Republic of the Philippines
HOUSE OF REPRESENTATIVES |/- DATE March 21, 2023
Quezon City, Metro Manila TIME 5:03 pm

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 7749

Introduced by Rep. ISIDRO T. UNGAB

EXPLANATORY NOTE

The General Appropriations Act (GAA) being deliberated judiciously by Congress
emanating from the Lower House up to the Senate is an annual commitment by the
Legislative Branch of Government. This aims to ensure and maintain continuous government
operations to serve the best interest of the Filipino people. The National Budget is an
instrument to achieving the National Priorities of the government.

The bill aims to establish a strong legal framework on Public Financial Management
(PFM). The last comprehensive law on PFM was enacted in 1987 as Executive Order 292.
With a strong Legal Framework on PFM, the proper planning, programming, budgeting and
allocation of government resources will be assured. Furthermore, fiscal discipline in the
management of national resources will be further improved aligned with the targets set forth
in the Medium-Term Fiscal Framework.

The Bill also enhances the responsible and accountable use of Public Resources by
Government Agencies by ensuring timely delivery of services to the Filipino people.
Considering that the GAA is being passed annually, it is equally imperative that the items
provided therein are timely implemented as intended.

The bill also seeks to modernize and provide revolutionary reforms as by establishing
holistic, and internationally established principles encompassing the whole Philippine Public
Financial Management Process and Strengthening Congress’ power of the purse by upholding
Fiscal Responsibility Principles in the Bureaucracy.

In view of the foregoing, the approval of this bill is urgently sought.

HON. ISIDRO T. UNGAB


HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No._7749.

Introduced by: REP. ISIDRO T. UNGAB.

AN ACT TO REFORM THE BUDGET PROCESS BY ENFORCING GREATER ACCOUNTABILITY IN PUBLIC
FINANCIAL MANAGEMENT (PFM), PROMOTING FISCAL SUSTAINABILITY, UPHOLDING CONGRESS’
POWER OF THE PURSE, INSTITUTING AN INTEGRATED PFM SYSTEM, AND INCREASING BUDGET
‘TRANSPARENCY AND PARTICIPATION

“Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
PART | PRELIMINARY PROVISIONS

Section 1. Short Title. ~ This Act shall be known as the “Progressive Budgeting for Better and
Modernized (PBBM) Governance Act.”

Sec. 2. Declaration of Policy and Objectives. — It is hereby declared the policy of the State to ensure
accountability and integrity in the use of public resources by ensuring transparency, fiscal
responsibility, results-orientation, efficiency, and effectiveness. This shall be upheld through the
establishment of an integrated system of planning, programming, budgeting, management,
accounting, reporting and review of public finances, wherein internal controls are embedded within
these processes. In light of these requirements, the State shall pursue the following specific objectives:

(a) To enforce the power of Congress to authorize all appropriations and hold government
accountable in the use of public resources, as well as to ensure the responsibility of all
government agencies to propose, execute and deliver committed results in the
appropriations act in a timely, predictable, and economic manner;

(b) To promote people’s involvement in the management of public resources by enforcing their
right to access information on, and to contribute in the formulation and implementation of,
the financial affairs of the government; and

(c) To strengthen the integration of planning, programming, budgeting, accounting,
disbursement, reporting and performance management and ensure ample safeguards in
‘managing public finances through internal controls and risk management.


Sec. 3. Scope and Coverage. ~ The provisions of this Act shall apply to the management of revenues,
expenditures, financing arrangements, and assets and liabilities of national government agencies
(NGAs), government-owned or -controlled corporations (GOCCs), and local government units (LGUs)
to the extent provided herein.

Sec. 4. Definition of Terms. ~The following terms when used in this Act and the implementing rules
and regulations (IRR) should be understood, as follows:

(a)

(b)

(c)

(a)

(e)
()

(9)

(h)

Activity refers to a recurring work process that contributes to the implementation of a
program or sub-program;

Allotment refers to the share of appropriations which serves as a government entity's limit
and basis for committing/ incurring obligations, in accordance with the purpose,
documentation requirements, and within the period of time as specified in any of the budget
authorization documents;

Allotment Class refers to the classification of expenditures under an item of appropriation
with the following categories: Personnel Services, Maintenance and Other Operating
Expenses, Financial Expenses, and Capital Outlays;

Appropriations refers to an authorization pursuant to laws or other legislative enactment,
hence, required Congressional action, directing the spending of public funds for a specifi
purpose, up to a specified amount under specified conditions. This includes the following:
‘Automatic Appropriations, New General Appropriations (Annual), Unprogrammed
Appropriations (UA), and Supplemental Appropriations;

Appropriations Law refers to either a general or special appropriations law;

Cabinet refers to the Executive Secretary and the Secretaries of the Departments under the
Executive Branch;

Cash Budgeting System refers to the annual appropriations that limit incurring obligations
and disbursing payments to goods delivered and services rendered, inspected and accepted
within the current fiscal year. Payments, of which, may be settled within the Extended
Payment Period;

Development Budget Coordination Committee (DBCC) refers to the body primarily
responsible for the review and approval of the macroeconomic targets, revenue projections,
borrowing level, aggregate budget level and expenditure priorities and the recommendation
to the Cabinet and the President of the consolidated public sector financial position and the
National Government fiscal program. The Secretary of Budget and Management leads the
DBCC, with the Secretary of Finance, the Director General of the National Economic and
Development Authority (NEDA) Secretariat and a representative from the Office of the
President as members, and the Governor of the Bangko Sentral ng Pilipinas (BSP) as a
resource person;


(i)

@

(k)

w
(m)

(n)

(0)

(p)

(q)

)

(s)

()

Disbursement refers to the settlement/liquidation/payment of an obligation incurred in the
current or prior years, involving cash or non-cash transactions and covered by disbursement
authorities;

Extended Payment Period refers to the first three (3)-month period in the following fiscal
year when payments, chargeable against the Appropriations Law of the previous fiscal year,
can be processed and disbursed for goods delivered and services rendered, inspected and
accepted by the end of the previous fiscal year;

Fiscal Year refers to a period of twelve (12) months commencing on January 1 until December
31;

Government Agencies collectively refer to all NGAs, GOCCs and LGUs

Government-Owned or -Controlled Corporations refer to agencies with corporate powers,
organized as a stock or non-stock corporation, vested with functions relating to public needs
whether governmental or proprietary in nature, and owned by the Government of the
Republic of the Philippines directly or through its instrumentalities either wholly or, where
applicable as in the case of stock corporations, to the extent of at least a majority of its,
‘outstanding capital stock. This includes water districts, Government Financial Institutions,
government instrumentalities with corporate powers, government corporate entities and
related corporations;

