SIXTEENTH CONGRESS OF THE REPUBLIC ) 
~rll'ntl.> 
iOff.;, "f lit. Jhmtory " 
OF THE PHIILIPPINES 
) 
First Regular Session 
) 
'13 
JUl -8 P2 :55 
SENATE 
62
~ 
s. B. No. --",-=-U=-
Introduced by Senator 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 fiscal 
responsibility bill intends to accomplish. 
The bill introduces a series of reforms with far 
reaching implications intended to enhance the public sector reforms in our country. 
. The bill prescribes principles of responsible fiscal management that will direct the 
country's macroeconomic policy settings. A legislated set of principles promotes a secure and 
sound political environment ripe for sustainable long-term growth. POli'cy guidelines on a 
balanced budget, reduction in financing costs, controlled borrowings, priQritization 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 between the executive and 
legislative branches of the government. Aside from the debt cap, the bill also introduces a deficit 
neutral measure designed tQ liddress the proliferation of unfunded laws. The concept is straight 
forward: no expenditure measure shall be passed and take effect without a new revenue 
generation or expenditure, r'f'duction measure. This bill shall foster an atmosphere of mutual 
respect, coordination andcoeperation 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 2016. 
The intervening years are meant to give government the time to gradually adjust to the said limit. 
A PS Cap, to be later determined by the Governance Commission on GOCCs (GCG) shall 
likewise be imposed on the GOCCs. To set the parameters, the bill incorporates a set of policy 
guidelines in the determination of a viable benchmark, taking into consideration the inherent 
peculiarity in the nature and operations of each GOCC. 
Finally, the proposed ,bill 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 effectiye,ness of the government's fiscal policies by making known to the 


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public its goals, targets, and accomplishments. Likewise, transparency enhances good 
governance through greater accountability of public institutions directly inyolved in setting up 
the country's fiscal and monetary policies, 
The bill also ratio~alizes 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 problems experienced by our cou*try, it is but 
imperative that this bill be approved without delay. 
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SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL -8 P Z :55 
SENATE 
RECElVl£f) BY: f 
v' 
S.B.No. 626 
Introduced by Senator Ralph G. Recto " 
AN ACT 
INSTILLING FISCAL DISCIPLINE IN THE PUBLIC SECTOR BY ESTABLISHING 
PRINCIPLES OF RESPONSIBLE 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: 
TITLE I 
Preliminary Provisions 
Section 1. Title,. 
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- This Act shall be known as the "Fiscal Responsibility Adt." 
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Sec. 2. Derlarationof Policy - It is hereby declared a policy of the State t<l> 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 budget 
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deficit level has been achieved, maintain this level by ensuring that, on average, total 
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operating expenses of the government do not exceed its total operating revenues. 
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b. In order to decrease dependence on borrowed funds and minimize financing costs, 
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reduce consolidateq public sector debt and national government debt to sustainable 
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levels through prudent debt management and the adoption of a comprehensive fiscal 
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plan. 
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c. Borrow from 'domestic resources in order to limit the vulnerability of the 
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government's fisc~l position to foreign exchange fluctuations, but without unduly 
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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 
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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 experiditures ofthe public sector. 
f. To protect any fiscal gain that may be achieved and prevent backsliding, the 
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government shaH 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-Transfer 
or 
BOT 
refers 
to 
build-operate-and-transfer 
arrangements or any of its variants as defined and enumerated under Section 2 of 
Republic Act No. 6957, as amended by Republic Act No. 7718. 
c. Budget refers to an estimated schedule of expenditures, based on either obligations or 
cash concepts aiid sources of financing, either from revenues, borrowings or cash 
balance drawdowns. 
d. 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 b~anch to the legislature for spending authority. 
e. Consolidated Non-Financial Public Sector Debt refers to the total ~ndebtedness, 
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. 
f. 
Consolidated Public Sector Deficit refers to the combined deficit of the national 
government, local' governments, monitored non-financial government owned and 
controlled corp6rations. and financial institutions, social security institutions, as well 
as the cost of restructuring the defunct Central Bank, and the financial position of the 
present Bangko S'entral ng Pilipinas. 
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g. Constitutional· Offices refer to the Civil Service the Commission, Commission on 
Audit, the Commission on Elections, the Commission on Human Rights and the 
Office ofthe Ombudsman. 
h. Contingent Liabilities refer to either of the following: 
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possible obligations that arise from past aocc and BOT operations whose 
existenoe will only be oonfirmed upon the occurrence or non-occurrence of 
one or ciore uncertain future events not wholly within the control of the 
enterprise; or 
ii. present ~bligations that arise from past events but are notreoognized 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 
proj~cts of actuarial deficiencies of the government social securitr institutions. 
i. 
Credit Operations refer to the act of contracting funds from financi~l institutions 
whose principal plus interest and other financial charges shall be paid at a later agreed 
upon date. 
j. 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. 
k. Debt Service refers to the sum of loan repayments, interest payments,' commitment 
fees and other chtlrges on foreign and domestic borrowings. 
1. 
