SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill rNo. 7 8 4. 
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'13 
JUL 15 p 6 :32 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The Budget Process as provided in Book VI of the Revised Administrative 
Code of 1987 (Executive Order No. 292) is the primary implementing law on the 
powers and limitations of both the executive and legislative branches in the 
preparation, 
authorization 
and 
implementation 
of the 
annual 
General 
Appropriations Act. Unfortunately, this law heavily borrows from Presidential 
Decree No. 1177 which was passed at a time when the power of the Executive 
was heavily favored at the cost of the independence and power of the Legislative 
Branch of Government. At the same time, current provisions of the Revised 
Administrative Code expand on the limitations of Congress in the Budget 
Process, providing for stricter guidelines than that contemplated under the 
Constitution. While the Constitution sees the Congress as an active, not passive, 
participant in the 
Budget Process, 
the Revised 
Administrative Code 
unnecessarily puts shackles on the power of Congress in determining the 
priorities, direction and vision of government as expressed in the substance of 
the Annual Budgetary Appropriations, contrary to the very spirit and purpose of 
Congress as the bearer of the Power of the Purse as enshrined in the 1987 
Constitution. 
In general, the revised Administrative Code of 1987 limits, in a manner 
that exceed conditions set forth in the Constitution, the powers that Congress 
ought to be able to exercise in the course of budget approval. In general, the 
revised Administrative Code 'Of 1987 and the practice of budget execution in 
recent years have been used by the Executive to exercise resource allocation 
powers beyond what the 1987 Constitution has bestowed upon it. 
This Act seeks and proposes to amend provisions of Book VI of the 
Revised Administrative Code to reflect the spirit and noble intent of the 1987 
Constitution to remove all vestiges of unmitigated Executive might and to restore 
Congress' power over the purse in the hope that through the reclamation of this 
power, Congress will be able to strengthen its ability to check the Executive. 
Specifically, this legislation intends to achieve the following reforms in the 
national budget process: 
Ensure that the Executive branch of the Philippine government 
implements the budget as specified in the General Appropriations Act, making 
the execution of the budget as approved by Congress mandatory and making it 
illegal and punishable by law to do otherwise without Congressional 
authorization. Thus, the creation of reserves and the deferral or suspension of 
expenditure of appropriations in cases where a fiscal crisis or other contingencies 


'. ' 
creates a situation that makes it difficult for the Executive to. implement the entire 
budget as approved in the General Appropriations Act can only be carried out 
after Congress gives its approval. 
Ensure that in cases of budget re-enactment, only appropriations for 
salaries and wages for permanent positions, contractual obligations, and 
unfinished projects, programs and activities are re-enacted. Thus, the budget that 
is re-enacted should not be treated as a lump-sum that can be disbursed in its 
entirety without any restraints. 
Ensure that Congress is enabled to revise implementing rules of lump sum 
appropriations, and to suspend entirely the expenditure of lump sum 
appropriations if it finds the implementing rules to he unsatisfactory. 
Ensure that savings generated from an unexpected reduction in the costs 
of achieving project and program objectives supported by the General 
Appropriations Act are properly accounted for and reported to Congress on a 
quarterly basis. Ensure further that unspent amounts from lump sum 
appropriations will be reverted to the general fund, and disbursed only following 
fresh Congressional authorization. 
Ensure that, in addition to receiving reports about savings generated from 
completed projects, programs and activities, Congress shall also he provided 
with (1) a list of programs and projects funded by domestic and foreign loans and 
their corresponding implementing agencies, (2) a list of obligations and contracts 
of government corporations backed by government guarantees and the list of 
programs and projects funded by these obligations and contracts, (3) financial 
statements of all government corporations that require national budget support in 
the form of direct outlays, subsidies, guarantees, and tax and duty exemptions, 
and of all government corporations that remit revenues to the national 
government, and (4) a quarterly report on allotment releases. 
In view of the foregoing, the immediate enactment of this measure is 
earnestly sought. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill NO. __ 
7_8_4_ 
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'13 
JUL 15 P6 :32 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
PRESCRIBING REFORMS IN NATIONAL GOVERNMENT BUDGETING, 
AMENDING FOR THESE PURPOSES PERTINENT PROVISIONS OF BOOK VI 
OF EXECUTIVE ORDER 292, OTHERWISE KNOWN AS THE REVISED 
ADMINISTRATIVE CODE OF 1987, AND PROVIDING FOR OTHER RELATED 
PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
SECTION 1. Title. - This shall be known as the "Budget Reform Act of 
2013". 
. 
