Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL NO. 11

Introduced by Representatives Ferdinand Martin G. Romualdez,
Andrew Julian K. Romualdez and Jude A. Acidre

EXPLANATORY NOTE

‘The passing of the annual budget is a vital role performed by Congress which
originates exclusively with the House of Representatives. It is the most important
guiding document of the national socio-economic policy of the government for the
year. The manner of its preparation and execution must conform to the reforms
contained in this measure.

This bill seeks to enforce the power of Congress to authorize all appropriations and
hold the government accountable in the use of public resources to ensure the
responsibility of all government agencies to propose, execute and deliver committed
results in the appropriations act in a timely, predictable and economical manner. The
bill also strengthens the integration of planning, programming, budgeting,
accounting, disbursement, reporting, and performance management and ensures
ample safeguards in managing public finances.

The bill institutionalizes the cash-based estimates in the proposed general and
special appropriations. It reforms the budget preparation process, to ensure that
public resources are aligned with national priorities. It incorporates medium-term
planning, particularly in infrastructure, to ensure the completion of the projects
within the budget year.


The bill also set safeguards for multi-year contracts whereby only projects that fully
met the requirements are commenced. Thus, this manages the availability of public
resources and avoids contingent liabilities for government-initiated projects.

Another key reform of this bill is to improve upon the management of liabilities by
reporting government exposures to liabilities. The minimization of unanticipated
contingent liabilities is of utmost importance to keeping the power of the purse
within the Congress as they are rarely approved, discussed, or explicitly authorized
by Congress, but are obligations nonetheless charged against public resources

There is also an urgent need for a budgetary framework clarifying the management
of public resources in the aftermath of the COVID-19 pandemic

In view of the foregoing, the immediate passage of this bill is earnestly sought

FE) JARTIN G. ROMUALDEZ

JUDE # ACIDRE ANDREW JULIAN K. ROMUALDEZ


Republic of the Philippines

Bouse of Representatives
Queson City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL NO. 1 1

Introduced by Representatives Ferdinand Martin G. Romualdez,
Andrew Julian K. Romualdez and Jude A. Acidre

AN ACT
TO REFORM THE BUDGET PROCESS BY ENFORCING GREATER
ACCOUNTABILITY IN PUBLIC FINANCIAL MANAGEMENT (PFM),
PROMOTING FISCAL SUSTAINABILITY, UPHOLDING CONGRESS’
POWER OF THE PURSE, INSTITUTING AN INTEGRATED PFM
SYSTEM, AND INCREASING BUDGET TRANSPARENCY AND
PARTICIPATION

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

PARTI
PRELIMINARY PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the “Budget
Modernization Act.”

Sec. 2. Declaration of Policy and Objectives. - It is hereby declared the policy
of the State to ensure accountability and integrity in the use of public resources
by ensuring transparency, fiscal responsibility, results-orientation, efficiency, and
effectiveness. This shall be upheld through the establishment of an integrated
system of planning, programming, budgeting, management, accounting,
reporting and review of public finances, wherein internal controls are embedded
within these processes. In light of these requirements, the State shall pursue the
following specific objectives:


(a) To enforce the power of Congress to authorize all appropriations and hold
government accountable in the use of public resources, as well as to ensure
the responsibility of all government agencies to propose, execute and
deliver committed results in the appropriations act in a timely, predictable,
and economic manner;

(b) To promote people’s involvement in the management of public resources
by enforcing their right to access information on, and to contribute to the
formulation and implementation of, the financial affairs of the government;
and

(c)To strengthen the integration of planning, programming, budgeting,
accounting, disbursement, reporting and performance management and
ensure ample safeguards in managing public finances through internal
controls and risk management.

Sec. 3. Scope and Coverage. — The provisions of this Act shall apply to the
management of revenues, expenditures, financing arrangements, and assets and
liabilities of national government agencies (NGAs), government-owned or -
controlled corporations (GOCCs), and local government units (LGUs) to the
extent provided herein.

Sec. 4, Definition of Terms. ~The following terms when used in this Act and the
implementing rules and regulations (IRR) should be understood, as follows:

(a) Activity refers to a recurring work process that contributes to the
implementation of a program or sub-program;

(b) Allotment refers to the authorization issued to Government Agencies to
incur contractual commitments and disburse funds up to a certain amount,
for a specified public purpose, and within a specified period of time, in
accordance with the Appropriations Law;

(c) Allotment Class refers to the classification of expenditures under an item
of appropriation with the following categories: Personnel Services,
Maintenance and Other Operating Expenses, Financial Expenses, and
Capital Outlays;

(a) Appropriations refers to an authorization pursuant to laws directing the
disbursement of Public Funds under specified conditions or for specified
public purposes;

[

Appropriations Law refers to either a general or special appropriations
law;


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(f) Cabinet refers to the Executive Secretary and the Secretaries of the
Departments under the Executive Branch;

(g) Cash Budgeting System refers to the annual appropriations that limit
incurring obligations and disbursing payments to goods delivered and
services rendered, inspected and accepted within the current fiscal year.
Payments, of which, may be settled within the Extended Payment Period,

(h) Development Budget Coordination Committee (DBCC) refers to the
body primarily responsible for the review and approval of the
macroeconomic targets, revenue projections, borrowing level, aggregate
budget level and expenditure priorities and the recommendation to the
Cabinet and the President of the consolidated public sector financial
position and the National Government fiscal program. The Secretary of
Budget and Management leads the DBCC, with the Secretary of Finance,
the Director General of the National Economic and Development
Authority (NEDA) Secretariat and a representative from the Office of the
President as members, and the Governor of the Bangko Sentral ng
Pilipinas (BSP) as a resource person;

(i) Disbursement refers to settlement of government obligations either in the
currency, check or constructive cash such as the issuance of Tax
Remittance Advice for the remittance to BIR of taxes withheld from
employees and suppliers and Non-Cash Availment Authority for direct
payments made by international financial institutions to suppliers and
consultants of foreign assisted projects;

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Extended Payment Period refers to the first three (3)-month period in the
following fiscal year when payments, chargeable against the
Appropriations Law of the previous fiscal year, can be processed and
disbursed for goods delivered and services rendered, inspected and
accepted by the end of the previous fiscal year;

(k) Fiscal Year refers to a period of twelve (12) months commencing on
January 1 until December 31;

() Government Agencies collectively refer to all NGAs, GOCCs and LGUs

(m) Government-Owned or -Controlled Corporations refer to agencies with
corporate powers, organized as a stock or non-stock corporation, vested
with functions relating to public needs whether governmental or
proprietary in nature, and owned by the Government of the Republic of
the Philippines directly or through its instrumentalities either wholly or,
where applicable as in the case of stock corporations, to the extent of at
least a majority of its outstanding capital stock. This includes Government


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Financial Institutions, government instrumentalities with corporate
powers, government corporate entities and related corporations;

Government Financial Institutions refer to financial institutions or
corporations in which the government directly or indirectly owns the
majority of the capital stock and which are either: (i) registered with, or
directly supervised by, the Bangko Sentral ng Pilipinas; ot (ii) authorized
to collect or transact funds or contributions from the public and place them
in financial instruments or assets such as deposits, loans, bonds and

equity;

Head of Agency refers to the head of the department or agency in the case
of NGAs, the Board of Directors or Trustees or its duly authorized
officials in the case of GOCCs, State Universities and Colleges (SUCs)
and local water districts, and the local chief executive in the case of LGUs;

Item of Appropriation refers to the amount of appropriations for an
activity or project in the Appropriations Law;

Local Government Units refer to provinces, cities, municipalities, and
barangays, as well as autonomous regions created by law pursuant to the
Constitution;

Mutti-Year Contracting Authority (MCA) refers to the authority issued
by DBM to agencies, covering the full contract cost, for the procurement
of multi-year projects;

Multi-year Projects refer to projects undertaken by agencies covering a
period of more than one fiscal year and exceeding twelve months;

National Government Agencies refer to units of the National
Government, as distinguished from GOCCs and LGUs, which include any
of the departments, bureaus, offices or instrumentalities of the Executive,
Judicial and Legislative branches of government, aswell as the
Constitutional Commissions, Commission on Human Rights and the
Office of the Ombudsman;

Program refers to a group of activities and projects that contribute to a
common particular outcome;

Project refers to a special undertaking carried out within a definite time
frame and intended to result in some pre-determined measure of goods
and services;


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(w) Proposed National Budget refers to a financial plan of annual revenue
and expenditures to be submitted by the President to Congress that reflect
national policies, pursuant to Section 22 of Article VII of the Constitution;

(x) Public Officials and Employees refer to elective and appointive officials
and employees, in a permanent or temporary capacity, whether in the
career or non-career service, including military and uniformed personnel,
regardless of the rank, form or amount of compensation;

Public Funds refer to the monies of all Government Agencies received,
collected, receivable from taxes, fees, charges, penalties, income,
dividends, interest earnings, domestic loan proceeds, external loans and
grants, proceeds from the sale of assets, that the Government has a legal
right to retain and use;

y

(z) Spill-over Projects refer to contracts authorized and undertaken in the
immediately preceding General Appropriations Act (GAA) which were
not fully implemented;

(aa) Subsidiary refers to a corporation where at least a majority of the
outstanding capital stock is owned or controlled, directly or indirectly and
through one or more intermediaries, by a GOCC; and

(bb) Treasury Single Account (TSA) refers to the account maintained by the
Bureau of the Treasury (BTr) with the BSP or agent bank for a unified
structure of government bank accounts to enable consolidation and
optimum utilization of government cash resources.

In this Act, the singular may be read as the plural and the plural may be read
as the singular, as the context requires.

PARTI
BUDGET PREPARATION, EXECUTION, AND ADJUSTMENT

Sec. 5. Governing Principles in Budget Preparation. — There is hereby
established a set of governing principles to be observed by the NGAs and GOCCs
in the preparation of their annual budget proposals, and by the DBM in the
preparation, and the presentation to Congress, of the Proposed Annual National
Budget:

(a) Cash-based estimates shall be adopted in the proposed general and special
appropriations bills to promote faster and more effective delivery of
services;


(b) The overall expenditure program of the government for a given Fiscal Year
shall be included, identifying those requiring approval by Congress and
those authorized under existing laws;

(c) All sources of funds and authorized uses available to the agency shall be
considered in the evaluation of agency proposals and determination of
agency budget levels, and shall likewise be disclosed in the Proposed
National Budget and reports;

(d) Evaluation of agency proposals may include the analysis of a development
plan, master plan or road map, agency capability as demonstrated by
previous years’ performance, its contribution to projects and activities of
other agencies, utilization of funds appropriated or released, and such other
criteria as may be determined by the DBM. The performance shall be
evaluated based on the actual disbursements and contractual commitments
as compared to the appropriations;

(e) All appropriations in the GAA shall be valid for one Fiscal Year, reckoned
from the effectivity thereof until the end of the Fiscal Year concerned.
When necessary or appropriate, a three-month Extended Payment Period
in the following Fiscal Year may be availed of to allow agencies to settle
payments for goods and services delivered, inspected and accepted during
the previous Fiscal Year;

(f) For evaluating the performance of an agency, programs, activities and
projects shall be presented in such a way as to identify the entity
responsible for the expenditure and the intended results from the use of the
appropriations;

(g)Both the financial and non-financial performance of agencies shall be
presented in the Proposed National Budget to ensure a performance-
informed budget; and

(h)Programs, activities and projects shall be reflected by department,
agencies, bureaus, and offices, and shall be presented for information
purposes, by region and province, and eventually, by city or municipality.

See. 6. Planning-Programming-Budgeting Linkage. — Development strategies
identified in the PDP shall be the primary consideration in the formulation of the
Budget Priorities Framework. These shall also be the basis for drawing up
strategic and prioritized programs and projects in the multi-year Public
Investment Program (PIP), which in turn will be considered in the formulation of


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the annual agency budgets that conform to the annual budget ceilings approved
by the President.

The PIP shall be reflective of the Regional Development Investment Programs
that, in turn, also take into consideration the intra-regional and inter-provincial
development plans and investment programs of the local government units within
each region.

The implementation of programs and projects funded under the annual agency
budgets shall be monitored to ensure economy, efficiency, and effectiveness in
the use of public funds. Monitoring and evaluation of these projects shall cover,
among others, the planned and actual performance of agencies, citing reasons for
deviation and/or poor absorptive capacities. The results of the project evaluation
shall inform the assessment of subsequent plans and budget proposals of
agencies.

Sec. 7. Budget Priorities Framework. -The DBCC shall submit to the President
and Cabinet, within April of each year, a Budget Priorities Framework to guide
the formulation of the Proposed National Budget for the following year. It shall
contain the targets underlying the budget; the priority areas for government
spending reflected in the PDP and PIP, estimated amount and planned allocation
of the fiscal space; and other requirements laid down in the IRR.

