoraria, and other fringe benefits that may be granted by 
30 
the governing boards to the employees of GOCCs, including those that are presently or may 
31 
hereafter be exempted by law from the Salary Standardization Law, shall be subject to the 
32 
approval of the President, upon recommendation of the DBM. 
33 
Sec. 46. 
Corporate Personnel Cap - A personnel cap shall be imposed on total 
34 
personnel expenditures of each GOCC as a percentage of its net operating revenue. Within six 
35 
(6) months from the effectivity of this Act, the DBCC shall fix the applicable personnel cap for 
36 
each GOCC in accordance with the following policy guidelines: 
, 15 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
a. 
b. 
c. 
d. 
Definition of net operating revenue shall exclude remittances of fees, charges or 
premiums, or any payments made, which are mandated by law or rules and 
regulations to be so remitted or paid; 
Taking into consideration the peculiarities of each GOCC, a different personnel 
cap may be imposed per GOCC, or cluster of GOCCs; Provided that, the 
clustering of GOCCs must capture, as much as possible, the homogeneity among 
GOCCs in terms of their mandate, core and secondary functions, historical data 
on operations income or losses, subsidy received from the national government, 
and exemption from the Salary Standardization Law. 
Personnel cap must be comparable to applicable benchmarks in the private sector. 
The personnel cap to be imposed may consider the targets and schedule of any 
12 
rationalization program to be implemented by the national government . 
• 
13 
The DBCC shall periodically review the personnel cap imposed and shall make the necessary 
14 
adjustments as may be justified under the circumstances. 
15 
Sec. 47. Compliance and Sanctions - Sections 25, 28 to 31, under Chapter 3, Title IV 
16 
of this Act are hereby adopted for the GOCCs for the purpose of determining compliance with, 
17 
and imposition of sanctions to enforce the personnel cap prescribed in the preceding section. 
18 
19 
Chapter 5 
20 
Additional Sanctions 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
Sec. 48. 
Additional Sanctions for GOCCs - In addition to those prescribed above, 
the DOF is hereby authorized to impose the following sanctions on GOCCs and officers who 
have not complied with the requirements prescribed under this Act: 
a. assign an independent financial comptroller; 
b. prohibit the issuance of any national government guarantee, whether direct or 
indirect; and 
c. recommend to the President a'revamp of the governing board or management. 
TITLE VI 
Local Governments 
Chapter 1 
National Remittances 
35 
Sec. 49. Efficient Remittance - All local governments shall exercise responsible fiscal 
36 
management by timely and efficiently remitting to the relevant national government agency or 
37 
corporation the following: 
38 
a. 
all tax collections that accrue to the national government; 
16 


. ' 
, ' 
1 
2 
3 
4 
5 
6 
7 
8 
b, 
c. 
d. 
e. 
national government share in taxes, fees, and charges collected by local 
governments; 
any taxes withheld in accordance with law or rules and regnlations; 
statutory contributions, including its counterpart contribution as employer, to the 
Home Development Mutual Fund (pag-mIG), Philippine Health Insurance 
Corporation, Government Service Insurance System and other government 
agency or corporations; and 
amortization payments of salary, policy and other loans incurred by its employees 
9 
to the Government Service Insurance System or other GOCCs, 
10 
Local governments shall immediately settle all outstanding loans and indebtedness due to 
11 
GOCCs. 
12 
Sec. 50. Restructuring of Obligations - In case any local government fails to remit or 
13 
pay the required amounts within thirty (30) days from the time such tax collection, contribution, 
14 
or loan should have been remitted or paid, it shall enter into an agreement with the national 
15 
government agency or GOCC to settle its obligations. The parties may agree, among others, to 
16 
restructure the local government's obligation and prepare an amortization schedule based on its 
17 
capacity to pay. 
18 
Sec. 51. Authority to Withhold' - In case no agreement to restructure obligati~ns is 
19 
reached within sixty (60) days from start of negotiations, or if an agreement is reached but the 
20 
local government still fails to remit or pay in accordance with the revised amortization schedule, 
21 
the national government shall be authorized to deduct the unremitted or unpaid amount, as may 
22 
be determined by the concerned national government agency or GOCC upon consultation with 
23 
the local government, from the defaulting local government's internal revenue allotment (IRA) 
24 
as well as its special share from other fofms of taxes and revenue. 
25 
26 
Chapter 2 
27 
28 
Personnel Expenditures 
29 
Sec. 52. Personnel Cap, - The personnel cap imposed on local governments pursuant to 
30 
Section 325 (a) of Republic Act No. 7160 or the Local Government Code shall be strictly 
31 
adhered to. 
32 
A personnel cap shall likewise be imposed on all public utilities and economic enterprises 
33 
owned by the local government at such limits imposed on GOCCs with similar mandates as may 
34 
be determined by the DBCC under Section 44, Chapter 4, Title V of this Act. 
35 
Sec. 53. Compliance. - Local governments as well as public utilities and economic 
36 
enterprises already in compliance with the personnel cap shall maintain their personnel 
37 
expenditures within said cap, or reduce it, to achieve its optimum leveL 
17 


1 
However, those with personnel expenditures greater than said cap shall reduce such 
2 
excess by the following percentages: 
3 
a. 25 percent by 2013; 
4 
b. 50 percent by 2014; 
5 
c. 75 percent by 2015; 
6 
d. 
100 percent by 2016. 
7 
By the end of 2016, the local governments as well as public utilities and economic 
8 
enterprises shall maintain such level or reduce it to achieve the most cost-effective personnel 
9 
expenditure. 
10 
Sec. 54. Sanctions. - If total personnel expenditures exceed the prescribed limit, or if the 
11 
required reduction on personnel expenditures prescribed in Section 53 is not followed, the 
12 
violating local government, public utility, and economic enterprise, in addition to the sanctions 
13 
prescribed by the Local Govemment Code, shall be prohibited from perfonning and adopting the 
14 
acts and measures enumerated under Section 29, Chapter 3, Title IV of this Act. 
15 
16 
Chapter 3 
17 
Additional Sanctions 
18 
19 
Sec. 55. Additional Sanctions for Local Governments - In addition to those prescribed 
20 
above, the violating local government, public utility or economic enterprise which have not 
21 
complied with the requirements prescribed under this Act, shall be prohibited, during the period 
22 
of its violation, from: 
23 
a. receiving voluntary transfers; 
24 
b. qualifying as a beneficiary in any foreign assisted project; and 
25 
c. obtaining any direct or indirect guarantee from the national govemment. 
26 
27 
TITLE VII 
28 
Voluntary Transfers 
29 
30 
Sec. 56. Definition - Voluntary transfer is defined as the transfer of current or capital 
31 
resources to other branches, agencies, offices, local governments, and other instrumentalities in 
32 
the form of cooperation, aid or financial assistance, sourced from any discretionary fund. 
33 
Sec. 57. Requisites - In addition to those that may be established in the GAA, the 
34 
requirements for voluntary transfers shall include: 
35 
a.. existence of a specific budget allocation; 
36 
b. proof by the beneficiary that: 
37 
I. the project, activity, or program to be funded is covered by the project menu 
38 
prepared by the DBM; 
18 


; , 
I 
ii. it has no outstanding taxes, loans and financing due to the national 
2 
government, and that previously received funds have been duly accounted for; 
3 
iii. it has complied with procurement procedures prescribed by Republic Act No. 
4 
9184; and 
5 
IV. it is in compliance with the limits set for consolidated non-financial public 
6 
sector and national government debt, as well as those for total personnel 
7 
expenditures. 
