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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _____ 
-------------------------------------------------------------------------------------------------------- 
Introduced by  
ACT Teachers Party-List Rep. FRANCE L. CASTRO,  
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,  
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL 
-------------------------------------------------------------------------------------------------------- 
THE CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT 
EXPLANATORY NOTE 
This Bill aims to strengthen the “Congressional power of the purse” as enshrined 
in the 1987 Constitution in light of current developments wherein massive corruption 
involving billions of public funds happen right under our noses.  The public is outraged 
by the news of the public coffers being used by individuals for their own personal 
benefit, depriving the masses of the people of basic services they desperately need. 
Billions of the taxpayers’ money supposedly for infrastructure or procurement of 
critical essentials like PPE are siphoned off, embezzled by the likes of Napoles, 
Pharmally, and their accomplices sitting in office. 
Article VI, Section 25 (5) of the 1987 Constitution states that “No law shall be 
passed authorizing any transfer of appropriations.”  Further, Article VI, Section 24 of 
the 1987 Constitution also states that “All appropriation, revenue or tariff bills, bills 
authorizing increase of the public debt, bills of local application, and private bills, shall 
originate exclusively in the House of Representatives, but the Senate may propose or 
concur with amendments.” 
Despite the provisions of the Constitution granting powers to the Congress to 
control the appropriation of public funds, the President still wields considerable control 
over public spending through the exercise of budget impoundment.  The President and 
the Department of Budget and Management are able to circumvent General 
Appropriations Acts by impounding the release of public funds in the middle of a fiscal 
year, trampling upon the Congressional power over the purse.  As a result, billions of 
July 21, 2022
8:59 am
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pesos in public funds are being spent on items not appropriated by Congress, in violation 
of the provisions of the Constitution.  
 
This Bill, originally filed by the Makabayan bloc headed by Bayan Muna Reps. 
Neri J. Colmenares and Carlos Isagani T. Zarate during the 16th Congress, was refiled 
by Makabayan during the 17th and 18th Congress, to protect the public fund from 
unbridled and arbitrary realignment of funds for activities that are not authorized by 
Congress.  
 
In this light, the passage of this Bill is earnestly sought. 
 
 
 
________________________________ 
Rep. FRANCE L. CASTRO 
ACT Teachers Party-List 
 
 
 
 
________________________________ 
Rep. ARLENE D. BROSAS 
GABRIELA Women’s Party 
 
 
________________________________ 
Rep. RAOUL DANNIEL A. MANUEL 
KABATAAN Party-List 
 
 
 
 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _____ 
-------------------------------------------------------------------------------------------------------- 
Introduced by  
ACT Teachers Party-List Rep. FRANCE L. CASTRO,  
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,  
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL 
-------------------------------------------------------------------------------------------------------- 
THE CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. - This Act shall be known as “The Congressional Budget and 
Impoundment Control Act.”  
SEC. 2. Declaration of Policy. - It is the policy of the State to formulate and implement 
a National Budget that is truly an instrument of national development.  The National 
Budget, as approved and enacted by Congress through the General Appropriations Act, 
should be faithfully executed to the letter.  No amount of money coming from public 
funds should be spent on activities that are not authorized by Congress. 
Towards this end, all appropriations, except those which shall be deferred, 
rescinded,  reserved, or otherwise withheld in the General Appropriations Act, shall be 
released within the first semester of the year through the issuance of advices of 
allotment in accordance with approved work and financial  plans, and shall be utilized 
according to the purposes provided in the General Appropriations Act.  Any deferral, 
rescission or reservation of appropriations in the General Appropriations Act shall be 
in accordance with this Act.  
SEC. 3.  Essential Budgetary Principles. - The Congress declares that it is essential. - 
1) to assure effective congressional control over the budgetary process;
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2) to provide for the congressional determination each year of the appropriate level 
of national revenues and expenditures;  
 
3) to provide a system of impoundment control;  
 
4) to establish national budget priorities; and  
 
5) that Congress be provided by the executive branch with full and detailed 
information for Congress to effectively discharge its duties. 
 
