FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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INTRODUCED BY THE HONORABLE hL4R ROXAS 
EXPLANATORY NOTE 
The Budget Process as provided in Book VI of the Revised Administrative Code of 
1987 (Executive Order No. 292) is the primary implementing law on the powers and 
limitations of both the executive and legislative branches in the preparation, authorization 
and implementation of the annual General Appropriations Act. Unfortunately, this law 
heavily borrows from Presidential Decree No. 1177 which was passed at a time when the 
power of the Executive was heavily favored at the cost of the independence and power of the 
Legislative Branch of Government. At the same time, current provisions of the Revised 
Administrative Code expand on the limitations of Congress in the Budget Process, providing 
for stricter guidelines than that contemplated under the Constitution. While the Constitution 
sees the Congress as an active, not passive, participant in the Budget Process, the Revised 
Administrative Code unnecessarily puts shackles on the power of Congress in determining 
the priorities, direction and vision of government as expressed in the substance of the Annual 
Budgetary Appropriations, contrary to the very spirit and purpose of Congress as the bearer 
of the Power of the Purse as enshrined in the 1987 Constitution. 
In general, the revised Administrative Code of 1987 limits, in a manner that exceed 
conditions set forth in the Constitution, the powers that Congress ought to be able to 
exercise in the course of budget approval. In general, the revised Administrative Code of 
1987 and the practice of budget execution in recent years have been used by the Executive to 
exercise resource allocation powers beyond what the 1987 Constitution has bestowed upon 
it. 
This Act seeks and proposes to amend provisions of Book VI of the Revised 
Administrative Code to reflect the spirit and noble intent of the 1987 Constitution to remove 
all vestiges of unmitigated Executive might and to restore Congress' power over the purse in 
the hope that through the reclamation of this power, Congress will be able to strengthen its 
ability to check the Executive. 
Specifically, this legislation intends to achieve the following reforms in the national 
budget process: 
Ensure that the Executive branch of the Philippine government implements the 
budget as specified in the General Appropriations Act, making the execution of the budget as 
approved by Congress mandatory and making it illegal and punishable by law to do 
otherwise without Congressional authorization. Thus, the creation of reserves and the 
deferral or suspension of expenditure of appropriations in cases where a fiscal crisis or other 
contingencies creates a situation that makes it difficult for the Executive to implement the 
entire budget as approved in the General Appropriations Act can only be carried out after 
Congress gives its approval. 


Ensure that in cases of budget re-enactment, only appropriations for salaries and 
wages for permanent positions, contractual obligations, and unfinished projects, programs 
and activities are re-enacted. Thus, the budget that is re-enacted should not be treated as a 
lump-sum that can be disbursed in its entirety without any restraints. 
Ensure that Congress is enabled to revise implementing rules of lump sum 
appropriations, and to suspend entirely the expenditure of lump sum appropriations if it finds 
the implementing rules to he unsatisfactory. 
Ensure that savings generated from an unexpected reduction in the costs of achieving 
project and program objectives supported by the Genexal Appropriations Act are properly 
accounted for and reported to Congress on a quarterly basis. Ensure further that unspent 
amounts from lump sum appropriations will be reverted to the general fund, and disbursed 
only following fresh Congressional authorization. 
Ensure that, in addition to receiving reports about savings generated from completed 
projects, programs and activities, Congress shall also he provided with (1) a list of programs 
and projects funded by domestic and foreign loans and their corresponding implementing 
agencies, (2) a list of obligations and contracts of government corporations backed by 
government guarantees and the list of programs and projects funded by these obligations and 
contracts, (3) financial statements of all government corporations that require national 
budget support in the form of direct outlays, subsidies, guarantees, and tax and duty 
exemptions, and of all government corporations that remit revenues to the national 
government, and (4) a quarterly report on allotment releases. 
In view of the foregoing, the immediate enactment of this measure is earnestly 
sought. 


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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
INTRODUCED BY THE HONORABLE MAR ROXAS 
AN ACT 
PRESCRIBING REFORMS IN NATIONAL GOVERNMENT BUDGETING, 
AMENDING FOR THESE PURPOSES PERTINENT PROVISIONS OF BOOK 
VI OF EXECUTIVE ORDER 292, OTHERWISE KNOWN AS THE REVISED 
ADMINISTRATIVE CODE OF 1987, AND PROVIDING FOR OTHER 
RELATED PURPOSES 
Be it enacted by the Senate and the House OfRepresentatives in Congress assembled: 
SECTION 1. fide. - This shall be known as the Budget Reform Act of 2009 
SECTION2. Definition of Terms. - Section 2, Chapter 1, Book VI of EO 292 is 
hereby amended to include the following definitions: 
"SEC 2. Definition of Terms. -When 
used in this Book: 
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(3) 
'XUGMENYIS THE POWER TO TRANSFER SAVINGS FROM ONE 
APPROPRIATION TO COVER DEFICITS IN ANOTHER AS EXERCISED BY 
THE PRESIDENT, SENATE PRESIDENT, SPEAKER OF THE HOUSE, CHIEF 
JUSTICE, AND HEADS OF THE CONSTITUTIONAL COMMISSIONS 
WITHIN THEIR RESPECTIVE BRANCHES AND AGENCIES AS PROVIDED 
IN THIS BOOK. 