Sec. 8. The Budget Preparation Process. - The DBM shall determine the budget
preparation process and calendar. The budget preparation process shall cover: (i)
NGAs; (ii) GOCCs with respect to their impact on revenue, expenditure, assets,
and liabilities and risks of the government; and (iii) LGUs as to their impact on
revenue and expenditure of the government.

Sec. 9. The Proposed National Budget. ~ The President shall submit to Congress,
not later than thirty (30) days from the fourth Monday of July of every year, the
Proposed National Budget, which shall be the basis of the General Appropriations
Bill (GAB).

The President shall determine the form and content of the Proposed National
Budget which shall include, but not limited to, the following:

(a) President’s Budget Message - provides a preview of the Proposed National
Budget, explaining the principles, objectives and policy framework
adopted and the spending priorities for the Fiscal Year;


(b) Budget of Expenditures and Sources of Financing (BESF) - contains the
macroeconomic parameters; dimensions of three-year (3-year) expenditure
program, revenue, financing, and outstanding debt; overview of the
financial positions of GOCCs, LGUs, and public-private partnership
projects, list of new multi-year projects, including the project duration, the
total project cost and contractual authorities issued as well as the other
items listed in the IRR;

(c) National Expenditure Program (NEP) — includes the strategic objectives,
details of the three-year (3-year) expenditure program, performance
information, such as key strategies, outputs and outcomes for agencies in
relation to their budgets, and staffing summary;

Congress may not increase the appropriations recommended by the President
for the operations of government as specified in the Proposed National Budget.

The President shall publish the Proposed National Budget on the Government
website on the same day it is presented to Congress.

Sec. 10. Program Classification. — The Proposed National Budget shall adopt a
structure based on a program classification that groups line items under the
objectives or outcomes to which they contribute to. Performance information
shall be provided for each program to facilitate the evaluation of its cost
effectiveness and provide better information for analysis and feedback for
planning and prioritization of expenditures.

In addition, the performance information and targets contained in the Proposed
National Budget shall be updated after the passage of the GAA taking into
consideration the amount appropriated for each program. For this purpose, NGAs
and GOCCs shall propose adjustments in its outputs and outcomes for the
consideration and approval of the DBM.

Sec. 11. Special Purpose Funds. — To promote the transparent and detailed
disclosure of all proposed government spending, Special Purpose Funds (SPFs)
in the Proposed National Budget shall be limited to the: (1) the NDRRMF; (2)
the Contingent Fund; (3) Statutory Shares of LGUs; and (4) other $PFs not falling
under any of the preceding purposes, the details of which could not be determined
during the budget preparation stage, and based on the parameters to be set in the
IRR.

Sec. 12. National Disaster Risk Reduction and Management Fund. — The
NDRRMF shall be used for: (1) disaster risk reduction or mitigation, prevention


and preparedness activities, such as, but not limited to, training of personnel,
procurement of equipment, and capital expenditures; and (2) relief, recovery,
reconstruction and other work or services in connection with natural or human
induced calamities which may occur during the budget year or those that occurred
in the preceding two (2) years.

Of the amount appropriated for the NDRRMF, there shall be specific
allocation as Quick Response Fund (QRF), as may be provided under existing
law, which shall be used as a standby fund in order that the situation and living
conditions of people in communities or areas stricken by natural or human
induced calamities, epidemics, crises, and catastrophes may be normalized as
quickly as possible.

The NDRRMF and QRF shall also be used for obligation and payment of
Spill-over Projects approved or funded from the NDRRMF or QRF of the
immediately preceding Fiscal Year.

Releases from the NDRRMF, except for QRF and Spill-over Projects, shall be
subject to the prior approval of the President, who may take into consideration
the recommendation of the National Disaster Risk Reduction and Management
Council for local disasters and calamities and the appropriate agency for
international crises.

Sec. 13. Contingent Fund. — The Contingent Fund shall cover the funding
requirements of new or urgent projects or activities of NGAs, GOCCs, and LGUs
that need to be implemented or paid during the year, such as: (i) legal obligation
of the government arising from the final and executory decisions of competent
authorities, including arbitration awards, mediation settlement, or compromise
agreements; (ii) requirements of newly created offices; or (iii) deficiencies in the
appropriations for local and external travels of the President of the Philippines.

Releases from the Contingent Fund shall be subject to approval by the
President of the Philippines, other than payment resulting from final and
executory decisions of competent authorities, which shall be released by the
DBM subject to availability of funds.

The DBM shall inform Congress of all releases from the Contingent Fund in
the quarterly and annual fiscal reports including information on the date of
release, the amount covered, corresponding purpose/s and recipient agency.


Sec. 14, Statutory Shares of Local Government Units. — The shares of LGUs in
the proceeds from national taxes and other transfers to LGUs authorized by law
shall be released to the LGUs in accordance with the provisions on the use,
allocation, and release of the funds as may be provided in pertinent laws, rules
and regulations.

Sec. 15. Unprogrammed Appropriations. — Congress may authorize standby
appropriations to cover the funding requirements of other priority projects and
activities or contingencies, as well as provide appropriations cover for foreign-
assisted projects (FAPs) not specifically included in the programmed component
of the GAA that requires implementation during the year. The Unprogrammed
Appropriations shall indicate the purposes from which the amount authorized
therein may be used. The Unprogrammed Appropriations shall not exceed three
percent 3% of the total proposed expenditure, net of contractual, statutory and
other legal obligations in the programmed component of the GAA.

Expenditures to be funded under the Unprogrammed Appropriations may be
authorized only when supported by: (i) excess revenue collections in any one of
the particular non-tax revenue sources from its corresponding revenue collections
target in the BESF as certified by the BTr; (ii) new revenue collections or those
arising from new tax or non-tax revenues which are not part of the original
revenue sources in the BESF; or (iii) when there are approved loan proceeds for
new and ongoing FAPs.

In no case shall the Unprogrammed Appropriations be activated or released
when the DBCC determines that there is a risk of breaching the fiscal objectives
set forth in the Statement of Fiscal Policy.

Releases from the Unprogrammed Appropriations shall be subject to the prior
approval of the President of the Philippines, other than the final and executory
decisions of competent authorities, including arbitration awards, mediation
settlement, or compromise agreements.

The DBM shall include information on releases from releases from the
Unprogrammed Appropriations in the quarterly and annual reports submitted to
Congress.

Sec. 16. Budget with Accounts Codes. — All items of appropriations in the
Appropriations Law shall be given accounts codes by the DBM pursuant to the
Unified Accounts Code Structure that applies to all the assets, liabilities, equities,
income, and expenses of the government.