SEC. 2. Definition of Terms. - Section 2, Chapter 1, Book VI of EO 292 is 
hereby amended to include the following definitions: 
"SEC 2, Definition of Terms. - When used in this Book: 
xxx 
"(3) "AUGMENT" IS THE POWER TO TRANSFER 
SAVINGS FROM ONE 
APPROPRIATION TO COVER DEFICITS IN ANOTHER AS 
EXERCISED BY THE PRESIDENT, SENATE PRESIDENT, 
SPEAKER OF THE HOUSE, CHIEF JUSTICE, AND HEADS OF 
THE 
CONSTITUTIONAL 
COMMISSIONS 
WITHIN 
THEIR 
RESPECnVE BRANCHES AND AGENCIES AS PROVIDED IN 
THIS BOOK. 
xxx 
"(8} "DEFICIT" MEANS AN INSUFFICIENCY IN THE 
APPROPRIATED AMOUNT FOR THE COMPLETION OF A 
PARTICULAR PROGRAM, PROJECT OR ACTIVITY OR THE 
FULfiLLMENT OF CURRENT OPERATING EXPENDITURES 
AND CAPITAL OUTLAYS NOT ARISING FROM CAUSES SUCH 
AS OVERPRICING OR OTHER FACTORS WHICH COULD HAVE 
BEEN REASONABLY FORESEEN IN ORDER TO 
COMPLETE 
THE 
PROGRAM 
WITHIN 
THE 
GIVEN 
APPROPRIATION 
SPECIFIED 
IN 
THE 
GENEML 
APPROPRIATIONS ACT FOR SAID PROGRAM, PROJECT OR 


--_.------------------------------
ACTIVITY, 
CURRENT 
OPERATING 
EXPENDfTURES 
AND 
CAPITAL OUTLAYS. 
xxx 
"(16) "SAVINGS" MEANS ANY UNEXPENDED PORTION 
OR AMOUNT OF MONEY FOR AN APPROPRIATION AS 
SPECIFIED 
IN 
THE 
GENERAL 
APPROPRIATIONS 
ACT 
RESULTING FROM THE COMPLETION OF A PROGRAM, 
PROJECT OR ACTIVITY OR FULFILLMENT OF THE PURPOSE 
FOR WHICH THE APPROPRIATION WAS SPECIFIED AT A 
COST BELOW THE AMOUNT APPROPRIATED DUE TO 
LOWER-THAN EXPECTED EXPENDITURES. THIS SHALL NOT 
REFER TO UNEXPENDED AMOUNTS RESULTING FROM THE 
SUSPENSION OF EXPENDITURE OF APPROPRIATIONS. IN 
ADDITION, THIS SHALL NOT REFER TO UNEXPENDED 
APPROPRIATIONS 
IN 
A 
RE-ENACTED 
BUDGET 
FOR 
COMPLETED OR SUSPENDED PROJECTS OR PROGRAMS. 
"(17) "SPECIAL APPROPRIATION" IS A LAW OTHER 
THAN 
THE 
GENERAL 
APPROPRIATIONS 
ACT 
APPROPRIATING FUNDS FOR A 
PARTICULAR PROGRAM, 
PROJECT, OR ACTIVITY." 
"(18) 
"RE-ENACTED 
BUDGET" REFERS 
TO 
THE 
PREVIOUS YEAR'S BUDGET THAT TAKES EFFECT IN CASE 
CONGRESS 
FAILS 
TO 
PASS 
A 
NEW 
GENERAL 
APROPRIATIONS ACT FOR THE CURRENT YEAR." 
SEC. 3. Section 12, Chapter l, Book VI of EO 292, is hereby amended to 
read as follows: 
"SEC. 12. Form and Content of the Budget. - The budget 
proposal of the 
President shall 
include current operating 
expenditures and capital outlays. It shall comprise such funds as 
may be necessary for the operation of the programs, projects and 
activities of the various departments and agencies. [The proposed 
General Appropriations Act and other Appropriations Acts 
necessary to cover the budget proposals shaff be submitted to the 
Congress to accompany the President's budget submission.] ALL 
APPROPRIATIONS AND EXPENDITURES FOR A PARTICULAR 
DEPARTMENT, OFFICE, AGENCY AND/OR GOVERNMENT-
OWNED 
OR CONTROLLED 
CORPORATIONS SHALL BE 
LNCLUDED AND LISTED EXCLUSLVELY LN THE BUDGET FOR 
SUCH 
DEPARTMENT, 
OFFICE, 
AGENCY 
AND/OR 
GOVERNMENT- OWNED OR CONTROLLED CORPORATIONS 
HAVING CONTROL OVER SUCH FUNDS. ALL EXPENDlTURES 
OF THE VARIOUS DEPARTMENTS, OFFICES, AGENCIES 
AND/OR 
GOVERNMENT-OWNED 
OR 
CONTROLLED 
CORPORATION SHOULD BE UNIFORMLY CLASSIFIED BY 
COMMON ACCOUNT TITLES. THE PRESENTATION OF ALL 
PROJECTED 
REVENUE 
AND 
PROPOSED 
EXPENDITURE 
ITEMS MUST SHOW THE CURRENT YEARS CORRESPONDING 
REVENUE 
AND 
EXPENDITURE 
TOGETHER 
WITH 
THE 
PREVIOUS 
TWO 
YEARS' 
CORRESPONDING 
ACTUAL 
REVENUE AND EXPENDlTURE. 