SEC. 4. Definition of Terms. - For purposes of this Act:  
 
a) Lump sum - means funds allocated without being broken down into detailed 
purpose, program, activity or project. 
 
b) Rescission - means cancellation of all or part of an enacted appropriation, which 
has not yet been spent or obligated.  
 
c) Reserve - means the amount set aside from a particular appropriation to provide 
for contingencies and emergencies which may arise later in the calendar year. 
 
d) Reservation - means imposition of reserves on appropriated amounts for 
government expenditures.  
 
e) Deferral of releases - means withholding or delaying the release of appropriated 
amounts provided for projects or activities.  
 
f) Impoundment resolution - means a joint resolution of both Houses of Congress 
expressing its approval of a rescission, reservation or deferral of an appropriation 
or several appropriation items as proposed by the President.  
 
g) Advice of allotment - the formal document issued by the Department of Budget 
and Management, which contains authorizations, conditions, and amount of 
obligations that an agency can incur pursuant to a legislative appropriation. 
 
h) Unobligated allotment - means the portion of allotment that has not yet been 
incurred or paid by the department, agency or any instrumentality of the 
government upon which the allotment was issued. 
 
i) Work-and-financial plan - means the monthly breakdown of financial 
requirements and physical performance targets of an agency.  
 
j) Appropriations - unless  otherwise  described or specified  herein,  the  term 
appropriations  refers to  the  appropriations  included  in  the  annual  General 
Appropriations Act and as defined in the Administrative Code of 1987.  
 


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k) Unreleased appropriation - means the portion of appropriation that has not yet 
been made available for allotment to the department, agency or instrumentality 
of Government upon which an appropriation was authorized by Congress. 
 
SEC. 5. Submission of the Proposed National Budget by the President to Congress. - 
Whenever the President submits to Congress the proposed National Budget, it must 
include a detailed enumeration of items for appropriation including but not limited to 
the, special purpose funds, unprogrammed funds, the automatic appropriations and 
debt-service payments.  
 
SEC. 6. Lump Sum Appropriations. - No lump sum amounts, the disbursement of 
which is under the discretion of the President or head of any agency or department of 
the government, that does not contain specific items enumerated for allocation shall be 
included in any annual General Appropriations Act.  Each item in the proposed budget 
shall contain the detailed purpose for which funds will be appropriated. 
 
Lump sum amounts for Calamity Funds shall be appropriated by Congress: 
Provided, That expenditures for this particular appropriation shall require a report by 
the recipient agency/department to the House of Representatives and the Senate, in the 
event of its disbursement.  Lump sum appropriation to cover for contingencies may be 
authorized by Congress: Provided, That the amount to be set aside for contingency 
funds shall not exceed one percent (1%) of the total appropriations for a fiscal year.  
 
SEC. 7. Automatic and Debt-Servicing Appropriations. - Provisions for automatic 
appropriations and debt-service amortizations shall indicate the institutions, banks or 
lending corporations from where the loans are obtained and the principal amounts and 
interests obligated for each loan.  
 
SEC. 8. Rescission and Reservation of a Budget Appropriation. - Whenever the 
President, upon the recommendation of the Secretary of the Department of Budget and 
Management, determines that all or part of any budget appropriation will not be required 
to carry out the full objectives or scope of programs for which it is provided, or that 
such budget appropriation should be rescinded for fiscal policy or other reasons, 
including the termination of authorized projects or activities, or whenever all or part of 
any budget appropriation for the current fiscal year is to be reserved from obligation for 
such fiscal year, the President shall transmit to both Houses of Congress a special 
message specifying:  
 
1. The amount of budget appropriation which he proposes to be rescinded or which 
is to be so reserved;  
 
2. Any account, department, agency or instrumentality of the government to which 
such budget appropriation is available for obligation, and the specific projects or 
governmental functions involved;  
 


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3. The reasons why the budget appropriations should be rescinded or is to be so 
reserved;  
 
4. The estimated fiscal, economic and budgetary effect of the proposed rescission 
or reservation; and  
 
5. All facts, circumstances and considerations relating to or bearing upon the 
proposed rescission or reservation, and the estimated effect of the proposed 
rescission or reservation upon the purposes, programs, activities and projects for 
which such appropriation is provided.  
 
SEC. 9. Approval of Rescission or Reservation. - Both Houses of Congress shall act 
on the proposed rescission or reservation within sixty (60) calendar days after the  
receipt of such  proposal from the President by issuing a joint impoundment resolution 
approved in Plenary: Provided, That if the President’s special message is received 
within a period of less than sixty (60) calendar days before the end of a 
regular  session,  the  President's  message shall be deemed to  have  been submitted on 
the first day of the succeeding regular session of Congress and the sixty (60) day period 
referred to in this Section shall commence on the first day of such succeeding regular 
session.  If Congress does not issue an impoundment resolution within the specified 
period, the President shall not proceed with the rescission or reservation procedures.: 
Provided, however, that in the event of a Congressional approval to rescind, the funds 
corresponding to the rescinded appropriations shall revert to the General Fund and shall 
not be made available for expenditure for any purpose except as provided for by a 
subsequent legislative enactment.  
 
