AUTHORITY TO INCUR OBLIGATIONS UNDER THE GENERAL APPROPRIATION ACT FOR FISCAL YEAR 1973

Pending approval of the General Appropriation Act for fiscal year 1973 and in order not to disrupt essential public services and governmental operations, beginning July 1, 1972, authority is hereby granted to all heads of departments, and chiefs of “bureaus and offices of the National Government to incur obligations for the months of July and August, 1972 against appropriations authorized in Republic Act No. 6400 in an amount not to exceed two thirds (2/3) of the total expenditures under Republic Act No. 6400 authorized for each such agencies during the first quarter of fiscal year 1972, chargeable against the General Appro¬priation Act for fiscal year 1973. Likewise, pending approval of the cash budget for the months of July and August, 1972, heads of departments and chiefs of bureaus and offices are authorized to withdraw cash from the National Treasury but in no case shall the total cash withdrawn during the months of July and August, 1972, exceed the level of cash withdrawals authorized respectively for the months of July and August, 1971.

Obligations chargeable against lump-sum appropriations authorized under the General Appropriation Act for fiscal year 1973 which require the approval of special budgets in accordance with Section 7-1(4), Commonwealth Act No. 246, as amended, are hereby authorized to be incurred effective July 1, 1972, even prior to the approval of the corresponding special budgets and cash budgets, pursuant to Section (3) Executive Order No. 285, series of 1940, and Budget Circular No. 210, dated June 18, 1970, as amended by Budget Circular No. 219, dated July 1, 1971, respectively.

Obligations for activities funded partially during the current fiscal year which shall continue in fiscal year 1973 are also authorized to be incurred during the months of July and August, 1972, in an amount not to exceed the proportional expenditures for two months incurred during the current fiscal year.

No obligation for new positions and salary increases, new activities, expansion of existing activities, purchase of school supplies, and equipment and obligations chargeable against capital outlays authorized under the General Appropriation Act for fiscal year 1973, shall be allowed in all of the above mentioned cases until after the initial Financial and Work Plan and Request for Allotment shall have been submitted by the head of the agency to the Commissioner of the Budget and the corresponding Advice of Allotment and the Cash Budget shall have been issued.

As soon as copies of the General Appropriation Act for fiscal year 1973 are available, each agency should submit immediately to the Budget Commission its initial Financial and Work Plan and Request for Allotment covering said fiscal year in accordance with the provisions of Budget Circular No. 38, dated June 7, 1956, as amended, and cash Budget in accordance with Budget Circular No. 210, dated June 18, 1970. as amended by Budget Circular No. 219, dated July 1, 1971.

Done in the City of Manila, this 30th day of June, in the year of Our Lord, nineteen hundred and seventy-two.

By the President:

(Sgd.) ALEJANDRO MELCHOR
Executive Secretary