'The budget shan be presented to- the Congress in such form 
and content as [may be approved by the President] PRESCRIBED 
IN THIS SECTION and [may] SHALL include the following: 
"( 1) A budget message setting forth in brief the government's 
budgetary thrusts for the budget year, including their impact on 
development goals, monetary and fiscal objectives, and generally 
on the implications of the revenue, expenditure and debt-proposals; 
and 
"(2) Summary financial statements setting forth 
"(a} Estimated expenditures and propO-Sed appropriations 
necessary for the support of the Government for the ensuing fiscal 
year, including those financed from operating revenues and from 
domestic 
and 
foreign 
borrowings, 
TOGETHER 
WITH 
A 
BREAKDOWN AND JUSTIFICATION OF ALL ITEMS IN EXCESS 
OF ONE HUNDRED MILLION PESOS AS WELL AS A LISTING 
OF CAPITAL OUTLAYS SUPPORTED BY JUSTIFICATION AND 
COST BENEFIT ANALYSIS; 
"(b) Estimated receipts during the ensuing fiscal year under 
laws existing at the time the budget is transmitted and under the 
revenue proposals, if any, forming part of the year's financing 
program, TOGETHER WITH A BREAKDOWN OF RECEIPT 
ITEMS AND LISTING OF ASSUMPTIONS; 
"(c} Actual appropriations, expenditures, and receipts during 
the last completed fiscal year, TOGETHER WITH A DETAILED 
EXPLANATION OF THE VARIANCES, IF ANY, BETWEEN THE 
ESTIMATED AND ACTUAL RECEIPTS, AND BETWEEN THE 
PROPOSED AND ACTUAL EXPENDITURES; 
"(d) [Estimated} ACTUAL APPROPRIATIONS, expenditures 
and receipts [and actual or proposed appropriations] during the 
fiscal 
year in progress, 
TOGETHER WITH A DETAILED 
EXPLANATION OF THE VARIANCES, IF ANY, BETWEEN THE 
ESTIMATED AND ACTUAL RECEIPTS, AND BETWEEN THE 
PROPOSED AND ACTUAL EXPENDITURES; 
"(e) [Statements of] The condition of the National Treasury at 
the end of the last completed fiscal year, the estimated condition of 
the Treasury at the end of the fiscal year in progress and the 
estimated condition of the Treasury at the end of the ensuing fiscal 
year, taking into account the adoption of financial proposals 
contained in the budget and showing, at the same time, the 
unencumbered and unobligated cash resources; 
"(f) Essential facts regarding the bonded and other long-term 
obligations and indebtedness of the Government, both domestic 
and foreign, including identification of recipients of loan proceeds, 
TOGETHER WITH AN EXPLANATION OF HOW THE LOAN 
PROCEEDS WERE USED AND A LISTING OF PROJECTS, 
PROGRAMS AND OFFICES BENEFITED FROM SUCH LOANS; 
"(g) [Such other financial statements and data as are 
deemed necessary or desirable in order to make known in 


reasonable detail the financial condition of the government.} 
ESSENTIAL 
FACTS 
REGARDING 
OBLIGATIONS 
AND 
CONTRACTS, REGARDLESS OF FUNDING SOURCE, OF 
GOVERNMENT AGENCIES, 
CORPORATIONS 
OR 
OTHER 
ENTITIES 
THAT 
ARE 
BACKED 
BY 
GOVERNMENT 
GUARANTEES, TOGETHER WITH AN EXPLANATION OF THE 
RATIONALE 
FOR 
INCURRING 
THE 
OBLIGATIONS 
AND 
CONTRACTS, AND A LISTING OF PROJECTS, PROGRAMS, 
AND OFFICES THAT BENEFITED FROM THESE OBLIGATIONS 
AND CONTRACTS; 
"(h) THE FINANCIAL 
POSLTLON 
FOR THE LAST 
COMPLETED FISCAL YEAR, AND THE FISCAL YEAR IN 
PROGRESS, AND THE PROPOSED OPERATING BUDGETS 
FOR THE ENSUING FISCAL YEAR, OF ALL GOVERNMENT 
CORPORATIONS REMITTING REVENUES TO THE NATIONAL 
GOVERNMENT OR REQUIRING NATIONAL BUDGET SUPPORT 
EITHER IN THE FORM OF DIRECT OUTLAYS, SUBSIDIES, 
GUARANTEES, AND TAX AND DUTY EXEMPTIONS; AND (i) 
SUCH OTHER FINANCIAL STATEMENTS AND DATA AS ARE 
DEEMED NECESSARY OR DESIRABLE IN ORDER TO MAKE 
KNOWN IN REASONABLE DETAIL THE FINANCIAL CONDITION 
OF THE GOVERNMENT." 
SEC. 4. Section 21, Chapter 3, Book VI of EO 292, is hereby amended to 
read as follows: 
"SEC. 21. Appropriation for Personal Services. -
Appropriations for personal services shall be [considered as] 
included in the amount specified for each budgetary program and 
project of each department, bureau, office or agency, and shall (not] 
be itemized by plantilla position. The itemization of personal 
services shall be prepared by the Secretary [for consideration and 
approval of the President] as provided in Section 23 hereof. 
[Provided, that] Itemization of personal services shall be prepared 
for all agencies of the Legislative, Executive and Judicial Branches 
and the Constitutional bodies, except as may be otherwise 
approved by the President for positions concerned with national 
security matters." 
SEC. 5. Section 23, Chapter 4, Book VI of EO 292, is hereby amended to 
read as follows: 
"SEC. 23. Content of the General Appropriations Act. -
The General Appropriations Act shall be presented in the form of 
budgetary programs and projects for each agency of the 
government, with the corresponding appropriations for each 
program and project, including statutory provisions of specific 
agency or general applicability. The General Appropriations Act 
shall [not contain any] INCLUDE AN itemization of all personal 
services by plantilla position, which shall be prepared by the 
Secretary Lafter enactment of the General Appropriations Act, for 
consideration and' approval of the President] AS PART OF THE 
PROPOSED BUDGET SUBMITTED TO CONGRESS BY THE 
PRESIDENT." 


SEC. 6. Section 24, Chapter 4, Book VI of EO 292, is hereby amended to 
read as follows: 
"SEC. 
24. 
Prohibition 
against 
the 
Increase 
of 
Appropriation FOR THE OPERATION OF THE GOVERNMENT -
The Congress shall in no case increase the appropriation [of any 
project or program of any department, bureau, agency or office} of 
the Government over the total amount submitted by the President 
in 
his budget proposal. 
HOWEVER, 
IT MAY INCREASE 
APPROPRIATION FOR THE OPERATION OF A DEPARTMENT, 
AGENCY, 
OR 
OFFICE 
WITH 
THE 
CORRESPONDING 
ADJUSTMENT IN THE APPROPRIATIONS OF ANOTHER SO AS 
NOT TO EXCEED THE TOTAL APPROPRIATIONS SUBMITTED 
BY THE PRESIDENT IN HIS BUDGET PROPOSAL FOR THE 
OPERATION OF THE ENTIRE GOVERNMENT. [In case of any 
reduction in the proposed appropriation for a project or program, a 
corresponding redUction shall be made in the total appropriation of 
the department, office or agency concerned and in the total of the 
General Appropriations Bill.}" 
SEC. 7 . Section 25, Chapter 4, Book VI of EO 292, is hereby amended to 
read as follows: 
"SEC. 25. [Prohibition Against) Enactment of Additional 
Special Provisions. - The Congress [shall not] MAY add special 
provisions in the budget earmarking the use of appropriations for 
specific programs or activities (nor shall it increase the amounts 
specified in special provisions beyond those proposed by the 
President] PROVIDED THIS DOES NOT RESULT IN THE 
INCREASE OF THE APPROPRIATIONS RECOMMENDED BY 
THE 
PRESIDENT 
FOR 
THE 
OPERATION 
OF 
THE 
GOVERNMENT." 
SEC. 8. Section 26, Chapter 4, Book Vl of EO 292, is hereby amended to 
read as follows: 
"SEC. 26. Automatic Appropriations. - All expenditures for 
(1) personnel retirement premiums, government service insurance, 
and other similar fixed expenditures, (2) principal and interest on 
public debt, 
(~) national government guarantees of obligations 
which are drawn upon, are automatically appropriated: provided, 
that no obligations shall be incurred or payments made from funds 
thus automatically appropriated except as issued in the form of 
regular budgetary allotments, 
PROVIDED FURTHER THAT 
OBLIGATIONS OF GOVERNMENT CORPORATIONS INCURRED 
HEREON 
WILL 
NO 
LONGER 
BE 
AUTOMATICALLY 
GUARANTEED BY THE NATIONAL GOVERNMENT, UNLESS 
OTHERWISE EXPLLCITL Y AUTOMATlCALL Y GUARANTEED BY 
LAW." 
SEC. S. Section 27, Chapter 4, Book VI of EO 292, is hereby amended to 
read as follows: 


"SEC. 
27. 
[Supplemental Appropriations] SPECIAL 
APPROPRIATIONS. - All appropriation proposals shall be included 
and considered in the budget preparation process. After the 
President shall have submitted the budget, [no supplemental 
appropriation measure supported from existing revenue measures 
shall be passed by the Congress.] SPECIAL APPROPRIATION 
MEASURES MAY BE PASSED BY CONGRESS PROVIDED 
THESE ARE SUPPORTED BY FUNDS TO BE RAISED BY A 
CORRESPONDING REVENUE PROPOSAL THEREIN OR BY 
FUNDS ACTUALLY AVAILABLE AS CERTIFIED 
BY THE 
NATIONAL 
TREASURER, 
WHICH 
MAY 
INCLUDE 
THE 
UNEXPENDED 
BALANCES 
OF 
APPROPRIATIONS 
AUTHORIZED FOR THE ONGOING FISCAL YEAR THAT ARE 
REVERTED TO THE UNAPPROPRIATED SURPLUS OF THE 
GENEML 
FUND. 
(However, 
supplemental 
or 
deficiency 
appropriations involving the creation of new offices, programs or 
activities may be enacted if accompanied and supported by new 
revenue sources.]" 
SEC. 10. Section 28, Chapter 4, Book VI of EO 292, is hereby amended to 
read as follows: 
"SEC. 28. Reversion of Unexpended Balances of 
Appropriations, Continuing Appropriations. -
Unexpended 
balances of appropriations authorized In the General Appropriations 
Act shall revert to the unappropriated surplus of the General Fund 
at the end of the fiscal year and shall not thereafter be available for 
expenditure except by subsequent legislative enactment Provided, 
that appropriations for capital outlays shall remain valid until fully 
spent or reverted: provided, further, that continuing appropriations 
for 
current 
operating 
expenditures 
may 
be 
specifically 
recommended and approved as such in support of projects whose 
effective 
implementation 
calls 
for 
multi-year 
expenditure 
commitments. [Provided, finally, that the President may authorize 
the use of savings realized by an agency during given year to meet 
non-recurring expenditures in a subsequent year.] 
"APPROPRIATIONS FOR CAPITAL OUTLAY SHALL IN NO 
CASE BE REALIGNED FOR PERSONAL SERVICES AND 
MAINTENANCE AND OTHER OPERATtNG EXPENDITURES. The 
balances of continuing appropriations shall be reviewed as part of 
the annual budget preparation process and the President may 
approve upon recommendation of the Secretary, the reversion of 
funds no longer needed in connection with the activities funded by 
said continuing appropriations." 
SEC. 11. A new Section 29 is hereby introduced in Chapter 4, Book VI of 
EO 292 to read as follows: 
"SEC. 2~. RE·ENACTED APPROPRIA TlONS. - IF, BY THE 
END OF ANY FISCAL YEAR, CONGRESS SHALL HAVE FAILED 
TO PASS THE GENERAL APPROPRIATIONS BILL FOR THE 
ENSUING FISCAL YEAR, THE GENERAL APPROPRIATIONS 
LAW FOR THE ENDING FISCAL YEAR SHALL BE DEEMED RE-


ENACTED AND SHAll REMAIN IN FORCE AND EFFECT UNTil 
THE GENERAL APPROPRIATIONS BILL IS PASSED BY 
CONGRESS; 
PROVIDED, 
THAT 
ONLY 
TIHE 
ANNUAL 
APPROPRIATIONS FOR SALARIES AND WAGES OF EXISTING 
POSITIONS, STATUTORY AND CONTRACTUAL OBLIGATIONS, 
UNEXPENDED 
ITEMS 
FOR 
UNFINISHED 
PROJECTS, 
PROGRAMS AND ACTIVITIES, LUMP SUMS, AND ESSENTIAL 
OPERATING EXPENSES SHALL BE DEEMED REENACTED 
AND DISBURSEMENT OF FUNDS SHALL BE IN ACCORDANCE 
THEREWITH. A RE-ENACTED BUDGET, THEREFORE IS NOT A 
LUMP-SUM AMOUNT OF THE ENTIRE BUDGET OF THE 
PREVI.OUS YEAR WHOSE EXPENDITURE AND ALLOCATl.ON IS 
THE PROVINCE OF THE EXECUTIVE. 
"PROVIDED FURTHER, THAT UNDER A SITUATION OF A 
REENACTED 
BUDGET, 
NO 
BILL 
AUTHORIZING 
SUPPLEMENTAL 
APPROPRIATIONS 
SHALL 
BE 
PASSED 
BEFORE THE ANNUAL APPROPRIATIONS BlLL IS PASSED. 
"PROVIDED FINALLY, THAT THE PRESIDENT SHALL 
SUBMIT A REPORT TO CONGRESS OF EXPENDITURES 
INCURRED AND RECEIPTS EARNED DURING THE PERIOD IN 
WHICH A RE-ENACTED BUDGET WAS IN EFFECT. THIS 
REPORT SHALL BE SUBMITTED WITHIN THIRTY (30) DAYS 
AFTER PASSAGE OF THE GENERAL APPROPRIATIONS ACT 
FOR THE FISCAL YEAR." 
SEC. 12. Sections 29, 30 and 31 of Chapter 4, Book VI. of EQ 292 are 
hereby renumbered as follows: 
"SEC. [29130. Loan Proceeds. - XXX 
"SEC.[30] 31. Contingent Liabilltes- .X X X 
"SEC. [31] 32. Liability for Unauthorized Printing Press 
Revisions. - XXX" 
SEC. 13. Section 32, Chapter 4, Book VI of EO 292, is hereby amended to 
read as follows: 
"SEC. [32J 33. Use of .Appropriated Funds .. - All moneys 
appropriated for functions, activities, projects and programs shall be 
available solely for the specific purposes for which these are 
appropriated 
UNLESS 
THESE 
ARE 
SAVINGS 
IN 
APPROPRIATIONS 
USED 
TO 
COVER 
DEFICITS 
OR 
UNEXPENDED BALANCES OF APPROPRIATIONS REVERTED 
TO THE UNAPPROPRIATED SURPLUS OF THE GENERAL 
FUND 
AND 
LEGISLATED 
TO 
BE 
USED 
FOR 
OTHER 
PURPOSES." 
SEC. 14. Section 33, Chapter 4, Book VI of EO 292, is hereby amended to 
read as follows: 


"SEC. [33} 34. Allotment of Appropriations. - Authorized 
appropriations shall be allotted in accordance with the procedure 
outlined hereunder: 
Xxx 
"(6) PURSUANT TO SECTION 39 OF THIS BOOK, the 
Secretary shall have NO authority to modify or amend any 
allotment previously issued. In case he shall find at any time that 
the probable receipts from taxes or other sources of any fund will 
be less than anticipated and that as a consequence the amount 
available for the remainder of the term of the appropriations or for 
any allotment period will be less than the amount [estimated or 
allotted thereof] APPROPRIATED OR ALLOTTED, he shall [with 
the approval of the President and after notice to the department or 
agency concerned, reduce the amount or amounts allotted so as] 
RECOMMEND TO THE PRESIDENT THE REDUCTION OF THE 
AMOUNT 
OR 
AMOUNTS 
ALLOTTED THAT 
HE 
DEEMS 
NECESSARY to conform to the targeted budgetary goals. THE 
PRESIDENT, IN TURN, SHALL SEEK THE AUTHORIZATION OF 
CONGRESS 
TO 
SUSPEND 
THE 
EXPENDITURE 
OF 
APPROPRIATIONS." 
"(7) The Secretary shall maintain a control record showing 
quarterly by funds, accounts, and other suitable classifications, the 
amounts appropriated; THE ALLOTMENTS RELEASED AND 
AVAILABLE FOR EXPENDITURE, the AMOUNT OF SAVINGS IN 
APPROPRIATIONS GENERATED AND THE AMOUNT USED TO 
COVER DEFICITS AND THE AMOUNT REVERTED 0 TO THE 
GENERAL FUND, the estimated [revenues] AND the actual 
revenues or receipts, [the amounts allotted and available for 
expenditures] the unliquidated obligations, actual balances on 
hand, and the unencumbered balance of tbe aUotrnents for each 
department or agency of the Government. 
"THE SECRETARY SHAll SUBMIT THESE RECORDS TO 
THE HOUSE COMMITTEE ON APPROPRIATIONS AND THE 
SENATE COMMITTEE. THE ON FINANCE QUARTERLY, AND 
SHALL MAKE THESE RECORDS AVAILABLE TO THE PUBLIC 
EXCEPT AS MAY BE OTHERWISE APPROVED BY THE 
PRESIDENT FOR FUNDS AND ACCOUNTS CONCERNED WITH 
NATIONAL SECURITY MATTERS." 
SEC. 15. Section 35, Chapter 4, Book VI of EO 292, is hereby amended to 
read as follows: 
"SEC. 
E35) 
36. 
Special Budgets 
for Lump-Sum 
Appropriations. -
Expenditures from lump-sum appropriations 
authorized for any purpose or for any department, office or agency 
in any annual General Appropriations Act or other Act and from any 
fund of the National Government, shall be made in accordance with 
a special budget to be approved by the President, which shall 
include but shall not be limited to the number of each kind of 
position, the designations, and the annual salary proposed for 
which an appropriation is intended. This provision shall be 
applicable to all revolving funds, receipts which are automatically 
made available for expenditure for certain specific purposes, aids 


and donations for carrying out certain activities, or deposits made to 
cover the cost of special services to be rendered to private parties. 
Unless otherwise expressly provided by law, when any Board, head 
of department, chief of bureau or office, or any other official, is 
authorized to appropriate, aliot, distribute or spend any lump-sum 
appropriation or special, bond, trust, and other funds, such authority 
shall be subject to the provisions of this section. 
"In case of any lump-sum appropriation for salaries and 
wages of temporary and emergency laborers and employees, 
including . contractual personnel, 
provided 
in 
any 
General 
Appropriation Act or other Acts, the expenditure of such 
appropriation shall be limited to the employment of persons paid by 
the month, by the day, or by the hour. 
"THE BUDGET AND THE GENERAL APPROPRIATIONS 
ACT MAY ALSO PROVIDE LUMPS SUMS IN ORDER TO 
SUPPORT BILLS FOR LATER ACTION BY THE CONGRESS: 
PROVIDED, 
THAT 
THE 
TREASURY 
CERTIFICATION 
REQUIREMENT SHALL BE DEEMED COMPLIED WITH IN CASE 
OF BILLS WHICH ARE FUNDED FROM LUMP SUMS IN THE 
GENERAL APPROPRIATIONS ACT APPROVED 
BY THE 
CONGRESS FOR PURPOSES OF SUPPORTING PROGRAMS, 
PROJECTS, OR ACTIVITIES WHICH REQUIRE SPECIFIC 
LEGfSLATIVE AUTHORIZATION AND IN THE CASE OF BILLS 
WHOSE EXPENDITURES ESTIMATES ARE INCLUDED IN THE 
BUDGET SUBMISSION OF THE PRESIDENT PURSUANT TO 
SECTION 12 OF THIS BOOK. 
"WITHIN THIRTY (30) DAYS AFTER THE PASSAGE OF 
THE GENERAL APPROPRIATIONS ACT FOR THE FISCAL 
YEAR, THE SECRETARY OF BUDGET AND MANAGEMENT 
SHALL PROVLDE THE CONGRESS WLTH THE LMPLEMENTING 
RULES 
FOR THE DISBURSEMENT OF ALL LUMP-SUM 
APPROPRIATIONS 
AS 
WELL 
AS 
A 
LIST 
OF 
ALL 
EXPENDITURES TO BE UNDERTAKEN USING THESE LUMP-
SUM APPROPRIATIONS, PROVIDED, THAT THE CONGRESS, 
BY WAY OF A JOINT RESOLUTION, MAY SUSPEND FROM 
EXPENDITURE ANY OR All LUMP-SUM APPROPRIATIONS. 
