Presidential Decree No. 1375 (PD 1375) — Transferring to the Budget Commission the Functions of Local Government Budget Administration
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. 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.
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.
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.
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.
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.
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.
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.
SEC. 8. All provisions of laws, decrees, and orders
inconsistent with this Decree are hereby amended or modified accordingly.
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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