Deficit refers to. the shortfall or deficiency of revenues over expenditures of the 
government classified into: 
i. 
Budgetary.deficit, which is the deficiency of total revenues over expenditures 
excluding debt repayments and payments of non-budgetary accounts. 
ii. Financial deficit, which is the deficiency of total receipts over the sum of 
current and capital expenditures. 
m. Development Budget and Coordinating Committee or DBCC refers to the committee 
created under Executive Order No. 232, s. 1970, as amended. 
n. Discretionary Fund refers to lump-sum appropriations for general purposes whose 
specific allocation shall be determined by an authorized public official or entity. 
o. 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, slaughter 
houses, cemeteries; sports, cultural and recreation centers, parking lots, ice plants, 
hospitals, and s~eeial and tertiary schools. 
p. Executive Depattinent or branch refers to all national government agencies, including 
state universities and colleges and other instrnmentalities, whether or not receiving 
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funding support through the General Appropriations Act, falling under the control and 
supervision of the President of the Philippines. 
q. 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 position ofthe government. 
r. 
Government Financial Institutions or GFIs 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. 
s. 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 least a majority of its 
outstanding capital stock or of its outstanding voting capital stock. 
t. 
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 and/or other government-owned 
subsidiaries. 
u. Gross DomestiC 'Product or GDP refers to the value of all goods and services 
produced domestically; the sum of the gross value added of all :resident institutional 
units engaged iniproduction, plus any taxes and minus any subsidies, on products not 
included in the values of their outputs. 
v. Guarantee refers to an arrangement whereby the government promises to pay the debt 
of another e~tityif certain conditions are met, such as the liability of the fntity to pay. 
w. Joint Resolution, refers to a formal declaration or expression from both t~e 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. 
x. 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. 
y. Internal Revenue Allotment or IRA refers to the share of local govel'l)Illents in the 
national internal revenue taxes as prescribed under Sections 284 and 285 of Republic 
Act No. 7160, or the Local Government Code. 
z. Legislative Department or branch refers to the Senate and House of Representatives. 
aa. Medium Term Fiscal Accord or MTFA shall have the meaning provided under 
Section 5. 
bb. National Government refers to the executive, legislative and judiciary branches of the 
government, including the constitutional offices. 
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cc. 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. 
dd. 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. 
ee. Net current revenue refers to the sum of all tax and non-tax collections less the 
following: . 
i. 
Proceeds from privatization and recovery of ill-gotten wealth; 
ii. Internal Revenue Allotment; 
iii. Interest payments on national government debt; and 
iv. Net lendin:gto government corporations. 
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ff. 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. 
gg. Personnel Expenditures shall have the meaning provided under Section 26. 
hh. 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. 
ii. 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 provided 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. 
jj. 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. 
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kk. Voluntary Transfer refers to the transfer of current or capital resources to other 
branches, agencies, offices, local governments, and other instrumentalities in the 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 
the executive and legislative branches of government on the fiscal targets sought to be 
accomplished over a period of three (3) years. It shall contain the agreed upon fiscal indicators 
and their underlying assumptions, including the following: 
a. deficit targets, quantified as a percentage of GDP; 
b. revenue and tax' targets, quantified as a percentage of GDP ; 
c. expenditure targets, measured as a percentage of GDP; 
d. financing strategy to be adopted; 
e. new revenue measures to be enacted in order to correct an identified weakness in the 
tax structure or to promote an economic or social objective; 
f. 
new expenditure measures to be implemented; and 
g. additional measures to accomplish fiscal targets and sustain reforms. 
Sec. 6. Term - Each MTFA shall be valid for a period of three (3) years starting from the 
second to the third year of a congressional term and the first year of the succeeding congressional 
term. 
Sec. 7. Preparation - At the start of every congressional term, the President, through the 
Development Budget Cootdibating Committee (DBCC), shall prepare the proposed MTFA and 
submit it to Congress, through 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, within 
thirty (30) days from the opening ofthe regular session. 
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Within one hundred and eighty (180) days from its submission, tie Executive 
Department and Congress shall agree on the terms and content of the MTFA through a Joint 
Resolution to be signed by the Senate President, the Speaker of the House of Representatives, 
and the President of the Philippines, which shall have the force and effect of a law. 
If no MTF A shall have been agreed upon within the prescribed period, then the MTF A 
for the preceding congressional term shall be deemed reenacted and shall remain in force and 
effect until the MTF A is passed. 
Chapter II 
Annual Budget Strategy 
Sec. 8. Definition ~ The Annual Budget Strategy is an agreement between the executive 
and legislative branches of government on the macro-economic policies and fiscal targets sought 
to be achieved as well as financial strategies to be implemented during one fiscal year. It shall 
be consistent with the MTFA and include, among others, revenue forecasts calculated in 
accordance with Section 18.' 
Sec. 9. Preparation - Together with the submission of the Budget of Expenditures and 
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 
ensuing fiscal year. 