Sec, 17. Re-enacted Budget. - If, by the end of any Fiscal Year, Congress has
failed to enact a GAA for the ensuing Fiscal Year, the GAA of the preceding Fiscal
Year shall be deemed re-enacted and shall remain in force and effect until a GAA
for the ensuing Fiscal Year is passed by the Congress.

Consistent with the Fiscal Responsibility Principles, the re-enacted budget
shall be enforced as follows:

(a) The aggregate level of the re-enacted budget shall be limited to the total
amount appropriated in the preceding year’s GAA, but shall in no case
exceed the level of the sources of financing under the BESF of the
Proposed National Budget for the year;

(b) The appropriations for the following shall be limited to the amount
authorized under the re-enacted budget, but in no case exceed the amount
in the Proposed National Budget:

1. Ongoing programs, projects and activities;

2. Personnel benefits, including retirement gratuities, pensions,
terminal leave pays and related expenses;

3. NDRRMF, Contingent Fund, Statutory Shares of LGUs, and other
SPFs;

4, Budgetary support to GOCCs for their operational requirements and
ongoing programs, activities or projects; and

5, Newly-approved FAPs.

(c) In no case shall the following items of the re-enacted budget be considered
for release, disbursement, and utilization:

1. Completed programs, projects and activities funded in the GAA of
the preceding Fiscal Year; and
2, Equity contribution of the National Government to GOCCs.

The DBM shall issue guidelines on the aggregate and agency levels of
appropriations authorized under the re-enacted budget in accordance with the
foregoing, supporting requirements to determine actual needs, and other pertinent
tules in the implementation of the re-enacted budget.

Upon enactment of the GAA anytime during the current Fiscal Year, all
releases under a re-enacted budget consistent with this Section shall be considered
valid obligations and deemed to have been implemented pursuant to and charged
against, for account recording purposes, the GAA for the current Fiscal Year.


The enacted GAA shall be valid from its effectivity until the end of the current
Fiscal Year.

Sec. 18. Special Appropriations Bill. - A Special Appropriations Bill is a
proposal submitted by the President, as recommended by the DBM, before
Congress to provide authorization for expenditure for a specific purpose not
included or not covered under the annual appropriations laws. It shall specify the
purpose/s for which it is intended and the validity period which shall not exceed
one (1) year from its enactment.

Cash-based estimates shall be adopted in the proposed special appropriations
bills to promote faster and more effective delivery of services.

A Special Appropriations Bill shall be supported by funds available as
certified by the National Treasurer, or to be raised by a corresponding revenue
measure proposed therein.

No Special Appropriations Bill shall be passed during a re-enacted budget,
except for the following: (1) disaster-related purposes; (2) urgent projects and/or
activities; and (3) unforeseen requirements of the government.

Sec. 19. Release of Public Funds. — The government shall commence releases of
Public Funds covered by an Appropriations Law as soon as it comes into force to
ensure timely and efficient disbursement by the appropriate implementing
agencies, subject to pertinent budgeting, accounting and auditing rules and
regulations. Upon the implementation of the cash budgeting system, the
Appropriations Law shall be considered the authority of the agencies to contract
out and disburse funds, except for the following instances: (i) when provided in
the Appropriations Law; and (ii) when the appropriations have requirements
before release, such as work and financial plan, feasibility study, pre-feasibility
study, and preliminary and detailed engineering.

Sec. 20. Cash Budgeting System. - Appropriations authorized in the GAA for
NGAs, budgetary support to GOCCs, national projects implemented by LGUs,
and SPFs, shall be available for obligation only until the end of each Fiscal Year.
Obligations incurred by the National Government within each Fiscal Year shall
be implemented during the same Fiscal Year. Goods and services corresponding
to said obligations shall be delivered or rendered, inspected and accepted by the
end of each Fiscal Year. Payments for obligations incurred shall be made until
the end of the Extended Payment Period. Payments during the Extended Payment
Period shall be chargeable against the GAA of the preceding Fiscal Year.


Appropriations covering financial subsidy to LGUs shall be available for
obligation and disbursement until the end of the succeeding Fiscal Year. On the
other hand, appropriations for the statutory shares of LGUs shall be available for
obligation and disbursement until fully expended.

Alll funds transferred between or among Government Agencies shall not be
considered disbursed until the transferred amounts have been actually utilized to
pay for goods delivered and services rendered, inspected and accepted.

Any unreleased appropriations at the end of the Fiscal Year shall lapse, while
unobligated allotments and unexpended or undisbursed funds at the end of the
Extended Payment Period shall revert to the unappropriated surplus of the
General Fund in accordance with Section 28, Chapter 4, Book VI of E.O. No. 292
and shall not thereafter be available for expenditure except by subsequent
legislative enactment. For financial subsidies to LGUs, reversion shall be made
to the National Treasury after the end of the succeeding Fiscal Year.

Sec. 21. Government Funding Commitment. In accordance with the
Constitution, no money shall be paid out of the Treasury except in pursuance of
an appropriation made by law.

Accordingly, a Certification of Availability of Funds (CAF) shall be required
prior to entering into contract. The CAF shall be issued by the Chief Accountant
or the highest accounting officer in the agency.

For Multi-year Projects, the CAF shall be issued annually based on the annual
budget for the year. In case of Multi-year Projects with no funding requirement
on any given year, the CAF shall be the certification of the chief accountant that
no fund is needed for the year as indicated in the approved MYCA.

The CAF shall be stamped or appended to the contract and shall become an
integral part thereof.

Sec. 22. Multi-Year Contracts, The issuance of a MYCA or any similar
document shall be required before agencies may enter into multi-year contracts,
subject to the requirements and guidelines prescribed by the DBM. Provided,
that for foreign-assisted projects funded by foreign loans, the issuance of a
MYCA shall no longer be necessary.

In the procurement of multi-year projects, the MYCA or any similar
document shall be required prior to commencement of any procurement activity.


In the case of GOCCs, they shall secure prior authority from their
respective governing boards before entering into multi-year contracts.

For LGUs, they shall secure any equivalent document issued by their
respective Sanggunian authorizing them to enter into multi-year contracts.

For the multi-year Public-Private Partnership projects with government
undertakings authorized under R.A. No. 6957, as amended by R.A. No. 7718, the
same shall be covered by a letter of commitment issued in accordance with the
guidelines issued by the DBM.

