AMENDING PRESIDENTIAL DECREE NO. 1177, KNOWN AS THE BUDGET REFORM DECREE OF 1977

• Number: Presidential Decree No. 1421
• Sections: 8

Preamble

WHEREAS, the Budget Reform Decree of 1977 institutionalizes

budgetary practice developed in the New Society under the provisions of the

Constitution of 1973;

WHEREAS, the initial implementation of the Decree has

resulted in the identification of need for further improvement in the budget

process, including those necessary to take into account the specifics of

Philippine Parliamentary practice;

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. Parts of Section 2 of P.D. No. 1177 are hereby

amended to read as follows:

"d. 'Current operating expenditures' refer to appropriations for the purchase

of goods and services for current consumption or whose benefits are expected to

terminate within the fiscal year."

"g. 'Government-owned or controlled corporations' shall include all

corporations and financial institutions owned or controlled by the National

Government and performing governmental and/or proprietary

functions."

Section 2

SEC. 2. Section 27 of P.D. No. 1177 is hereby amended to

read as follows:

"SEC. 27. Schedule of Budget Consideration. The

Committee on Appropriations shall report the general appropriations bill to the

National Assembly within seven consecutive session days after the bill has been

referred to it.

"The National Assembly shall start the discussion of said bill on second

reading likewise within seven consecutive session days from the day of

submission of said report.

"Debate shall be terminated on or before the eighteenth consecutive session

day from the beginning of the discussions. Final action thereon shall be taken

within three consecutive session days after the submission of the printed bill

incorporating approved amendments: Provided, That a printed statement

of final amendments shall be sufficient basis for approval of the

bill."

Section 3

SEC. 3. Section 32 of P.D. No. 1177 is hereby amended to

read as follows:

"SEC. 32. Supplemental Appropriations. After the

President shall have submitted the general appropriations bill, supplemental

appropriations measures shall be considered only if supported by actually

available funds or by new revenue measures."

Section 4

SEC. 4. The title of Section 35 is hereby amended to read

"Reports on Guaranty Obligations."

Section 5

SEC. 5. A second paragraph is hereby added to Section 45 of

P.D. No. 1177, as follows:

"Except as otherwise provided by law, the maximum number of permanent

positions in a bureau, office or agency shall not exceed the number of permanent

positions included in the approved staffing pattern and in the approved special

budgets for the said bureau, office or agency: Provided, That savings

from personal services may be used to create additional positions to implement

the regionalization of agencies under the integrated reorganization plan or for

expansion of essential services, subject to prior approval of the Commissioner

of the Budget and to the provisions of Section 40 hereof."

Section 6

SEC. 6. Section 55 of P.D. No. 1177 is hereby amended and

augmented as follows:

"d. Payment of salaries or money value of vacation and sick leaves of

employees who have been suspended or dismissed as a result of administrative or

disciplinary action, or separated from the service through no fault of their own

and who have been subsequently exonerated and/or reinstated by virtue of

decisions of competent authority:"

"n. Payment of expenses incurred for confidential national security purposes

which shall be accounted for solely on the certification of the President as

Commander in Chief, or the officers in charge of national security missions as

may be specifically designated by him;

"o. Obligations under perfected contracts approved by the President;

"p. Payment of outstanding obligations not exceeding P500.00 for each item of

expenditure incurred in any previous year, upon recommendation of the head of

agency concerned and approval of the Commissioner of the Budget, but without

prejudice to the administrative liability of the official or employee

responsible for the incurrence of obligations in the absence of fund

availability."

Section 7

SEC. 7. This Decree shall take effect immediately.

Done in the City of Manila, this 9th day of June 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