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S,IXTEENTH CONGRESS OF'Tm; REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Tl ucr 14 
(I') 55 
Senate Bill No, 1834 
By Senator TEOFISTO "TG" L. GUINGONA III 
EXPLANATORY NOTE 
The budget is to be a reflection ofnation:s vision, goals, and priorities. 
When funds are appropriated for programs and other endeavors for the benefit of the nation, the 
duty of the Executive Branch is not to impound these funds, but to ensure that these funds are rightfully 
utilized and received by the entitled beneficiaries. 
The Executive Branch, pursuant to its power to implement the law, including the appropriations 
duly made in the GAA, cannot unilaterally defeat the will of the people by refusing to spend the 
amounts thus appropriated, or spending these funds at a much delayed time. 
While it is the duty of any government institution to make efficient use of its resources, it 
simultaneously is a breach of the same duty when these resources are not released tor the benefit of the 
people and then later on, declared as savings of government. The duty pertains to efficient utilization of 
funds; not the refusal to spend the same. 
When the Executive Branch, through the President, wishes to impound duly appropriated funds 
and in effect, defeat the will of the people as reflected in the budget, it must do so under the strictest of 
terms. It is also imperative that the approval of Congress, as representatives of the peoph~ whose will 
shall be defeated by an act of budgetary impoundment, is acquired. 
With this, the passage of this bill is earnestly sought. 
"TG" GUINGONA III 
Senator 


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SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHlLIPPTNI<;S 
) 
First Regular Session 
) 
SENATE 
Tl ocr 14 
,1 () :55 
., ,-
By Senator TEOFISTO "TG" L. GlJlNGONA HI 
An Act Institutionalizing all Impoundment Control Act 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled: 
Section 1. Title. This Act shall be known as the Impoundment Control Act of2013. 
Section 2. Declaration of Policy. It is hereby declared the policy of the State to formulate. and 
implement a National Budget that is an instrument of national development, reflective of national 
objectives, strategies and plans. The State shall develop and implement a National Budget within the 
framework of accountability, transparency, stability, performance, and participation. The budget shall 
be supportive of and consistent with the socio-economic development plan and 
shall 
be oriented 
towards the achievement of explicit objectives and expected results, to ensure that funds are utilized 
and operations are conducted effectively, economically and efficiently. The national budget shall be 
formulated within the context of a regionalized government structure and borrowings of all levels of 
government and of government-owned or controlled corporations. 
The budget shall likewise be 
prepared within the context of the national long-term plan and of a long-term budget program. 
Sfctiort 3. Definition of Terms. For purposes of this Act: 
a. Impoundment: the refusal of the President to spend duly appropriated funds or to delay the spending 
of the same. Impoundment may be through: 
a1. Rescission: any Executive action that results to the 
cancellation of all or part of an 
enacted appropriation, which 
has not yet been spent or obligated 
b2. Deferral: any Executive action that temporarily withholds 
the 
release of all or part 
of an enacted appropriation, which has 
not yet been spent or obligated 
b. Duly appropriated funds: refers to the appropriations included in the annual General Appropriations 
Act. 
c. Impoundment Proposal: refers to the Presidential message sent to both houses of Congress that 
contains the request for the rescission or deferral of duly appropriated funds. 
d. Impoundment Resolution: means a joint resolution of the House of Representatives and the Senate 
which expresses Congressional approval of the request contained in the President's impoundment 
proposal. 
Section 4. Impoundment Proposal. An impoundment proposal must be transmitted to both houses of 
Congress, through the Committee on Finance of the Senate and the Committee on Appropriations of the 
House of Representatives, whenever the President, with the recommendation and certification of the 
Department of Budget and Management (DBM) determines that all or part of any duly appropriated 
fund: 
a) will not be required to fulfill the objectives of the programs, projects, or any other endeavor 


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originally sought to be achieved by the same appropriation, andlor 
b) must be rescinded or deferred for fiscal policy and other reasons (including the termination 
of authorized projects or activities for which funds have been duly appropriated. 
Section 5. Contents of the Impoundment Proposal. Whenever the President transmits an 
impoundment proposal for the rescission or deferral of duly appropriated funds, the following 
information must be indicated: 
a) the amount proposed to be rescinded or deferred; 
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b) the affected account, department, project, program, branch, and other recipient III 
Government; 
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c) the reasons why these duly appropriated funds are to be rescinded or deferred; 
d) the estimated fiscal, economic, and budgetary effects of the rescission proposal or defimal 
e) the effect of the rescission proposal or deferral on the objects, purposes, and programs for 
which the amount was provided, to the maximum extent possible; 
f) for deferrals, indicate the period of time for which the deferral proposal is to be implemented. 
A deferral may not be proposed for any period of time extending beyond the end of the fiscal year in 
which the impoundment proposal is transmitted to both houses of Congress; and 
g) any other relevant facts, circumstances, and considerations relating to or bearing upon the 
proposed rescission or deferral and the decision to effect the proposed rescission or the deferral, and to 
the maximmn extent practicable, the estimated effect of the proposed rescission or deferral upon the 
objects, purposes, and programs for which the funds have been appropriated. 
Section 6. Impoundment Resolution. Both houses of Congress must act on the proposed rescission or 
deferral within forty-five (45) days after the receipt of the impoundment proposal from the President by 
issuing a joint Impoundment Resolution. Within the same period of forty-five (45)calendar days 
mentioned above, the specific fund indicated in the Impoundment Proposal must not, in any way, be 
rescinded or deferred in relation to the purposes and objectives for which it was appropriated. 
Congressional inaction, within the 45-day period, is equivalent to a disapproval of the impoundment 
proposal. 
Section 7. Period for Transmittal of Impoundment Proposal. The President shall transmit ill' 
impoundment proposal to both houses of Congress at any time during the budget year but not later thill1 
the fifteenth day of October of the budget year. 
Section 8. Impounded Funds: Classification, Status, and Reversion. Unexpended funds at the end 
of the year shall be considered as impounded funds. At the end of year, impounded funds shall revert 
to the National Treasury. The same shall not be made available for expenditure lor any purpose without 
Congressional action by way oflegislation. 
Section 9. Prohibitions in relation to rescind,~d or deferred fuuds. 
Impounded funds shall: 
a) not be made available for expenditure for any purpose except by way oflegislation; and 
b) not, at any time within the budget year, be proposed for rescission or deferral again. 
Section 10. Betrayal of Public Trust. Failure, on the part of the President, to comply with the 
r<:Jquirements for impouJ;ldment within the given period, as provided in this Act, amounts to a grave 


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betrayal of public trust. 
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Section 11. Separability. Provisions herein which may be declared unconstitutional shall not revoke 
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the effectivity and enforcement of other provisions of this act. 
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Section 12. Repealing clanse. All laws, decrees, executive orders, rules and regulations, and other 
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issuances inconsistent with this act are hereby repealed or amended accordingly. 
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Section 13. Effectivity. This Act shall take etfect after thirty (30) days from publication. 
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APPROVED,