1 
 
EIGHTEENTH CONGRESS OF THE  
) 
REPUBLIC OF THE PHILIPPINES  
) 
Second Regular Session 
 
 
) 
 
SENATE 
 
S. No. _____ 
 
____________________________________________________________________ 
 
Introduced by Senator Ralph G. Recto 
____________________________________________________________________ 
 
AN ACT 
EXTENDING THE AVAILABILITY OF THE 2020 APPROPRIATIONS TO 
DECEMBER 31, 2021, AMENDING FOR THE PURPOSE SECTION 60 OF THE 
GENERAL PROVISIONS OF REPUBLIC ACT NO. 11465, THE GENERAL 
APPROPRIATIONS ACT OF FISCAL YEAR 2020 
 
 
EXPLANATORY NOTE 
 
At this time of an economic downturn, where the private sector is struggling to 
contribute to growth and productivity, the government spending, to a large extent, 
becomes a driving force in stimulating the economy. In 2019, the government 
spending made up about 12 percent of the Gross Domestic Product (GDP), providing 
incomes which boost consumer spending that redound to tax revenues for the 
government. 
 
Government expenditures allow the delivery of basic services such as health 
and education as well as support to economic activity and the maintenance of peace 
and security. Government also pays for welfare services and support investments in 
needed infrastructure facilities. 
 
During this COVID-19 pandemic, the country is facing not only a health crisis 
but also has to deal with an economic recession that has resulted in business closure, 
travel restrictions and significant jobs lost. To make matters worse, the country was 
hit by three devastating typhoons in a span of just about two weeks. In this scenario, 
government is relied upon to provide the impetus for healing, recovery and rebuilding. 
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Unfortunately, the government agencies have been grappling with the problem 
of absorptive capacity, which has been aggravated by the COVID-19 lockdowns such 
that by all indication a significant portion of the Fiscal Year (FY) 2020 budget will not 
be obligated or disbursed before the expiration of the validity of appropriation in 
December 31, 2020. 
 
This means that budgets including those under the Bayanihan II law will no 
longer be available for the government’s effort to respond and intervene to the COVID-
19 pandemic and to spur economic recovery. 
 
Hence, this bill seeks to extend the availability of appropriations under the FY 
2020 General Appropriations Act until December 31, 2021. The extension of spending 
authority is also necessary in the proposed extension of the Bayanihan II budgetary 
provisions as contained in the related Senate Bill No. 1909 authored by this 
representation, as the magnitude of the fund source therein comes from the realigned, 
reallocated and reprogrammed FY 2020 appropriations to programs and projects for 
COVID-19 mitigation. 
 
The availability of the FY 2020 appropriations until the end of FY 2021 will 
provide the necessary appropriations cover for programs and projects urgently needed 
to win the battle against the COVID-19 and consequently restore the forward direction 
of the economy. 
 
In view of the foregoing, the immediate approval of this bill is earnestly sought. 
 
 
 
 
 
 
 
 
 
RALPH G. RECTO 
 
EZL 
 


1 
 
EIGHTEENTH CONGRESS OF THE  
) 
REPUBLIC OF THE PHILIPPINES  
) 
Second Regular Session 
 
 
) 
 
SENATE 
 
S. No. _____ 
 
_______________________________________________________________ 
 
Introduced by Senator Ralph G. Recto 
_______________________________________________________________ 
 
AN ACT 
EXTENDING THE AVAILABILITY OF THE 2020 APPROPRIATIONS TO 
DECEMBER 31, 2021, AMENDING FOR THE PURPOSE SECTION 60 OF THE 
GENERAL PROVISIONS OF REPUBLIC ACT NO. 11465, THE GENERAL 
APPROPRIATIONS ACT OF FISCAL YEAR 2020 
  
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
 
Section 1. Section 60 of the 2020 General Appropriations Act or Republic Act 
1 
No. 11465 is hereby amended to read as follows: 
2 
“Sec. 60. Cash Budgeting System. –All appropriations authorized in this 
3 
Act, including budgetary support to GOCCs, shall be available for release and 
4 
disbursement for the purpose specified, and under the same general and 
5 
special provisions applicable thereto, until [December 31, 2020] DECEMBER 
6 
31, 2021. On the other hand, appropriations for the statutory shares of LGUs 
7 
shall be available for obligation and disbursement until fully expended. 
8 
“After the end of validity period, all unreleased appropriations shall 
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lapse, while unexpended or undisbursed funds shall revert to the 
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unappropriated surplus of the General Fund in accordance with Section 28, 
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Chapter IV, Book VI of E.O. No. 292 and shall not thereafter be available for 
12 
expenditure except by subsequent legislative enactment. Departments, 
13 
bureaus and offices of the National Government, including constitutional offices 
14 
enjoying fiscal autonomy, SUCs and GOCCs, shall strictly observe the [validy] 
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VALIDITY of appropriations and the reversion of funds. 
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“For FY 2020, the appropriations for infrastructure capital outlay, 
1 
including those subsidy releases to GOCCs for infrastructure projects, shall be 
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valid for obligation until [December 31, 2020] DECEMBER 31, 2021, while 
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the completion of construction, inspection, and payment, shall be made not 
4 
later than [December 31, 2021] DECEMBER 31, 2022. On the other hand, 
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appropriations for MOOE and capital outlays item shall likewise be valid for 
6 
obligation until [December 31, 2020] DECEMBER 31, 2021, while the 
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delivery, inspection and payment shall be made not later than [June 30, 2021] 
8 
JUNE 30, 2022.  
9 
“The DBM is authorized to issue the necessary guidelines for the 
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effective implementation of the cash budgeting system. 
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“A report on these releases, obligations and disbursements shall be 
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submitted to the Speaker of the House of Representatives, the President of the 
13 
Senate of the Philippines, the House Committee on Appropriations and the 
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Senate Committee on Finance, either in printed form or by way of electronic 
15 
document.” 
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Sec. 2. Repealing Clause. – All laws, decrees, executive issuances, rules and 
17 
regulations inconsistent with this Act are hereby repealed or modified accordingly. 
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Sec. 3. Effectivity. – This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette or in a newspaper of general circulation. 
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Approved,