The implementing agency shall ensure that the annual funding
requirements for the multi-year projects shall be included in its budget proposals
for the covered years, consistent with the funding schedule in the MYCA and
equivalent authorities, and letter of commitment. In the case of NGAs and
qualified GOCCs, the DBM shall ensure that the funding requirement for the
multi-year projects are included in the National Expenditure Program to be
submitted to Congress who shall give due consideration of the said proposal. In
the case of GOCCs and LGUs, due consideration shall be given by the governing
board of GOCCs and the Sanggunian of the LGUs, respectively.

In all instances, the disbursements to be incurred for multi-year contracts
shall in no case exceed the cash appropriations for the purpose during the year.
Procurement of multi-year projects shall be subject to the provisions of R.A. No.
9184 and its IRR and GPPB guidelines.

Sec. 23. Early Procurement Activities. — To ensure full budget utilization, timely
contract implementation and efficient delivery of services, agencies are
authorized to undertake procurement activities from pre-procurement conference
until recommendation to the head of the procuring entity as to the award of
contract, based on their proposed budget in the NEP, COBs or Appropriations
Ordinance, in accordance with the guidelines issued by the Government
Procurement Policy Board.

In exceptional circumstances where the early procurement activity was
delayed, agencies shall undertake only the procurement of goods, infrastructure
and consulting services to the extent that may be delivered or rendered, inspected,
and accepted during the Fiscal Year consistent with the cash budgeting system.


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For FAPs, agencies may undertake early procurement activities based on the
amount proposed by the agency in the NEP including those under the
Unprogrammed Appropriations and shall be awarded only upon approval of the
loan agreement.

For multi-year projects, the issuance of a MYCA by the DBM is required prior
to commencement of any procurement activity. All existing Multi-Year
Obligational Authority shall be understood to refer to MYCA.

Notwithstanding the mandatory procurement timelines, agencies may only
proceed with the issuance of the notice of award of contract upon approval or
enactment of their respective appropriations or budget authorization document,
as the case may be, and based on the amount authorized therein.

Sec. 24, Timely Implementation of Activities or Projects. - Government
Agencies shall ensure that all activities or projects are fully delivered, inspected,
and accepted by the end of the Fiscal Year.

In exceptional circumstances where the implementation of an activity, or a
project has been delayed due to force majeure or other justifiable reasons as
determined by the agency or decided by a competent authority, and in both
instances without the fault of the contractor, the funding requirements for its
completion shall be chargeable against any available fund in the succeeding
Fiscal Year.

Sec. 25. Authority to Declare and Use Savings. — The President of the
Philippines, the President of the Senate of the Philippines, the Speaker of the
House of Representatives, the Chief Justice of the Supreme Court, the Heads of
the CSC, the Commission on Elections, and the COA are hereby authorized to
declare and use savings in their respective appropriations in the current year to
augment actual deficiencies incurred for the current year in any item of their
respective appropriations.

Sec. 26. Meaning of Savings. — Savings refer to portions or balances of any
released appropriations in the Appropriations Law which have not been obligated
as a result of any of the following:

(a) Completion, final discontinuance, or abandonment of an activity or project
for which the appropriation is authorized; or

(b)Implementation of measures resulting in improved systems and
efficiencies and thus enabled an agency to meet and deliver the required or
planned targets at a lesser cost.


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In case final discontinuance or abandonment is used as basis in the
declaration of savings, such discontinued or abandoned activity or project shall
no longer be proposed for funding in the next two (2) Fiscal Years.

Allotments that were not obligated due to the fault or negligence of the
agency concerned shall not be considered savings.

Sec. 27. Rules on Augmentation. — Augmentation is the act of the constitutional
officers authorized to use savings in their respective appropriations to cover a
deficiency in any existing item of appropriation for their respective offices.

The particulars of the expenditure to be funded from savings should be within
the scope of, or be covered by, an existing item of appropriation. The existence
of an item of appropriation regardless of the availability of allotment class/es is
sufficient for the purpose of augmentation.

In no case shall a non-existent item of appropriation be funded by
augmentation from savings.

Sec. 28. Rules on Modification in the Allotment. — Limited flexibility shall be
given to NGAs to modify or change the allotment within an existing item of
appropriation. Such modification shall not entail any augmentation of the amount
appropriated for the said item of appropriation during budget execution.

The DBM shall issue rules and procedure to govern modification in the
allotment, specifying the cases or circumstances when such modifications maybe
undertaken to ensure the uniform implementation among the various branches of
government, the proper recording of modifications, and the timely submission of
reports by all the offices concerned.

PART Ill
FINANCIAL MANAGEMENT

Sec. 29. General Fund. — All monies received by NGAs, whether coming from
taxes, fees, charges, penalties, income, dividends, interest earnings, loan
proceeds, grants, donations, asset sale proceeds and such other receivables, shall
accrue to the General Fund and be remitted to the National Treasury, unless
otherwise provided by law or stipulated by covering loan or grant agreements.
Monies under the General Fund shall be made available to support the
requirements of the National Government authorized in an Appropriations Law.

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eI aHesene

A Special Account in the General Fund (SAGF) shall be established by law
only under exceptional circumstances to recognize taxes, fees, charges, penalties,
income, dividend, interest earnings, grants, and donations collected, earned or
received by NGAs for specified purposes. All laws authorizing the establishment
of SAGFs shall specify the period of use thereof, or if no period is specified, it
shall be deemed to be until the fulfilment of the purpose for which the SAGF was
authorized, All interests earned by SAGFs shall accrue to the General Fund. The
balance of SAGFs upon their termination shall form part of the General Fund.

All earmarked revenues with significant inflows, a large portion of which are
not or not expected to be programmed for disbursement during the Fiscal Year,
shall be treated as Trust Funds and recorded as trust receipts. Proceeds from these
Trust Funds shall be recognized only as revenue inflow in the General Fund when
programmed to be spent for the year.

The Permanent Committee created under Executive Order (EO) No. 292, s.
1987, composed of the Secretary of Finance as Chairperson, the Secretary of
Budget and Management and the Chairperson of the COA as members, shall
identify SAGFs that shall be converted into Trust Funds. The recognition of
revenue inflows from these SAGFs converted into Trust Funds shall be governed
by the guidelines to be issued by the Permanent Committee. In all cases, the
authorized uses or purposes shall continue to be those specified in the law creating
the SAGFs.