"UNEXPENDED 
AMOUNTS 
OF 
LUMP 
SUM 
APPROPRIATIONS UNDER THIS SECTION SHALL UNDER NO 
CIRCUMSTANCES BE CONSIDERED AND USED AS SAVINGS 
BUT SHALL AUTOMATICALLY REVERT 
BACK TO THE 
UNAPPROPRIATED SURPLUS OF THE GENERAL FUND AT 
THE END OF THE FISCAL YEAR PURSUANT TO SECTION 28 
OF THIS BOOK. ANY ACT TO THE CONTRARY SHALL BE 
CONSIDERED 
MISUSE 
OF 
GOVERNMENT 
FUNDS AND 
ILLEGAL EXPENDITURES AS PROVIDED IN SECTIONS 80 AND 
44 OF THIS BOOK." 
SEC. 16. Section 37, Chapter 4, Book VI of EO 292, is hereby amended to 
read as follows: 
"SEC. [37} 38. Creation of Appropriation Reserves. -IThe 
Secretary may] THE PRESIDENT, SUBJECT TO THE REVIEW 


AND APPROVAL OF CONGRESS, MAY BE AUTHORIZED TO 
establish 
reserves 
against 
appropriations, 
EXCEPT 
FOR 
PERSONAL 
SERVICES 
APPROPRIATIONS 
USED 
FOR 
PERMANENT OFFICIALS AND EMPLOYEES, to provide for 
contingencies and emergencies which may arise later in the 
calendar year [and which would otherwise require deficiency 
appropriationsl. CONGRESS SHALL TRANSMIT ITS APPROVAL 
OR DENIAL TO THE PRESIDENT THIRTY (30) DAYS AFTER ITS 
RECEIPT OF THE PRESIDENT'S REQUEST FOR AUTHORITY. 
"INACTION ON THE PART OF CONGRESS WITHIN SAID 
THIRTY (3~} DAY PERIOD SHALL MEAN AN APPROVAL OF 
THE REQUEST FOR AUTHORITY TO DEFER EXPENDITURE OF 
APPROPRIATIONS AND THE CREATION OF RESERVES. 
RESERVA TLON OF APPROPRIA TLONS MUST NOT EXTEND 
BEYOND THE END OF THE FISCAL YEAR. 
"[The establishment of appropriation reserves shall not 
necessarily mean that such portion of the appropriation will not be 
made available for expenditure. Should conditions change during 
the fiscal year justifying the use of the reserve, necessary 
adjustments may be made by the Secretary when requested by the 
department, official or agency concemed.]" 
SEC. 17. Section 38, Chapter 4, Book VI of EO 292, is hereby amended to 
read as follows: 
"SEC. 
[38] 
39. 
Suspension 
of Expenditure 
of 
Appropriations. - THE IMPLEMENTATION OF THE GENERAL 
APPROPRIATIONS ACT IS MANDATORY, AND FAILURE TO 
RELEASE ALLOTMENTS FOR APPROPRIATED ITEMS AS 
PROVIDED FOR IN SAID ACT SHALL CONSTITUTE MISUSE OF 
GOVERNMENT FUNDS AND ILLEGAL EXPENDITURES AS 
PROVIDED IN SECTIONS 80 AND 44 OF THIS BOOK. 
"FUND 
RELEASES 
FOR 
APPROPRIATIONS 
AUTHORIZED IN THE GENERAL APPROPRIATIONS ACT 
SHALL BE TRANSMITTED IN ACCORDANCE WITH THE 
QUARTERLY ALLOTMENT PERIOD OR ANY OTHER PERIOD 
PRESCRIBED BY THE 
SECRETARY OF 
BUDGET AND 
MANAGEMENT. THE COMMISSION ON AUDIT SHALL ENSURE 
COMPLIANCE WITH THIS PROVISION TO THE EXTENT THAT 
SUBALLOTMENTS BY DEPARTMENTS AND/OR CENTRAL 
AGENCIES TO THEIR SUBORDINATE OFFICES ARE 
IN 
CONFORMITY WITH ALLOCATIONS IN BUDGETARY ADVICE 
OF ALLOTMENTS OR TREASURY WARRANTS ISSUED BY THE 
DEPARTMENT OF BUDGET AND MANAGEMENT. 
"HOWEVER, except as otherwise provided in the General 
Appropriations Act [and whenever in his judgment the public 
interest so requires], the President [upon notice to the head of 
office concerned, is authorizedl, SUBJECT TO THE REVIEW AND 
APPROVAL OF CONGRESS, MAY BE AUTHORIZED to suspend 
or otherwise stop further expenditure of funds allotted for any 
agency, or any other expenditure authorized in the General 
Appropriations Act, except for personal services appropriations 


, . 
used for permanent officials and employees. CONGRESS SHAll 
TRANSMIT ITS APPROVAL OR DENIAL TO THE PRESIDENT 
THIRTY (30) DAYS AFTER ITS RECEIPT OF THE PRESIDENT'S 
REQUEST FOR AUTHORITY. INACTION ON THE PART OF 
CONGRESS WITHIN SAID THIRTY (30) DAY PERIOD SHAll 
MEAN A DENIAL OF THE REQUEST FOR AUTHORITY TO 
SUSPEND EXPENDITURE OF APPROPRIATIONS. ALL FUNDS 
CORRESPONDING TO THE RESCINDED APPROPRIATIONS 
SHALL REVERT TO THE UNAPPROPRIATED SURPLUS OF THE 
GENERAL FUND AND SHALL NOT BE MADE AVAILABLE FOR 
EXPENDITURE FOR ANY PURPOSE EXCEPT AS MAY BE 
PROVlDED FOR IN SUBSEQUENT SPEClAL APPROPRlATION 
LAWS ENACTED BY CONGRESS. 