Government Financial Institutions refer to financial institutions or corporations in which the
government directly or indirectly owns the majority of the capital stock and which are either:
{i registered with, or directly supervised by, the Bangko Sentral ng Pilipinas; or (ii) authorized
to collect or transact funds or contributions from the public and place them in financial
instruments or assets such as deposits, loans, bonds and equity;

Head of Agency refers to the head of the department or agency in the case of NGAs, the
Board of Directors or Trustees or its duly authorized officials in the case of GOCCs, State
Universities and Colleges (SUCs) and local water districts, and the local chief executive in the
case of LGUs;

Item of Appropriation refers to the amount of appropriations for an activity or project in the
Appropriations Law;

Local Government Units refer to provinces, cities, municipalities, and barangays, as well as
autonomous regions created by law pursuant to the Constitution;

‘Multi-Year Contractual Authority (MYCA) refers to the authority issued by DBM to agen\
covering the full contract cost, for the procurement of multi-year projects;

Multi-year Projects refer to projects undertaken by agencies covering a pt
one fiscal year and exceeding twelve months;

‘National Government Agencies refer to units of the National Government, as distinguished
from GOCCs and LGUs, which include any of the departments, bureaus, offices or
instrumentalities of the Executive, Judicial and Legislative branches of government, as well as


the Constitutional Commissions, Commission on Human Rights and the Office of the
Ombudsman;

\U) Program refers to a group of activities and projects that contribute to a common particular
pr
‘outcome;

(v) Project refers to a special undertaking carried out within a definite time frame and intended
to result in some pre-determined measure of goods and services;

(Ww) Proposed National Budget refers to a financial plan of annual revenue and expenditures to
be submitted by the President to Congress that reflect national policies, pursuant to Section
22 of Article Vil of the Constitution;

(x) Public Officials and Employees refer to elective and appointive officials and employees, in a
permanent or temporary capacity, whether in the career or non-career service, including
military and uniformed personnel, regardless of the rank, form or amount of compensation;

(y) Public Funds refer to the monies of all Government Agencies received, collected, receivable
from taxes, fees, charges, penalties, income, dividends, interest earnings, domestic loan
proceeds, external loans and grants, proceeds from the sale of assets, that the Government
has a legal right to retain and use;

(2) Spill-over Projects refer to contracts authorized and undertaken in the immediately
preceding General Appropriations Act (GAA) which were not fully implemented;

(aa) Subsidiary refers to a corporation where at least a majority of the outstanding capital stock
is owned or controlled, directly or indirectly and through one or more intermediaries, by a
GOCC; and

(bb) Treasury Single Account (TSA) refers to the account maintained by the Bureau of the
Treasury (BTr) with the BSP or agent bank for a unified structure of government bank
accounts to enable consolidation and optimum utilization of government cash resources.

In this Act, the singular may be read as the plural and the plural may be read as the singular,
as the context requires.

PART II
BUDGET PREPARATION, EXECUTION, AND ADJUSTMENT

Sec. 5. Governing Principles in Budget Preparation. ~ There is hereby established a set of governing
principles to be observed by the NGAs and GOCCs in the preparation of their annual budget proposals,
and by the DBM in the preparation, and the presentation to Congress, of the Proposed Annual National
Budget:

(a) Cash-based estimates shall be adopted in the proposed general and special appropriations
bills to promote faster and more effective delivery of services;


(b) The overall expenditure program of the government for a given Fiscal Year shall be included,
identifying those requiring approval by Congress and those authorized under existing laws;

(c) All sources of funds and authorized uses available to the agency shall be considered in the
evaluation of agency proposals and determination of agency budget levels, and shall likewise
be disclosed in the Proposed National Budget and reports;

(d) Evaluation of agency proposals may include the analysis of a development plan, master plan
or road map, agency capability as demonstrated by previous years’ performance, its
contribution to projects and activities of other agencies, utilization of funds appropriated or
released, and such other criteria as may be determined by the DBM. The performance shall
be evaluated based on the actual disbursements and contractual commitments as compared
to the appropriations;

(e) All appropriations in the GAA shall be valid for one Fiscal Year, reckoned from the effectivity
thereof until the end of the Fiscal Year concerned. When necessary or appropriate, a three
month Extended Payment Period in the following Fiscal Year may be availed of to allow
agencies to settle payments for goods and services delivered, inspected and accepted during
the previous Fiscal Year;

(f) For evaluating the performance of an agency, programs, activities and projects shall be
presented in such a way as to identify the entity responsible for the expenditure and the
intended results from the use of the appropriations;

(g) Both the financial and non-financial performance of agencies shall be presented in the
Proposed National Budget to ensure a performance-informed budget; and

(h) Programs, activities and projects shall be reflected by department, agencies, bureaus, and
offices, and shall be presented for information purposes, by region and province, and
eventually, by city or municipality.

Sec. 6. Planning-Programming-Budgeting Linkage. - Development strategies identified in the PDP
shall be the primary consideration in the formulation of the Budget Priorities Framework. These shall
also be the basis for drawing up strategic and prioritized programs and projects in the multi-year Public
Investment Program (PIP), which in turn will be considered in the formulation of the annual agency
budgets that conform to the annual budget ceilings approved by the President.

The PIP shall be reflective of the Regional Development Investment Programs that, in turn, also
take into consideration the intra-regional and inter-provincial development plans and investment
programs of the local government units within each region

The implementation of programs and projects funded under the annual agency budgets shall be
monitored to ensure economy, efficiency, and effectiveness in the use of public funds. Monitoring
and evaluation of these projects shall cover, among others, the planned and actual performance of
agencies, citing reasons for deviation and/or poor absorptive capacities. The results of the project
evaluation shall inform the assessment of subsequent plans and budget proposals of agencies.

Sec. 7. Budget Priorities Framework. ~The DBCC shall submit to the President and Cabinet, within
April of each year, a Budget Priorities Framework to guide the formulation of the Proposed National

6


Budget for the following year. It shall contain the targets underlying the budget; the priority areas for
government spending reflected in the PDP and PIP, estimated amount and planned allocation of the
fiscal space; and other requirements laid down in the IRR.

Sec. 8. The Budget Preparation Process. ~ The DBM shall determine the budget preparation process
and calendar. The budget preparation process shall cover: (i) NGAs; (ii) GOCCs with respect to their
impact on revenue, expenditure, assets, and liabilities and risks of the government; and (iii) LGUs as
to their impact on revenue and expenditure of the government.