Within one hundred and twenty (120) days from its submission or upon the enactment of 
the General Appropriations Act (GAA), whichever comes earlier, the Executive Department and 
Congress shall agree on the Annual Budget Strategy to be implemented for the succeeding fiscal 
year through a Joint Resoluti~n to be signed by the Senate President, the Speaker of.be House of 
Representatives, and the President of the Philippines, which shall have the force arid effect of a 
law. 
In the event that Congress passes the GAA without approving the Annual Budget 
Strategy, the Annual Budget Strategy submitted by the President shall likewise be deemed 
approved. If Congress fail's to pass the GAA for the ensuing fiscal year and the GAA for the 
preceding fiscal year shall be deemed reenacted under Section 25 (7), Article VI of the 
Constitution, then the Annual Budget Strategy approved in the preceding year shall likewise be 
deemed reenacted, unless Congress and the Executive Department deem it fit to pass an Annual 
Budget Strategy in order to provide gnidelines for the implementation ofthe reenacted budget. 
Sec. 10. General Appropriations Act - The GAA must be consistent with the MTFA and 
based on the Annual Budget Strategy 
The GAA shall likewise be accompanied by a regionalized allocation of expenditures 
including those for the autoriomous regions that may be derived from budgets of regular agencies 
with nationwide projects. 
TITLE III 
Debt Cap 
Sec. 11. Coverage --'- The provisions under this Title shall apply to all public sector 
entities, including national and local governments, as well as GOCCs, but excluding Government 
Financial Institutions, since their indebtedness form part of the consolidated non-financial public 
sector debt. 
Sec. 12. Debt Cap" To ensure overall macroeconomic stability and long-term sustainable 
growth, the following debt targets are hereby established. 
By the end of 20'i-6, the national government shall endeavor to gradually reduce 
consolidated non-financial 'public sector debt to below 60% of GDP. The government shall 
likewise endeavor to reduce n'ational government debt to 40% of GDP. 
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After 2016, or 'when the debt targets have been achieved, whichever ocdurs later, the 
national government shall maintain the same at a sustainable level taking intd 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 
MTFA and Annual Budget Strategy, respectively, and shall be intended to facilitate the steady 
reduction of debt over a six-year period. 
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In the event that the national government anticipates a fall in the nominal GDP, or upon 
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the occurrence of other events, which are due to extraneous factors beyond its control, the 
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President is hereby authorized, upon the recommendation of the DBCC, and subject to 
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consultation with the Congress of tlie Philippines to make the necessary adjustments on the 
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applicable debt target. 
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Sec. 13. Debt Restructuring - Should the consolidated non-financial public sector and 
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national government debt exceed their respective annual limits, the DBCC must identify the 
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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 
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will be met within one year from the end of the twelve-month period. 
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Sec. 14. Sanctions - As long as the debt targets have not been achieved, the public 
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sector entity or entities identified by the DBCC to have contributed the most to such violation 
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shall: 
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a. be prohibited from contracting internal or external borrowing operations, including 
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revenue anticipations, except for the refinancing or amortization of the debt; and 
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b. 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. receiving voluntary transfers; and 
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b. qualifYing as a beheficiary of a foreign-assisted project. 
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Sec. 16. Excusaljle 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 b~rrowing operations of the national government. It shall likewise 
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monitor and evaluate compliance by any public sector entity concerned with the specified targets 
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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 
National Government 
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Chapter 1 
4 
Compliance with Fiscal Targets 
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Sec. 18. Annual Revenue Forecast - The revenue forecast, as embodied in the Annual 
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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 
9 
two years, and the calculation methodology and premises adopted. 
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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 
18 
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 DaCC; 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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Deficit-Neutral Measures 
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Sec. 21. Fiscallncimtives - 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 thhir respective 
29 
collection costs. It must alsO' be consistent with the provisions of the Annual Budget Strategy. 
30 
Prior to the deliberation of any such measure, the legislative or executive branch, as the 
31 
case may be, must ensure that the proposed measure is accompanied by a report prepared by the 
32 
Department of Finance (DOP) assessing its budgetary and financial impact for the next three (3) 
33 
years. 
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Sec. 22. Conditidns Precedent - The effectivity of an executive or legislative measure 
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granting or broadening tax incentives or 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 requirements 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 
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generation progi'iuns, such as tax rate raises, expansion of tax base, or increase in, or 
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creation of, taxei{orcontributions. 
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Sec. 23. Expenditure Bills - Except for debt service and cost of living adjustments for 
7 
government employees, all increases in national government expenditures especially those 
8 
mandating the creation or recurrent expenditures must be offset by a pennanent increase in 
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revenue or pennanent reduction in other expenditures. 
10 
Hence, for all bills proposing an increase in public expenditures, the Department of 
11 
Budget and Management (DBM) is required to submit to Congress a position paper providing 
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among other infonnation the estimates of the budgetary and financial impact for the next three 
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(3) years. 
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Sec. 24. Unfunded Laws - All laws with budgetary implications that are p()ssed without 
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identified supporting revenue'measures nor identified expenditure reduction shall be considered 
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hannful to public finances and may remain unfunded. 