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(8) 
“DEFICIT MEANS AN INSUFFICIENCY IN THE APPROPRIATED 
AMOUNT FOR THE COMPLETION OF A PARTICULAR PROGRAM, 
PROJECT OR ACTIVITY OR THE FULFILLMENT OF CURRENT 
OPERATING EXPENDITURES AND CAPITAL OUTLAYS NOT ARISING 
FROM CAUSES SUCH AS OVERPRICING OR OTHER FACTORS WHICH 
COULD HAVE 
BEEN REASONABLY FORESEEN IN ORDER TO 
COMPLETE THE PROGRAM WITHIN THE GIVEN APPROPRIATION 
SPECIFIED IN THE GENEML APPROPRIATIONS ACT FOR SAID 
PROGRAM, 
PROJECT 
OR 
ACTIVITY, 
CURRENT 
OPERATING 
EXPENDITURES AND CAPITAL OUTLAYS. 
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(16) 
‘SI VINGS” MEANS ANY UNEXPENDED PORTION OR AMOUNT 
OF MONEY FOR AN APPROPRIATION AS SPECIFIED IN THE GENERAL 
APPROPRIATIONS ACT RESULTING FROM THE COMPLETION OF A 
PROGRAM, PROJECT OR ACTIVITY OR FULFILLMENT OF THE 
PURPOSE FOR WHICH THE APPROPRIATION WAS SPECIFIED AT A 
COST BELOW THE AMOUNT APPROPRIATED DUE TO LOWER-THAN 
EXPECTED EXPENDITURES. THIS SHALL NOT REFER TO UNEXPENDED 
AMOUNTS RESULTING FROM THE SUSPENSION OF EXPENDITURE OF 
APPROPRIATIONS. IN ADDITION, THIS SHALL NOT REFER TO 
UNEXPENDED APPROPRIATIONS IN A RE-ENACTED BUDGET FOR 
COMPLETED OR SUSPENDED PROJECTS OR PROGRAMS. 
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(17) 
‘WECIAL APPROPRIATION” IS A LAW OTHER THAN THE 
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GENERAL APPROPRIATIONS ACT APPROPRIATING FUNDS FOR A 
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PARTICULAR PROGRAM, PROJECT, OR ACTIVITY.” 
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(18) 
‘RE-ENACTED BUDGET REFERS TO THE PREVIOUS YEAR‘S 
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BUDGET THAT TAKES EFFECT IN CASE CONGRESS FAILS TO PASS A 
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NEW GENERAL APROPRIATIONS ACT FOR THE CURRENT YEAR. 
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follows: 
SECTION 3. Section 12, Chapter 3, Book VI of EO 292, is hereby amended to read as 
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“SEC. 12. 
Form and Content of the Budget. - The budget proposal of the 
President shall include current operating expenditures and capital outlays. It 
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shall comprise such funds as may be necessary for the operation of the 
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programs, projects and activities of the various departments and agencies. [The 
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proposed General Appropriations Act and other Appropriations Acts necessary 
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to cover the budget proposals shall be submitted to the Congress to accompany 
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the 
President’s budget 
submission.] ALL 
APPROPRIATIONS AND 
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EXPENDITURES FOR A PARTICULAR DEPARTMENT, OFFICE, AGENCY 
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AND/OR GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS 
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SHALL BE INCLUDED AND LISTED EXCLUSIVELY IN THE BUDGET FOR 
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SUCH DEPARTMENT, OFFICE, AGENCY AND/OR GOVERNMENT- 
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OWNED OR CONTROLLED CORPORATIONS HAVING CONTROL OVER 
SUCH FUNDS. ALL EXPENDITURES OF THE VARIOUS DEPARTMENTS, 
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OFFICES, 
AGENCIES 
AND/OR 
GOVERNMENT-OWNED 
OR 
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CONTROLLED CORPORATION SHOULD BE UNIFORMLY CLASSIFIED BY 
COMMON ACCOUNT TITLES. THE PRESENTATION OF ALL PROJECTED 
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REVENUE AND PROPOSED EXPENDITURE ITEMS MUST SHOW THE 
CURRENT YEARS CORRESPONDING REVENUE AND EXPENDITURE 
TOGETHER WITH THE PREVIOUS TWO YEARS' CORRESPONDING 
ACTUAL REVENUE AND EXPENDITURE. 
The budget shall be presented to the Congress in such form and content 
as [may be approved by the President] PRESCRIBED IN THIS SECTION and 
[may] SHALL include the following: 
(1) 
A budget message setting forth in brief the government's budgetary 
thrusts for the budget year, including their impact on development goals, 
monetary and fiscal objectives, and generally on the implications of the 
revenue, expenditure and debt-proposals; and 
(2) 
Summary financial statements setting forth 
(a) 
Estimated expenditures and proposed appropriations necessary for the 
support of the Government for the ensuing fiscal year, including those 
financed from operating revenues and from domestic and foreign borrowings, 
TOGETHER WITH A BREAKDOWN AND JUSTIFICATION OF ALL ITEMS 
IN EXCESS OF ONE HUNDRED MILLION PESOS AS WELL AS A LISTING 
OF CAPITAL OUTLAYS SUPPORTED BY JUSTIFICATION AND COST- 
BENEFIT ANALYSIS; 
(b) 
Estimated receipts during the ensuing fiscal year under laws existing at 
the time the budget is transmitted and under the revenue proposals, if any, 
forming part of the year's financing program, TOGETHER WITH A 
BREAKDOWN OF RECEIPT ITEMS AND LISTING OF ASSUMPTIONS; 
(c) 
Actual appropriations, expenditures, and receipts during the last 
completed fiscal year, TOGETHER WITH A DETAILED EXPLANATION OF 
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THE VARIANCES, IF ANY, BETWEEN THE ESTIMATED AND ACTUAL 
RECEIPTS, 
AND 
BETWEEN 
THE 
PROPOSED 
AND 
ACTUAL 
EXPENDITURES; 
(d) 
[Estimated] ACTUAL APPROPRIATIONS, expenditures and receipts 
[and actual or proposed appropriations] during the fiscal year in progress, 
TOGETHER WITH A DETAILED EXPLANATION OF THE VARIANCES, IF 
ANY, BETWEEN THE ESTIMATED AND ACTUAL RECEIPTS, AND 
BETWEEN THE PROPOSED AND ACTUAL EXPENDITURES; 
(e) 
[Statements ofl The condition of the National Treasury at the end of 
the last completed fiscal year, the estimated condition of the Treasury at the 
end of the fiscal year in progress and the estimated condition of the Treasury 
at the end of the ensuing fiscal year, taking into account the adoption of 
financial proposals contained in the budget and showing, at the same time, the 
unencumbered and unobligated cash resources; 
(f) 
Essential facts regarding the bonded and other long-term obligations 
and indebtedness of the Government, both domestic and foreign, including 
identification of recipients of loan proceeds, TOGETHER WITH AN 
EXPLANATION OF HOW THE LOAN PROCEEDS WERE USED AND A 
LISTING OF PROJECTS, PROGRAMS AND OFFICES BENEFITED FROM 
SUCH LOANS; 
(g) 
[Such other financial statements and data as are deemed necessary or 
desirable in order to make known in reasonable detail the financial condition 
of the government.] ESSENTIAL FACTS REGARDING OBLIGATIONS AND 
CONTRACTS, REGARDLESS OF FUNDING SOURCE, OF GOVERNMENT 
AGENCIES, CORPORATIONS OR OTHER ENTITIES THAT ARE BACKED 
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BY GOVERNMENT GUARANTEES, TOGETHER WITH AN EXPLANATION 
OF THE RATIONALE FOR INCURRING THE OBLIGATIONS AND 
CONTRACTS, AND A LISTING OF PROJECTS, PROGRAMS, AND OFFICES 
THAT BENEFITED FROM THESE OBLIGATIONS AND CONTRACTS; 
(h) 
YEAR, AND THE FISCAL YEAR IN PROGRESS, AND THE PROPOSED 
OPERATING BUDGETS FOR THE ENSUING FISCAL YEAR, OF ALL 
GOVERNMENT CORPORATIONS REMITTING REVENUES TO THE 
NATIONAL GOVERNMENT OR REQUIRING NATIONAL BUDGET 
SUPPORT EITHER IN THE FORM OF DIRECT OUTLAYS, SUBSIDIES, 
GUARANTEES, AND TAX AND DUTY EXEMPTIONS; AND 
(i) 
SUCH OTHER FINANCIAL STATEMENTS AND DATA AS ARE 
DEEMED NECESSARY OR DESIRABLE IN ORDER TO MAKE KNOWN IN 
REASONABLE 
DETAIL 
THE 
FINANCIAL 
CONDITION 
OF 
THE 
GOVERNMENT.” 
SECTION 4. Section 21, Chapter 3, Book VI of EO 292, is hereby amended to read as 
THE FINANCIAL POSITION FOR THE LAST COMPLETED FISCAL 
follows: 
“SEC. 21. 
Appropriation for Personal Services. - Appropriations for 
personal services shall be [considered as] included in the amount specified for 
each budgetary program and project of each department, bureau, office or 
agency, and shall [not] be itemized by plantilla position. The itemization of 
personal services shall be prepared by the Secretary [for consideration and 
approval of the President] as provided in Section 23 hereof. [Provided, that] 
Itemization of personal services shall be prepared for all agencies of the 
Legislative, Executive and Judicial Branches and the Constitutional bodies, 
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except as may be otherwise approved by the President for positions concerned 
with national security matters.” 
SECTION 5. Section 23, Chapter 4, Book VI of EO 292, is hereby amended to read as 
follows: 
“SEC. 23. 
Content of the General Appropriations Act. - The General 
Appropriations Act shall be presented in the form of budgetary programs and 
projects for each agency of the government, with the corresponding 
appropriations for each program and project, including statutory provisions of 
specific agency or general applicability. The General Appropriations Act shall 
[not contain any] INCLUDE AN itemization of all personal services by 
plantilla position, which shall be prepared by the Secretary [after enactment of 
the General Appropriations Act, for consideration and approval of the 
President] AS PART OF THE PROPOSED BUDGET SUBMITTED TO 
CONGRESS BY THE PRESIDENT.” 
SECTION 6. Section 24, Chapter 4, Book VI of EO 292, is hereby amended to read as 
follows: 
“SEC. 24. 
Prohibition against the Increase of Appropriation FOR THE 
OPERATION OF THE GOVERNMENT - The Congress shall in no case 
increase the appropriation [of any project or program of any department, 
bureau, agency or office] of the Government over the total amount submitted 
by the President in his budget proposal. HOWEVER, IT MAY INCREASE 
APPROPRIATION FOR THE OPERATION OF A DEPARTMENT, AGENCY, 
OR OFFICE WITH THE CORRESPONDING ADJUSTMENT IN THE 
APPROPRIATIONS OF ANOTHER SO AS NOT TO EXCEED THE TOTAL 
APPROPRIATIONS SUBMITTED BY THE PRESIDENT IN HIS BUDGET 
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PROPOSAL FOR THE OPERATION OF THE ENTIRE GOVERNMENT. [In 
case of any reduction in the proposed appropriation for a project or program, a 
corresponding reduction shall be made in the total appropriation of the 
department, office or agency concerned and in the total of the General 
Appropriations Bill.]” 
SECTION 7. Section 25, Chapter 4, Book VI of EO 292, is hereby amended to read as 
follows: 
“SEC. 25. 
[Prohibition Against] Enactment 
of Additional 
Special 
Provisions. - The Congress [shall not] MAY add special provisions in the 
budget earmarking the use of appropriations for specific programs or activities 
[nor shall it increase the amounts specified in special provisions beyond those 
proposed by the President] PROVIDED THIS DOES NOT RESULT IN THE 
INCREASE OF THE APPROPRIATIONS RECOMMENDED BY THE 
PRESIDENT FOR THE OPERATION OF THE GOVERNMENT.” 
SECTION 8. Section 26, Chapter 4, Book VI of EO 292, is hereby amended to read as 
follows: 
“SEC. 26. 
Automatic Appropriations. - All expenditures for (1) personnel 
retirement premiums, government service insurance, and other similar fixed 
expenditures, (2) principal and interest on public debt, (3) national 
government guarantees of obligations which are drawn upon, 
are 
automatically appropriated: provided, that no obligations shall be incurred or 
payments made from funds thus automatically appropriated except as issued in 
the form of regular budgetary allotments, PROVIDED FURTHER THAT 
OBLIGATIONS 
OF 
GOVERNMENT 
CORPORATIONS 
INCURRED 
HEREON WILL NO LONGER BE AUTOMATICALLY GUARANTEED BY 
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THE NATIONAL GOVERNMENT, UNLESS OTHERWISE EXPLICITLY 
AUTOMATICALLY GUARANTEED BY LAW.” 
SECTION 9. Section 27, Chapter 4, Book VI of EO 292, is hereby amended to read as 
follows: 
“SEC. 27. 
LSupplemental Appropriations] SPECIAL APPROPRIATIONS. - 
All appropriation proposals shall be included and considered in the budget 
preparation process. After the President shall have submitted the budget, [no 
supplemental appropriation measure supported from existing revenue 
measures shall be passed by the Congress.] SPECIAL APPROPRIATION 
MEASURES MAY BE PASSED BY CONGRESS PROVIDED THESE ARE 
SUPPORTED BY FUNDS TO BE RAISED BY A CORRESPONDING 
REVENUE PROPOSAL THEREIN OR BY FUNDS ACTUALLY AVAILABLE 
AS CERTIFIED BY THE NATIONAL TREASURER, WHICH MAY INCLUDE 
THE UNEXPENDED BALANCES OF APPROPRIATIONS AUTHORIZED 
FOR THE ONGOING FISCAL YEAR THAT ARE REVERTED TO THE 
UNAPPROPRIATED SURPLUS OF THE GENEML FUND. [However, 
supplemental or deficiency appropriations involving the creation of new 
offices, programs or activities may be enacted if accompanied and supported 
by new revenue sources.]” 
SECTION 10. Section 28, Chapter 4, Book VI of EO 292, is hereby amended to read as 
follows: 
“SEC. 28. 
Reversion 
of Unexpended Balances 
of Appropriations, 
Continuing Appropriations. - Unexpended balances of appropriations 
authorized in the General Appropriations Act shall revert to the 
unappropriated surplus of the General Fund at the end of the fiscal year and 
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shall not thereafter be available for expenditure except by subsequent 
legislative enactment: Provided, that appropriations for capital outlays shall 
remain valid until fully spent or reverted: provided, further, that continuing 
appropriations for current operating expenditures may be specifically 
recommended and approved as such in support of projects whose effective 
implementation calls for multi-year expenditure commitments. [Provided, 
finally, that the President may authorize the use of savings realized by an 
agency during given year to meet non-recurring expenditures in a subsequent 
year.] 
