AUTHORIZING THE REVERSION TO THE GENERAL FUND OF DORMANT OR UNNECESSARY SPECIAL AND FIDUCIARY FUNDS

• Number: Presidential Decree No. 1374
• Sections: 6

Preamble

WHEREAS, the proper allocation of government resources calls

for the comprehensive review of government planning objectives and priorities,

in conjunction with aggregate receipts and resources;

WHEREAS, the earmarking for specific purposes of proceeds

from taxes, imposts or other revenues of government, tends to frustrate a

comprehensive review of priorities and resources available;

WHEREAS, the initial operation and the implementation of

certain priority activities may justify the creation of Special or Fiduciary

Funds for a specified period of time;

WHEREAS, the transfer of dormant or unnecessary Special and

Fiduciary Funds to the General Fund would facilitate the implementation of

social economic programs and projects which will benefit and improve the welfare

of the masses.

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 Statement of Policy.

SECTION 1. Statement of Policy.—All revenues of

government shall accrue to the General Fund and thus be made available to

support approved priority programs and projects. Earmarking of proceeds of

special imposts, taxes, or other sources of revenues for specific uses is

discouraged. Exceptions shall be made only in those cases where, for

administrative or other reasons, earmarking of proceeds may be justified to

support a major priority project with substantial funding requirements for a

specified period of time.

Section 2

SEC. 2. Abolition of Special and Fiduciary Funds.

The President is authorized to abolish dormant or unnecessary Special or

Fiduciary Funds and transfer all assets, liabilities, surpluses and

appropriations pertaining thereto, to the General fund of the national

government. The operations of all Special and Fiduciary Funds shall be reviewed

by the Secretary of Finance, the Commissioner of the Budget and the Chairman of

the Commission on Audit. They shall recommend to the President the abolition of

Funds which are found to be dormant, or whose basis for creation no longer

exists, or whose purposes are provided for by appropriations of the General

Fund, thus rendering the said Special or Fiduciary Funds unnecessary.

Section 3

SEC. 3. Rules and Regulations. The Secretary of

Finance, the Commissioner of the Budget, and the Chairman of the Commission on

Audit shall recommend for the approval and the issuance by the President, rules

and regulations for the effective implementation of the provisions of this

Decree.

Section 4

SEC. 4. Repealing Clause. All existing laws,

decrees and letters of instructions, as well as rules and regulations, which are

inconsistent within the provisions of this Decree are hereby repealed and/or

modified accordingly.

Section 5

SEC. 5. Effectivity. This Decree shall take effect

immediately.

Done in the City of Manila, this 16th day of May, in the year of Our Lord,

nineteen hundred and seventy-eight.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Presidential Assistant