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The effectivity of exis~ing legal provisions whose mandates remain unfunded, whether 
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partially or in full, shall be suspended until the requirements of first paragraph of Sections 23 
19 
shall have been complied with. For this purpose, the Committee on Oversight of the House of 
20 
Representatives together with its counterpart 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 
23 
Personnel Expenditures 
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Sec. 25. Definition' - For the purpose of this Chapter, total personnel expenditure is 
25 
defined as the sum of expenditures incurred for wages and salaries, fixed and variable benefits or 
26 
allowances, subsidies, pensions, including any additional payments, bonuses, overtime and 
27 
fringe benefits of any kind, as well as social security charges and contributions withheld by and 
28 
on behalf of the social security agencies for pennanent, temporary, casual, contractual employees 
29 
and retirees, including elective officials. 
30 
It shall likewise include personnel expenditures incurred as a result of final and executory 
31 
judicial decisions. 
32 
Sec. 26. 
Personnel Cap - Consistent with the principles of responsible fiscal 
33 
management, total personneYexpenditures of the national government shall not exceed forty-five 
34 
percent (45%) of net current revenues starting 2016. 
35 
By the end of 2016, the national government shall continually maintain and manage its 
36 
total personnel expenditure at an optimum level, which shall in no case exceed forty-five percent 
37 
(45%) of its net current revenues. For this purpose, the Annual Budget Strategy shall specify the 
38 
optimum level of total personnel expenditures for the succeeding years. 
I 
rage 10 of20 


1 
Sec. 27. Personnel Cap Distribution - The overall1imits for the national government 
2 
set in the preceding section shall be shared as follows: 
3 
a. 
Executive - ninety-four percent (94%); 
4 
b. 
Legislative - one percent (1 %); 
5 
c. 
Judiciary - three percent (3%); and 
6 
d. 
Constitutional Offices - two percent (2%). 
7 
The foregoing limits, pegged as a percentage of the overall limit, shall be further broken 
8 
down among the different courts, bureaus, offices, and other agencies under each branch or 
9 
constitutional office in proportion to their average personnel expenditure, expressed as a 
10 
percentage of net current expenditure, incurred in the three fiscal years preceding the effectivity 
11 
ofthis Act. 
12 
Sec. 28. 
Determination of Compliance - Total personnel expenditures must be 
13 
determined on an annual basis, by adding expenditures incurred in the base month with those 
14 
incurred in the preceding eleven months. 
15 
Compliance with the limits established in the preceding sections shall be evaluated at the 
16 
end of each four-month period. 
17 
Sec. 29. Sanctions - If total personnel expenditures exceed ten percent (10%) of the 
18 
prescribed limit, the branch. or constitutional office which exceeded the limit, as well as the 
19 
courts, agencies, or offices under said violating branch or constitutional office, shall be 
20 
prohibited from: 
21 
a. granting any increase, adjustment or correction of remuneration for any reason, other 
22 
than those arising from law or any final and executory judicial decision; 
23 
b. creating a position, job, or function; 
24 
c. increasing tJ;te number of personnel in its plantilla; 
25 
d. implementing any career path changes if this implies an increase lin personnel 
26 
expenditures; 
27 
e. offering public employment positions, admitting or hiring personnel for any reason, 
28 
except when the replacement results from retirement or death of public servants in the 
29 
education, health, and security areas; and 
30 
f. 
contracting overtime work, unless overtime is compensated through time/days off 
31 
work in lieu of overtime pay in accordance with guidelines jointly issued by the DBM 
32 
and the Civil ServiCe Commission. 
33 
In addition, the following measures may be adopted: 
34 
a. abolition of positions and functions; and 
35 
b. temporary reduction in working hours, if wages may be adapted to the new work 
36 
schedule. 
37 
Sec. 30. Remedy Period - Without prejudice to the measures in the preceding section, if 
38 
total personnel expenditures exceed the limits set in Sections 27 and 28, the excess percentage 
Page 11 of20 


I 
must be eliminated in the two subsequent four-month periods, with at least one-third of such 
2 
excess being eliminated in the first four-month period. 
3 
Sec. 31. Additional Sanctions - If the reduction is not completed within the remedy 
4 
period, and until such time as the excess continues, the branch or constitutional office which 
5 
exceeded the limit, as well as the courts, agencies or offices under said violating branch or 
6 
constitutional office, shallbe prohibited from: 
7 
a. receiving voluntary transfers; and 
8 
b. qualifying as a beneficiary of a foreign-assisted project, except those aimed at 
9 
reducing personnel expenditures. 
10 
Chapter 4 
11 
Treatment of Savings 
12 
Sec. 32. Reversion of Savings. As a general rule, savings from appropriations of the 
13 
departments/agencies shall be reverted to the unappropriated surplus at the end of the fiscal year 
14 
in order to restrict expendihires and to maintain or attain the desired level of budget deficit. 
