13th CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 .  
First Regular Session 
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S E N A T E  
S. Bill. No. 
Introduced by Senator Ralph G. Recto 
EXPLANATORY 
NOTE 
Revolving funds are akin to a personal checking account. You deposit income 
into your.,account. The purchase of goods and services necessary for daily sustenance 
serve to diminish the fund. In order to ensure that particular expenditures are met given 
the limited funds available, it becomes all the more necessary and proper to keep the fund 
balanced, Le., the expenditures do not exceed the income or revenue. By keeping your 
account “in the black,” and by looking for ways to stretch your capital further, you are 
exercising sound financial management 
Experience has shown that, time and again, earmarking of public funds for 
specified purposes in the form of a special fund has proven unreliable due to the delay if 
not non-release of the funds for the particular purposes they were established and created. 
Thus, the wisdom of creating special funds has been seriously debated and questioned. 
,%,. 
The bill eliminates earmarking by promoting a “one-fund concept” wherein all 
proceeds and shares accruing to the government shall be directly remitted to the General 
Fund of the National Government. This system will dispense with the need for various 
special hnds created as fund sources for specified government undertaking and public 
purposes. 
In view of the foregoing, the immediate approval of this bill is earnestly sought. 


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13" CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T E  
S. Bill. No. 
Introduced by Senator Ralph G. Recto 
AN ACT 
INSTITUTING THE ONE FUND CONCEPT IN THE GOVERNMENT BY 
PROVIDING THAT ANY AND ALL SHARE OR PERCENTAGE OF AN 
INCOME, EARNING, COLLECTION OR REVENUE OF A GOVERNMENT 
AGENCY, CORPORATION OR ACTIVITY THAT IS EARMARKED BY LAW 
FORDIRECTREMITTANCETOANOTHERAGENCY,SHALLACCRUETO 
THE NATIONAL TREASURY 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 
1. 
Statement of Policy - Any share or percentage of an income, 
earning, collection, or revenue of a government agency, corporation, or activity that is 
earmarked by law for direct remittance to another agency, which shall form part of its 
operating fund, shall henceforth accrue to the National Treasury and shall be made 
available by Congress for the general purposes of the government in the annual General 
Appropriations Act; Provided, that the annual budget of the agency affected by this Act 
shall include, over and above its regular appropriations, at least 25 percent of the income 
it had lost due to the diversion of its entitlement to the National Treasury. 
SEC. 2. 
Separability Clause. - If any part or provisions of this Act shall be 
held unconstitutional or invalid, other provisions hereof which are not affected thereby 
shall continue to be in full force and effect. 
SEC. 3. 
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Repealing Clause. - All laws, decrees and executive orders 
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inconsistent with the provisions of this Act are hereby repealed or modified accordingly. 


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SEC. 4. 
Effectivity. - 
This Act shall take effect fifteen (15) days after its 
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publications in the Official Gazette or in any two (2) national newspapers of general 
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circulation. 
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Approved,