TRANSFERRING TO THE BUDGET COMMISSION THE FUNCTIONS OF LOCAL GOVERNMENT BUDGET ADMINISTRATION

• Number: Presidential Decree No. 1375
• Sections: 10

Preamble

WHEREAS, it is the policy of government to undertake

national development within its total context;

WHEREAS, local governments are vital components of the

government's machinery for national development;

WHEREAS, local government's resources constitute a

significant portion of the total development resources of government; and

WHEREAS, the Budget Commission is entrusted with the

responsibility of assisting the President in the preparation of the total

national resources and expenditures budget, which includes, among others, those

for local governments:

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

SECTION 1. The Budget Commission shall be responsible for

the review and evaluation and for taking appropriate action on the annual

principal and supplemental budgets and other financial statements covering all

funds of local governments; and the review and formulation of recommendations on

resolutions of local legislative bodies involving appropriation of local funds.

These functions and generally those pertaining to expenditures of local

governments, governed by P. D. No. 477 and presently performed by the Department

of Finance, are hereby transferred to the Budget Commission. All pertinent

records appropriations and such qualified personnel as may be necessary, from

the Office of Local Government finance or other units of the Department of

Finance, involved in or connected with the aforesaid functions, are likewise

hereby transferred to the Budget Commission.

Section 2

SEC. 2. In connection with the above, the Budget Commission

shall perform the following functions:

Analyze and review annual principal and supplemental budgets of provinces

and cities to determine compliance with statutory and other mandatory

requirements;

Examine and process applications of local governments for cash advances and

budgetary aids with respect to their budgetary implications, and prepare

appropriate recommendations thereon;

Examine and analyze provincial and city trial balances, books of accounts,

and other financial reports, as may be necessary in the fulfillment of the

budget function;

Compile and tabulate statistical data, prepare and analyze consolidated

financial statements of local governments, and review projections end forecasts

of local government income and expenditures;

Provide technical assistance to local governments in the preparation,

authorization, execution and accountability phases of the budget process;

Formulate and promulgate rules and regulations for the effective performance

of all the foregoing functions; and

Perform other related functions as may be assigned by competent authority.

The Secretary of Finance shall continue to exercise the functions assigned to

him under P. D. No. 477 pertaining to local government income, borrowings, other

receipts, and local treasury operations.

Section 3

SEC. 3. Local government units shall constitute and include

in their administrative organization, an office/section/unit responsible for

budget functions. It shall provide technical and staff services to the Chief

Executive and other local officials on budget matters. In addition, the budget

officers of provinces shall review the budgets of municipalities and the budget

officers of cities and municipalities shall review the budgets of barangays,

within their respective jurisdictions, observing the requirements and

limitations prescribed for provincial and city governments under P. D. No. 447

and this Decree.

Section 4

SEC. 4. Budget officers of provinces cities and

municipalities shall be appointed by the local government head concerned from

persons meeting the minimum qualification requirements for provincial, city and

municipal treasurers as the case may be, subject to civil service law and

subject to the approval of the Commissioner of the Budget.

Section 5

SEC. 5. Revenue funds shall not be paid out of any local

treasury except in pursuance of specific statutory authority or of

appropriations duly approved pursuant to P. D. No. 477 and this Decree.

Section 6

SEC. 6. The Budget Commission shall undertake the functions

assigned by this Decree through its Regional Offices, with technical assistance

from its Local Governments and Government Corporations Budget Office. For this

purpose, the Budget Commission is hereby authorized to establish such additional

Regional Offices as may be necessary to properly discharge local government

budget functions.

Section 7

SEC. 7. There is hereby authorized to be appropriated the

amount of five million pesos for the Budget Commission to carry out the

functions prescribed under this Decree.

Section 8

SEC. 8. All provisions of laws, decrees, and orders

inconsistent with this Decree are hereby amended or modified accordingly.

Section 9

SEC. 9. This Decree shall take effect upon its approval.

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