Sec. 30. Special Funds. —In exceptional cases when an SAGF is not suitable for
the operations of a fund, Special Funds shall be authorized by law and limited to
the following:

(a) Trust Fund ~ constituted from identified revenue sources and other receipts
by NGAs or Public Officials or Employees acting as trustees, agents, or
administrators for the fulfilment of commitments or accomplishment of
specified purposes. Trust Funds shall be deposited in the TSA;

(b)Revolving Fund — constituted from receipts derived from business-type
activities of NGAs to be used for the operating requirements of said
business-type activities and are considered self-perpetuating and self-
liquidating. Revolving Funds shall be deposited in the TSA or in an
Authorized Government Depository Bank (AGDB) upon authority of the
National Treasurer; and

(c) Retained Fund ~ constituted from taxes, fees, charges, penalties, income,
dividends, or interest earings collected, earned or received by NGAs

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which are expressly authorized by law to be retained by NGAs and utilized
for specified purposes. Retained Funds shall be deposited in the TSA or in
an AGDB upon authority of the National Treasurer.

Any interest earned by Special Funds shall accrue to the General Fund unless
otherwise authorized by law.

Sec. 31. Review by the Permanent Committee. — Upon the effectivity of this Act
and every three years thereafter, the Permanent Committee shall review all
existing SAGFs and Special Funds to validate their compliance with the
requirements under Sections 45 and 46 and to determine whether these Funds
should be modified, terminated, or continued. The Permanent Committee shall
recommend for the approval of the President, the modification or termination of
any of the said funds based on any of the following grounds: (i) when there is no
legal basis for its creation;(ii) when its terms have expire when the purpose
for its creation has been attained or no longer exist, (iv) when it is no longer
necessary for the attainment of the purposes for which said Funds were
established; (v) when needed by the General Fund in times of calamities and
emergencies; (vi) when it is used in violation of the rules and regulations issued
by the Committee; or (vii) when they have remained dormant for an unreasonable
length of time.

The Permanent Committee shall issue guidelines for the establishment, review
and evaluation, accounting and reporting, and termination of SAGFs and Special
Funds.

Sec. 32. Escrow Fund. — Escrow Funds are constituted from funds for which the
government’s legal right to use is contingent upon a future event which may or
may not occur. Escrow Funds shall be deposited in the TSA or an AGDB upon
authority of the National Treasurer. Any interest earned by an Escrow Fund shall
accrue to the said Fund. The amounts under escrow, including interest earned
shall form part of the General Fund upon the occurrence of the future contingent
event.

Sec. 33. Waiver, Abatement, Refund and Compromise Agreements. - No public
official shall waive, abate, refund, or enter into a compromise agreement on a tax
liability or the payment of fees or charges except in accordance with law. All
waivers, abatements, refunds or compromise agreements made by an NGA shall
be properly accounted for and reported. Refund of taxes and other revenues shall
be treated as a reduction in current year’s revenue collections for budgeting and
fiscal reporting purposes.


eI aneune

Sec. 34. Grants. - NGAs may accept, upon prior coordination with the DOF and
the Department of Foreign Affairs, grants, in cash or in kind, from domestic or
foreign sources, for purposes relevant to their functions. In the case of grants, in
cash or in kind, from governments of foreign countries, their agencies and
instrumentalities and international or multilateral institutions or organizations,
acceptance thereof shall be subject to the prior clearance and approval by the
President or the President’s authorized representative, based on the
recommendation of the Secretary of Finance and the Secretary of Foreign Affairs.

The provisions of this Section shall not apply to: (1) any grant received by
LGUs or GOCCs, except where the grant is received by them on behalf of the
National Government (NG); or (2) any grant authorized or covered in accordance
with existing law.

Grants received shall be valued, in the case of grants received in kind, and
recognized on the books of the recipient agency of the National Government.

Sec. 35. Treasury Single Account. - The TSA refers to the banking arrangement
managed by the BTr wherein the government transacts all monies collected,
received or paid by NGAs in one bank account or a set of linked bank accounts
and gets a consolidated view of its cash position on at least, a daily basis.

The TSA shall cover remittances, releases or disbursements from the General
Fund, SAGFs, Special Funds, Escrow Funds, Letters of Credit and any other fund
managed by the BTr, except in any of the following instances:

(a) When monies under the General Fund are placed under investments;
(b) When the BTr is required to hold foreign currency accounts; or
(c) When authorized by the Secretary of Finance.

The BTr, in coordination with NGAs authorized by law to undertake revenue
collection and administration, shall make the necessary arrangements with
authorized agent banks (AABs) to facilitate the collection and transfer of said
revenues to the TSA. AABs shall deposit said collections to TSA within the
period and in the manner prescribed by laws, rules and regulations.

Sec. 36. Oversight on Government Bank Accounts. — Notwithstanding any
provision of law to the contrary, the BTr shall undertake any of the following in
case of violation of a provision in this Act and guidelines issued on the
implementation of the TSA:


(a) Transfer balances of bank accounts to the TSA;
(b) Close any bank account; and/or
(©) Revoke the authority to open any bank account.

The government agency which has opened a bank account, as well as the bank
concemed shall promptly disclose information regarding such account to the BTr.

Sec. 37. Treasury Cash Management. - The BTr shall issue orders for the
conduct of cash management including the requirement to provide projections on
the timing of future transactions of NGAs taking into consideration that the
appropriations law is considered the authority of the agencies to contract out and
disburse funds, except for those instances stated in Section 35 of this Act.

Sec. 38. Investments. — The BTr may invest portions of the funds held in the TSA
for such periods as the BTr may deem prudent considering cash management
requirements. Investments are authorized to be made in any of the following:

(a) Bank deposit with any highly reputable bank following a selection criterion
to be issued by the BTr and money market instruments with well
recognized and established financial institution;

(b) Sovereign-issued securities with an investment grade rating; or

(c) Other fixed income securities with an AAA credit rating issued by at least
two (2) reputable international credit rating agencies.

The BTr may appoint a fund manager as an agent of the National Government
to undertake the investment of the funds. Fund Manager refers to person
responsible for implementing a fund's investing strategy and managing its
portfolio trading activities.

Interest earned and other income from investments shall accrue to the General
Fund, unless otherwise provided by law.

Sec. 39. Management of National Government Borrowings. — Borrowings by

the National Government shall be for purposes provided by law including any of
the following:

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(1) Financing budget deficits and liquidity shortfalls;

(2) Refinancing and pre-financing maturing debts;

(3) Undertaking liability and risk management transactions;

(4) Supporting the BSP in maintaining external and monetary stability;
(5) On-lending to an approved entity;

(6) Financing all sums of money paid to fulfil guarantees;

(7) Increasing liquidity and promoting stability of the government
securities market;

(8) Financing developmental activities and projects of the National
Government;

(9) Providing financing to address or remedy the effects or impacts of
natural or human-induced disasters; or

(10) Defraying expenditures covered by appropriations.

