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OF THE PHILIPPINES 
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THIRTEENTH CONGRESS OF THE REPUBLIC 
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First Regular Session 
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S E N A T E  
Introduced bv SENATOR EDGARDO 1. ANCARA 
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EXPLANATORY NOTE 
The national inierest calls for the institutionalization of budgetary 
innovations. It is a declared policy of the State that the budgets of all components of 
the government shall be reflective of national objectives, strategies and plans. It 
must likewise be supportive of and consistent with the socio-economic 
development plans of th4 country. 
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In pursuit thereof, the budgets of government-owned and controlled 
corporations (GOCCs) shall be supportive and consistent with the budgets of all 
departments, bureaus, offices and agencies of the national government., brought 
also by the fact that all  government corporations rqquire national budget support 
either in the form of direct outlays, subsidies or guarantees. 
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Under current practice, however, the budgets of GOCC's, including those of 
their subsidiaries and affiliated companies, are not submitted to Congress as a matter 
of course. 
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Taking to mind the volume and capacity of public resources and activities 
undertaken by government corporations, it is urgent, nay imperative, that a formal 
mechanism be institutionalized in the review and analysis of the budgets of these 
GOCCs to ensure that the same are consistent with the national development plan 
and also to assure transparency in the operations of said corporations. 
With this end ih view, Section 13 of Presidential Decree No. 1177, 
otherwise known as the :Budget Reform Decree of 1977," is amended to the effect 
that in addition to the1 annual budget of the national government which the 
President is required to submit to Congress (the basis for the enactment of a General 
Appropriations Act), it Shall also include in its budget submission the proposed 
corporate operating budgets of government - owned or controlled corporations, 
their subsidiaries and affiliated companies, which require national government 
budgetary support. 
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Further, the bill also requires these GOCC's to submit to Congress separate 
and yearly financial performance reports vis-his their approved budgets, as well as 
status reports on obligations they have entered into which are backed by 
government guarantees. 
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Approval of this bill, therefore, is earnestly sought. 
Senator 


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THIRTEENTH CONGRESS OF THE REPUBLIC 
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First Regular Session 
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,*7, 
OF THE PHILIPPINES 
SENATE 
S.B. No. 
19 3 0 
Introduced by SENATOR EDGARDO J. ANCARA 
AN ACT REQUIRING THE SUBMISSION TO CONGRESS OF 
CONTROLLED CORPORATIONS, THEIR SUBSIDIARIES AND AFFILIATES, 
AMENDING FOR THE PURPOSE, SECTION 13 OF PD 1177, 
OTHERWISE KNOWN AS THE "BUDGETARY REFORM ACT OF 1977." 
THE CORPORATE BUDGET OF ALL GOVERNMENT - OWNED OR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 13 of Presidential Decree No. 11 77, otherwise known 
as the "Budget Reform Decree of 7977" is hereby amended to read as follows: 
SEC. 13. Submission of the Budget. - The President shall, in 
accordance with qection [sixteen] TWENTY - FIVE (I), Article [VII] VI 
of the Constituticjn, submit within thirty days from the opening of 
each regular session of [the National Assembly] CONGRESS as the 
basis for the preparation of the General Appropriations Act, a national 
government budget of estimated receipts based on existing and 
proposed revenue, measures, and of estimated expenditures. 
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The President shall include in his 
budget submission the 
proposed expenditure level of the Legislative and Judicial Branches 
and of Constitutional bodies, which shall have undergone the same 
process of evaluation and which shall have been subject to the same 
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budgetary policies and standards applicable to agencies in the 
Executive Branch.: 
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THE PRESIDENT SHALL ALSO SUBMIT TO CONGRESS THE 
PROPOSED CORPORATE OPERATING 
BUDGETS OF ALL 
GOVERNMENT -OWNED OR CONTROLLED CORPORATIONS, 
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INCLUDING THEIR SUBSIDIARIES AND AFFILIATES, 
WHICH 
REQUIRE NATl0,NAL BUDGETARY SUPPORT IN ACCORDANCE 
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WITH SUCH FObMAT, RULES AND REGULATIONS PRESCRIBED 
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BY THE DEPARTGENT 
OF BUDGET AND MANAGEMENT (DBM). 
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The President may transmit to [the National Assembly] 
CONGRESS, from time to time, such proposed supplemental or 
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deficiency appropriations, as are, in his judgment, (a) necessary on 
account of laws enacted after the transmission of the Budget, or (b) 
otherwise needed, in the public interest. 
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SECTION 2. Section 22 of the same Decree is likewise amended to read as 
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follows: 
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“SEC. 22. !Budgetary Requirements of Government - Owned 
or Controlled Corporations. The internal operating budgets of 
government -owned or controlled corporations and of chartered 
institutions shall be approved by their respective governing boards in 
accordance with ‘a budget calendar and format as may be approved 
by the President: ;Provided, That such budget SHALL BE SUBMITTED 
TO CONGRESS AND shall be subject to review and approval as part 
of the budget process in cases where national government budgetary 
support is needed, in terms of (a) capital or equity inputs, (b) operating 
contributions to; support specific activities undertaken by the 
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institution as pat? of its regular functions, and (c) guarantee of the 
national government for obligations or contracts entered into by the 
corporations; Pro'vided, Further, That the submission of interim 
financial statements may be required by the [Commissioner] 
SECRETARY 
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DEPARTMENT 
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BUDGET 
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MANAGEMENT."! 
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SECTION 3. All government -owned or controlled corporations, including 
their subsidiaries and affiliates, shall also submit to Congress separate annual reports 
of financial performance as compared with their approved budgets, explaining 
performance in terms 04 work and financial results. Reports pertaining to a given 
fiscal year shall be subm(tted on or before June 30 of the following year, through the 
Department of Budget a i d  Management (DBM), together with comparative data for 
the preceding year and tbe approved budget for the current year. 
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SECTION 4. In addition to the reports required to be submitted under the 
preceding section, all (government - owned or controlled corporations, their 
subsidiaries and affiliates, shall periodically report to Congress, through the 
Department of Finance ((DOF) and the Department of Budget and Management 
(DBM), on the status of obligations and contracts which they have entered into and 
which are backed by government guarantees. 
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SECTION 5. T h i  Department of Budget and Management (DBM) shall 
promulgate the necessaty rules and regulations for the effective implementation of 
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this Act. 
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SECTION 6. SeLarability Clause. - If any provision of this Act or an 
application thereof to any person or circumstance is held to be invalid, 
the other 
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provisions of this Act, and the application of such 
circumstances, shall not be affected thereby. 
provision to other persons or 
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SECTION 7. Repealing Clause. All existing laws, orders, rules and 
regulations or parts thereof deemed inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly. 
SECTION 8. Effectivity. This Act shall take effect fifteen (15) days following 
the date of its full publication in the Official Gazette or in at least two (2) 
newspapers of general circulation. 
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Approved,