Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress

Introduced by AKBAYAN Representatives
Ibarra “Barry”M. Gutierrez III and Walden F. Bello

EXPLANATORY NOTE

‘The budget process as provided in Book VI of Executive Order No. 292, or “The Revised
Administrative Code of 1987,” is the primary implementing law on the powers and limitations of
both the executive and legislative branches in the preparation, authorization and implementation
of a general appropriations law.

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Unfornunately, the Revised Administrative Code borrows heavily fom Presidential Decree No. 1177,
or the “Budget Reform Decree of 1977,” which was enacted during an era when the power of the
executive was extremely dominant over the independence and prerogative of the legislative
branch of the Government. Moreover, the Revised Administrative Code of 1987, which was issued
before the enactment of the 1987 Philippine Constitution, further limited the role of the

legislature in the budget process.

‘This bill is an updated version of House Bill No. 3074 introduced by AKBAYAN,

Representatives Kaka J. Bag-ao and Walden F. Bello in the Fifteenth Congress. It proposes to
amend and/or repeal certain provisions of Book VI of the Refied Administrative Code which
reflect the Martial Law predisposition to favor the executive at the expense of the legislative in
the exercise of powers to determine the budget process. It seeks to reflect the spirit and noble
intent of the Constitution to remove all vestiges of unmitigated executive might and restore
balance among the three branches of Government by reverting Congress as a viable, reliable and

independent institution.


Specifically, this legislation intends to achieve the following reforms in budget execution:

* Ensure that the executive branch of the Goverment implements the budget as specified in
the General Appropriations Act, making the execution of the budget as approved by
Congress mandatory and making it illegal and punishable by law to do otherwise without

Congressional authorization.

* Ensure that permission for budget deferral, rescission or impoundment is secured from
Congress in cases where a fiscal crisis or other contingencies that make it difficult for the
executive to implement the budget as approved in the General Appropriations Act. Where
fiscal difficulties are encountered, the executive will send Congress a special message from
the President requesting: (@) authorization for new revenues or borrowings, if additional
authority to borrow is required, and (b) authorization for the impoundment, rescission or

deferral of low priority budget items.

* Ensure that savings generated from an unexpected reduction in the costs of achieving
Project and program objectives supported by the General Appropriations Act are properly
accounted for and reported to Congress on a quarterly basis. Ensure further that unspent
amounts from lump sum appropriations will be reverted to the general fund, and disbursed

only following fresh Congressional authorization.

* Ensure that in case the budget is re-enacted, it is not treated as a lump sum that can be
disbursed in its entirety without new authorization. The scope for disbursements is only in as
far as there are still unexpended budgets, and that the lump sum amounts in the previous
budgets can be allocated only based on duly authorized implementing rules and regulations,
and other budgets whose expenditure is specifically authorized through other laws.

* Ensure that, in addition to receiving reports about savings generated from completed
projects, programs and activities, Congress shall also be consulted and fully informed by the
executive regarding the implementing rules and regulations and guidelines used by the
departments and agencies in the allocation and disbursement of lump sum budgets. In this
regard, no disbursement of lump sums shall be made until this process of consultation is

deemed to have been completed through a joint resolution by the two Houses of Congress.


Hence, approval of this bill is carnestly sought.

IBARRA nor CaO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Corigress
First Regular Session

3128

House Bill No.

Introduced by AKBAYAN Representatives
Ibarra “Barry” M. Gutierrez III and Walden F. Bello

AN ACT
PRESCRIBING REFORMS IN NATIONAL GOVERNMENT BUDGETING
‘TO CONFORM WITH ARTICLE VI, SECTIONS 24, 25 AND 29 OF THE 1987
CONSTITUTION, AMENDING FOR THIS PURPOSE PERTINENT
PROVISIONS OF BOOK VI OF EXECUTIVE ORDER NO. 292,
OTHERWISE KNOWN AS THE REVISED ADMINISTRATIVE CODE OF
1987, AND FOR OTHER PURPOSES

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

PART I. PRELIMINARY PROVISIONS.

SECTION 1. Title. — ‘This s

all be known as the “Budget Reform Act of 2013.”