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APPROPRIATIONS FOR CAPITAL OUTLAY SHALL IN NO CASE BE 
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REALIGNED FOR PERSONAL SERVICES AND MAINTENANCE AND 
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OTHER OPERATING EXPENDITURES. The balances 
of continuing 
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appropriations shall be reviewed as part of the annual budget preparation 
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process and the President may approve upon recommendation of the 
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Secretary, the reversion of funds no longer needed in connection with the 
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activities funded by said continuing appropriations.” 
SECTION 11. A new Section 29 is hereby introduced in Chapter 4, Book VI of 
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EO 292 to read as follows: 
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“SEC. 29. 
RE-ENACTED APPROPRIATIONS. - IF, BY THE END OF 
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ANY FISCAL YEAR, CONGRESS SHALL HAVE FAILED TO PASS THE 
GENERAL APPROPRIATIONS BILL FOR THE ENSUING FISCAL YEAR, 
THE GENERAL APPROPRIATIONS LAW FOR THE ENDING FISCAL YEAR 
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SHALL BE DEEMED RE-ENACTED AND SHALL REMAIN IN FORCE AND 
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EFFECT UNTIL THE GENERAL APPROPRIATIONS BILL IS PASSED BY 
CONGRESS. PROVIDED, THAT ONLY TIHE ANNUAL APPROPRIATIONS 
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FOR SALARIES AND WAGES OF EXISTING POSITIONS, STATUTORY 
AND 
CONTRACTUAL 
OBLIGATIONS, UNEXPENDED 
ITEMS FOR 
UNFINISHED PROJECTS, PROGRAMS AND ACTIVITIES, LUMP SUMS, 
AND 
ESSENTIAL 
OPERATING 
EXPENSES 
SHALL 
BE 
DEEMED 
REENACTED 
AND 
DISBURSEMENT 
OF 
FUNDS 
SHALL 
BE 
IN 
ACCORDANCE THEREWITH. A RE-ENACTED BUDGET, THEREFORE IS 
NOT A LUMP-SUM AMOUNT OF THE ENTIRE BUDGET OF THE 
PREVIOUS YEAR WHOSE EXPENDITURE AND ALLOCATION IS THE 
PROVINCE OF THE EXECUTIVE. 
PROVIDED FURTHER, THAT UNDER A SITUATION OF A RE- 
ENACTED 
BUDGET, 
NO 
BILL 
AUTHORIZING 
SUPPLEMENTAL 
APPROPRIATIONS 
SHALL 
BE 
PASSED 
BEFORE 
THE 
ANNUAL 
APPROPRIATIONS BILL IS PASSED. 
PROVIDED FINALLY, THAT THE PRESIDENT SHALL SUBMIT A 
REPORT TO CONGRESS OF EXPENDITURES INCURRED AND RECEIPTS 
EARNED DURING THE PERIOD IN WHICH A RE-ENACTED BUDGET 
WAS IN EFFECT. THIS REPORT SHALL BE SUBMITTED WITHIN THIRTY 
(30) DAYS AFTER PASSAGE OF THE GENERAL APPROPRIATIONS ACT 
FOR THE FISCAL YEAR.” 
SECTION 12. Sections 29, 30 and 31 of Chapter 4, Book VI of EO 292 are hereby 
renumbered as follows: 
SEC. [29] 30. Loan Proceeds. - X X X  
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SEC. [30] 31. Contingent~,iabilites. 
- X X X  
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SEC. [31] 32. Liabilityfor Unauthorized Printing Press Revisions. - XXX 
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SECTION 13. Section 32, Chapter 4, Book VI of EO 292, is hereby amended to read as 
follows: 
“SEC. [32] 33. Use of Appropriated Funds. - All moneys appropriated for 
functions, activities, projects and programs shall be available solely for the 
specific purposes for which these are appropriated UNLESS THESE ARE 
SAVINGS IN APPROPRIATIONS USED TO COVER DEFICITS OR 
UNEXPENDED BALANCES OF APPROPRIATIONS REVERTED TO THE 
UNAPPROPRIATED 
SURPLUS 
OF 
THE 
GENERAL 
FUND 
AND 
LEGISLATED TO BE USED FOR OTHER PURPOSES.” 
SECTION 14. Section 33, Chapter 4, Book VI of EO 292, is hereby amended to read as 
follows: 
“SEC. [33] 34. Allotmeiit ofAppi-opriations. - Authorized appropriations shall 
be allotted in accordance with the procedure outlined hereunder: 
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(6) 
PURSUANT TO SECTION 39 OF THIS BOOK, the Secretary shall have 
NO authority to modify or amend any allotment previously issued. In case he 
shall find at any time that the probable receipts from taxes or other sources of 
any fund will be less than anticipated and that as a consequence the amount 
available for the remainder of the term of the appropriations or for any 
allotment period will be less than the amount [estimated or allotted thereof] 
APPROPRIATED OR ALLOTTED, he shall [with the approval of the 
President and after notice to the department or agency concerned, reduce the 
amount or amounts allotted so as] RECOMMEND TO THE PRESIDENT THE 
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REDUCTION OF THE AMOUNT OR AMOUNTS ALLOTTED THAT HE 
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PRESIDENT, IN TURN, SHALL SEEK THE AUTHORIZATION OF 
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CONGRESS TO SUSPEND THE EXPENDITURE OF APPROPRIATIONS." 
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(7) The Secretary shall maintain a control record showing quarterly by funds, 
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accounts, and other suitable classifications, the amounts appropriated; THE 
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ALLOTMENTS RELEASED AND AVAILABLE FOR EXPENDITURE, the 
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AMOUNT OF SAVINGS IN APPROPRIATIONS GENERATED AND THE 
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AMOUNT USED TO COVER DEFICITS AND THE AMOUNT REVERTED 
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TO THE GENERAL FUND, the estimated [revenues] AND the actual revenues 
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or receipts, [the amounts allotted and available for expenditures] the 
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unliquidated obligations, actual balances on hand, and the unencumbered 
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balance of the allotments for each department or agency of the Government. 
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THE SECRETARY SHALL SUBMIT THESE RECORDS TO THE HOUSE 
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COMMITTEE ON APPROPRIATIONS AND THE SENATE COMMITTEE 
DEEMS NECESSARY to conform to the targeted budgetary goals. THE 
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ON FINANCE QUARTERLY, AND SHALL MAKE THESE RECORDS 
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AVAILABLE TO THE PUBLIC EXCEPT AS MAY BE OTHERWISE 
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APPROVED BY THE PRESIDENT FOR FUNDS AND ACCOUNTS 
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CONCERNED WITH NATIONAL SECURITY MATTERS." 
SECTION 15. Section 35, Chapter 4, Book VI of EO 292, is hereby amended to read as 
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follows: 
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"SEC. [35] 36. Special Budgets for Lump-Sum Appropriations. - Expenditures 
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from lump-sum appropriations authorized for any purpose or for any 
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department, office or agency in any annual General Appropriations Act or 
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other Act and from any fund of the National Government, shall be made in 
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accordance with a special budget to be approved by the President, which shall 
include but shall not be limited to the number of each kind of position, the 
designations, and the annual salary proposed for which an appropriation is 
intended. This provision shall be applicable to all revolving funds, receipts 
which are automatically made available for expenditure for certain specific 
purposes, aids and donations for carrying out certain activities, or deposits 
made to cover the cost of special services to be rendered to private parties. 
Unless otherwise expressly provided by law, when any Board, head of 
department, chief of bureau or office, or any other official, is authorized to 
appropriate, allot, distribute or spend any lump-sum appropriation or special, 
bond, trust, and other funds, such authority shall be subject to the provisions 
of this section. 
In case of any lump-sum appropriation for salaries and wages of 
temporary and emergency laborers and employees, including contractual 
personnel, provided in any General Appropriation Act or other Acts, the 
expenditure of such appropriation shall be limited to the employment of 
persons paid by the month, by the day, or by the hour. 
THE BUDGET AND THE GENERAL APPROPRIATIONS ACT MAY 
ALSO PROVIDE LUMPS SUMS IN ORDER TO SUPPORT BILLS FOR LATER 
ACTION BY THE CONGRESS: PROVIDED, THAT THE TREASURY 
CERTIFICATION REQUIREMENT SHALL BE DEEMED COMPLIED WITH 
IN CASE OF BILLS WHICH ARE FUNDED FROM LUMP SUMS IN THE 
GENERAL APPROPRIATIONS ACT APPROVED BY THE CONGRESS FOR 
PURPOSES OF SUPPORTING PROGRAMS, PROJECTS, OR ACTIVITIES 
WHICH REQUIRE SPECIFIC LEGISLATIVE AUTHORIZATION AND IN 
- 14 - 


I 
THE CASE OF BILLS WHOSE EXPENDITURES ESTIMATES ARE 
2 
INCLUDED IN THE BUDGET SUBMISSION OF THE PRESIDENT 
3 
4 
WITHIN THIRTY (30) DAYS AFTER THE PASSAGE OF THE 
5 
GENERAL APPROPRIATIONS ACT FOR THE FISCAL YEAR, THE 
6 
SECRETARY OF BUDGET AND MANAGEMENT SHALL PROVIDE THE 
7 
CONGRESS 
WITH 
THE 
IMPLEMENTING 
RULES 
FOR 
THE 
PURSUANT TO SECTION 12 OF THIS BOOK. 
8 
DISBURSEMENT OF ALL LUMP-SUM APPROPRIATIONS AS WELL AS A 
9 
LIST OF ALL EXPENDITURES TO BE UNDERTAKEN USING THESE LUMP- 
10 
SUM APPROPRIATIONS, PROVIDED, THAT THE CONGRESS, BY WAY 
OF A JOINT RESOLUTION, MAY SUSPEND FROM EXPENDITURE ANY 
1 1  
12 
OR ALL LUMP-SUM APPROPRIATIONS. 
13 
UNEXPENDED AMOUNTS OF LUMP SUM APPROPRIATIONS 
14 
UNDER THIS SECTION SHALL UNDER NO CIRCUMSTANCES BE 
15 
CONSIDERED AND USED AS SAVINGS BUT SHALL AUTOMATICALLY 
REVERT BACK TO THE UNAPPROPRIATED SURPLUS OF THE GENERAL 
FUND AT THE END OF THE FISCAL YEAR PURSUANT TO SECTION 28 
OF’ THIS BOOK. ANY ACT TO THE CONTRARY SHALL BE CONSIDERED 
MISUSE OF GOVERNMENT FUNDS AND ILLEGAL EXPENDITURES AS 
PROVIDED IN SECTIONS 80 AND 44 OF THIS BOOK 
SECTION 16. Section 37, Chapter 4, Book VI of EO 292, is hereby amended to read as 
16 
17 
18 
19 
20 
21 
22 
follows: 
23 
“SEC. [37] 38. Creation ofAppropriiation Reserves. - [The Secretary may] THE 
24 
PRESIDENT, SUBJECT TO THE REVIEW AND APPROVAL OF CONGRESS, 
25 
MAY BE AUTHORIZED TO establish reserves against appropriations, 
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EXCEPT FOR PERSONAL SERVICES APPROPRIATIONS USED FOR 
PERMANENT OFFICIALS AND EMPLOYEES, to provide for contingencies 
and emergencies which may arise later in the calendar year [and which would 
otherwise require deficiency appropriations]. CONGRESS SHALL TRANSMIT 
ITS APPROVAL OR DENIAL TO THE PRESIDENT THIRTY (30) DAYS 
AFTER ITS RECEIPT OF THE PRESIDENT’S REQUEST FOR AUTHORITY. 
INACTION ON THE PART OF CONGRESS WITHIN SAID THIRTY (30) 
DAY PERIOD SHALL MEAN AN APPROVAL OF THE REQUEST FOR 
AUTHORITY TO DEFER EXPENDITURE OF APPROPRIATIONS AND THE 
CREATION OF RESERVES. RESERVATION OF APPROPRIATIONS MUST 
NOT EXTEND BEYOND THE END OF THE FISCAL YEAR. 
[The establishment of appropriation reserves shall not necessarily mean 
that such portion of the appropriation will not be made available for 
expenditure. Should conditions change during the fiscal year justifying the use 
of the reserve, necessary adjustments may be made by the Secretary when 
requested by the department, official or agency concerned.]” 
SECTION 17. Section 38, Chapter 4, Book VI of EO 292, is hereby amended to read as 
follows: 
“SEC. [38] 39. Suspension 
of Expenditure of Appropriations. - THE 
IMPLEMENTATION OF THE GENERAL APPROPRIATIONS ACT IS 
MANDATORY, AND FAILURE TO RELEASE ALLOTMENTS 
FOR 
APPROPRIATED ITEMS AS PROVIDED FOR IN SAID ACT SHALL 
CONSTITUTE MISUSE OF GOVERNMENT FUNDS AND ILLEGAL 
3-4 
EXPENDITURES AS PROVIDED IN SECTIONS 80 AND 44 OF THIS BOOK 
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2s 
FUND RELEASES FOR APPROPRIATIONS AUTHORIZED IN THE 
GENERAL APPROPRIATIONS ACT SHALL BE 
TRANSMITTED IN 
ACCORDANCE WITH THE QUARTERLY ALLOTMENT PERIOD OR ANY 
OTHER PERIOD PRESCRIBED BY THE SECRETARY OF BUDGET AND 
MANAGEMENT. THE COMMISSION ON AUDIT SHALL ENSURE 
COMPLIANCE WITH THIS PROVISION TO THE EXTENT THAT SUB- 
ALLOTMENTS BY DEPARTMENTS AND/OR CENTRAL AGENCIES TO 
THEIR 
SUBORDINATE 
OFFICES ARE 
IN 
CONFORMITY 
WITH 
ALLOCATIONS 
IN BUDGETARY ADVICE 
OF ALLOTMENTS OR 
TREASURY WARRANTS ISSUED BY THE DEPARTMENT OF BUDGET 
AND MANAGEMENT. 
HOWEVER, 
except 
as 
otherwise 
provided 
in 
the General 
Appropriations Act [and whenever in his judgment the public interest so 
requires], the President [upon notice to the head of office concerned, is 
authorized], SUBJECT TO THE REVIEW AND APPROVAL OF CONGRESS, 
MAY BE AUTHORIZED to suspend or otherwise stop further expenditure of 
funds allotted for any agency, or any other expenditure authorized in the 
General Appropriations Act, except for personal services appropriations used 
for permanent officials and employees. CONGRESS SHALL TRANSMIT ITS 
APPROVAL OR DENIAL TO THE PRESIDENT THIRTY (30) DAYS AFTER 
ITS RECEIPT OF THE PRESIDENT'S REQUEST FOR AUTHORITY. 
INACTION ON THE PART OF CONGRESS WITHIN SAID THIRTY (30) 
DAY PERIOD SHALL MEAN A DENIAL OF THE REQUEST FOR 
AUTHORITY TO SUSPEND EXPENDITURE OF APPROPRIATIONS. ALL 
FUNDS CORRESPONDING TO THE RESCINDED APPROPRIATIONS 
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follo 
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SHALL REVERT TO THE UNAPPROPRIATED SURPLUS OF THE 
GENERAL FUND AND SHALL NOT BE MADE AVAILABLE FOR 
EXPENDITURE FOR ANY PURPOSE EXCEPT AS MAY BE PROVIDED FOR 
IN SUBSEQUENT SPECIAL APPROPRIATION LAWS ENACTED BY 
CONGRESS. 
ANY 
PROVISION 
OF 
LAW 
TO 
THE 
CONTRARY 
NOTWITHSTANDING, THE APPROPRIATIONS AUTHORIZED FOR THE 
JUDICIARY, CONGRESS, THE COMMISSION ON HUMAN RIGHTS, THE 
OFFICE OF THE OMBUDSMAN, THE CIVIL SERVICE COMMISSION, THE 
COMMISSION ON AUDIT AND THE COMMISSION ON ELECTIONS IN 
THE ANNUAL APPROPRIATIONS ACT SHALL BE AUTOMATICALLY 
AND 
REGULARLY 
RELEASED 
IN 
ACCORDANCE 
WITH 
THEIR 
RESPECTIVE WORK AND FINANCIAL PLANS.” 
SECTION 18. Section 39, Chapter 4, Book VI of EO 292, is hereby amended to read as 
ws: 
“SEC. [39] 40. Authority to Use Savings in Approprjatjons to Cover Deficits. - 
Except as otherwise provided in the General Appropriations Act, any savings 
in the regular appropriations authorized in the General Appropriations Act for 
programs and projects of any department, office or agency [may] SHALL BE 
REVERTED TO THE UNAPPROPRIATED SURPLUS OF THE GENERAL 
FUND OR, with the approval of the President, MAY be used to cover a deficit 
in any other item of the regular appropriations: provided, that the creation of 
new positions or increase of salaries shall not be allowed to be funded from 
budgetary savings except when specifically authorized by law: provided, 
further, that whenever authorized positions are transferred from one program 
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or project to another within the same department, office or agency, the 
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3 
4 
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6 
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8 
9 
10 
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13 
14 
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corresponding amounts appropriated for personal services are also deemed 
transferred, without, however increasing the total outlay for personal services 
of the department, office or agency concerned. 
UNDER NO CIRCUMSTANCES SHALL SAVINGS BE USED FOR 
PROGRAMS, PROJECTS AND ACTIVITIES, OR ANY OTHER PURPOSE 
NOT APPROPRIATED FOR IN THE GENERAL APPROPRIATIONS ACT 
PURSUANT TO ARTICLE 
VI, SECTION 29 (1) OF THE 
1987 
CONSTITUTION. ANY ACT TO THE CONTRARY SHALL CONSTITUTE 
MISUSE OF GOVERNMENT FUNDS AND ILLEGAL EXPENDITURES AS 
PROVIDED IN SECTIONS 80 AND 44 OF THIS BOOK. IN ADDITION, ANY 
USE OF SAVINGS ON EXPENDITURES SUBJECT TO LIMITATIONS 
PROVIDED IN THE GENERAL APPROPRIATIONS ACT SIHALL BE 
REVIEWED AND MAY BE DISALLOWED BY CONGRESS FOR BEING 
MADE IN VIOLATION OF SAID LIMITATIONS.” 
16 
SECTION 19. Section 49 of Chapter 5, Book VI of EO 292 is hereby deleted. 
17 
SECTION 20. Sections 34, 36, 40, 41, 42, 43, 44, 45, 46, 47, and 48 of Chapter 5, Book 
18 
VI of EO 292 are hereby renumbered as follows: 
19 
SEC. [34] 35. Prograni ofExpenditure. - XXX 
20 
SEC. [36] 37. Cash Budgets. - XXX 
21 
SEC. [40] 41, Certification OfAvailability ofFunds. - X X X  
22 
SEC. [41] 42. Prohibition Against the Incurrence of Overdraft. - X X X  
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SEC. [42] 43. Adjustment OfAppropriations for Reorganization. - XXX 
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3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
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SEC. [43] 44. Liability for Illegal Expenditures. - XXX 
SEC. [44] 45. Accrual of Znconie to Unappropriated Su~plus of' tlze General 
Fund. - XXX 
SEC. [45] 46. Sperial, Fiduriaryand Trust Funds. - XXX 
SEC. [46] 47. Service Fees and Honoraria. - XXX 
SEC. [47] 48. Administration ofLumpSum Funds. -XXX 
SEC. [48] 49. Cost Reduction. - XXX 
SECTION 21. Separabiliy Clause. - If any part, section or provision of this Act is held 
invalid or unconstitutional, other provisions not affected thereby shall remain in full force 
and effect. 
SECTION 22. Repealing Clause. - Presidential Decree No. 1177 is hereby expressly 
repealed. The pertinent provisions of Book VI of Executive Order No. 292 or the Revised 
Administrative Code of 1987 are hereby repealed or amended accordingly. All laws, decrees, 
orders, rules and regulations or other issuances inconsistent with the provisions of this Act 
are hereby repealed, amended or modified accordingly. 
SECTION 23. Effectiviy. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
20