Borrowing under this Act should adhere to the Fiscal Responsibility Principles
and measurable fiscal objectives in the Statement of Fiscal Policy.

Sec, 40. Borrowings by Government -Owned or -Controlled Corporations. —
Before the end of each Fiscal Year, the Head of a GOCC shall prepare a
borrowing program for the following Fiscal Year which shall support the COB
and for the medium term. Both borrowing programs shall include a full financial
plan with the details of the loans, refinancing and repayment that the GOCC
intends to take. Said borrowing program, including changes thereon, shall be
subject to the approval of the Head of the NGA overseeing the GOCC, shall be
submitted to DOF for information, and published in the concerned GOCC
website

GOCCs shall seek DOF approval and monetary board concurrence for foreign
borrowings or the latter’s opinion for domestic borrowing activities as provided
in the IRR.

Nothing in this Section shall be construed as creating a government guarantee
on any borrowing, loans or refinancing and repayment that the GOCC intends to
take.

Sec. 41. Local Government Borrowings. - An LGU may borrow funds from
domestic sources in accordance with the Local Government Code of 1991 and
other applicable laws. LGUs may also be allowed to access foreign sources for
major infrastructure projects, through multilateral financial institutions, subject
to the guidelines to be issued by the DOF.

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LGUs shall develop their borrowing programs, as part of their comprehensive
development and annual investment plans, which shall be published in the LGU
website.

Sec. 42. Debt Reporting. — The DOF, through the BTr, shall ensure that the
records include information on the principal, terms of repayment, amounts drawn,
interests, penalties and service charges accrued, principal and interests paid, and
the balance outstanding, and shall make the records available in a timely way to
the President, Congress, and COA and in accordance with the reporting
requirements in this Act.

Each LGU and GOCC shall maintain records and provide reports to the DOF
on loans as required by relevant laws, rules and regulations.

Sec. 43, Debt Audit. — Upon the effectivity of this Act, the COA shall conduct a
debt audit of all loans contracted or guaranteed by the National Government. For
those loans contracted or guaranteed after the passage of this Act, the COA shall
review the said loans five (5) years from the date of consummation or guarantee

Sec. 44, Guarantees. — Guarantee, indemnity or security shall be provided to an
NGA or a GOCC as provided by law, and subject to the annual guarantee ceiling
prescribed in the GAA, and upon such terms and conditions as the Secretary of
Finance may recommend consistent with relevant laws, rules and regulations. The
overall level of guarantee, indemnity or security shall adhere to the Fiscal
Responsibility Principles laid down in this Act and the fiscal objectives in the
Statement of Fiscal Policy.

The DOF shall charge a risk-based fee for any guarantee, indemnity, security,
relending or similar financial accommodation it may extend to a GOCC

In no case shall the National Government be liable for any borrowing by any
agency of the government except for explicit guarantees as provided by law.

Sec. 45. Limitation on the Liability of the National Government for Debts of
Other Entities. — The National Government shall not be liable for any implied
guarantee asserted by any person or entity, but only for explicit guarantees
extended in accordance with existing laws and guarantees in favor of the
Government Service Insurance System, Home Development Mutual Fund,
Philippine Health Insurance Corporation, and the Social Security System in their
respective charters.


Sec. 46. Payments Made for Contingent Liabilities. - Any money paid by the
DOF pursuant to any guarantee, indemnity, or security authorized by law and the
expenses associated with the same shall constitute a debt due the National
Government from the entity for whose benefit the payment on the guarantee,
indemnity, or security was made.

Sec. 47. Information on Contingent Liabilities. - The DOF shall keep a complete
and updated registry of all contingent liabilities of the National Government and
provide the DBM and Congress with a report on contingent liabilities. Subject to
existing laws, rules, and regulations, the DOF shall have the power to compel any
national government agency and instrumentality, including GOCCs, to submit
documents and other pertinent information necessary for the completion of such
registry.

PARTIV
ACCOUNTABILITY AND REPORTING

Sec. 48. Financial Management and Internal Control. ~ The Head of Agency
shall be responsible and accountable for the financial management of the agency
which shall include meeting performance targets, controlling costs, mitigating
adverse risks to agency operations, and ensuring that budgets are managed with
integrity and in compliance with applicable laws. Adequate internal controls shall
be ensured, while an internal audit function shall be maintained, as may be
applicable.

Sec. 49. Integrated Financial Management Information System. ~ There shall
be an integrated financial management information system (IFMIS), which shall
be the single portal of all financial transactions and reports to be used by NGAs,
GOCCs and LGUs to integrate budgeting, cash management and accounting
processes

The IFMIS shall be managed by the National Accounting and Finance
Office under the DBM, which was established under EO No. 292, s. 1987, to take
charge of the maintenance of the data bank of financial information and to provide
the necessary data required by the President, fiscal agencies and international
financial institutions, analyze and evaluate the accounts and overall financial
performance of the government, and supervise the management of the accounts
of government agencies and instrumentalities.

The development and implementation of IFMIS shall be in coordination
with other key oversight agencies, that is, DOF and COA, and in accordance with
EO No. 55, s. 2011, directing the integration and automation of government
financial management systems.

2B


Electronic and digital authorizations within the IFMIS including, but not
limited to, certification on availability of fund as well as general and application
information technology (IT) controls done through, and resulting in, the
implementation of IT systems shall be valid for all legal intents, as well as for
auditing purposes.

Sec. 50. NGA Annual Plans and Proposed Budgets. — The Head of each NGA
shall produce an Annual Plan which shall have a medium term scope, with details
for the following Fiscal Year, and shall include information on the strategic
priorities for the medium-term, both the national and regional level, consistent
with the Philippine Development Plan; performance information; summary
proposed budget including financial forecast assumptions and highlighting
significant capital projects; and other information as required in the IRR, as well
as the Budget Call and other related issuances from the DBM. The Annual Plan
shall be submitted to DBM during the budget preparation process consistent with
the timetable and other guidelines in the Budget Call.

The Annual Plan of a Department shall incorporate the Annual Plans of its
attached NGAs and GOCCs subject to guidelines prescribed in the IRR.

Sec. 51. Submission of Post Fiscal Year Budget Status. The DBM shall submit
to the Speaker of the House of Representatives, the President of the Senate of the
Philippines, the House Committee on Appropriations and the Senate Committee
on Finance a post Fiscal Year budget status report not later than May 31 of the
current year.