Sec. 9. The Proposed National Budget. - The President shall submit to Congress, not later than thirty
(30) days from the fourth Monday of July of every year, the Proposed National Budget, which shall be
the basis of the General Appropriations Bill (GAB).

‘The President shall determine the form and content of the Proposed National Budget which shall
include, but not limited to, the following:

(a) President’s Budget Message — provides a preview of the Proposed National Budget, explaining
the principles, objectives and policy framework adopted and the spending priorities for the
Fiscal Year;

(b) Budget of Expenditures and Sources of Financing (BESF) — contains the macroeconomic
parameters; dimensions of three-year (3-year) expenditure program, revenue, financing, and
outstanding debt; overview of the financial positions of GOCCs, LGUs, and publicprivate
Partnership projects, list of new multi-year projects, including the project duration, the total
project cost and contractual authorities issued as well as the other items listed in the IRR;

(c) National Expenditure Program (NEP) ~ includes the strategic objectives, details of the three-
year (3-year) expenditure program, performance information, such as key strategies, outputs
and outcomes for agencies in relation to their budgets, and staffing summary;

Congress may not increase the appropriations recommended by the President for the operations
of government as specified in the Proposed National Budget.

The President shall publish the Proposed National Budget on the Government website on the same
day it is presented to Congress.

Sec. 10. Program Classification. - The Proposed National Budget shall adopt a structure based on a
program classification that groups line items under the objectives or outcomes to which they
contribute to. Performance information shall be provided for each program to facilitate the evaluation
of its cost effectiveness and provide better information for analysis and feedback for planning and
prioritization of expenditures.

In addition, the performance information and targets contained in the Proposed National Budget
shall be updated after the passage of the GAA taking into consideration the amount appropriated for
each program. For this purpose, NGAs and GOCCs shall propose adjustments in its outputs and
outcomes for the consideration and approval of the DBM.

Sec. 11. Special Purpose Funds. - To promote the transparent and detailed disclosure of all proposed
government spending, Special Purpose Funds (SPFs) in the Proposed National Budget shall be limited



to the: (1) the NDRRMF; (2) the Contingent Fund; (3) Statutory Shares of LGUs; and (4) other SPFs not
falling under any of the preceding purposes, the details of which could not be determined during the
budget preparation stage, and based on the parameters to be set in the IRR.

Sec. 12. National Disaster Risk Reduction and Management Fund. - The NORRMF shall be used for:
(1) disaster risk reduction or mitigation, prevention and preparedness activities, such as, but not
limited to, training of personnel, procurement of equipment, and capital expenditures; and (2) relief,
recovery, reconstruction and other work or services in connection with natural or human induced
calamities which may occur during the budget year or those that occurred in the preceding two (2)
years.

Of the amount appropriated for the NDRRMF, there shall be specific allocation as Quick Response
Fund (QRF), as may be provided under existing law, which shall be used as a standby fund in order that
the situation and living conditions of people in communities or areas stricken by natural or human
induced calamities, epidemics, crises, and catastrophes may be normalized as quickly as possible.

The NORRMF and QRF shall also be used for obligation and payment of Spill-over Projects
approved or funded from the NDRRMF or ORF of the immediately preceding Fiscal Year.

Releases from the NDRRMF, except for QRF and Spill-over Projects, shall be subject to the prior
approval of the President, who may take into consideration the recommendation of the National
Disaster Risk Reduction and Management Council for local disasters and calamities and the
appropriate agency for international crises.

Sec. 13. Contingent Fund. ~ The Contingent Fund shall cover the funding requirements of new or
urgent projects or activities of NGAs, GOCCs, and LGUs that need to be implemented or paid during
the year, such as: (i) legal obligation of the government arising from the final and executory decisions
of competent authorities, including arbitration awards, mediation settlement, or compromise
agreements; (ii) requirements of newly created offices; or (iii) deficiencies in the appropriations for
local and external travels of the President of the Philippines.

Releases from the Contingent Fund shall be subject to approval by the President of the Philippines,
other than payment resulting from final and executory decisions of competent authorities, which shall
be released by the DBM subject to availability of funds.

The DBM shall inform Congress of all releases from the Contingent Fund in the quarterly and
annual fiscal reports including information on the date of release, the amount covered, corresponding
purpose/s and recipient agency.

Sec. 14. Statutory Shares of Local Government Units. — The shares of LGUs in the proceeds from
national taxes and other transfers to LGUs authorized by law shall be released to the LGUs in
accordance with the provisions on the use, allocation, and release of the funds as may be provided in
pertinent laws, rules and regulations

Sec. 15. Unprogrammed Appropriations. ~ Congress may authorize standby appropriations to cover
the funding requirements of other priority projects and activities or contingencies, as well as provide
appropriations cover for foreign-assisted projects (FAPs) not specifically included in the programmed
component of the GAA that requires implementation during the year. The Unprogrammed
Appropriations shall indicate the purposes from which the amount authorized therein may be used.

8


The Unprogrammed Appropriations shall not exceed three percent 3% of the total proposed
expenditure, net of contractual, statutory and other legal obligations in the programmed component
of the GAA.

Expenditures to be funded under the Unprogrammed Appropriations may be authorized only
when supported by: (i) excess revenue collections in any one of the particular non-tax revenue sources
from its corresponding revenue collections target in the BESF as certified by the BTr; (ii) new revenue
collections or those arising from new tax or non-tax revenues which are not part of the original
revenue sources in the BESF; or (iii) when there are approved loan proceeds for new and ongoing FAPs.

In no case shall the Unprogrammed Appropriations be activated or released when the DBCC
determines that there is a risk of breaching the fiscal objectives set forth in the Statement of Fiscal
Policy.

Releases from the Unprogrammed Appropriations shall be subject to the prior approval of the
President of the Philippines, other than the final and executory decisions of competent authorities,
including arbitration awards, mediation settlement, or compromise agreements.

The DBM shall include information on releases from the Unprogrammed Appropriations in the
quarterly and annual reports submitted to Congress.

Sec. 16. Budget with Unified Accounts Codes- All items of appropriations in the Appropriations Law
shall be given unified accounts codes by the DBM pursuant to the Unified Accounts Code Structure.

Sec. 17. Re-enacted Budget. - If, by the end of any Fiscal Year, Congress has failed to enact a GAA for
the ensuing Fiscal Year, the GAA of the preceding Fiscal Year shall be deemed reenacted and shall
remain in force and effect until a GAA for the ensuing Fiscal Year is passed by the Congress.

Consistent with the Fiscal Responsibility Principles, the re-enacted budget shall be enforced as
follows:

(a) The aggregate level of the re-enacted budget shall be limited to the total amount appropriated
in the preceding year’s GAA, but shall in no case exceed the level of the sources of financing
under the BESF of the Proposed National Budget for the year;

(b) The appropriations for the following shall be limited to the amount authorized under the re-
enacted budget, but in no case exceed the amount in the Proposed National Budget:

Ongoing programs, projects and activities;

Personnel benefits, including retirement gratuities, pensions, terminal leave pays and

related expenses;

3. _NDRRMF, Contingent Fund, Statutory Shares of LGUs, and other SPFs;

4. Budgetary support to GOCCs for their operational requirements and ongoing
programs, activities or projects; and

5. Newly-approved FAPs.

Ro

(c) In no case shall the following items of the re-enacted budget be consi
disbursement, and utilization:

lered for release,


1. Completed programs, projects and activities funded in the GAA of the preceding Fiscal
Year; and
2. Equity contribution of the National Government to GOCCs.

The DBM shall issue guidelines on the aggregate and agency levels of appropriations authorized
under the re-enacted budget in accordance with the foregoing, supporting requirements to determine
actual needs, and other pertinent rules in the implementation of the re-enacted budget.

Upon enactment of the GAA anytime during the current Fiscal Year, all releases under a reenacted
budget consistent with this Section shall be considered valid obligations and deemed to have been
implemented pursuant to and charged against, for account recording purposes, the GAA for the
current Fiscal Year.

The enacted GAA shall be valid from its effectivity until the end of the current Fiscal Year.

Sec. 18. Special Appropriations Bill. - A Special Appropriations Bill is a proposal submitted by the
President, as recommended by the DBM, before Congress to provide authorization for expenditure
for a specific purpose not included or not covered under the annual appropriations laws. It shall
specify the purpose/s for which it is intended and the validity period which shall not exceed one (1)
year from its enactment

Cash-based estimates shall be adopted in the proposed special appropriations bills to promote
faster and more effective delivery of services.

A Special Appropriations Bill shall be supported by funds actually available as certified by the
National Treasurer, or to be raised by a corresponding revenue measure proposed therein.

No Special Appropriations Bill shall be passed during a re-enacted budget, except for the following:
(1) disaster-related purposes; (2) urgent projects and/or activities; and (3) unforeseen requirements
of the government.

Sec. 19. Release of Public Funds. - The government shall commence releases of Public Funds covered
by an Appropriations Law as soon as it comes into force to ensure timely and efficient disbursement
by the appropriate implementing agencies, subject to pertinent budgeting, accounting and auditing
rules and regulations. Upon the implementation of the cash budgeting system, the Appropriations Law
shall be considered the authority of the agencies to contract out and disburse funds, except for the
following instances: (i) when provided in the Appropriations Law; and (ii) when the appropriations
have requirements before release, such as work and financial plan, feasil
study, and preliminary and detailed engineering

Sec. 20. Cash Budgeting System. ~ Appropriations authorized in the GAA for NGAs, budgetary support
to GOCCs, national projects implemented by LGUs, and SPFs, shall be available for obligation only until
the end of each Fiscal Year. Obligations incurred by the National Government within each Fiscal Year
shall be implemented during the same Fiscal Year. Goods and services corresponding to said
obligations shall be delivered or rendered, inspected and accepted by the end of each Fiscal Year.
Payments for obligations incurred shall be made until the end of the Extended Payment Period.
Payments during the Extended Payment Period shall be chargeable against the GAA of the preceding
Fiscal Year.

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Appropriations covering financial subsidy to LGUs shall be available for obligation and
disbursement until the end of the succeeding Fiscal Year. On the other hand, appropriations for the
statutory shares of LGUs shall be available for obligation and disbursement until fully expended.

All funds transferred between or among Government Agencies shall not be considered disbursed
by the Implementing Agency until the transferred amounts have been actually utilized to pay for goods
delivered and services rendered, inspected and accepted.

Any unreleased appropriations and unobligated allotments at the end of the Fiscal Year shall lapse,
while unexpended or undisbursed funds at the end of the Extended Payment Period shall revert to the
unappropriated surplus of the General Fund in accordance with Section 28, Chapter 4, Book VI of E.0.
No. 292 and shall not thereafter be available for expenditure except by subsequent legislative
enactment. For financial subsidies to LGUs, reversion shall be made to the National Treasury after the
end of the succeeding Fiscal Year.

‘Sec. 21. Government Funding Commitment. in accordance with the Constitution, no money shall be
paid out of the Treasury except in pursuance of an appropriation made by law.

Accordingly, a Certification of Availability of Funds (CAF) shall be required prior to entering into
contract. The CAF shall be issued by the Chief Accountant or the highest accounting officer in the
agency.

For Multi-year Projects, the CAF shall be issued annually based on the annual budget for the year.
In case of Multi-year Projects with no funding requirement on any given year, the CAF shall be the
certification of the chief accountant that no fund is needed for the year as indicated in the approved
MYCA.

The CAF shall be stamped or appended to the contract and shall become an integral part thereof.

Sec. 22. Multi-Year Contracts. The issuance of a MYCA or any sit ir document shall be required
before agencies may enter into multi-year contracts, subject to the requirements and guidelines
prescribed by the DBM. Provided, that for foreign-assisted projects funded by foreign loans, the
issuance of a MYCA shall no longer be necessary.

In the procurement of multi-year projects, the MYCA or any similar document shall be required
prior to commencement of any procurement activity.

In the case of GOCCs, they shall secure prior authority from their respective governing boards
before entering into multi-year contracts,

For LGUs, they shall secure any equivalent document issued by their respective sanggunian
authorizing them to enter into multi-year contracts.

For the multi-year Public-Private Partnership projects with government undertakings
authorized under R.A. No. 6957, as amended by R.A. No. 7718, the same shall be covered by a letter
of commitment issued in accordance with the guidelines issued by the DBM.

The implementing agency shall ensure that the annual funding requirements for the multiyear
projects shall be included in its budget proposals for the covered years, consistent with the funding

1


schedule in the MYCA and equivalent authorities, and letter of commitment. In the case of NGAs and
qualified GOCCs, the DBM shall ensure that the funding requirement for the multiyear projects are
included in the National Expenditure Program to be submitted to Congress who shall give due
consideration of the said proposal. In the case of GOCCs and LGUs, due consideration shall be given by
the governing board of GOCCs and the sanggunian of the LGUs, respectively.

In all instances, the disbursements to be incurred for multi-year contracts shall in no case
exceed the cash appropriations for the purpose during the year. Procurement of multi-year projects
shall be subject to the provisions of R.A. No. 9184 and its IRR and GPPB guidelines.

Sec. 23. Early Procurement Activities. - To ensure full budget utilization, timely contract
implementation and efficient delivery of services, agencies are authorized to undertake procurement
activities from pre-procurement conference until recommendation to the head of the procuring entity
as to the award of contract, based on their proposed budget in the NEP, Corporate Operating Budgets
(COB) or Appropriations Ordinance, in accordance with the guidelines issued by the Government
Procurement Policy Board.

In exceptional circumstances where the early procurement activity was delayed, agencies shall
undertake only the procurement of goods, infrastructure and consulting services to the extent that
‘may be delivered or rendered, inspected, and accepted during the Fiscal Year consistent with the cash
budgeting system.

For FAPs, agencies may undertake early procurement activities based on the amount proposed by
the agency in the NEP including those under the Unprogrammed Appropriations and shall be awarded
only upon approval of the loan agreement.

For multi-year projects, the issuance of a MYCA by the DBM is required prior to commencement
of any procurement activity. All existing Multi-Year Obligational Authority shall be understood to refer
to MYCA.

Notwithstanding the mandatory procurement timelines, agencies may only proceed with the issuance
of the notice of award of contract upon approval or enactment of their respective appropriations or
budget authorization document, as the case may be, and based on the amount authorized therein.

Sec. 24. Timely Implementation of Activities or Projects. - Government Agencies shall ensure that all
activities or projects are fully delivered, inspected, and accepted by the end of the Fiscal Year.

In exceptional circumstances where the implementation of an activity, or a project has been delayed
due to force majeure or other justifiable reasons as determined by the agency or decided by a
competent authority, and in both instances without the fault of the contractor, the funding
requirements for its completion shall be chargeable against any available fund in the succeeding Fiscal
Year.

Sec. 25. Authority to Declare and Use Savings. ~ The President of the Philippines, the President of the
Senate of the Philippines, the Speaker of the House of Representatives, the Chief Justice of the
Supreme Court, the Heads of the CSC, the Commission on Elections, and the COA are hereby
authorized to declare and use savings in their respective appropriations in the current year to augment
actual deficiencies incurred for the current year in any item of their respective appropriations.

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‘Sec. 26. Meaning of Savings. - Savings refer to portions or balances of any released appropriations in
the Appropriations Law which have not been obligated as a result of any of the following:

(a) Completion, final discontinuance, or abandonment of an activity or project for which the
appropriation is authorized; or

(b) Implementation of measures resulting in improved systems and efficiencies and thus enabled
an agency to meet and deliver the required or planned targets at a lesser cost.

In case final discontinuance or abandonment is used as basis in the declaration of savings, such
discontinued or abandoned activity or project shall no longer be proposed for funding in the next two
(2) Fiscal Years.

Allotments that were not obligated due to the fault or negligence of the agency concerned shall
not be considered savings.

Sec. 27. Rules on Augmentation. ~ Augmentation is the act of the constitutional officers authorized to
use savings in their respective appropriations to cover a deficiency in any existing item of
appropriation for their respective offices.

The particulars of the expenditure to be funded from savings should be within the scope of, or be
covered by, an existing item of appropriation. The existence of an item of appropriation regardless of
the availability of allotment class/es is sufficient for the purpose of augmentation.

In no case shall a non-existent item of appropriation be funded by augmentation from savings.

Sec. 28. Rules on Modification in the Allotment. ~ Limited flexibility shall be given to NGAs to modify
‘or change the allotment within an existing item of appropriation. Such modification shall not entail
any augmentation of the amount appropriated for the said item of appropriation during budget
execution.

The DBM shall issue rules and procedure to govern modification in the allotment, specifying the
‘cases or circumstances when such modifications maybe undertaken to ensure the uniform
implementation among the various branches of government, the proper recording of modifications,
and the timely submission of reports by all the offices concerned.

PART Ill FINANCIAL MANAGEMENT

Sec. 29. General Fund. — All monies received by NGAs, whether coming from taxes, fees, charges,
penalties, income, dividends, interest earnings, loan proceeds, grants, donations, asset sale proceeds
and such other receivables, shall accrue to the General Fund and be remitted to the National Treasury,
unless otherwise provided by law or stipulated by covering loan or grant agreements. Monies under
the General Fund shall be made available to support the requirements of the National Government
authorized in an Appropriations Law.

A Special Account in the General Fund (SAGF) shall be established by law only under exceptional
circumstances to recognize taxes, fees, charges, penalties, income, dividend, interest earnings, grants,

and donations collected, earned or received by NGAS for specified purposes. All laws authorizing the

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establishment of SAGFs shall specify the period of use thereof, or if no period is specified, it shall be
deemed to be until the fulfilment of the purpose for which the SAGF was authorized. Alll interests
earned by SAGFs shall accrue to the General Fund. The balance of SAGFs upon their termination shall
form part of the General Fund.

All earmarked revenues with significant inflows, a large portion of which are not or not expected
to be programmed for disbursement during the Fiscal Year, shall be treated as Trust Funds and
recorded as trust receipts. Proceeds from these Trust Funds shall be recognized only as revenue inflow
in the General Fund when programmed to be spent for the year.

The Permanent Committee created under Executive Order (EO) No. 292, s. 1987, composed of the
Secretary of Finance as Chairperson, the Secretary of Budget and Management and the Chairperson
of the COA as members, shall identify SAGFs that shall be converted into Trust Funds. The recognition
of revenue inflows from these SAGFs converted into Trust Funds shall be governed by the guidelines
to be issued by the Permanent Committee. In all cases, the authorized uses or purposes shall continue
to be those specified in the law creating the SAGFs.

Sec. 30. Special Funds. ~ In exceptional cases when an SAGF is not suitable for the operations of a
fund, Special Funds shall be authorized by law and limited to the following:

(a) Trust Fund ~constituted from identified revenue sources and other receipts by NGAs or Public
Officials or Employees acting as trustees, agents, or administrators for the fulfilment of
‘commitments or accomplishment of specified purposes. Trust Funds shall be deposited in the
TSA;

(b) Revolving Fund - constituted from receipts derived from business-type activities of NGAs to
be used for the operating requirements of said business-type activities and are considered
self-perpetuating and self-liquidating. Revolving Funds shall be deposited in the TSA or in an
Authorized Government Depository Bank (AGDB) upon authority of the National Treasurer;
and

(c) Retained Fund — constituted from taxes, fees, charges, penalties, income, dividends, or
interest earnings collected, earned or received by NGAs which are expressly authorized by law
to be retained by NGAs and utilized for specified purposes. Retained Funds shall be deposited
in the TSA or in an AGDB upon authority of the National Treasurer.

Any interest earned by Special Funds shall accrue to the General Fund unless otherwise authorized by
law.

Sec. 31. Review by the Permanent Committee. - Upon the effectivity of this Act and every three years
thereafter, the Permanent Committee shall review all existing SAGFs and Special Funds to validate
their compliance with the requirements under Sections 29 and 30 of this Act and to determine
whether these Funds should be modified, terminated, or continued. The Permanent Committee shall
recommend for the approval of the President, the modification or termination of any of the said funds
based on any of the following grounds: (i) when there is no legal basis for its creation;(ii) when its
terms have expired; (iii) when the purpose for its creation has been attained or no longer exist, (iv)
when it is no longer necessary for the attainment of the purposes for which said Funds were
established; (v) when needed by the General Fund in times of calamities and emergencies; (vi) when

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it is used in violation of the rules and regulations issued by the Committee; or (vil) when they have
remained dormant for an unreasonable length of time.

The Permanent Committee shall issue guidelines for the establishment, review and evaluation,
accounting and reporting, and termination of SAGFs and Special Funds.

Sec. 32. Escrow Fund. ~ Escrow Funds are constituted from funds for which the government's legal
right to use is contingent upon a future event which may or may not occur. Escrow Funds shall be
deposited in the TSA or an AGDB upon authority of the National Treasurer. Any interest earned by an
Escrow Fund shall accrue to the said Fund. The amounts under escrow, including interest earned shall
form part of the General Fund upon the occurrence of the future contingent event.

Sec. 33. Waiver, Abatement, Refund and Compromise Agreements. - No public official shall waive,
abate, refund, or enter into a compromise agreement on a tax liability or the payment of fees or
charges except in accordance with law. All waivers, abatements, refunds or compromise agreements
made by an NGA shall be properly accounted for and reported. Refund of taxes and other revenues
shall be treated as a reduction in current year’s revenue collections for budgeting and fiscal reporting
purposes.

Sec. 34. Grants. - NGAs may accept, upon prior coordination with the DOF and the Department of
Foreign Affairs, grants, in cash or in kind, from domestic or foreign sources, for purposes relevant to
their functions. In the case of grants, in cash or in kind, from governments of foreign countries, their
agencies and instrumentalities and international or multilateral institutions or organizations,
acceptance thereof shall be subject to the prior clearance and approval by the President or the
President's authorized representative, based on the recommendation of the Secretary of Finance and
the Secretary of Foreign Affairs.

The provisions of this Section shall not apply to: (1) any grant received by LGUs or GOCCs, except
where the grant is received by them on behalf of the National Government (NG); or (2) any grant
authorized or covered in accordance with existing law.

Grants received shall be valued in the case of grants received in kind, and recognized on the books
of the recipient agency of the National Government.

Sec. 35. Treasury Single Account. ~ The TSA refers to the banking arrangement managed by the BTr
wherein the government transacts all monies collected, received or paid by NGAs in one bank account
or a set of linked bank accounts and gets a consolidated view of its cash position on at least, a daily
basis.

The TSA shall cover remittances, releases or disbursements from the General Fund, SAGFs, Special
Funds, Escrow Funds, Letters of Credit and any other fund managed by the BTr, except in any of the
following instances:

(a) When monies under the General Fund are placed under investments;

(b) When the BTr is required to hold foreign currency accounts; or

(c) When authorized by the Secretary of Finance.

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The BTr, in coordination with NGAs authorized by law to undertake revenue collection and
administration, shall make the necessary arrangements with authorized agent banks (AABs) to
facilitate the collection and transfer of said revenues to the TSA. AABs shall deposit said collections to
TSA within the period and in the manner prescribed by laws, rules and regulations.

Sec. 36. Oversight on Government Bank Accounts. ~ Notwithstanding any provision of law to the
contrary, the BTr shall undertake any of the following in case of violation of a provision in this Act
and guidelines issued on the implementation of the TSA:

(a) Transfer balances of bank accounts to the TSA;

(b) Close any bank account; and/or

(c) Revoke the authority to open any bank account.

The government agency which has opened a bank account, as well as the bank concerned shall
promptly disclose information regarding such account to the BTr.

‘Sec. 37. Treasury Cash Management. - The BTr shall issue orders for the conduct of cash management
including the requirement to provide projections on the timing of future transactions of NGAs taking
into consideration that the appropriations law is considered the authority of the agencies to contract
out and disburse funds, except for those instances stated in Section 19 of this Act.

Sec. 38. Investments. - The BTr may invest portions of the funds held in the TSA for such periods as
the BTr may deem prudent considering cash management requirements. Investments are authorized
to be made in any of the following:

(a) Bank deposit with any highly reputable bank following a selection ia to be issued by the
BTr and money market instruments with well recognized and established financial institution;

(b) Sovereign-issued securities with an investment grade rating; or

(c) Other fixed income securities with an AAA credit rating issued by at least two (2) reputable
international credit rating agencies.

The BTr may appoint a fund manager as an agent of the National Government to undertake the
investment of the funds. Fund Manager refers to person responsible for implementing a fund's
investing strategy and managing its portfolio trading activities.

Interest earned and other income from investments shall accrue to the General Fund, unless
otherwise provided by law.

Sec. 39. Management of National Government Borrowings. - Borrowings by the National
Government shall be for purposes provided by law including any of the following:

(1) Financing budget deficits and liquidity shortfalls;

(2) Refinancing and pre-financing maturing debts;

(3) Undertaking liability and risk management transactions;

(4) Supporting the BSP in maintaining external and monetary stability;

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(5) On-lending to an approved entity;

(6) Financing all sums of money paid to fulfill guarantees;

(7) Increasing liquidity and promoting stability of the government securities market;

(8) Financing developmental activities and projects of the National Government; (9)
Providing financing to address or remedy the effects or impacts of natural or human-
induced disasters; or

(10) Defraying expenditures covered by appropriations.

Borrowing under this Act should adhere to the Fiscal Responsibility Principles and measurable fiscal
objectives in the Statement of Fiscal Policy

Sec. 40. Borrowings by Government -Owned or -Controlled Corporations. — Before the end of each
Fiscal Year, the Head of a GOCC shall prepare a borrowing program for the following Fiscal Year which
shall support the COB and for the medium term. Both borrowing programs shall include a full financial
plan with the details of the loans, refinancing and repayment that the GOCC intends to take. Said
borrowing program, including changes thereon, shall be subject to the approval of the Head of the
NGA overseeing the GOCC, shall be submitted to DOF for information, and published in the concerned
GOCC website.

GOCCs shall seek DOF approval and monetary board concurrence for foreign borrowings or the
latter’s opinion for domestic borrowing activities as provided in the IRR.

Nothing in this Section shall be construed as creating a government guarantee on any borrowing,
loans or refinancing and repayment that the GOCC intends to take.

Sec. 41. Local Government Borrowings. - An LGU may borrow funds from domestic sources in
accordance with the Local Government Code of 1991 and other applicable laws. LGUs may also be
allowed to access foreign sources for major infrastructure projects, through multilateral financial
institutions, subject to the guidelines to be issued by the DOF.

LGUs shall develop their borrowing programs, as part of their comprehensive development and
annual investment plans, which shall be published in the LGU website.

‘Sec. 42. Debt Reporting. ~The DOF, through the BTr, shall ensure that the records include information
on the principal, terms of repayment, amounts drawn, interests, penalties and service charges
accrued, principal and interests paid, and the balance outstanding, and shall make the records
available in a timely way to the President, Congress, and COA and in accordance with the reporting
requirements in this Act

Each LGU and GOCC shall maintain records and provide reports to the DOF on loans as required
by relevant laws, rules and regulations.

Sec. 43. Debt Audit. — Upon the effectivity of this Act, the COA shall conduct a debt audit of all loans
contracted or guaranteed by the National Government. For those loans contracted or guaranteed after
the passage of this Act, the COA shall review the said loans five (5) years from the date of
consummation or guarantee,

Sec. 44. Guarantees. — Guarantee, indemnity or security shall be provided to an NGA or a GOCC as
provided by law, and subject to the annual guarantee ceiling prescribed in the GAA, and upon such

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terms and conditions as the Secretary of Finance may recommend consistent with relevant laws, rules
and regulations. The overall level of guarantee, indemnity or security shall adhere to the Fiscal
Responsibility Principles laid down in this Act and the fiscal objectives in the Statement of Fiscal Policy.

The DOF shall charge a risk-based fee for any guarantee, indemnity, security, relending or similar
financial accommodation it may extend to a GOCC.

In no case shall the National Government be liable for any borrowing by any agency of the
government except for explicit guarantees as provided by law.

Sec. 45. Limitation on the Liability of the National Government for Debts of Other Entities. — The
National Government shall not be liable for any implied guarantee asserted by any person or entity,
but only for explicit guarantees extended in accordance with existing laws, and guarantees in favor of
the Government Service Insurance System, Home Development Mutual Fund, Philippine Health
Insurance Corporation, and the Social Security System in their respective charters.

Sec. 46. Payments Made for Contingent Liabilities. - Any money paid by the DOF pursuant to any
guarantee, indemnity, or security authorized by law and the expenses associated with the same shall
constitute a debt due the National Government from the entity for whose benefit the payment on the
guarantee, indemnity, or security was made.

Sec. 47. Information on Contingent Liabilities. - The DOF shall keep a complete and updated registry
of all contingent liabilities of the National Government, and provide the DBM and Congress with a
report on contingent liabilities. Subject to existing laws, rules, and regulations, the DOF shall have the
power to compel any national government agency and instrumentality, including GOCCs, to submit
documents and other pertinent information necessary for the completion of such registry.

PART IV ACCOUNTABILITY AND REPORTING

Sec. 48. Financial Management and Internal Control. ~ The Head of Agency shall be responsible and
accountable for the financial management of the agency which shall include meeting performance
targets, controlling costs, mitigating adverse risks to agency operations, and ensuring that budgets are
‘managed with integrity and in compliance with applicable laws. Adequate internal controls shall be
ensured, while an internal audit function shall be maintained, as may be applicable.

Sec. 49. Integrated Financial Management Information System. - There shall be an integrated
financial management information system (IFMIS), which shall be the single portal of all financial
transactions and reports to be used by NGAs, GOCCs and LGUs to integrate budgeting, cash
‘management and accounting processes.

The IFMIS shall be managed by the National Accounting and Finance Office under the DBM, which
was established under EO No. 292, s. 1987, to take charge of the maintenance of the data bank of
financial information and to provide the necessary data required by the President, fiscal agencies and
international financial institutions, analyze and evaluate the accounts and overall financial
performance of the government, and supervise the management of the accounts of government
agencies and instrumentalities.

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The development and implementation of IFMIS shall be in coordination with other key oversight
‘agencies, that is, DOF and COA, and in accordance with EO No. 55, s. 2011, directing the integration
and automation of government financial management systems.

The amount necessary for the initial implementation of the IFMIS shall be sourced from any
available funds of the agencies concerned, subject to the existing budgeting, accounting, auditing, and
other pertinent laws, rules, and regulations. Thereafter, the funding requirements for the ensuing
years shall be included in the annual General Appropriations Act, subject to the usual budgeting
process and authorization by Congress.

Electronic and digital authorizations within the IFMIS including, but not limited to, certification on
availability of fund as well as general and application information technology (IT) controls done
through, and resulting in, the implementation of IT systems shall be valid for all legal intents, as well
as for auditing purposes.

Sec. 50. NGA Annual Plans and Proposed Budgets. - The Head of each NGA shall produce an Annual
Plan which shall have a medium term scope, with details for the following Fiscal Year, and shall include
information on the strategic priorities for the medium-term, both the national and regional level,
consistent with the Philippine Development Plan; performance information; summary proposed
budget including financial forecast assumptions and highlighting significant capital projects; and other
information as required in the IRR, as well as the Budget Call and other related issuances from the
DBM. The Annual Plan shall be submitted to DBM during the budget preparation process consistent
with the timetable and other guidelines in the Budget Call.

The Annual Plan of a Department shall incorporate the Annual Plans of its attached NGAs and
GOCCs subject to guidelines prescribed in the IRR.

Sec. 51. Submission of Post Fiscal Year Budget Status. The DBM shall submit to the Speaker of the
House of Representatives, the President of the Senate of the Philippines, the House Committee on
Appropriations and the Senate Committee on Finance a post Fiscal Year budget status report not later
than May 31 of the current year.

Sec. 52. Internal Audit Standards. - The DBM shall formulate and issue the guidelines and standards
for internal audit in the NGAs, GOCCs and LGUs.

PART V TRANSPARENCY AND PARTICIPATION

Sec. 53. Shared Fiscal Discipline. -All proposed revenue eroding and expenditure bills shall include a
Financial and Budgetary Information Sheet upon filing of the bill. The said information sheet shall
contain an estimate of the financial and budgetary implications of said proposal for the initial year of
implementation. Expenditure bills refer to those which increase National Government expenditures,
including those mandating the creation of recurring expenditures; while revenue eroding bills refer to
those which will result in a reduction of revenue collections.

Each House of Congress shall provide guidelines prescribing the form, content of the Financial and

Budgetary Information Sheet, as well as the appropriate offices from which such information shall be
acquired, and the implications of non-compliance with said submission.

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Sec. 54. People’s Access to Public Financial Information. - Before the start of each Fiscal Year, the
DBM shall promulgate a Calendar of Disclosures, and shall publish this on the government website.
Such calendar shall contain the schedule of release of all budget documents and information required
by this Act and its IRR. The DBM shall monitor and periodically report to Congress and the public on
the compliance of agencies with the Calendar of Disclosures and other fiscal transparency
requirements under this Act and its IRR.

All documents and reports required to be published by this Act and its IRR shall automatically be
made available electronically in the government website. Current and historical data on government
revenues, expenditures, and borrowings, shall be made available electronically, in open data format,
on the government website, subject to guidelines established in the IRR.

Sec. 55. The People’s Budget. ~The DBM shall, for every Fiscal Year, publish cit
of the following, subject to guidelines and other specifications in the IRR:

izen-friendly summaries

(a) The Statement of Fiscal Policy in the year of the President's election and any updates
thereafter within thirty (30) days from submission to Congress;

(b) The Proposed National Budget, to be published in electronic format within thirty (30) days
from submission to Congress of the Proposed National Budget;

(Cc) The annual GAA and special appropriations laws, to be published in electronic format in the
1
government website within thirty (30) days from its effectivity; and

(d) The Annual Fiscal Report of the preceding fiscal year, to be published in electronic format in
the government website on the last working day of the current year.

Sec. 56. Participatory Budget Process. - The government shall establish and implement suitable
participatory budget mechanisms to facilitate the open, inclusive, and meaningful engagement of
citizens throughout the budget process. The DBM and DILG, together with other relevant agencies,
shall formulate policies and programs, activities, and projects to enhance participation in the planning,
budgeting and accountability processes.

Such participatory mechanisms may include (i) consultations with the Regional Development Council
(ROC) and Local Development Council (LDC) in the formulation of the national and local government
budgets, respectively; and (ii) partnerships with civil society organizations (CSOs), academic
institutions and experts on programs that monitor and help improve agency or local government
preparation, execution, and monitoring of the budget. Capacity development of CSOs to participate
under the principles of constructive engagement with government may also be conducted.

PART VI ENFORCEMENT

Sec. 57. Sanctions and Penalties. — (i) Without prejudice to the provisions of other laws, the following
sanctions and liabilities in case of failure to comply with the reporting and posting requirements under
this Act, shall be imposed:

(a) The DBM shall not approve any request for release of allotments or any modification in
the allotment nor recommend the use of savings by the President until such time as the
non-compliant agency has submitted the report/s required under this Act;

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(b) The COA may suspend or disallow any expenditure due to modification in the allotment,
which were made within the period succeeding the reporting period when the agency
failed to comply with the reporting requirements under this Act;

(c) Failure of the responsible officer to report on the income and/or funds retained at the end
of a reporting period shall be considered a neglect of duty, subject to the penalty provided
under existing laws; and

(d) The Congress may motu proprio, through its appropriate oversight committee compel the
head of the non-compliant agency, under pain of contempt, to produce the required

report/s and to explain reasons for failure to submit and disclose said report/s.

(ii) Without prejudice to the provisions of other laws:

(a) Every contractual commitment, expenditure or payment authorized or incurred in
violation of the provisions of this Act shall be void and shall render the Public Official or
Employee authorizing or making such payment and every person in collusion with said
official or employee shall jointly and severally be held liable to the government for the
full amount so paid or received. The Public Official or Employee who knowingly delays
the implementation of any contractual agreement shall be liable and imposed the
appropriate administrative sanctions based on existing laws and civil service rules. A
Public Official or Employee who knowingly incurs any contractual commitment or
authorizes any expenditure in violation of the provisions of this Act or takes part therein
shall likewise be removed or dismissed from office, after due notice and hearing, even if
no criminal charge is instituted against such Public Official or Employee;

(b) Any Public Official or Employee, holding office or employment in a casual, temporary,
holdover, permanent or regular capacity, who shall cause the inclusion of fraudulent
information in any accountability report, shall be penalized with imprisonment not
exceeding five (5) years, or a fine not exceeding One Million Pesos (P1,000,000.00), or
both, without prejudice to disallowances by the COA against expenditures related to such
fraudulent information, provided, that this fine is reviewed and adjusted periodically to
be reasonable;

(c) A conviction under this Act shall carry with it civil liability, which may either consist of
restitution for the damage done or forfeiture in favor of the government of any
unwarranted benefit derived from the act or acts in question, or both, at the discretion
of the courts, in addition to possible administrative liability; and

(d) Private individuals who shall conspire with the erring Public Officials or Employees,
whether as co-principals, accomplices or accessories, in the commission of any violation
of this Act shall be subject to the same penalties as the Public Officials or Employees and
shall be tried jointly with them.

PART VII FINAL PROVISIONS

Sec. 58. Implementing Rules and Regulations. - The DBM, in consultation with the DOF, BTr, NEDA
and COA, and in coordination with agencies concerned, shall issue the rules and regulations necessary

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for the proper implementation of this Act within ninety (90) days from the effectivity of this Act. The
IRR may be amended by the DBM, in consultation with the DOF, BTr, NEDA and COA and in
coordination with the agencies concerned, as the need arises.

Sec. 59. Congressional Oversight. - The Joint Congressional Oversight Committee on Public
Expenditures constituted under the annual GAA shall primarily monitor compliance by agencies on the
implementation of this Act.

Sec. 60. Transitory Provisions. ~The DBM, DOF, BTr, NEDA and COA shall prepare and submit to the
Joint Congressional Oversight Committee on Public Expenditures within thirty (30) days from
promulgation of the IRR, a Transitory Plan to ensure the proper implementation of the provisions of
this Act. It shall include, among others, the funding source for spill-over projects or claims as validated
by competent authorities, as well as measures to help agencies cope with the full implementation of
this Act.

Sec. 61. Repealing Clause. ~ Any law, presidential decree or issuance, executive order, letter of
instruction, administrative order, proclamation, charter, rule or regulation and/or parts thereof
contrary to or inconsistent with the provisions of this Act is hereby repealed, modified or amended
accordingly.

Sec. 62. Separability Clause. ~ If for any reason, any section or provision of this Act is declared
unconstitutional or invalid, other sections or provisions which are not affected thereby shall continue
to be in full force and effect.

Sec. 63. Effectivity Clause. ~ This Act shall take effect fifteen (15) days following its publication in the
Official Gazette or in two (2) newspapers of general circulation.

Approved,

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