SECTION 2. Declaration of Policy—Pursuant to Article VI, Sections 24, 25 and 29(1)
of the 1987 Philippine Constitution itis hereby declared the policy of the State to make the
strict implementation of the annual General Appropriations Act mandatory by
prohibiting any unauthorized suspension, transfer or use of appropriations, other than

that for which these are intended and made.


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SECTION 3. Definition of Terms.—Section 2, Chapter I, Book VI of Executive
Order No. 292, otherwise known as the “Administrative Code of the 1987,” is hereby

amended to

PART II. MAIN PROVISIONS.

as follows:

“Section 2. Definition of Terms.—When used in this Book:

(1) ‘Appropriation’ refers to an authorization made by
law or other enactment, directing payment out of
government funds under specified conditions or for

specified purposes.

Q ‘Allotment refers to an authorization issued by
the Department of Budget to an agency, which allows it
to incur obligations for specified amounts contained in a

legislative appropriation.

@)  ‘Augnen?_is_to_transfer_savings from one
opriation to cover deficits in ia ised
President, Senate President, Speaker of
House, Cl q
Commissions within their respective branches _an
sncies as provided in this Book.

(8) ‘Budget refers to a financial plan required to be
prepared pursuant to Section 16(1), Article VIII of the
Constitution, reflective of national objectives, strategies

and programs.


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©) ‘Current qherating expenditure? refers. to
appropriations for the purchase of goods and services
for current consumption or for benefits expected to

terminate within the fiscal year.

© ‘Capital outlay or ‘capital expenditure? cefers to
appropriations for the purchase of goods and services,
the benefits of which extend beyond the fiscal year and
which add up to the assets of the Government,
including investments in the capital of government-

owned or controlled corporations and their subsidiaries.

1) “Continuing appropriation’ reefers. tan
appropriation available to support obligations for a
specified purpose or project, even when these

obligations are incurred beyond the budget year.

(®) ‘Defic? _means an insufficiency in __the

pletion of
rogram, tor activity, or for
rent ing exper i Sn

arising from s verpricing or other fj
which lave ably foreseen in or:
complete the program, project or activity or fulfil
current _operatin, nditut ns i itlays
within the given appropriation specified in the General
Appropriations Act for said program, project or activity,
current operating expenditures and capital outlays.


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(©) ‘Expected resulf means service, product or benefit
that will acre to public, estimated in terms of

performance measures or targets.

(10) ‘Fiscal year refers to the period beginning with
the first day of January and ending with the thirty-first

day of December of each calendar year.

(11) The ‘Governmen? means the National
Government, including the Executive, the Legislative,
the Judicial Branches, and the Constitutional

Commissions.

(12) ‘Department and quency and ‘department or agency)
include all departments, bureaus, offices, boards,
commissions, courts, tribunals, councils, authorities,
administrations, centers, institutes, state colleges and
universities, and all other establishments and
instrumentalities of the National Government as

defined in the preceding paragraph.

(13) ‘Obligation’ refers to an amount committed to be
paid by the Government for any lawful act made by an
authorized offer for and in behalf of the Government.

(14) ‘Program? refers to the functions and activities
necessary for the performance of a major purpose for

which a government agency is established.


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(15) ‘Pye? means a component of a program
covering a homogenous group of activities that result to

the accomplishment of an identifiable output.

(16) Res fers to the previous year’s
s effect i 1
new General Aj for th n
ided, That for put f di
inexpen
vities, lu ani a
automatically appropri ificall ize:
by other legislation may be disbursed by the executive.
A teen: idget, therefore, is not a lump sum

amount of the entire budget of the previous whose
expenditure and_allocation_is_the province of the

Executive.

(17) ‘Saving? means any _unexpended_portion_or
amount of money for an appropriation as specified in

the General Appropriations Act resulting from.

mpletion of a_ pro, project or ivity or
fulfillment of urpose for which the in
was specified at a cost below the amount appropriated
efor di Jower than ex nditures. This
hall fer to un c from
e President's ¢: f the t to impound under
this k. In_ addi efer

inexpended items in a re-ena et as define:



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(18) ‘Special appropriation’ is_a law other than the
General Appropriations Act appropriating funds for a
Particular program, project, or activity.”