Sec. 52. Internal Audit Standards. - The DBM shall formulate and issue the
guidelines and standards for internal audit in the NGAs, GOCCs and LGUs.

PARTV
TRANSPARENCY AND PARTICIPATION

Sec. 53, Shared Fiscal Discipline. -All proposed revenue eroding and
expenditure bills shall include a Financial and Budgetary Information Sheet upon
filing of the bill. The said information sheet shall contain an estimate of the
financial and budgetary implications of said proposal for the initial year of
implementation. Expenditure bills refer to those which increase National
Government expenditures, including those mandating the creation of recurring
expenditures; while revenue eroding bills refer to those which will result in a
reduction of revenue collections.

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Each House of Congress shall provide guidelines prescribing the form, content
of the Financial and Budgetary Information Sheet, as well as the appropriate
offices from which such information shall be acquired, and the implications of
non-compliance with said submission,

Sec. 54. People’s Access to Public Financial Information, — Before the start of
cach Fiscal Year, the DBM shall promulgate a Calendar of Disclosures, and shall
publish this on the government website, Such calendar shall contain the schedule
of release of all budget documents and information required by this Act and its
IRR. The DBM shall monitor and periodically report to Congress and the public
on the compliance of agencies with the Calendar of Disclosures and other fiscal
transparency requirements under this Act and its IRR.

All documents and reports required to be published by this Act and its IRR
shall automatically be made available electronically in the government website.
Current and historical data on government revenues, expenditures, and
borrowings, shall be made available electronically, in open data format, on the
government website, subject to guidelines established in the IRR.

Sec. 55. The People’s Budget. - The DBM shall, for every Fiscal Year, publish
citizen-friendly summaries of the following, subject to guidelines and other
specifications in the IRR:

(a) The Statement of Fiscal Policy in the year of the President’s election and
any updates thereafter within thirty (30) days from submission to Congress;

(b) The Proposed National Budget, to be published in electronic format within
thirty (30) days from submission to Congress of the Proposed National
Budget;

(c) The annual GAA and special appropriations laws, to be published in
electronic format in the government website within thirty (30) days from
its effectivity; and

(d) The Annual Fiscal Report of the preceding fiscal year, to be published in
electronic format in the government website on the last working day of the
current year.

Sec. 56. Participatory Budget Process. - The government shall establish and
implement suitable participatory budget mechanisms to facilitate the open,
inclusive, and meaningful engagement of citizens throughout the budget process.
The DBM and DILG, together with other relevant agencies, shall formulate

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policies and programs, activities, and projects to enhance participation in the
planning, budgeting and accountability processes.

Such participatory mechanisms may include (i) consultations with the Local
Development Councils in the formulation of the national and local government
budgets; and (ii) partnerships with civil society organizations (CSOs), academic
institutions and experts on programs that monitor and help improve agency or
local government preparation, execution, and monitoring of the budget.
Capacity development of CSOs to participate under the principles of constructive
engagement with government may also be conducted.

PART VI
ENFORCEMENT

Sec. 57. Sanctions and Penalties. —

(i) Without prejudice to the provisions of other laws, the following sanctions and
liabilities in case of failure to comply with the reporting and posting requirements
under this Act, shall be imposed:

(a) The DBM shall not approve any request for release of allotments or any
modification in the allotment nor recommend the use of savings by the
President until such time as the non-compliant agency has submitted the
report/s required under this Act;

(b) The COA may suspend or disallow any expenditure due to modification
in the allotment, which were made within the period succeeding the
reporting period when the agency failed to comply with the reporting
requirements under this Act;

(c) Failure of the responsible officer to report on the income and/or funds
retained at the end of a reporting period shall be considered a neglect of
duty, subject to the penalty provided under existing laws; and

(d)The Congress may motu proprio, through its appropriate oversight
committee compel the head of the non-compliant agency, under pain of
contempt, to produce the required report/s and to explain reasons for
failure to submit and disclose said report/s.

(ii) Without prejudice to the provisions of other laws:

(a) Every contractual commitment, expenditure or payment authorized or
incurred in violation of the provisions of this Act shall be void and shall
render the Public Official or Employee authorizing or making such
payment and every person in collusion with said official or employee
shall jointly and severally be held liable to the government for the full

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amount so paid or received. The Public Official or Employee who
knowingly delays the implementation of any contractual agreement
shall be liable and imposed the appropriate administrative sanctions
based on existing laws and civil service rules. A Public Official or
Employee who knowingly incurs any contractual commitment or
authorizes any expenditure in violation of the provisions of this Act or
takes part therein shall likewise be removed or dismissed from office,
after due notice and hearing, even if no criminal charge is instituted
against such Public Official or Employee;

(b) Any Public Official or Employee, holding office or employment in a

casual, temporary, holdover, permanent or regular capacity, who shall
cause the inclusion of fraudulent information in any accountability
report, shall be penalized with imprisonment not exceeding five (5)
years, or a fine not exceeding One Million Pesos (P1,000,000.00), or
both, without prejudice to disallowances by the COA against
expenditures related to such fraudulent information, provided, that this
fine is reviewed and adjusted periodically to be reasonable;

(c) A conviction under this Act shall carry with it civil liability, which may

either consist of restitution for the damage done or forfeiture in favor
of the government of any unwarranted benefit derived from the act or
acts in question, or both, at the discretion of the courts, in addition to
possible administrative liability; and

(d)Private individuals who shall conspire with the erring Public Officials

or Employees, whether as co-principals, accomplices or accessories, in
the commission of any violation of this Act shall be subject to the same
penalties as the Public Officials or Employees and shall be tried jointly
with them.

PART VII
FINAL PROVISIONS

Sec. 58, Implementing Rules and Regulations. - The DBM, in consultation with
the DOF, BTr, NEDA and COA, and in coordination with agencies concerned,
shall issue the rules and regulations necessary for the proper implementation of
this Act within ninety (90) days from the effectivity of this Act. The IRR may be
amended by the DBM, in consultation with the DOF, BTr, NEDA and COA and
in coordination with the agencies concerned, as the need arises.

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Sec. 59. Repealing Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, proclamation, charter, rule or
regulation and/or parts thereof contrary to or inconsistent with the provisions of
this Act is hereby repealed, modified or amended accordingly.

See. 60. Separability Clause. - If for any reason, any section or provision of this
Act is declared unconstitutional or invalid, other sections or provisions which are
not affected thereby shall continue to be in full force and effect.

Sec. 61. Effectivity Clause.—This Act shall take effect fifteen (15) days following
its publication in the Official Gazette or in two (2) newspapers of general
circulation.

Approved,