SEC. 10. Use of Reserves. - When changes in conditions during the year justify, as 
determined by Congress, the use of the reserved appropriations imposed under this Act 
or under the General Appropriations Act the amount involved shall be allocated back 
for the use by, and upon the request of the Department, office or agency on whose 
appropriation the reserve was originally imposed.  
 
SEC. 11. Deferral of Releases. - 
 
a) Whenever the President, the Secretary of Budget and Management, the head of any 
department, agency or instrumentality of the Government proposes to defer the release 
of any appropriation for a specific purpose, program, activity, or project, the President 
shall transmit to the House of Representatives and the Senate a special message 
specifying:  
 
(1) The amount of the appropriation proposed to be deferred;  
 
(2) Any account, department, agency or instrumentality of the Government to which 
such appropriation is available for obligation, and the specific projects or 
governmental functions involved;  
 


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(3) The period of time during which the appropriation is proposed to be deferred;  
 
(4) The reasons for the proposed deferral, including any legal authority invoked by 
him to justify the proposed deferral;  
 
(5) The estimated fiscal, economic, and budgetary effects of the proposed deferral;  
 
(6) All facts, circumstances and considerations relating to or bearing upon the 
proposed deferral and the decision to effect the proposed deferral, including an 
analysis of such facts, circumstances and considerations in terms of their 
application  to  any  legal  authority  and specific elements  of  legal  authority 
invoked by him to justify  such proposed deferral, and the estimated effect of the 
proposed deferral upon the objects, purposes, program, activities  and projects 
for which such appropriation is provided. 
 
b) A deferral for any period of time extending beyond the end of the fiscal year shall 
not be proposed.  
 
SEC. 12. Approval of Release Deferral. - Both Houses of Congress shall act on the 
proposed deferral within sixty (60) calendar days after the receipt of the proposal from 
the President: Provided, That if the President’s special message is received within a 
period of less than sixty (60) calendar days before the end of a regular  session, 
the President’s message shall be deemed to  have  been submitted on the first day of the 
succeeding regular session of Congress and the sixty (60) day period referred to in this 
Section shall commence on the first day of such succeeding regular session.  If Congress 
does not issue an impoundment resolution within the specified period, the President 
shall not proceed with the deferral procedures.  
 
SEC. 13. Submission of Quarterly Reports. - Within thirty (30) days after the end of 
each quarter, the Secretary of the Department of Budget and Management shall submit 
to the Committee on Appropriations of the House of Representatives and the Committee 
on Finance of the Senate, a list of releases made out of reserved and deferred 
appropriations, and comparative statements showing the annual general appropriations, 
the annual program of continuing and automatic appropriations, and the corresponding 
releases of allotments and cash allocations for each department, agency, corporation 
and fund: Provided, That the  releases from each  lump-sum or special purpose funds 
shall be supported with schedules indicating the specific departments/agencies, 
corporations or entities which received the fund releases and the purposes of such 
releases. The quarterly reports shall also include a cumulative summary of all 
appropriations rescinded, deferred or reserved.  
 
SEC. 14. Mode of Transmittal of the Special Message of the President. - The President 
shall transmit to Congress at any time during the budget year but not later than the 
fifteenth day of October of the budget year the special message which may include one 
or more proposals for impoundment, reservation, or deferral on one or more 


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appropriation items through the Committee on Finance of the Senate and the Committee 
on Appropriations of the House of Representatives.  
 
SEC. 15. Withdrawal of Unobligated Allotments. - The President, through the 
recommendation of the Secretary of Budget and Management, may withdraw 
unobligated allotments whenever a program, activity or project from which an allotment 
was made has been discontinued or abandoned with finality.  The withdrawn 
unobligated allotments shall revert to the General Fund and shall not thereafter be made 
available for expenditure except by subsequent legislative enactment. 
 
SEC. 16. Unreleased Appropriation. - All unreleased appropriation and unexpended 
balances of appropriations shall revert to the General Fund and shall not thereafter be 
made available for expenditure except by subsequent legislative enactment or 
authorization. 
 
SEC. 17. Penal Provision. - Any violation of the provisions of this Act shall be 
punished by a fine not exceeding Five Hundred Thousand Pesos (P500,000.00) and the 
penalty of perpetual special disqualification.  
 
SEC. 18. Repealing Clause. - The provisions in the annual General Appropriations Act, 
specifically, but not limited to, the provisions on impoundment, retention or deduction 
of allotment, and lump sum appropriations and all laws, decrees, executive orders, 
letters of instructions, letters  of  implementation, rules and regulations or parts thereof 
inconsistent with the provisions of this Act are hereby repealed, modified, superseded 
or amended accordingly.  
 
SEC. 19. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in at least two (2) national newspapers 
of general circulation, whichever comes earlier.  
 
 
Approved,