Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

‘ 402

H.B.No.__

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

Section 26, Chapter 4, Book VI of Executive Order numbered 292, otherwise known as
the “Administrative Code of 1987” provides for automatic appropriation for debt service by re-
enacting in fofo Section 32 of PD 1177. This provision hinders Congressional efforts to more
rationally and meaningfully allocate government resources for the benefit of our people. It
perpetuates the anomaly of a Congress not being able to exercise to the full its power over the
national purse.

Current political realities militate against the repeal of said provision in EO 292. Perhaps,
the executive branch would be reluctant to give up its power under automatic appropriations for
debt payments since such power carries with it a certain flexibility to the advantage of foreign
exchange taxes as well as the ability to chart an economic future with predictability.

Nonetheless, in accordance with the Constitutional right of the public and its
representatives in Congress to information as matters of public concern, there is a need for
Congress to be periodically updated on the status of public debts as it will be the public funds
which will be spent to pay these debts.

This bill would require the National Treasurer to submit a specific quarterly report to
Congress on the level of public debt and measures to increase or decrease public debt.

The prompt approval of this proposed measure is earnestly sought.

‘JUAN epénioo “SONNY” M. ANGARA
Represéntative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

402

H.B.No.___

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
AMENDING SECTION 26, CHAPTER 4, BOOK VI OF EXECUTIVE ORDER
NUMBERED 292, OTHERWISE KNOWN AS “THE ADMINISTRATIVE CODE OF
1987”

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

SECTION 1. Section 26, Chapter 4, Book VI of Executive order numbered 292,
otherwise known as the “Administrative Code of 1987”, 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
SOCIAL SECURITY expenditures; (2) principal and interest on public debt; (3)
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 fifteen (15) days
after the end of every quarter of the year, the national Treasurer shall submit a
detailed report to Congress, through the Speaker, the Committee on
Appropriations, the Committee on Ways and Means and the Committee on
Economic Affairs, which shall set forth the stakes of national government debts.
Such report shall itemize the debts, whether contingent or due or demandable,
and shall include debts of government-owned and controlled corporations
(GOCCs) which are guaranteed by the national government. Such report shall
also state measures taken to increase or decrease the public debt.

SEC. 2. This Act shall take effect upon its approval.

Approved,