ECEIVE

SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES ) O4 NAR 20
First Regular Session )

HOUSE OF REPRESENTATIVES

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Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriquez, Jr.

4065

House Bill No.

EXPLANATORY NOTE

During Martial Law when the incumbent President continued to issue presidential
decrees with the force and effect of law by virtue of Amendment No. 6, Presidential Decree
1177 entitled Revising the Budget Process in Order to Institutionalize the Budgetary
Innovations of the New Society was issued.

This decree provided for automatic appropriation under Sec 31 which provides: for
“All expenditures for (a) personnel retirement premiums, government service insurance, and
other similar fixed expenditures, (b) principal and interest on public dept, (c) national
government guarantees of obligations which are drawn upon, are automatically
appropriated: provided that no obligations shall incurred or payment made from funds thus
automatically appropriated except in the form of regular budgetary allotments.

This decree also provide under Sec. 43 that the all powerful President and martial
law administrator can suspend, impound and stop any expenditures or appropriation
authorized by the General Appropriation Act

This decree further authorized under Sec. 44 the President to prevail over the
Batasang Pambansa by authorizing him to transfer any fund as approved by the Batasan
from any department, bureau or office to another department, bureau of office.

These sections are vestiges of a martial law regime and has no place in a democracy
where the rule of law and the principle of three co-equal branches of government prevail
These sections have rendered the so-called power of the purse lodged with Congress inutile
and illusory.

It is therefore long overdue that we give to Congress what rightfully belong to it by
our Constitution. The Executive after all has that veto power to object to any particular item
of the budget, subject of course to the power of Congress with two thirds vote override such
veto.

Early approval of this bill is hereby urged to restore constitutional balance between
the Executive and the legislative,

RUFUS B. RODRIGYEZ

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MAXIMC’B. Liz EZ, JR.



SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 4065,

AN ACT
DELETING SECTIONS 31, 43 AND 44 OF PRESIDENTIAL DECREE NO. 1177 ENTITLED
“REVISING THE BUDGET PROCESS IN ORDER TO INSTITUTIONALIZE THE
BUDGETARY INNOVATIONS OF THE NEW SOCIETY”

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

Sec. 1. Declaration of Policy. - It is hereby declared the policy of the Sate that the Congress
of the Philippines shall the power to approve all appropriations for the operation of the
Government subject to limitations provided for by the Constitution and the once approved by
Congress, subject of the veto power of the President for by the Consfitution, all other items
not objected to by the President or where the Presidents veto is over ruled by Congress,
shall not be suspended, impounded or stopped by the President nor can any fund
appropriated be transferred to any program, project or activity of any other department,
bureau or office.

Sec. 2. Section 31 (Automatic Appropriations), Section 43 (Suspension of Expenditures of
Appropriations) and Section 44 (Authority to Approve Fund Transfers) of Presidential Decree
No. 1177 are hereby deleted and repealed.

Sec. 3, All other laws, decrees, proclamations, executive orders, memorandum-circulars and
rules regulations or parts thereof which are in consistent with the provisions of this Act are
hereby repealed and/or modified accordingly

Sec. 4. This Act shall take effective fifteen days from its publication in two newspapers of
general circulation

Approved,