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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF,THE PHILIPPINES 
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(1. 
First Regular Sessiod 
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S E N A T E  
S.B. NO. 
875 
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Introduced by SENATOR EDGARDO J. ANGARA 
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FXPLANATORY NOTE 
The national interest 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 the country. 
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 require national 
budget support either in the form of direct outlays, subsidies or guarantees. 
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. 
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 in 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 the 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. 
Further, the bill also requires these GOCC’s to submit to Congress 
separate and yearly financial performance reports vis-$-vis their approved 
budgets, as well as status reports on obligations they have entered into which 
are backed by government guarantees. Approval of this bill, therefore, is 
earnestlv sought. 
2+ /A 
EDGARDO J. ANGARA 
Senator 


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FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
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7 JUL -3 1’5 2. i: 
First Regular Session 
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Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT REQUIRING THE SUBMISSION TO CONGRESS OF 
CONTROLLED CORPORATIONS, THEIR SUBSIDIARIES AND 
AFFILIATES, AMENDING FOR THE PURPOSE, SECTION 13 OF PD 
1177, QTHERWISE 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. 1177, otherwise 
known as the “Budget Reform Decree of 1977” is hereby amended to read 
as follows: 
SEC. 13. Submission of the Budget. - The President 
shall, in accordance with section [sixteen] TWENTY - FIVE (I), 
Article PI11 VI of the Constitution, 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, 
The President shall include in his I HER budget 
submissian the proposed expenditure level of the Legislative and 
Judicial Branches and of Constitutional bodies, which shall have 
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undergone the same process of evaluation and which shall have 
been subject to the same budgetary policies and standards 
applicable to agencies in the Executive Branch. 
THE 
PRESIDENT 
SHALL 
ALSO 
SUBMIT 
TO 
CONGRESS THE PROPOSED CORPORATE OPERATING 
BUDGETS 
OF 
ALL 
GOVERNMENT 
-OWNED 
OR 
CONTROLLED 
CORPORATIONS, 
INCLUDING 
THEIR 
SUBSIDIARIES AND AFFILIATES, 
WHICH 
REQUIRE 
NATIONAL BUDGETARY SUPPORT IN ACCORDANCE 
WITH SUCH FORMAT, RULES AND REGULATIONS 
PRESCRIBED BY THE DEPARWENT OF BUDGET AND 
MANAGEMENT (DBM). 
The President may transmit to [the National Assembly] 
CONGRESS, from time to time, such proposed supplemental or 
deficiency appropriations, as are, in his judgment, (a) necessary 
on account of laws enacted after the transmission of the Budget, 
or @) otherwise needed in the public interest. 
SECTION 2. Section 22 of the same Decree is likewise amended to 
read as follows: 
“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 aed 
format as may be approved by the President: Provided, That 
such budget SHALL BE SUBMITTED TO CONGRESS AND 
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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) capita1 or equity inputs, (b) operating 
contributions to support specific activities undertaken by the 
institution as part of its regular functions, abd (e) guarantee of 
the national government for obligations or contracts ehtered into 
by the corporations; Provided, Further, That the submission of 
interim financial statements may be required by the 
[Commissioner] SECRETARY OF THE DEPARTMENT OF 
BUDGET AND MANAGEMENT” 
SECTION 3. All government -owned or controlled corporations, 
including their subsidiaries and affiliates, shall also submit to Congress 
separate annual reports bf financial performance as compared with their 
approved budgets, explaining performance in terms of work and financial 
results. Reports pertaining to a given fiscal year shall be submitted on or 
before June 30 of the following year, through the Department of Budget and 
Management (DBM), together with comparative data for the preceding year 
and the approved budget for the current year. 
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 @OF) 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. The Department of Budget and Management (DBM) 
shall promulgate the necessary rules and regulations for the effective 
implementation of this Act. 
SECTION 6. Separability Clause. - If any provision of this Act or an 
application thereof to any person or circumstance is held to be invalid, the other 
provisions of this Act, and the application of such provision to other persons or 
circumstances, shall not be affected thereby. 
SECTION 7. Repealing Clause. All existing laws, orders, rules and 
regulations or parts thereof deemed inconsistent with the provisiods of this 
Act are hereby repealed or modified accordingly. 
SECTION 8. Effectivity. This Act shall take effect fifteen (15) days 
following the hate of its full publication in the Official Gazette or in at least 
two (2) newspapers of general circulation. 
Approved, 
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