SECTION 4. Budget Preparation —

(@ Section 12, Chapter I, Book VI of Executive Order No. 292, otherwise known as the
“ Administrative Code of the 1987,” is hereby amended to read as follows:

“Section 12. Form and Content of the Budget —The budget

proposal of the President shall include current operating
expenditures and capital outlays. It she may comprise
such funds as may be necessary for the operations of
the programs, projects and activities of the various
departments and agencies. All appropriations and
expenditures for a particular department, office, agency

wernment-owned of —controll tion:

et for

such _ specific fice, agency and/or
ernment-owned or ~controlled corporation having
control over such funds. All expenditures of the various
nts, offices, agencies _and/or_government-

owned or controlled corporations should be uniformly
classifi i

all_project revenue and proposed expenditure items
must show the current year’s corresponding revenue
and expenditure together with the last three (3) years’
corresponding actual revenue and expenditure. Fhe
prope Geer ented hee
Aptesptnete ee et bed


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The budget shall be presented to the Congress in such
form and content as may-be approved by the President
prescribed in this Section and say shall include the

following:

(1) A. budget message setting forth in brief the
government's budgetary thrusts for the budget year,
including their impact on development goals, monetary
and fiscal objectives, and generally on the implications

of the revenue, expenditure and debt-proposals; and

2) Summary financial statements setting forth:

(@ Estimated expenditures and _—_ proposed
appropriations necessary for the support of the
Government for the ensuing fiscal year, including those
financed from operating revenues and from domestic
and foreign borrowings, together with a breakdown and
justification of all items in excess of one million pesos

PhP1,000,000.00) as well as_a listing of capital outlays
supported;

(6) Estimated receipts during the ensuing fiscal year

under laws existing at the time the budget is transmitted
and under the revenue proposals, if any, forming part of

the year's financing program, together with a breakdown


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of receipt items and listing of assumptions and the
actual receipt for the last three (3) years;

(© Actual appropriations, expenditures, and

receipts during the last completed fiscal year;

(@ Estimated expenditures and receipts and actual
or proposed appropriations during the fiscal year in

progress, together with a detailed explanation of the
variances, if any, between the estimated and_actual

pt a proj

expenditures for the last three (3) years;

(© Statements of the condition of the National
‘Treasury at the end of the last completed fiscal year, the
estimated condition of the Treasury at the end of the
fiscal year in progress and the estimated condition of the
‘Treasury at the end of the ensuing fiscal year, taking into
account the adoption of financial proposals contained in
the budget and showing, at the same time, the

unencumbered and unobligated cash resources;

() Essential facts regarding the bonded and other
long-term obligations and indebtedness of the
Government, both domestic and foreign, including
identification of recipients of loan proceeds, together
with an explanation of how the loan proceeds were used
and a listing of projects, programs and offices benefited
from such loans; and


1 @ Such other financial statements and data deemed

B necessary or desirable in order to make known in
3 reasonable detail the financial condition of the
4 government.”

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6 () Section 21, Chapter I, Book V1 of Executive Order No. 292, otherwise known as the
7 “Administrative Code of the 1987,” is hereby amended to read as follows:

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9 “Section 21. Appropriations for Personal Services —

10 Appropriations for personal services shall be considered

1 as included in the amount specified for each budgetary

12 program and project of each department, bureau, office

13 or agency, and shall not be itemized. The itemization of

4 personal services shall be prepared by the Secretary for

15 compidention-anchipprovatof-the President as provided

16 in Section 23 hereof. ;Prontded—that Itemization of

17 personal services shall also be prepared for all agencies

18 of the Legislative, Executive and Judicial Branches and

19 the Constitutional bodies, except as may be otherwise

20 approved by the President for positions concerned with

ai national security matters.”

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23 SECTION 5. Budget Authorizatic

24 (@) Section 23, Chapter I, Book VI of Executive Order No. 292, otherwise known as the
eas “Administrative Code of the 1987,” is hereby amended to read as follows:

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2 “Section 23. Content of the General Appropriations Act—The
28 General Appropriations Act shall be presented in the
29 form of budgetary programs and projects for each
30 agency of the government, with the corresponding


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appropriations for each program and project, including,
statutory provisions of specific agency or general
applicability. ‘The General Appropriations Act shall net
contain—any include an itemization of all personal
services, which shall be prepared by the Secretary after
etrictitent nf the Geren ippropntinte et ine
considertionand-approvilof the as_part of the
proposed Budget submitted to _Congress_by the
President.”

