Republic of the Philippines  
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila  
TWENTIETH (20th) CONGRESS 
First Regular Session  
House Bill No. ____  
___________________________________________________________________ 
Introduced by Rep. Robert Nazal 
___________________________________________________________________
EXPLANATORY NOTE 
Earmarked revenues are specific funds designated by law to be used exclusively for 
particular activities, benefits, or purposes. By statute, these revenues must be
accounted for separately from the government’s general revenues and cannot be 
diverted for other uses unless explicitly authorized by law. Moreover, these funds cannot 
be included in the General Appropriations Act (GAA) of the following year unless 
reallocation is expressly provided for.  
To optimize the use of government cash resources, the cash receipts from earmarked 
revenues are accrued to the General Fund of the National Treasury under the "One 
Fund Concept." This practice aligns with Section 29 (1) of Article VI and Section 22 of 
Article VII of the 1987 Constitution, as implemented by Sections 44 and 45, Book VI of 
Executive Order No. 292, and Sections 65 and 66 of Presidential Decree No. 1445, also 
known as the State Audit Code of the Philippines.  
These earmarked revenues are recorded as Special Accounts in the General Fund 
(SAGFs) of the National Treasury. Although they form part of the General Fund, these 
revenues are still recorded in separate accounts to ensure their exclusive use for the 
purposes for which they were established.  
The Bureau of the Treasury notes that when cash receipts from earmarked collections 
exceed the actual disbursements for SAGFs in any given fiscal year, the unexpended 
cash balance is utilized for other expenditures in the GAA, following the One Fund 
Concept. This allows for more efficient management of government cash holdings.  
However, it is important to highlight that Section 29, Article VI of the 1987 Constitution 
states: “No money shall be paid by the Treasury except in pursuance of an 
appropriation made by law.” Therefore, while the cash receipts from earmarked 
revenues are utilized, the remaining SAGF balances represent an obligation to fund 
future SAGF-eligible expenditures. These obligations must be supported by future 
revenues or borrowings, meaning the balances do not constitute readily available cash 
resources.  
This practice undermines the original purpose of creating the SAGFs, as the balances, 
though recorded, are not immediately accessible for their intended use. Consequently, 
earmarked revenues are often used for purposes other than those specified by the laws 
that mandated their earmarking.  
July 1, 2025
6:05 pm
1021


While the One Fund Concept may be viewed as sound fiscal management, ensuring 
that idle funds are put to use for urgent government needs, it is crucial that such 
practices remain consistent with existing laws, regulations, and constitutional provisions. 
This bill seeks to establish clear conditions for the utilization of earmarked revenues, 
contributing to the government's efforts to achieve fiscal stability and optimize the 
management of its cash resources. It also aims to safeguard these funds from misuse 
while ensuring transparency and accountability in their management.  
For these reasons, the approval of this bill is earnestly sought. 
REP. ROBERT NAZAL 


Republic of the Philippines  
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila  
TWENTIETH (20th) CONGRESS 
First Regular Session  
House Bill No. ____  
___________________________________________________________________ 
Introduced by Rep. Robert Nazal 
___________________________________________________________________ 
AN ACT AUTHORIZING THE ACCRUAL OF EARMARKED REVENUES TO THE  
GENERAL FUND AND PRESCRIBING THE CONDITIONS UNDER WHICH SUCH 
FUNDS MAY BE USED FOR OTHER EXPENDITURES IN THE GENERAL  
APPROPRIATIONS ACT, AND FOR OTHER PURPOSES  
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:  
Section 1. Title. This Act shall be known as the "Earmarked Revenues Accrual and 
Utilization Act of 2024."  
Section 2. Declaration of Policy. It is hereby declared the policy of the State to ensure 
the prudent and efficient use and management of all government resources. In line with 
the "One Fund" concept, all government revenues, including earmarked funds, shall be 
managed to optimize the allocation of resources in accordance with national 
development priorities, while ensuring that the original objectives for which these 
revenues were collected are fully realized.  
Section 3. Definition of Terms. For purposes of this Act, the following terms shall be 
defined as follows:  
a. Authorized Expenditure refers to any item of expense appropriated for in the
General Appropriations Act.
b. Earmarked Revenues are identified revenues required by statute to be used for
designated activities, benefits, or purposes, and must be accounted for
separately from government’s general revenues.
c. Eligible Expenditure refers to any of those enumerated in specific laws that
mandated the earmarking to utilize income collections accruing to the Special
Accounts in the General Fund for the respective purposes provided in the same
law.
d. General Fund refers to the primary fund of the National Government deposited in
the National Treasury, which consists of monies and resources available for the
payment of expenditures, obligations or purposes not specifically declared by law
as accruing and chargeable to, or payable from, any other fund.
1021


e.​ One Fund Concept refers to the accrual of all income, fees, charges, 
assessments, and other receipts or revenues collected by government offices 
and agencies to the General Fund of the National Government and deposited in 
the National Treasury, as enunciated through Presidential Decree No. 1177, as 
amended, and implemented by Sections 44 and 45, Book VI of Executive Order 
No. 292, otherwise known as the Administrative Code of 1987, and Sections 65 
and 66 of Presidential Decree No. 1445, otherwise known as the State Audit 
Code of the Philippines.  
  
f.​ Resources 
refers 
to 
the 
actual 
assets 
of 
any government agency, 
instrumentalities, corporation and/or offices, such as cash, instruments 
representing or convertible to money, receivables, lands, buildings, as well as 
contingent assets such as estimated revenues applying to the current fiscal 
period not accrued or collected and bonds authorized and unissued.  
  
g.​ Special Accounts in the General Fund (SAGF) refers to the fund whereby 
proceeds of specific revenue measures and grants earmarked by law for specific 
priority projects are recorded.   
   
Section 4. Accrual of Earmarked Revenues to the General Fund. Notwithstanding 
any law to the contrary, all earmarked revenues collected by any government office, 
agency, instrumentality, or corporation shall accrue to the General Fund of the National 
Government and be maintained as Special Accounts within that fund. These revenues 
may be temporarily utilized for other authorized expenditures under the General 
Appropriations Act, provided that the cash receipts from earmarked revenues are 
recorded as separate SAGFs for accurate monitoring and accounting. Furthermore, it is 
required that any funds temporarily used for other authorized expenditures remain 
readily available to fulfill the eligible expenditures charged against the SAGFs when 
needed.  
   
Section 5. Conditions for the Utilization of Earmarked Revenues. The cash receipts 
from earmarked revenues accrued to the General Fund may be used for other 
authorized expenditures under the General Appropriations Act, subject to the following 
conditions:  
  
a.​
Earmarked revenues maintained in Special Accounts in the General Fund 
(SAGFs) shall be used exclusively for their legally mandated purposes. The 
Department of Budget and Management (DBM) shall program the annual 
utilization of these revenues in alignment with the government's approved 
fiscal program and release the corresponding funds to beneficiary agencies 
based on specific budget execution guidelines.  
  
b.​
As the cash receipts from earmarked collections accrue to the General Fund, 
expenditures eligible under the SAGFs are funded using the General Fund’s 
cash. These charges will be recorded, and the corresponding SAGF 
balances will be reduced accordingly.  
  
c.​
Notwithstanding the above, the Bureau of the Treasury shall ensure that the 
SAGF balances represent readily available cash resources for any eligible 
expenditures charged to the SAGFs until the end of the fiscal year.  
  
d.​
Only when the cash receipts from earmarked collections charged to the 
SAGFs exceed actual disbursements at the end of the fiscal year may the 
unutilized SAGF balance be used for other expenditures in the GAA. 


However, the amount used for such purposes shall not impair the availability 
of funds for SAGF-eligible expenditures.  
  
e.​
Under no circumstances shall there be a failure or delay in the disbursement 
of funds to cover SAGF-eligible expenditures due to the temporary utilization 
of earmarked revenues as outlined in this Act. Any delay, defined as the 
lapse of fifteen (15) days without approval of the fund release after meeting 
all requirements, is prohibited.  
   
Section 6. Interest-Earning Mechanism. All earmarked revenues are deposited in the 
Treasury Single Account maintained with the Bangko Sentral ng Pilipinas, where the 
interest generated therefrom shall accrue to the General Fund as its income, in 
accordance with the provisions of Book VI, Chapter 5, Section 44 of Executive Order 
No. 292 to fund other general expenditures as provided in the GAA. The Department of 
Finance and the Bureau of the Treasury shall oversee the implementation of the interest 
earning mechanism in coordination with the Bangko Sentral ng Pilipinas.  
   
Section 7. Safeguards and Oversight.   
  
a.​
The Department of Budget and Management, Department of Finance, and 
Commission on Audit shall jointly issue rules and regulations to ensure strict 
monitoring and transparency in the use of pooled earmarked revenues.   
  
b.​
These agencies shall jointly monitor and evaluate the utilization of earmarked 
revenues and recommend to the President any necessary actions, including 
replenishment measures.  
  
c.​
They shall also furnish the Congress with a quarterly report on the status of 
earmarked revenues, including interest earned and amounts diverted for 
other expenditures in the exercise of its oversight function.  
   
Section 8. Penal provision. Any public official or employee who authorizes or 
facilitates the unauthorized use of earmarked revenues, contrary to the provisions of 
this Act, shall be subject to the following:  
  
a.​
If the amount misused, diverted, or misappropriated falls below the threshold 
for plunder (₱50 million), a fine equivalent to the amount of earmarked 
revenues misused, diverted, or misappropriated, or imprisonment not 
exceeding six (6) years; or both fine and imprisonment, at the discretion of 
the court; in addition to perpetual disqualification from holding public office, 
with forfeiture of all benefits and retirement privileges.  
  
These penalties shall be without prejudice to the filing of criminal charges 
under Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act), the 
Revised Penal Code of the Philippines, and other applicable laws.  
  
b.​
If the amount involved qualifies as plunder (₱50 million and above), 
prosecution under Republic Act No. 7080 (Plunder Law), with penalties 
including life imprisonment and forfeiture of assets.  
  
c.​
Under no circumstances shall the unauthorized use of earmarked revenues 
result in the delay of eligible expenditures, as defined by this Act. A delay of 
more than fifteen (15) days without approval of the release of funds, after all 
requirements have been met, shall be subject to administrative sanctions 


under Republic Act No. 6713 (Code of Conduct and Ethical Standards for 
Public Officials and Employees).  
  
d.​
Any violation of this Act involving the commission of fraud or the concealment 
of illegal activities shall also be subject to prosecution under the Anti-Money 
Laundering Act (RA 11641), the Anti-Red Tape Act (RA 10910), and 
Presidential Decree No. 1445 (Government Auditing Code of the Philippines), 
as applicable.  
  
Section 9. Implementing Rules and Regulations. Within ninety (90) days from the 
effectivity of this Act, the Department of Budget and Management, the Department of 
Finance, and the Commission on Audit, in consultation with other departments and 
agencies with earmarked revenues under their jurisdiction, shall issue the necessary 
rules and regulations for the effective implementation of this Act.  
  
Section 10. Repealing Clause.  All other laws, executive orders, rules and regulations 
or parts thereof in conflict with the provisions of this Act are hereby repealed or 
amended accordingly.   
   
Section 11. Separability Clause. If any section or provision of this Act is declared to be 
unconstitutional, other sections or provisions hereof which are not affected thereby, shall 
remain in full force and effect.   
   
Section 12. Effectivity. This Act shall take effect fifteen (15) days from its publication in 
the Official Gazette or any newspaper of general circulation.   
   
Approved,