15 
Sec. 33. Authority to Use Savings. Notwithstanding the provisions of Section 32, the 
16 
President of the Philippines, the Senate President, the Speaker of the House of Representatives, 
17 
the Chief Justice of the Supreme Court, the Heads of Constitutional Commissions, enjoying 
18 
fiscal autonomy, and the 'Ombudsman are hereby authorized to augment any item in their 
19 
respective budgets under the General Appropriations Act (GAA). 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
For departments/agencies not enumerated in the preceding paragraph, the use of savings 
shall be computed and released not earlier than June 30 and December 31 of the pertinent Fiscal 
Year. A full report shall be submitted to Congress on the use of savings indicating the 
department/agency, the program/projects which generated savings and those which will be 
augmented, the amount of savings and justifications. 
Sec. 34. Meaning of Savings and Augmentation. Savings refer to portions or balances 
of any programmed appropriations free from any obligation or encumbrance which are (i) still 
available after the completion or final discontinuance or abandonment of the work, activity or 
purpose for which the appropriation is authorized; (ii) from appropriations balances arising from 
unpaid compensation and related costs pertaining to vacant positions and leaves of absences 
without pay; and (iii) froin appropriations balances realized from the implementation of 
measures resulting in imp"roved systems and efficiencies and thus enables a~ agency to meet and 
deliver the required or planned targets, programs and services approved in the GAA at a lesser 
cost. 
Augmentation implies the existence of a program, activity, or project with an 
appropriation, which ~pon implementation, or subsequent evaluation of needed Iresources, is 
determined to be deficient. In no case shall a non-existent program, activity, qr project, be 
funded by augmentation from savings. 
Page 12 0[20 


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29 
30 
31 
32 
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34 
35 
36 
37 
38 
Sec. 35. Priority in the Use of Savings. In the use of savings priority shall be given to the 
augmentation of the personnel benefits authorized by law and the funding oflaws that have not 
yet complied with the requirements of Section 23. 
Chapter 5 
Creation of National Entities 
Sec. 36. Scrap and Build Policy - The national govermnent may not create or fonn new 
agencies, bureaus, offices, including GOCCs and state universities and colleges unless existing 
agencies, bureaus, offices, and GOCCs of substantially the same size in terms of manpower and 
budget resources have been abolished. 
Sec. 37. Conditions Precedent - The effectivity of any law creating or fonning new 
agencies, bureaus, offices including GOCCs and state universities and colleges shall be 
conditioned on the compliance of the requirements prescribed in Sections 23 and 24 of this Act. 
TITLE V 
Goveniment Owned and Controlled Corporations 
Chapter 1 
Government Guarantees 
Sec. 38. Coverage- For clarity, the provisions of this Title shall apply to all GOCCs, 
GFls, OGCEs and government subsidiaries. 
As such, the tenn "government owned and 
controlled corporations" or "GOCC" shall include GFls, OGCEs and Government Subsidiaries. 
Sec. 39. Repeal, of Automatic Guarantees - All provisions of law, presidenyal decree, or 
executive order requiring the State to guarantee payment, both of the principal and interest, of 
I 
loans, bonds, deb'entures, collateral, notes, or other fonns of indebtedness, as well as the 
fulfillment of any other obligation incurred by GOCCs, are hereby repealed. 
The guarantee referred to herein pertains to all kinds of government guarantee, whether 
the same be express or implied, solidary or subsidiary, automatic or subject to approval or the 
perfonnance of such other acts. 
Sec. 40. Grant of Guarantee - In cases where government guarantee is detennined to be 
necessary in order to protect the greater interest of the State, or where the economic benefits of 
its issuance outweighs the financial drawback, the President may, upon favorable 
recommendation of the nOF and payment of a guarantee fee, grant government guarantee to 
GOCCs or assume its liabilities. The amount of the guarantee fee to be collected shall be 
detennined by the nOF and based on its assessment of the financial risks involved. 
Sec. 41. Disclosure 'df Government Guarantees - As far as practicable and consistent 
with the principle of full disclosure, the nOF shall report to Congress, on a quarterly basis, all 
contingent liabilities, created by way of guarantees, including claims and commitments by the 
national government for and in behalf of govermnent corporations, with a statement of its 
budgetary and financial impifcations. 
Chapter 2 
Page 13 of20 


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27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
--~~-~-~---------
Creation of Subsidiaries 
Sec. 42. Scrap and Build Policy - GOCCs may only create or form new corporations or 
subsidiaries upon the abolition of substantially similar corporations or subsidiaries in terms of 
manpower and budget resources. 
The validity and existence of any corporation or subsidiary hereafter formed or created 
shall be conditioned on the issuance by the DBM of a certification that all the ~eqUirements 
prescribed in this section shall have been complied with. 
I 
Chapter 3 
Government Corporate Performance 
Sec. 43. Performance Agreement - To improve government corporate performance, 
every member of the board of directors or trustees appointed by the President shall execute a 
performance agreement with the GCG. 
The performance· agreement shall prescribe, among others, the responsibilities, 
expectations, performance targets and review, remuneration, grounds for termination including 
removal from office for failure to accomplish the prescribed targets, and other terms and 
conditions of the officer's appointment. 
Chapter 4 
Personnel Expenditures 
Sec. 44. Salary Increase - All increases in salaries, per diems, allowances, or other 
fringe benefits of board directors and trustees shall be granted by the corporation's governing 
board in accordance with the guidelines issued by the GCG and shall only take effect after the 
expiration of the full term of all the directors and trustees approving such increase. 
Sec. 45. Increases iii Salaries, Allowances, Honoraria, and Other Fringe Benefits - All 
increases in salaries, allowances, honoraria, and other fringe benefits that may be granted by the 
governing boards to the employees of GOCCs, including those that are presently or may 
hereafter be exempted by .Jaw from the Salary Standardization Law, shall be subject to the 
approval of the President, upon recommendation ofthe GCG. 
Sec. 46. Corporate Personnel Cap - A personnel cap shall be imposed on total personnel 
expenditures of each GOCCas a percentage of its net operating revenue. Within six (6) months 
from the effectivity ofthis Act, the GCG shall fix the applicable perso1l1lel cap for each GOCC in 
accordance with the following policy guidelines: 
I 
a. 
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; 
b. 
Taking into consideration the peculiarities of each GOCC, a different perso1l1lel 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 
Page 14 of20 


1 
2 
3 
4 
or losses, subsidy received from the national government, and exemption from the 
Salary Standardization Law. 
c. 
Personnel cap must be comparable to applicable benchmarks in the private sector. 
d. 
The personnel cap to be imposed may consider the targets and schedule of any 
5 
rationalization program to be implemented by the national government. 
6 
The GCG shall periodically review the personnel cap imposed and shall make the necessary 
7 
adjustments as may be justified under the circumstances. 
8 
Sec. 47. Compliance and Sanctions - Sections 25, 28 to 31, under Chapter 3, Title IV of 
9 
this Act are hereby adopted for the GOCCs for the purpose of determining compliance with, and 
10 
imposition of sanctions to enforce the personnel cap prescribed in the preceding section. 
11 
Chapter 5 
12 
Additional Sanctions 
13 
Sec. 48. Additional Sanctions for GOCCs - In addition to those prescribed above, the 
14 
DOF is hereby authorized to impose the following sanctions on GOCCs and officers who have 
15 
not complied with the requirements prescribed under this Act: 
16 
a. assign an independent financial comptroller; 
17 
18 
b. prohibit the issuance of any national government guarantee, 
indirect; and 
whetJer 
I 
direct or 
19 
c. recommend to the President a revamp of the governing board or management. 
20 
TITLE VI 
21 
Local Governments 
22 
Chapter 1 
23 
National Remittances 
24 
Sec. 49. Efficient Remittance - All local governments shall exercise responsible fiscal 
25 
management by timely and efficiently remitting to the relevant national government agency or 
26 
corporation the following: 
27 
28 
29 
30 
31 
32 
33 
34 
35 
a. 
b. 
c. 
d. 
e. 
all tax collections that accrue to the national government; 
national government share in taxes, fees, and charges collected by local 
governments;' 
any taxes withheld in accordance with law or rules and regulations; 
statutory contributions, including its counterpart contribution as employer, to th~ 
Home Development Mutual Fund (Pag-IBIG), 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 
36 
to the Government Service Insurance System or other GOCCs. 
37 
Local governments shall immediately settle all outstanding loans and indebtedness due to 
38 
GOCCs. 
Page 15 of20 


" 
I 
Sec. 50. Authority to Withhold IRA - In case any local government fails to remit or pay 
, 
2 
the required amounts sljch as tax collection, contribution, or loan, the national govdmment shall 
3 
be authorized to deduct the unremitted or unpaid amount, as may be determlined by the 
4 
concerned national government agency or GOCC upon consultation with the local government, 
5 
from the defaulting local government's Internal Revenue Allotment (IRA) as well as its special 
6 
share from other forms of taxes and revenue: PrOVided, That the local government unit may enter 
7 
into agreement with the national gove~ent or GOCC to settle its obligation: Provided Further, 
8 
That the parties may agree, among others, to restructure the local government's obligation and 
9 
prepare an amortization schedule based on its capacity to pay. 
10 
Chapter 2 
II 
Personnel Expenditures 
12 
Sec. 51. Personnel Cap. - The personnel cap imposed on local governments pursuant to 
13 
Section 325 (a) of Republic Act No. 7160 or the Local Government Code shall be strictly 
14 
adhered to. 
IS 
A personnel cap shall likewise be imposed on all public utilities and economic enterprises 
16 
owned by the local government at such limits imposed on GOCCs with similar mandates as may 
17 
be determined by the GCG under Section 46, Chapter 4, Title V of this Act. 
18 
Sec. 52. Compliance. - Local governments as well as public utilities and economic 
19 
enterprises already in conipliance with the personnel cap shall maintain their personnel 
20 
expenditures within said cap, or reduce it, to achieve its optimum level. 
21 
However, those with personnel expenditures greater than said cap shall reduce such 
22 
excess by the following percentages: 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
3S 
36 
37 
38 
a. 25 percent by 2015; 
b. 50 percent by 2016; 
c. 75 percent by 2017; 
d. 100 percent by 2018. 