8 
Sec. 58. Disclosure of Voluntary Transfers - All beneficiaries of voluntary transfers 
9 
shall report and disclose to the DBM the ,details and outcomes of the program, project or activity 
10 
being funded by the voluntary transfers. The DBM shaH widely disseminate these information 
11 
through electronic media. 
12 
Sec. 59. Suspension of Voluntary Transfers -
Suspension of voluntary transfers 
13 
imposed as a sanction under this Act shall not apply to those intended for the education and 
14 
health sectors. 
15 
16 
TITLEVllI 
17 
Transparency in Fiscal Management 
18 
19 
20 
21 
Chapter I 
,Full Disclosure 
22 
Sec. 60. Public Disclosure - The instruments of public fiscal management, including 
23 
the Budget of Expenditures and Sources of Financing, the GAA, the MTFA, the Annual Budget 
24 
Strategy, and other plans, policies, assessment reports, or budgets, together with a simplified 
25 
version of these documents, shall be widely disseminated, especially in electronic public media. 
26 
Sec. 61. Public Participation - Transparency must also be ensured by encouraging 
27 
public participation and comments during the preparation and deliberations of the above 
28 
documents. 
29 
Sec. 62. Inspection - All plans, policies, reports, budgets, and other documents required 
30 
to be submitted in accordance with this Act shall be made available throughout the year in the 
31 
respective branch or office of the government taking custody thereof and shall be subj ect to 
32 
inspection during office hours on regular business days, except only such matters as may, in the 
33 
judgment of the proper official, pertain to matters that may adversely affect the interest of the 
34 
government. 
35 
Sec. 63. Fiscal Management Rtrports - Within sixty (60) days from the effectivity of 
36 
this Act, the DBM in coordination with the DOF shall prepare a list of reports to be submitted by 
37 
the different branches and agencies of the government, including constitutional offices, to 
38 
monitor compliance with this Act and ensure consistency with the government's fiscal polices. 
19 


" , 
'. 
1 
Sec. 64. Accountability - The plans, policies, reports, budgets, and other documents 
2 
required to be submitted pursuant to this Act shall include a sworn statement signed by the head 
3 
of the branch, agency, or constitutional office, as the case may be, which shall include the 
4 
following: 
5 
a. A certification that the report was prepared using the best professional judgment on 
6 
the basis of information available to it before and at the time of its submission; 
7 
and 
8 
b. A statement of responsibility guaranteeing: 
9 
i. 
integrity of the disclosure contained in the report; and 
10 
11. consistency with the requirements of this Act. 
11 
12 
Chapter II 
13 
New Government Accounting System 
14 
15 
Sec. 65. 
New Government Accounting System -
To enhance uniformity in the 
16 
application of government accounting rules and facilitate the consolidation of financial reports, 
17 
the New Government Accounting System (NGAS), designed and prescribed by the Commlssi()n 
18 
on Audit (COA) to all national government agencies, local governments, and GOCCs, is hereby 
19 
adopted. 
20 
Henceforth, all financial stateme~ts included in the reports required pursuant to this Act 
21 
shall be prepared in accordance with the NGAS. 
22 
Sec. 66. Compliance Period - Within a period of one [1] year from the effectivity of 
23 
this Act all national as well as local government agencies, including GOCCs, shall have 
24 
completely installed the computerized version ofNGAS otherwise known as "e-NGAS". 
25 
20 


1 
TITLE IX 
2 
Final Provisions 
3 
4 
Sec. 67. Implementing Rules and Regulations - Within sixty (60) days from effectivity 
5 
of this act, the DBM and DOF shall promulgate the necessary rules and regulations for the 
6 
proper implementation ofthe provisions of this Act. 
7 
Sec. 68. Separability of Provisions - If for any reason, any portion or provision of this 
8 
Act or the application thereof shall be declared invalid or unconstitutional, the validity of other 
9 
parts or provisions not affected thereby shall continue to be in full force and effect. 
