AN ACT FURTHER AMENDING CERTAIN SECTIONS OF P.D. NO. 1177, AS AMENDED, ENTITLED REVISING THE BUDGET PROCESS IN ORDER TO INSTITUTIONALIZE THE BUDGETARY INNOVATIONS OF THE NEW SOCIETY

• Number: Presidential Decree No. 1777
• Sections: 9

Preamble

WHEREAS, the Presidential Decree No. 1177, as amended was

promulgated; to improve national budget policy and practice, to institutionalize

budgetary reforms and innovations realize during the New Society and to put into

effect the chants in budget principles embodied, in the Constitution of

1973;

WHEREAS, there is need to further clarify certain provisions

of the decree in order to further improve the budget process and. procedures in

the light of experience in the application of P.D. No. 1177.

NOW, THEREFORE, I, FERDINAND E, MAROCS, 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, as amended

by Section 1 of P.D. No. 1421, are hereby further amended to read as

follows:

a) "Budget" refers to the budget required to be prepared pursuant to Section

Sixteen (1), article VIII of the Constitution, which contains the financial

program of the National Government for a designated calendar year, consisting of

statements of estimated, receipts from revenues and expenditures for the

calendar year for which it is intended to be effective.

b) "Government" means the National Government, including the Executive, the

Legislative and the Judicial Branches, the Constitutional Commissions, regional

commissions, and state universities and colleges. It includes among its

instrumentalities, local government units and government-owned or controlled

corporations.

c) "Government-owned or controlled corporations" are corporations created by

law as agencies of the state for narrow and limited purposes, either owned

wholly by the state or wherein the Government is a majority stockholder, in

cases of stock corporations, or otherwise, agencies so created where no stocks

are issued but whose affairs are conducted by a duly constituted board and which

perform proprietary functions. This term shall include all corporations,

including financial institutions, owned or controlled by the National Government

performing government and/or proprietary functions, but excluding state

university and colleges.

h) “Local Government Units” refer to the political subdivisions mentioned or

authorized to be created under Article XI of the Constitution.

j) “Appropriation” is an authorization under Acts of Congress, Presidential

Decrees, or other legislatives enactment, allowing obligations to be incurred

and payments to be made with funds of the government under specified conditions

and/or for specified purposes.

Section 2

SEC. 2. Section 5 of P.D. No. 1177 is hereby amended by

adding new paragraph to read as follows:

“The budget calendar, format and procedure for the preparation and approval

of the operating budgets of local government units and government-owned or

controlled corporations shall be governed by such rules and regulations as may

be issued by the President in order to implement the declared policy on national

resource budget enunciated in this section.”

Section 3

SEC. 3. The first paragraph of Section 13 of P.D. No. 1177

is hereby amended to read as follows:

“Section 13. Submissions of the Budget. The President shall,

in accordance with section sixteen (1) Article VIII of the Constitution, submit

within thirty days from the opening of each regular session of the National

Assembly, a national government budget of estimated receipts based on existing

and proposed revenue measures, and of estimated expenditures. The budget

estimates shall be used as a basis for the consideration of the General

Appropriations Bill and of other appropriations measures whose revenue and

expenditures estimates are incorporated therein.

Section 4

SEC. 4. A new paragraph shall be inserted between the second

and third paragraphs of Sec. 13 as follows:

“The President shall submit the General Appropriations Bill with the budget

as herein specified, embodying proposed appropriations for the current

operations if the national government and for capital outlays. Additional

appropriations proposals may be submitted which correspond to part of the

expenditure estimates submitted as part of the budget proposal:

Provided, That continuing appropriations may be enacted for public

works, highways and other infrastructure projects which require more than one

year for construction. In such cases revenue estimated for the future years

shall also be used in the evaluation of funding availability.”

Section 5

SEC. 5. The existing paragraph in Sec. 27 shall be placed

under a sub-heading “a. General Appropriations Bill.” The following sub-sections

shall be added:

"b. Revenue Measures.

"The Committee on Finance shall report to the Batasan revenue bills forming

part of the budget estimates, within ten consecutive session days after they

have been referred to it. The provisions of sub-section "a" above with respect

to timetable of consideration shall apply, as much as practicable, to the

schedule of discussion and final action on revenue bills.

"c. Infrastructure and Other Bills.

"The public works, highways and other bills requiring appropriations may be

filed at any time during the sessions of the National Assembly and shall be

considered by the Assembly upon their being reported out by the corresponding

Committees."

Section 6

SEC. 6. Section 32 shall read as follows:

"Sec. 32. Supplemental Appropriations. After the President

shall have submitted and the Assembly acted upon the General Appropriations

Bill, supplemental appropriations measures shall be considered only if supported

by actually available funds as certified to by the National Treasurer or by new

revenue measures. The budget and the General Appropriations Act may provide

lumps sums in order to support bills for later action by the assembly:

Provided: That the Treasury Certification requirement shall be deemed

complied with in that case of bills which are funded from lump sums in the

General Appropriations Act approved by the Assembly for purposes of supporting

programs, projects or activities which require specific legislative

authorization and in the case of bills whose expenditure estimates are included

in the budget submission of the President pursuant to Sec. 13

hereof.

Section 7

SEC. 7. Change in Nomenclature. All references in P.D. No.

1177, as amended to the terms “Commissioner of the Budget,” “Budget Commission,”

“Secretary” and “Department” shall be changed to “Minister of the Budget,”

“Ministry of the Budget,” “Minister”, and “Ministry”, respectively.

Section 8

SEC. 8. Effectivity. ─ This Decree shall take

effect immediately.

Done in the City of Manila, this 14th day of January, in the year of Our

Lord, nineteen hundred and eighty-one.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JOAQUIN T. VENUS, JR.

Deputy Presidential Executive

Assistant

Vol. 25, Vital Documents, Presidential Decree 1980-1981