By the end of 2018, the local governments as well as public utilities and economic 
, 
enterprises shall maintain such level or reduce it to achieve the most cost-effective personnel 
expenditure. 
I 
Sec. 53. Sanctions . ..:. If total personnel expenditures exceed the prescribed limit, or if the 
required reduction on personnel expenditures prescribed in Section 53 is not followed, the 
violating local government, 'public utility, and economic enterprise, in addition to the sanctions 
prescribed by the Local Government Code, shall be prohibited from performing and adopting the 
acts and measures enumerated under Section 29, Chapter 3, Title IV of this Act. 
Chapter 3 
Additional Sanctions 
Sec. 54. Additional Sanctions for Local Governments - In addition to those prescribed 
above, the violating local government, public utility or economic enterprise which have not' 
Page 16 of20 


, . 
1 
complied with the requirements prescribed under this Act, shall be prohibited, during the period 
2 
of its violation, from: 
3 
a. receiving voluntary transfers; 
4 
b. qualifYing as a beneficiary in any foreign assisted project; and 
5 
c. obtaining any direct or indirect guarantee from the national government. 
6 
TITLE VII 
7 
Voluntary Transfers 
8 
Sec. 55. Definition -. Voluntary transfer is defined as the transfer of current or capital 
9 
resources to other branches, agencies, offices, local governments, and other-instrumentalities in 
10 
the form of cooperation, aid or financial assistance, sourced from any discretionary fund. 
II 
Sec. 56. Requisites - In addition to those that may be established in the GAA, the 
12 
requirements for voluntary transfers shall include: 
13 
a. existence of a, specific budget allocation; 
14 
b. proofby the beneficiary that: 
15 
i. the project, activity, or program to be funded is covered by the project menu 
16 
prepared by the DBM; 
17 
ii. it has no outstanding taxes, loans and financing due to the national 
18 
government, and that previously received funds have been duly accounted for; 
19 
iii. it has complied with procurement procedures prescribed by Republic Act No. 
20 
9184; and 
21 
iv. it is in compliance with the limits set for consolidated non-financial public 
22 
sector and national government debt, as well as those for total personnel 
23 
expenditures. 
24 
Sec. 57. Disclosure of Voluntary Transfers - All beneficiaries of voluntary transfers 
25 
shall report and disclose to the DBM the details and outcomes of the program, project or activity 
26 
being funded by the voluntary transfers. The DBM shall widely disseminate these information 
27 
through electronic media. 
28 
Sec. 58. 
Suspension of Voluntary Transfers - Suspension of voluntary transfers 
29 
imposed as a sanction under this Act shall not apply to those intended for the education and 
30 
health sectors or those that may be exempted by the President. 
31 
TITLE VIII 
32 
Transparency in Fiscal Management 
33 
Chapter I 
34 
Full Disclosure 
35 
Sec. 59. Public DisClosure - The instruments of public fiscal management, including the 
36 
Budget of Expenditures arid Sources of Financing, the GAA, the MTFA, the Annual Budget 
37 
Strategy, and other plans, policies, assessment reports, or budgets, together with a simplified 
38 
version of these documents, 'shall be widely disseminated, especially in electronic public media. 
I 
rage 17 of20 


1 
Sec. 60. Public Participation - Transparency must also be ensured by encouraging public 
2 
participation and comments during the preparation and deliberations of the above documents. 
3 
Sec. 61. Inspection - All plans, policies, reports, budgets, and other documents required 
4 
to be submitted in accordance with this Act shall be made available throughout the year in the 
5 
respective branch or office of the government taking custody thereof and shall be subject to 
6 
inspection during office hours on regular business days, except only such matters as may, in the 
7 
judgment of the proper official, pertain to matters that may adversely affect the interest of the 
8 
government. 
9 
Sec. 62. Fiscal Management Reports - Within sixty (60) days from the effectivity of this 
10 
Act, the DBM in coordination with the DOF shall prepare a list of reports to be submitted by the 
11 
different branches and agenCies of the government, including constitutional offices, to monitor 
12 
compliance with this Act and ensure consistency with the government's fiscal policies. 
13 
Sec. 63. Accountability - The plans, policies, reports, budgets, and other documents 
14 
required to be submitted pursuant to this Act shall include a sworn statement signed by the head 
15 
of the branch, agency, or c6nstitutional office, as the case may be, which shall include the 
16 
following: 
17 
a A certification that the report was prepared using the best professional judgment on 
18 
the basis ofinformation available to it before and at the time of its submission; and 
19 
b. A statement of responsibility guaranteeing: 
20 
i. integrity of the disclosure contained in the report; and 
21 
ii. consistency with the requirements of this Act. 
22 
Chapter II 
23 
New Government Accounting System 
24 
Sec. 64. New Government Accounting System -
To enhance unifotmity in the 
25 
application of gov,ernment accounting rules and facilitate the consolidation of fina)llcial reports, 
26 
the New Government Accounting System (NGAS), designed and prescribed by the Commission 
27 
on Audit (COA) to all national government agencies, local governments, and GOCCs, is hereby 
28 
adopted. 
29 
Henceforth, all financial statements included in the reports required pursuant to this Act 
30 
shall be prepared in accordance with the NGAS. 
31 
Sec. 65. Compliance'Period - Within a period of one (1) year from the effectivity of this 
32 
Act all national as well as local government agencies, including GOCCs, shall have completely 
33 
installed the computerized version ofNGAS otherwise known as "e-NGAS". 
34 
TITLE IX 
35 
Final Provisions 
36 
Sec. 66. Implementing'Rules and Regulations - Within sixty (60) days from effectivity 
37 
of this act, the DBM and DOF shall promulgate the necessary rules and regulations for the 
38 
proper implementation of the provisions of this Act. 
Page 18 of20 


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2 
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4 
5 
6 
7 
8 
9 
10 
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12 
13 
Sec. 67. Separability of Provisions - If for any reason, any portion or provision of this 
Act or the application thereof shall be declared invalid or unconstitutional, the validity of other 
parts or provisions not affected thereby shall continue to be in full force and effect. 
Sec. 68. Repealing Provision - The following laws, presidential decrees, executive 
orders, corporate charters and other issuances or parts thereof, contrary to or inconsistent with 
the provisions of this Act are hereby repealed or modified accordingly: 
a. Section 21, Republic Act 1161 as amended by R.A. 8282 (Social Security Act 
of 1954); 
b. Section 14" Republic Act 4850 (An Act Creating the Laguna -\Lake 
Development Authority); 
I 
c. Section 17, Republic Act 6234 (Creation of Metropolitan Waterworks and 
Sewerage System); 
d. Section 1, Republic Act 6395 (An Act Revising the Charter of National Power 
14 
Corporation); 
15 
e. Section 13, Republic Act 6958 (Charter of the Mactan-Cebu-International 
16 
Airport Authority); 
17 
£ Section 12, Republic Act 7354 (Postal Service Act of 1992); 
18 
g. Section 19, Republic Act 7393 (Quedan and Rural Credit Corporation Act); 
19 
h. Section 58, Republic Act 7875 (National Health Insurance Act of 1995); 
20 
i. 
Section 1, Republic Act 8291 (The Government Service Insurance System Act 
21 
of 1997); 
22 
j. Section 1, Republic Act 8282 (Social Security Act of 1997); 
23 
k. Section 18, Republic Act 8763 (Home Guaranty Corporation Act of 2000); 
24 
1. 
Section 2, Presidential Decree 179 (An Act Creating the Cultural Center of the 
. 25 
Philippines); 
26 
m. Section 8, Presidential Decree 346 (Amending the Charter of Philippine 
27 
Aerospace Development Corporation); 
28 
n. Section 8, Presidential Decree No. 425 (Amending Certain Sections of R.A 
29 
No. 6234); 
30 
o. Section 3, Presfdential Decree 552 (Amending certain Sections of R.A. No. 
31 
3601, creating the National Irrigation Administration); 
32 
p. Section 12, PreSidential Decree 564 (Revising the Charter of the Philippine 
33 
Tourism Authority); 
34 
q. Section 1, Presidential Decree 572 (Amending the Charter of the Philippine 
35 
Nation!!l Oil Company); 
36 
r. 
Section 11, Presidential Decree 690 
(An Act Creating the SOjlthem 
37 
Philippines Development Administration); 
Page 19 of20 


,~ , 
1 
s. Section 4, Presidential Decree 741 
(Amending R.A. No. 4156, creating 
2 
Philippine National Railways); 
3 
t. 
Section 14, Presidential Decree 757 (An Act Creating the National Housing 
4 
Authority); 
5 
u. Section 36, Presidential Decree 768 (An Act Declaring a National Policy 
6 
Favoring Local Operations and Control of Water Systems);l 
7 
v. 
Section ]3', Presidential Decree 857 (Promulgation of Port Administration 
8 
and Operation Functions in the Philippines); 
9 
w. Section 9, Presidential Decree 1080 (Revision of P.D. No. 550 creating the 
10 
11 
Philippine Foreign Loan Guarantee Corporation); 
x. Section 7, Presidential Decree 1267 
(Creation of the National Home 
12 
Mortgage Finance Corporation); 
]3 
y. Section 12, Presidential Decree 1648 (Reorganization of the National 
14 
Development Company); 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
z. 
Section 12, Presidential Decree 1703 (Amending Presidential Decree 690); 
aa. Section 11, Presidential Decree 1770 (Reconstituting the National Grains 
Authority); 
bb. Section 1, Presidential Decree 1846 (Further Amending the Charter of the 
National Development Company); 
cc. Section 7, E~ecutive Order 603 (Creating a Light Rail Transit Authority)! and 
dd. Section 16, Executive Order 903 (Revision of EO 778, creating the Manila 
~I 
International AirPort Authority) 
Sec. 69. Effectivity Clause - This act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in two (2) newspapers of national circulation. 
Approved, 
Page 20 of20