13* CONGRESS OF THE 
) 
Fivst Regular Session 
) 
REPUBLIC OF THE PHILIPPINES 
) 
S E N A T E  
S. BILL NO. 
1333 
Introduced bu SENATOR RALPH G. RECTO 
EXPLANATORY 
NOTE 
Historically, our fiscal managers have never met the original program 
targets set forth in the national budget. Every year, they propose to Congress a 
formula on how they would finance the proposed expenditure program for the 
incoming year. But at the end of the year, the actual revenue collections fall short 
of the numbers in the Budget of Expenditures and Sources of Financing (BESF). 
The country’s total outstanding debt is increasing because Government 
has not kept the commitment to meet revenue targets and manage our fiscal 
deficit. With government’s seemingly relentless borrowing binge, it is no wonder 
that the country’s outstanding debt stock is growing by aImost a million every 
minute. 
This proposed measure puts a cap on the borrowings by the national 
government by mandating the Chief Executive to go back to Congress and seek 
authority to borrow more in the event the national government fiscal deficit 
target submitted by the President is breached before the end of the fiscal year. It 
is essential that Congress should be guided by a borrowing program developed 
by the President to restore fiscal discipline before the country falls into another 
debt trap. As such, this bill will compel our fiscal and budget managers to be 
more accurate and prudent in their fiscal targets and programs. 
It is hoped that this piece of legislation will be seriously considered for 
immediate approval. 


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13th CONGRESS OF THE 
) 
'i! 
Jl.il. -6 'ili, :%6 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
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S E N A T E  
f~~:cElw:D BY: 
S. BILL NO. 
1333 
Introduced bt/ SENATOR RALPH G. RECTO 
AN ACT 
TO LIMIT THE BORROWINGS OF THE REPUBLIC OF THE PHILIPPINES 
TO THE PROGRAMMED NET FINANCING SUBMITTED BY THE 
EVERY FISCAL YEAR 
PRESIDENT OF THE REPUBLIC OF THE PHILIPPINES TO CONGRESS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled 
SECTION 1. 
Cap Act of 2004". 
This Act shall be known as the "Government Borrowings 
SEC. 2. The Government of the Philippines shall in no case borrow from 
foreign and/or domestic sources in the event the national government fiscal 
deficit target submitted by the President of the Republic of the Philippines to 
Congress, pursuant to Section 22, Article VI1 of the 1987 Constitution, is 
breached, without the prior approval of the House of Representatives and 
concurrence by the Senate. 
SEC. 3. The borrowings cap provided for in this Act shall not preclude the 
adoption of another debt policy option or a combination of debt options that will 
reduce the country's outstanding debt stock, 
SEC. 4. The Secretary of Finance shall, within ten days from the end of 
every month of the calendar year, submit to Congress a complete report on the 
country's fiscal position and the modes of financing the government has 
undertaken during the period. 
SEC. 5. All laws, decrees and orders or parts thereof inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly. 
SEC. 6. This act shall take effect fifteen (15) days after its publication in 
two (2) newspapers of national circulation. 
Approved, 
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