10 
Sec. 69. Repealing Provision - The following laws, presidential decrees, executive 
11 
orders, corporate charters and other issuances or parts thereof, contrary to or inconsistent with 
12 
the provisions of this Act are hereby repealed or modified accordingly: 
13 
a. Section 21, Republic Act 1161 as amended by RA. 8282 (Social Security Act 
14 
of 1954); 
15 
b. Section 14, Republic Act 4850 (An Act Creating the Laguna Lake 
16 
Development Authority); 
17 
c. Section 17, Republic Act 6234 (Creation of Metropolitan Waterworks and 
18 
Sewerage System); 
19 
d. Section 1, Republic Act 6395 (An Act Revising the Charter of National Power 
20 
Corporation); 
21 
e. Section 13, Republic Act 6958 (Charter of the Mactan-Cebu-International 
22 
Airport Authority); 
23 
f. 
Section 12, Republic Act 7354 (postal Service Act of 1992); 
24 
g. Section 19, Republic Act 7393 (Quedan and Rural Credit Corporation Act); 
25 
h. Section 58, Republic Act 7875 (National Health Insurance Act of 1995); 
26 
I. 
Section 1, Republic Act 8291 (The Government Service Insurance System Act 
27 
of 1997); 
28 
J. 
Section 1, Republic Act 8282 (Social Security Act of 1997); 
29 
k. Section 18, Republic Act 8763 (Home Guaranty Corporation Act of2000); 
30 
I. 
Section 2, Presidential Decree 179 (An Act Creating the Cultural Center of the 
31 
Philippines); 
32 
m. Section 8, Presidential Decree 346 (Amending the Charter of Philippine 
33 
Aerospace Development Corporation); 
34 
n. Section 8, Presidential Decree No. 425 (Amending Certain Sections of RA 
35 
No. 6234); 
36 
o. Section 3, Presidential Decree 552 (Amending certain Sections of RA. No. 
37 
3601, creating the National Irrigation Administration); 
21 


2 
3 
4 
5 
6 
7 
8 
• 
p. Section 12, Presidential Decree 564 (Revising the Charter of the Philippine 
Tourism Authority); 
q. Section 1, Presidential Decree 572 (Amending the Charter of the Philippine 
National Oil Company); 
r. 
Section 11, Presidential Decree 690 
(An Act Creating the Southern 
Philippines Development Administration); 
s. Section 4, Presidential Decree 741 
(Amending RA. No. 4156, creating 
Philippine National Railways); 
9 
t. 
Section 14, Presidential Decree 757 (An Act Creating the National Housing 
1 0 
Authority); 
11 
u. Section 36, Presidential Decree 768 (An Act Declaring a National Policy 
12 
Favoring Local Operations and Control of Water Systems);1 
13 
v. 
Section 13, Presidential Decree 857 (promulgation of Port Administration 
14 
and Operation Functions in the Philippines); 
15 
w. Section 9, Presidential Decree 1080 (Revision of P.D. No. 550 creating the 
16 
Philippine Foreign Loan Guarantee Corporation); 
17 
x. Section 7, Presidential Decree 1267 
(Creation of the National Home 
·c.· 
18 
Mortgage Finance Corporation); 
19 
y. Section 12, Presidential Decree 1648 (Reorganization of the National 
20 
Development Company); 
21 
z. 
Section 12, Presidential Decree 1703 (Amending Presidential Decree 690); 
22 
aa. Section 11, Presidential Decree 1770 (Reconstituting the National Grains 
23 
Authority); 
24 
bb. Section 1, Presidential Decree 1846 (Further Amending the Charter of the 
25 
National Development Company); 
26 
cc. Section 7, Executive Order 603 (Creating a Light Rail Transit Authority); and 
27 
dd. Section 16, Executive Order 903 (Revision of EO 778, creating the Manila 
• 
28 
International Airport Authority) 
29 
Sec. 70. Effectivity Qause - This Act shall take effect fifteen (15) days after its 
30 
publication in a newspaper of general circulation. 
22