"ANY 
PROVISION 
OF 
LAW TO THE 
CONTRARY 
NOTWITHSTANDING, THE APPROPRIATIONS AUTHORIZED 
FOR THE JUDICIARY, CONGRESS, THE COMMISSION ON 
HUMAN RIGHTS, THE OFFICE OF THE OMBUDSMAN, THE 
CIVIL SERVICE COMMISSION, THE COMMISSION ON AUDIT 
AND THE COMMISSION ON ELECTIONS IN THE ANNUAL 
APPROPRIATIONS ACT SHALL BE AUTOMATICAllY AND 
REGULARLY RELEASED IN ACCORDANCE WITH THEIR 
RESPECTIVE WORK AND FINANCIAL PLANS." 
SEC. 18. Section 39, Chapter 4, Book VL of EO 292, is hereby amended to 
read as follows: 
"SEC. 
[39] 
40. 
Authority 
to 
Us& 
Savings 
in 
Appropriations to Cover Deficits. - Except as otherwise provided 
in the General Appropriations Act, any savings in the regular 
appropriations authorized in the General Appropriations Act for 
programs and projects of any department, office or agency [may] 
SHAll BE REVERTED TO THE UNAPPROPRIATED SURPLUS 
OF THE GENERAL FUND OR, with the approval of the President, 
MAY be used to cover a deficit in any other item of the regular 
appropriations: provided, that the creation of new positions or 
increase of salaries shall not be allowed to be funded from 
budgetary savings except when specifically authorized by law: 
provided, further, 
that whenever 
authorized 
positions are 
transferred from one program or project to another within the same 
department, 
office or agency, 
the corresponding 
amounts 
appropriated for personal services are also- deemed transferred, 
without, however increasing the total outlay for personal services of 
the department, office or agency concerned. 
"UNDER NO CIRCUMSTANCES SHAll SAVINGS BE 
USED FOR PROGRAMS, PROJECTS AND ACTIVITIES, OR ANY 
OTHER 
PURPOSE 
NOT APPROPRIATED 
FOR 
IN 
THE 
GENERAL APPROPRIATIONS ACT PURSUANT TO ARTICLE VI, 
SECTION 29 (1) OF THE 1987 CONSTITUTION. ANY ACT TO 
THE 
CONTRARY 
SHALL 
CONSTITUTE 
MISUSE 
OF 
GOVERNMENT FUNDS AND ILLEGAL EXPENDITURES AS 
PROVIDED IN SECTIONS 80 AND 44 OF THLS BOOK IN 
ADDITION, ANY USE OF SAVINGS ON EXPENDITURES 
SUBJECT TO LIMITATIONS PROVIDED IN THE GENERAL 
APPROPRIATIONS ACT SHALL BE REVIEWED AND MAY BE 


• 
" 
DISALLOWED 
BY 
CONGRESS 
FOR 
BEING 
MADE 
IN 
VIOLATION OF SAID LIMITATIONS." 
SEC. 19. Section 49 of Chapter 5, Book VI of EO 292 is hereby deleted. 
SEC. 20. Sections 34, 36, 40, 41, 42, 43, 44, 45, 46, 47, and 48 of 
Chapter, 5 Book VI of EO 292 are hereby renumbered as follows: 
"SEC. [34) 35. Program of Expenditure. - XXX 
"SEC. [36) 37. Cash BudgetS. - XXX 
"SEC. [40)41. Certification of Availability of Funds. - XXX 
"SEC. [41) 42. Prohibition Against the Incurrence of 
Overdraft. - XXX 
"SEC. [42)43. Adjustment of Appropriations for 
Reorganization. - XXX 
"SEC. [43)44. Liability for Illegal Expenditures. - XXX 
"SEC. [44)45. Accrual of Income to Unappropriated Surplus 
of the General Fund. - XXX 
"SEC. [45)46. Special, Fiduciary and Trust Funds. - XXX 
"SEC. [46)47. Service Fees and Honoraria. - XXX 
"SEC. (47)48. Administration of Lump Sum Funds. -XXX 
"SEC. [48)49. Cost Reduction. - XXX 
SEC. 21. Separabiliy Clause. - If any part, section or provision of this Act 
is held invalid or unconstitutional, other provisions not affected thereby shall 
remain in full force and effect: 
SEC. 22. Repealing Clause. - Presidential Decree No. 1 t 77 is hereby 
expressly repealed. The pertinent provisions of Book VI of Executive Order No. 
292 or the Revised Administrative Code of 1987 are hereby repealed or 
amended accordingly. All laws, decrees, orders, rules and regulations or other 
issuances inconsistent with the provisions of this Act are hereby repealed, 
amended or modified accordingly. 
SEC. 23. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved,