AN ACT FURTHER AMENDING CERTAIN SECTIONS OF P.D. NO. 1177, AS AMENDED, ENTITLED REVISING THE BUDGET PROCESS IN ORDER TO INSTITUTIONALIZE THE BUDGETARY INNOVATIONS OF THE NEW SOC…

WHEREAS, the Presidential Decree No. 1177, as amended was
promulgated; to improve national budget policy and practice, to institutionalize
budgetary reforms and innovations realize during the New Society and to put into
effect the chants in budget principles embodied, in the Constitution of
1973;

WHEREAS, there is need to further clarify certain provisions
of the decree in order to further improve the budget process and. procedures in
the light of experience in the application of P.D. No. 1177.

NOW, THEREFORE, I, FERDINAND E, MAROCS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
Order and Decree:

SECTION 1. Parts of Section 2 of P.D. No. 1177, as amended
by Section 1 of P.D. No. 1421, are hereby further amended to read as
follows:

a) “Budget” refers to the budget required to be prepared pursuant to Section
Sixteen (1), article VIII of the Constitution, which contains the financial
program of the National Government for a designated calendar year, consisting of
statements of estimated, receipts from revenues and expenditures for the
calendar year for which it is intended to be effective.

b) “Government” means the National Government, including the Executive, the
Legislative and the Judicial Branches, the Constitutional Commissions, regional
commissions, and state universities and colleges. It includes among its
instrumentalities, local government units and government-owned or controlled
corporations.

c) “Government-owned or controlled corporations” are corporations created by
law as agencies of the state for narrow and limited purposes, either owned
wholly by the state or wherein the Government is a majority stockholder, in
cases of stock corporations, or otherwise, agencies so created where no stocks
are issued but whose affairs are conducted by a duly constituted board and which
perform proprietary functions. This term shall include all corporations,
including financial institutions, owned or controlled by the National Government
performing government and/or proprietary functions, but excluding state
university and colleges.

h) “Local Government Units” refer to the political subdivisions mentioned or
authorized to be created under Article XI of the Constitution.

j) “Appropriation” is an authorization under Acts of Congress, Presidential
Decrees, or other legislatives enactment, allowing obligations to be incurred
and payments to be made with funds of the government under specified conditions
and/or for specified purposes.

SEC. 2. Section 5 of P.D. No. 1177 is hereby amended by
adding new paragraph to read as follows:

“The budget calendar, format and procedure for the preparation and approval
of the operating budgets of local government units and government-owned or
controlled corporations shall be governed by such rules and regulations as may
be issued by the President in order to implement the declared policy on national
resource budget enunciated in this section.”

SEC. 3. The first paragraph of Section 13 of P.D. No. 1177
is hereby amended to read as follows:

“Section 13. Submissions of the Budget. The President shall,
in accordance with section sixteen (1) Article VIII of the Constitution, submit
within thirty days from the opening of each regular session of the National
Assembly, a national government budget of estimated receipts based on existing
and proposed revenue measures, and of estimated expenditures. The budget
estimates shall be used as a basis for the consideration of the General
Appropriations Bill and of other appropriations measures whose revenue and
expenditures estimates are incorporated therein.

SEC. 4. A new paragraph shall be inserted between the second
and third paragraphs of Sec. 13 as follows:

“The President shall submit the General Appropriations Bill with the budget
as herein specified, embodying proposed appropriations for the current
operations if the national government and for capital outlays. Additional
appropriations proposals may be submitted which correspond to part of the
expenditure estimates submitted as part of the budget proposal:
Provided, That continuing appropriations may be enacted for public
works, highways and other infrastructure projects which require more than one
year for construction. In such cases revenue estimated for the future years
shall also be used in the evaluation of funding availability.”

SEC. 5. The existing paragraph in Sec. 27 shall be placed
under a sub-heading “a. General Appropriations Bill.” The following sub-sections
shall be added:

“b. Revenue Measures.

“The Committee on Finance shall report to the Batasan revenue bills forming
part of the budget estimates, within ten consecutive session days after they
have been referred to it. The provisions of sub-section “a” above with respect
to timetable of consideration shall apply, as much as practicable, to the
schedule of discussion and final action on revenue bills.

“c. Infrastructure and Other Bills.

“The public works, highways and other bills requiring appropriations may be
filed at any time during the sessions of the National Assembly and shall be
considered by the Assembly upon their being reported out by the corresponding
Committees.”

SEC. 6. Section 32 shall read as follows:

“Sec. 32. Supplemental Appropriations. After the President
shall have submitted and the Assembly acted upon the General Appropriations
Bill, supplemental appropriations measures shall be considered only if supported
by actually available funds as certified to by the National Treasurer or by new
revenue measures. The budget and the General Appropriations Act may provide
lumps sums in order to support bills for later action by the assembly:
Provided: That the Treasury Certification requirement shall be deemed
complied with in that case of bills which are funded from lump sums in the
General Appropriations Act approved by the Assembly for purposes of supporting
programs, projects or activities which require specific legislative
authorization and in the case of bills whose expenditure estimates are included
in the budget submission of the President pursuant to Sec. 13
hereof.

SEC. 7. Change in Nomenclature. All references in P.D. No.
1177, as amended to the terms “Commissioner of the Budget,” “Budget Commission,”
“Secretary” and “Department” shall be changed to “Minister of the Budget,”
“Ministry of the Budget,” “Minister”, and “Ministry”, respectively.

SEC. 8. Effectivity. ─ This Decree shall take
effect immediately.

Done in the City of Manila, this 14th day of January, in the year of Our
Lord, nineteen hundred and eighty-one.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JOAQUIN T. VENUS, JR.
		Deputy Presidential Executive Assistant

 

Vol. 25, Vital Documents, Presidential Decree 1980-1981