“Section 24. Prohibition Against the Increase of
Appropriation —Pre-Congress shaltin-no-ease may_not
increase the appropriations recommended by the
President for the operation oFany-projector-programof
any departments paren agency con otiee of the
Government, over—the—amount—submitted—by—the
President inthis hudgetpropostt as_specified in_the
Sppropriation-for a project or progr, a eorespording
reduction thal he mice wmthetonhapproprastinet ee
ddepaeinents: ches ot agency conectned- ania tected
increase appropriation for the operation of a department,
agency or office with the corresponding adjustment in
the appropriations of another so as not to exceed the
fotal appropriations submitted by the President in_his
budget proposal.”

(b) Section 24, Chapter I, Book VI of Executive Order No. 292, otherwise known as the
“Administrative Code of the 1987,” is hereby amended to read as follows:

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1 © Section 25, Chapter I, Book VI of Executive Order No. 292, otherwise known as the
“ Administrative Code of the 1987,” is hereby amended to read as follows:

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“Section 25. Prohibition —4painet—Enactment of Additional
Special Provisions—Phe Congress shali-net may add
special provisions in the budget earmarking the use of
appropriations for specific programs or activities:
Provided, That this nor-shatHit does not result in the
increase the semoutt—apeetied ne apeentpromtns
beyond—those—proposed of _ the appropriations
recommended by the President for the operation of the

overnment.

“Administrative Code of the 1987,” is hereby amended to read as follows:

“Section 27. Supplemental Appropriations —All appropriation
proposals shall be included and considered in the budget
preparation process. However, after the President shall
have submitted the budget, me supplemental
‘appropriation measures may be passed by Congress
provided these are supportedtrom existing teventie
supplemental or-deficteney-approprations involving the
ttt ote
enacted #accompanied-and supported by new-reventie
sources funds actually available as certified by the
National Treasurer, or to be raised by corresponding

revenue proposal therein.

(@ Section 27, Chapter 1, Book VI of Executive Order No. 292, otherwise known as the

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The _bu d_ the General Appropriations Act may
provide for lump sums in order to support bills for later

action by Congress: Provided That the ‘Treasury

Certification requirement be deemed complied with

in case of bills (@) which are funded from lump sums in

the General Appropriations Act approved by Congress
for the purposes of supporting programs, projects, or

activities which require specific legislative authorization,
whose expendi imates are included in the
b submission of nt pursuant fn
12 of this Book: Provided, further, That Congress will be
consults fore the issuance of it nting rules
isbursement of sum. x finall
‘That a joint resol from Con; iss in,
such consul S the Executi th Con,
have eve I.
amount of M_appropri; r

this Section shall_not, under any circumstance, be

considered an as_saviny iall_automaticall
revert the General Fund at the end of the fisc
at nt this y hi
fn hall be ci red misuse of government fun
illegal itu wi Section: mn
43 of this Book.”

“Section 28. Reversion of Unexpected Balances of Appropriations,
Continuing Appropriations —Unexpended balances of

(© Section 28, Chapter I, Book VI of Executive Order No. 292, otherwise known as the
“Administrative Code of the 1987,” is hereby amended to read as follows:

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appropriations authorized in the General Appropriations
‘Act shall revert to the unappropriated surplus of the
General Fund at the end of the fiscal year and shall not
thereafter be available for expenditure except by
subsequent legislative enactment: Provided, That
appropriations for capital outlays shall remain valid until
fully spent or reverted: Prosided, firther, That continuing
appropriations for current operating expenditures may be
specifically recommended and approved as such in
support of projects whose effective implementation calls
for multi-year expenditure commitments: Provided, final,
That the President may authorize the use of savings
realized by an agency during a given year to meet non-

recurring expenditures in a subsequent year under

guidelines, conditions and limits to_be prescribed by
Congress in the General Appropriations Act and sub

to its review and disallowance if the use of savings does

not conform with said prescribed guidelines, conditions
and limits.
ns_for capital hall in_no cas
ed_for nd_curr g

procedures. The balances of continuing appropriations
shall be reviewed as part of the annual budget
preparation process and the President may approve upon
recommendation of the Secretary, the reversion of funds
no longer needed in connection with the activities

funded by said continuing appropriations.”

SECTION 6. Budget Execution —

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1 @) Section 33(6), Chapter 5, Book VI of Executive Order No. 292, otherwise known as

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the “Administrative Code of 1987,” is hereby amended to read as follows:

“Section 33. Allotment of Appropriations —Authorized
appropriations shall be allotted in accordance with the

procedure outlined hereunder:

(© Pursuant to Section 38 of this Book, the Secretary
shall have no authority to modify or amend any
allotment previously issued. In case he shall find at any
time that the probable receipts from taxes or other
sources of any fund will be less than anticipated and that
as a consequence the amount available for the remainder
of the term of the appropriations or for any allotment
period will be less than the amount estimated or allotted
therefor, he shall recommend to with-theapprowatof the
President smebattemnotee te the deppartment-omapeney
eoneemed;—tedtee the reduction of the amount or
amounts allotted as he deems necessary se-ts to conform
to the targeted budgetary goals. The President, in turn,
shall follow the procedure prescribed in Section 38 of
his Book for the approval of requests for authority for
he suspension of expenditures of appropriations.

(©) Section 35, Chapter 5, Book VI of Executive Order No. 292, otherwise known as the
“Administrative Code of 1987,” is hereby amended to read as follows:

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“Seation 35. Special Budgets for Lump Sum Appropriations —
Expenditures from lump sum appropriations for any
purpose or for any department, office or agency in any
annual General Appropriations Act or other Act and
from any fund of the National Government, shall be
made in accordance with a special budget to be approved
by the President, which shall include, but shall not be
limited to, the number of each kind of position, the
designations, and the annual salary proposed for which
an appropriation is intended. ‘This provision shall be
applicable to all revolving funds, receipts which are
automatically made available for expenditure for certain
specific purposes, aids and donations for carrying out
certain activities, and deposits made to cover the cost of
special services to be rendered to private parties. Unless
otherwise expressly provided by law, when any Board,
head of department, chief of bureau or office, or any
other official, is authorized to appropriate, allot,
distribute or spend any lump sum appropriation or
special bond, trust, and other funds, such authority shall

be subject to the provision of this Section.

In any case, of any lump sum appropriation for salaries
and wages of temporary and emergency laborers and
employees, including contractual personnel, provided in
any General Appropriation Act or other Acts, the
expenditure of such appropriation shall be limited to the
employment of persons paid by the month, by the day,

or by the hour.

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In_no case shall savings from lump sum appropriation

under this Section be used pursuant to Section 39 of this
Book or for any other purpose. Any savings from lump

sum appropriations __shall_revert back to _ the

unappropriated surplus of the General Fund at the end
of the fiscal year and shall not thereafter be available for

expenditures except by subsequent legislative enactment

Pursuant to Section 28 of this Book: Provided, That

yngress may authorize the use of savings from lu

uM _appros i uant to Section 39 of th Kk
inder specific guidelin tions limits it shall
rovide inthe General _Appropriatior fur

subject to its review and disallowance if Congress so

finds such f saving from | m_appropriation
¢ in ace swith ii i
conditions and limits.”

“Section 37. Prohibition Against the Creation of Appropriation
Resenes—‘The Secretary may establish reserves against
appropriations to provide for contingencies and
emergencies which may arise later in the calendar year
and which would otherwise require deficiency

appropriations: Provided, Thi established reserves

shall_be subj to special ropriation _ measures,
including a proposal and certification as urgent by the
President to Congress: Provided however, That _ the

establishment of reserves shall_strictly follow the

lidelines set forth on Congressional regulation of th

power of the President to defer, rescind, or reserve

(© Section 37, Chapter 5, Book VI of Executive Order No. 292, otherwise known as the
“Administrative Code of 1987,” is hereby amended to read as follows:

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1 expendimre of appropriations previously authorized by
2 Congress.

3

4 ‘The establishment of appropriation reserves shall not

5 necessarily mean that such portion of the appropriation

6 will not be made available for expenditure. Such

7 conditions change during the fiscal year justifying the use

8 of the reserve, necessary adjustments may be made by

9 the Secretary when requested by the department, official

10 ‘or agency concerned.”

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12 (@) Section 38, Chapter 5, Book VI of Executive Order No. 292, otherwise known as the

13 “Administrative Code of 1987,” is hereby amended to read as follows:

14

15 “Section 38. Suspension of Expenditure of Appropriations —
16 ‘The implemenration of Exeeptas-otherwise-providedtn:
17 the General Appropriations Act is mandatory, and failure
18 fo release allotments for appropriated irems as provided.
19 for in_said_Act shall_constit suse of gov

20 func llegal e3 Te vided in Sec

2 and_43 of this Book and-whatever-inhisjudgment-the
22 pubhostercstsrregiires,

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24 Fund_teleases for appropriations authorized_in

25 General Appropriations Act shall be transmitted intact.
26 ‘The Commission on Audit shall ensure compliance with
2 this_provision to the extent_that_sub-allotment_by
8 departments and/or control agencies to their subordinate
29 offices are in_conformity with allocation in budgetary
30 advice of allotments or treasury warrants issued by the
31 Department of Budget and Management”

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However, except as otherwise provided in the General
Appropriations Act, the President, subject to review and

approval of Congress, may be upon-netieeto-the-headof
office-concemned, is authorized to suspend or otherwise

stop further expenditure of funds allotted for any agency,

or any other expenditure authorized in the General
Appropriations Act, except those for personal services

appropriations used for permanent officials and

employees.
1 ch mit it wal_or deni: rh
President six s_after_its receipt of
President's request for An: he part
within said six riod shall mean

denial_of the request for authority to suspend
expenditure of appropriations.

wision_of law. the_cont vith:
riation: for
mission Offi
mi the Civil Servi sion, th
mmissi dit an ymmissic lection:
in ual jations act shall _be autom:
and regularly released in accor, their

‘work and financial plans.”

(©) Section 39, Chapter 5, Book VI of Executive Order No. 292, otherwise known as the
“Administrative Code of 1987,” is hereby amended to read as follows:

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“Section 39. Authority to Use Savings in Appropriations to Cover
Deficit. Except as otherwise provided in the General
‘Appropriations Act, any savings in the regular
appropriations authorized in the General Appropriations
‘Act for programs and projects of any department, office
or agency, may, with the approval of the President, be
used to cover deficit in any other item of the regular

appropriations: Provided, ‘That the creation of new

positions or increase of salaries shall not be allowed to be
funded from budgetary savings except when specifically

authorized by law: Provided, further, that whenever

authorized positions are transferred from one program
‘or project to another within the same department, office

or agent

. the corresponding amounts appropriated for
personal services are also deemed transferred, without,
however increasing the total outlay for personal services

of the department, office or agency concerned.

Under_no circumstance _shall_savings be used for
rograms, proj nd activities, or anj r
not appropriated for in the General Appropriations Act
t n_29(1) cle_V) 1
Phil ye Ce tution. Any a
constitute misuse _of government funds _and_ ill
expenditures as provided in Sections 80 and 43 of this
Book, including use of savings for _unprogramme
expenditures beyond the limits prescribed in the General
Appropriations Act. In addition, any use of savings for
expenditures _subject_to limitations provided _in_ the
General Appropriations Act shall be reviewed and may
be disallowed by Congress for being made in violation of

said limitations.

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A re-enacted budget shall nor be treated as a lump sum
budget in its entirety. All items in a re-enacted budget, as
defined in this Act shall revert to the General Fund in
accordance with Section 28 of this Book: Prowided, ‘That

the following items may not be reverted to the General

‘und:

(@) Lump sum items whose implementing rules were
drafted in_the previous _year_in consultation with

Congress, as evidenced by _a_joint congressional
resolution stating such;

(b) Appropriations for recurring expenditures;

© E s for budgets deemed automaticall
appropriated under the law; and

(@) Expenditures _for_which separate legislative
authorization exists.

Under_no circumstances shall_other _unexpended
amounts be used for items _and_expenditures_not

appropriated for in the re-enacted budget

“Section 49, Authority to Use Savings for Certain Purposes —
Savings in the appropriations provided in the General
Appropriations Act may be used for the settlement of
the following obligations incurred during a current fiscal

year or previous fiscal years as may be approved by

(Section 49, Chapter 5, Book VI of Executive Order No. 292, otherwise known as the
“Administrative Code of 1987,” is hereby amended to read as follows:

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Secretary in accordance with rules and procedures as may

be approved by the President in accordance with specific
guidelines, conditions and limitations that shall_be

Fes in_the Ger Appropriations Act, and

subject to review and disallowance by Congress if the

same are found to be made in violation of its prescril

guidelines, conditions and limitations:

(1) Claims of officials, employees and laborers who
died or were injured in line of duty, including burial

expenses as authorized under existing law;

2) Commutation of terminal leaves of employees
due to retirement, resignation or separation from the
service through no fault of their own in accordance with
the provisions of existing law, including unpaid claims

for communication of matemity leave or absence;

@) Payment of retirement gratuities or separation
Pay of employees separated from the service due to

government reorganization;

(4) Payment of salaries of employees who have been
suspended or dismissed as a result of administrative or
disciplinary action, or separated from the service through
no fault of their own and who have been subsequently
exonerated and reinstated by virtue of decisions of

competent authority;

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(©) Cash awards to deserving officials and employees

in accordance with civil service law;

(©) Salary adjustments of officials and employees as a
result of classification action under, and implementation
of, the provisions of the Compensation and Position
Classification Act, including positions embraced under

the Career E

ecutive Service;

@ Peso support to any undertaking that may be
entered into by the government with international
organizations, including administrative and other

incidental expenses;

(8) Covering any deficiency in peso counterpart fund

commitments for foreign-

sisted projects, as may be

approved by the President;

(9) Priority activities that will promote the

nomic
well-being of the nation, including food production,
agrarian reform, energy development, disaster relief, and

rehabilitation;

(10) Repair, improvement and renovation of
government buildings and infrastructure and other

capital assets damaged by natural calamities;

(11) Expenses in connection with official participation

in trade fairs, civic parades, celebrations, athletic

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competitions and cultural activities, and payment of
expenses for the celebration of regular or special official

holiday;

(12) Payment of obligations of the government or any
‘of its departments or agencies as a result of final

judgment of the Courts; and

(13) Payment of valid prior year’s obligations of
government agencies with any other government office
or agency, including government-owned or controlled

corporations.”

SECTION 7. Congressional Oversight Committee.—Congress shall create an
Oversight Committee for the implementation and faithful execution of the provisions of
this Act, specifically, fom lump-sum appropriations, as provided in this Act, the use of
unexpended appropriations in a re-enacted budget, the prohibition against retention or
detention of allotments, the automatic release of appropriations to the Lepislative,
Executive, and Judicial Branches, the Constitutional Commissions, the Commission on
Human Rights, and the Office of the Ombudsman, and other specific provisions in this
Act amending Book VI of Executive Order No. 292 or the Rettsed Administrative Code of
1987.

‘The Congressional Oversight Committee shall also implement Sections 28, 35, 38, 39
and 49, Book VI of the Revsed Administrative Code of 1987, as amended in this Act,
providing the exercise of its power to review, approve or disallow executive action on the
use or transfer of appropriations and determine, after legislative inquiry, the commission
of misuse of government funds and illegal expenditures as provided in Sections 80 and
43 of Book VI of the Resised Administrative Code of 1987.

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PART III. FINAL PROVISIONS

SECTION 8. Separability Clawse—If any part, section or provision of this Act is held
invalid or unconstitutional, other provisions not affected thereby shall remain in full

force and effect.

SECTION 9. Repealing Clause—Presidential Decree No. 1177 is hereby expressly

repealed

‘The pertinent provisions of Book VI of Executive Order No. 292 or the Revised
Administrative Code of 1987 ace hereby repealed or amended accordingly. All laws, decrees,
orders, rules and regulations or other issuances inconsistent with the provisions of this

Actare hereby repealed, amended or modified accordingly.

SECTION 10. Effectivity. — This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation.

Approved,

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