INSTITUTING A PROCEDURE FOR THE MANAGEMENT OF SPECIAL AND FIDUCIARY FUNDS EARMARKED OR ADMINISTERED BY DEPARTMENTS, BUREAUS, OFFICES AND AGENCIES OF THE NATIONAL GOVERNMENT, INC…

WHEREAS, the establishment of Special and Fiduciary Funds
has been authorized from time to time in order to facilitate the funding of
priority activities of Government, including those undertaken by
government-owned or controlled corporations;

WHEREAS, the proper management of government finances makes
it necessary to institute a standard procedure in the release and control of
Special and Fiduciary Funds;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree:

SECTION 1. All income and collections for Special or
Fiduciary Funds authorized by law shall be remitted to the Treasury and treated
as Special Accounts in the General Fund, including the following:

1. Philippines Coconut Authority—Coconut Development Fund, including
   all income derived therefrom under Sections 13 and 14 of Republic Act No. 1145;
   Coconut Investment Fund under Section 8, of Republic Act No. 6260, including
   earnings, profits, proceeds and interests derived therefrom; Coconut Consumers
   Stabilization Fund under Section 3-A of P.D. No. 232, as inserted by Section 3
   of P. D. No. 414 and under paragraph 1(a) of P. D. No. 276; Coconut Industry
   Development Fund under Section 3-B of P. D. No. 232, as inserted by Section 2 of
   P. D. No. 582; and all other fees accruing to the Philippine Coconut Authority
   under the provisions of Section 19 of Republic Act No. 1365, in accordance with
   Section 2 of P. D. No. 755 and all other income accruing to the Philippine
   Coconut Authority under existing laws.
2. Philippine Port Authority—Percentage retention from collections of
   fees, charges and fines authorized under Section 12 of P. D. No. 505; the
   license fees collected under Section 6-a) (iv) of P. D. No. 85i7, the dues,
   rates and charges levied under Section 6-b) (ix), the dues under Section 19 and
   the rates and charges under Section 20 of the same decree; and all the balances
   of any income or revenue applied to the geneal reserves or other reserves of the
   Philippine Port Authority under the provisions of Section 11 of P. D. No. 857,
   including the income from investment under Section 12 of said decree.
3. Philippine Sugar Commission—All charges, fees and contributions
   levied and collected pursuant to Section 4(c) and (g), P. D. No. 388, as amended
   by Section 2 of P. D. No. 1192, and Section 13 of P. D. No. 388, as inserted by
   Section 6 of P. D. No. 1192.
4. Philippine Tobaco Administration—The Tobacco Industry Promotion and
   Market Stabilization Fund under Section 1 of P. D. No. 288 amending the first
   paragarph of Section IB of Article 8 of R.A. No. 1135, as amended by R. A. No.
   2233. R.A. No. 4114 and R. A. No. 5555.
5. Philippine Tourism Authority—All taxes collected on travel fares
   under Sections 3 and 4 of Republic No. 1478, as amended by P. D. No 1205,
   including license fees collected pursuant to Sections 2(e) and 6 thereof,
   pursuant to Section 11 of P. D. No. 189; additional taxes on travel under
   Section C of Republic Act No. 6141, as amended by P. D. No. 1205, including the
   percentage taxes on stock transactions under Section 4, and surcharges under
   Section 5 thereof, as well as hotel room taxes collected under the National
   Internal Revenue Code, pursuant to Section 11 of P. D. No. 189 and LOI No. 397;
   all fees, rentals, and charges under Section 5-G-11 of P. D. No. 564, and the
   proceeds from taxes, fees, charges, rentals and income under Section 7 of eaid
   decree, as exempted from the operations of P. D. No. 711, pursuant to LOI No.
   397; and all proceeds of travel taxes imposed under Section 1 of P. D. No. 1183,
   as amended by P. D. No. 1205.
6. Philippine Virginia Tobacco Administration—The Tobacco Fund, which
   includes the proceeds collected from tariff or taxes of imported leaf tobacco
   and specific taxes on locally manufactured Virginia Type cigarettes, under
   Section 5 of R.A. No. 4155, as amended by Section 7 of P. D. No. 1142.
7. Department of Energy and Affiliated Agencies/Corporations —All
   license fees and charges collected from refineries pursuant to Section 12(b)
   iii-(4) of P. D. No. 1206; and all extraordinary gains resulting from
   government-approved price increases or from existing inventories acquired prior
   to such, cost increases, under Section 7(j) of Republic Act No. 6173, as amended
   by Section 1 of P.D. No. 389-A and Section 1 of P. D. No. 456, as further
   amerded by P. D. No. 800, and finally amended by P.D. No. 1206, including income
   to the Special Fund created under Section. 8(j) of R. A. No. 6173, as amended by
   P. D. No. 1206.
8. Department of Local Government and Community Development and Affiliated
   Agencies—The Cooperatives Development Loan Fund created by P. D. No. 175.
9. Other offices and agencies of the National Government and
   government-owned or controlled corporation—All income derived from measures
   authorized by law, including receipts from taxes, duties, dues, fees, charges,
   levies, fines, imposts; rates; gains or any other collections, revenues which
   are exempted by law from coverage of P. D. No. 711 or are otherwise earmarked by
   law for specific activities or which otherwise accrue directly to such offices
   or agencies, including government-owned or controlled corporations, but
   excluding income from business or commercial operation in the case of
   government-owned or controlled corporations.

SEC. 2. The amounts collected and accruing to Special or
Fiduciary Funds shall be considered as being automatically appropriated for the
purposes authorized by law creating the said Funds except as may be otherwise
provided in the General Appropriations Decree.

SEC. 3. The amounts collected under Special or Fiduciary
Funds shall be released to the implementing agencies subject to the approval of
the President and to Special Budgets under Section 40 of P. D. No. 1177:
Provided, That funds needed for regular operation or other duly
authorized purposes may be automatically released under such conditions as may
be approved by the President.

SEC. 4. The funds once released shall be administered by the
government agency or corporation concerned and shall be utilized only for the
purposes authorized in the law creating the said Special or Fiduciary Funds.

SEC. 5. Nothing in this Decree shall be construed as
changing the status of income authorized by law, from General Fund receipts to
Special or Fiduciary Fund receipts.

SEC. 6. All the provisions of laws, decrees, letters of
instructions, orders, rules and regulations or parts thereof which are
inconsistent with or contrary to any of the provisions of this Decree are hereby
repealed, amended and/or modified accordingly.

SEC. 7. The Secretary of Finance and the Commissioner of the
Budget shall issue the rules and regulations needed to implement this
Decree.

SEC. 8. This Decree shall take effect immediately. Done in
the City of Manila, this 8th day of November, in the year of Our Lord, nineteen
hundred and seventy-seven.

Done in the City of Manila, this 8th day of November,, in the year of Our
Lord, nineteen hundred and seventy-seven.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant