Presidential Decree No. 477 (PD 477) — To Be Known as the Decree on Local Fiscal Administration
WHEREAS, the recent enactment of the Local Tax Code, the
Real Property Tax Code and other revenue measures has provided the local
governments with additional sources of income that will stabilize and
bolster their financial capacity to contribute to the collective efforts
for national growth;
WHEREAS, in the past, local government funds have been
either wasted or dissipated for lack of sound financial plans and
adequate fiscal controls;
WHEREAS, the proper and efficient utilization of available
local resources is crucial to the early realization of primary
developmental goals and objectives;
WHEREAS, there is a pressing need to strengthen the
administrative machinery for local treasury operations in order to
induce the judicious conservation and management the judicious
conservation and management of local government resources;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution do
hereby adopt, promulgate and decree as part of the law of the land,
this Decree, the full text of which follows:
Composition and Safekeeping
City and Municipal Budgets
Accounting and Accountability
ADMINISTRATION
SEC.
80. Implementing rules and regulations.—The Secretary of
Finance shall promulgate the rules and regulations to be followed in
carrying out the provisions of this Decree for the proper and effective
implementation hereof.
The Chairman of the Commission on Audit
shall prescribe the accounting and auditing rules and regulations
necessary in the proper implementation of the pertinent provisions of
this Decree.
CHAPTER I. GENERAL PROVISIONS
Scope.
SECTION 1. Scope.—This Decree shall govern the
conduct and management of the financial affairs, transactions, and
operations of provinces, cities, municipalities and barrios, and shall
provide the organization for local fiscal administration in the local
governments.
Fundamental Principles.
SEC. 2. Fundamental Principles.—Local government
financial affairs, transactions, and operations shall be governed by the
fundamental principles set forth hereunder.
No money shall be paid out of the treasury except in pursuance of
a lawful appropriation or other specific statutory authority.
Public funds and monies shall be spent solely for public
purposes.
Revenue is obtainable only from sources expressly authorized by
law and collection thereof shall at all times be acknowledged properly.
All monies officially received by a public officer in any
capacity or upon any occasion shall be accounted for as government
funds, except as may otherwise be specifically provided by law or
competent authority.
Trust funds shall not be paid out of the treasury except in
fulfillment of the purpose for which the trust was created or fund
received.
Every officer of the government whose duties permit or require
the possession or custody of government funds shall be properly bonded
and such officer shall be accountable and responsible for said funds and
for the safekeeping thereof in conformity with the provisions of law.
Local governments shall formulate sound financial plans and the
local budgets shall, by and large, be based on functions, activities,
and projects, in terms of expected results.
Fiscal responsibility shall, to the greatest extent, be shared
by all those exercising authority over the financial affairs,
transactions and operations of the local governments.
Supervisory authority of the Department of Finance.
SEC. 3. Supervisory authority of the Department of Finance.—The
Department of Finance shall exercise general supervision over the
financial affairs of the local governments and, except as otherwise
specifically provided by law, over all funds the investment of which is
authorized by law. For the purpose, and along with the powers, duties
and functions vested upon it by law, it shall be the responsibility of
the Department to:
Formulate and execute fiscal policies that will promote the
financial stability and growth of the local governments;
Provide the local governments with policy guidelines in the
preparation and adoption of sound financial plans and review the local
budgets in order to enhance the maximum utilization of local funds and
resources;
Adopt and enforce the necessary measures that will improve local
treasury operations and foster effective financial management at the
local levels; and
Ensure the proper use, custody and safekeeping of public funds
in the local governments. In order to attain the foregoing objectives,
the Secretary of Finance shall exercise direct executive supervision
over all treasury officials and personnel in the local governments.
CHAPTER II. THE LOCAL FUNDS AND OTHEE SPECIAL FUNDS
ARTICLE I. Initial Receipt and Disposition,
SEC. 4. Definition of "Fund."—A fund is a sum of
money or other resources set aside for the purpose of carrying out
specific activities or attaining certain objectives in accordance with
special regulations, restrictions, or limitations and constituting an
independent fiscal and accounting entity.
Accounting for Monies Received by Public Officers.
SEC. 5. Accounting for Monies Received by Public
Officers.—Except as otherwise specifically provided, all monies
received by a public officer shall be accounted for as Government Funds.
Payment of Government Monies into the Treasury.
SEC. 6. Payment of Government Monies into the Treasury.—Officers
of the government authorized to receive and collect monies arising from
taxes, revenues, or receipts of any land shall remit the full amounts
as received and collected by them into the treasury of the branch of the
Government to which such officers in their collecting capacity
respectively pertain, to the credit of the particular account or
accounts to which the monies in question initially belong. The amount of
such collections ultimately payable to other branches of the
Government, shall thereafter be transferred to the respective treasuries
of those branches, under regulations which the Commission on Audit
shall prescribe.
The Local Funds.
SEC. 7. The Local Funds.—Provincial, city and
municipal governments shall maintain only two local funds, namely, the general
fund and the infrastructure fund and they shall be used
to account for such monies and resources as may be received in and
disbursed from the local treasury.
The General Fund, shall consist of monies and
resources not otherwise accruing to any other fund and shall be
available for the payment of expenditures, obligations or purposes not
specially declared by law as chargeable to, or payable from, any other
fund, through transfers of monies or resources therefrom to other funds
of the local government for their augmentation and use may be made by
proper appropriation.
The Infrastructure Fund, shall consist of monies
and resources raised or earmarked by law, including those which under
existing laws accrue to the road and bridge fund, allotments under
Republic Act No. 917, as amended, and transfers from the General
Fund, which shall be available exclusively for the following
purposes:
The repair, maintenance, improvement, and construction
of roads, bridges, and highways. However, in applying this fund to
such uses, adequate provision shall be made for the maintenance of
existing unabandoned roads and bridges before any new construction is
undertaken.
The providing and maintaining of wharves, piers, and
docks, in accordance with plans and specifications furnished by
the proper national office, and for removing obstructions to navigation.
Subsidizing or for acquiring, operating, and maintaining
means of water transportation within the province or city or between the
province or city and neighboring provinces and city or islands or to
dredge rivers and provide facilities for communication and
transportation by river, as well as for establishing and operating
telephone systems.
The construction, improvement, maintenance and
repair of wharves, piers and docks; plazas, parks, monuments and
playgrounds; street lighting; artesian wells; irrigation system;
flood control systems; sewerage and drainage systems; and other
permanent public improvements.
The acquisition of lands and buildings for public use.
Construction of roads and bridges shall include preliminary
investigation and surveys besides actual construction.
Subject to
the approval of the Secretary of Finance, the local board or council
may, upon proper justification, transfer any unappropriated balance of
this fund to cover exceptionally urgent needs of the province, city, or
municipality.
Special Education Fund.
SEC. 8. Special Education Fund.—There
shall be maintained in the local treasuries a separate fund to be known
as the Special Education Fund which shall consist of the respective
shares of provinces, cities and municipalities in the proceeds of the
additional one per cent real property tax levied and appropriated for
educational purposes under Republic Act No. 5447, as amended by Sections
41 and 87 (b) of Presidential Decree No. 464, otherwise known as the
Real Property Tax Code.
Trust Funds.
SEC. 9. Trust Funds.—Trust funds are private and
public monies which have officially come into the possession of the
Government or of a government officer as trustee, agent, or
administrator, or which have been received as a guaranty for the
fulfillment of some obligation. A trust fund is available only for the
specific purpose for which it was created or for which it came into the
possession of the Government.
Separation of Books and Depository Accounts.
SEC. 10. Separation of Books and Depository Accounts.—
Local treasurers shall maintain separate books and depository accounts
for each fund in their custody or administration under such rules and
regulations as the Commission on Audit may prescribe.
Depository Accounts.
SEC. 11. Depository Accounts.—Local treasurers
shall maintain their depository accounts with Banks duly designated as
government depositories by the Central Bank of the Philippines.
Municipal treasurers shall deposit their funds with the
provincial treasurer who, in turn, shall deposit the same with the duly
designated banks. Provincial, city and municipal treasurers may directly
deposit with duly designated banks excess local funds under time
deposit accounts, upon resolution of the local legislative body and upon
approval by the provincial treasurer and the provincial auditor, in the
case of municipal funds.
Earnings of such deposits shall accrue
to the proper funds.
Separation of Personal Money from Public Funds.
SEC. 12. Separation of Personal
Money from Public Funds.—Local treasurers and other accountable
officers shall keep personal monies separate and distinct from
government funds in their custody and shall not make profit out of
public money or otherwise apply the same to any use not authorized by
law.
ARTICLE II. Special Accounts
Special Accounts to he Maintained in the General Fund.
SEC. 13. Special Accounts to he Maintained in the
General Fund.—There shall be maintained in the general fund of the
local government concerned special accounts for the following:
Public utilities and other economic enterprises.
Barrio Development Fund.—There is hereby created a barrio
development fund to be constituted from the annual contribution from
each province, city, or municipality in amounts not exceeding five
hundred pesos per barrio. This fund shall be spent solely for
community development projects which meet the requirements set
forth by the Secretary of Local Government and Community Development.
The provincial or city treasurer, who shall be the custodian of this
fund, shall maintain in his books a special account therefor. The
provincial treasurer shall make releases from this fund thru the
municipal treasurer concerned who shall be responsible for the proper
disbursement and accounting of the same.
Loans, interests, bond issues and other contributions for
specific purposes.
Receipts and expenditures involving the above-mentioned special
accounts shall be properly taken up thereunder.
Not profits
derived from the operation of public utilities and other economic
enterprises, when not needed for the return of the advances made
therefor, shall be spent solely for the improvement of the public
utility or the economic enterprises concerned.
Definition of Terms.
SEC. 14. Definition of
Terms.—When used in this Chapter:
The term "annual budget" means a financial plan embodying the
estimates of income certified as reasonably collectible by the
provincial treasurer in the case of provinces and their respective
municipalities and by the city treasurer in the case of cities, and
appropriations covering the proposed expenditures for the ensuing fiscal
year.
The term "supplemental budget" is a supplementary financial
plan embodying changes during the fiscal year in the annual estimates of
income and appropriations.
The term "income" covers all revenues and receipts collected
or received, forming the gross accretions of funds of the
Government.
The term "revenue" refers to income derived from the regular
system of taxation enforced under authority of law or ordinance, and, as
such, accrue more or less regularly every year.
The term "receipts" refers to income realized from operations
and activities of the Government or are received by the Government
in the exercise of its corporate functions, consisting of charges
for services rendered, or for conveniences furnished, or the price
of a commodity sold as well as authorized contributions or aids
from other entities, except provisional advances for budgetary purposes.
Loans for specific projects or activities shall be considered as
"receipts".
The term "appropriations" refers to the estimates of
expenditures in a budget when finally approved by the appropriate
authorities concerned.
The term "continuing appropriations" refers to
appropriations for specific projects, such as those for construction of
physical structures, or for the acquisition of real property or
equipment, which shall continue to be available until the
project is completed or abandoned. Reversions shall not be made or
appropriations obligated by contract. Appropriations not obligated by
contract may not be continued if the same would result in a negative
balance in the unappropriated account of the fund concerned.
The term "current operating expenditures" refers to
"appropriations for the purchase of goods and services for current
consumption within the fiscal year, including the acquisition of
furniture and equipment of nominal value usually used in the conduct of
normal government operations.
The term "capital outlays" or "capital expenditures" refers to
the purchase of goods and services of a life-expectancy extending beyond
the fiscal year and which add to the assets of the local government
concerned, except furniture and equipment of nominal value usually used
in the conduct of normal government operations.
The term "budget document" refers to the instrument used by the
budget-making authority to present a comprehensive financial program to
the appropriating body.
Form and Content.
SEC. 15. Form and Content.—The provincial, city and
municipal budget shall primarily consist of two parts: (1) the estimates
of income certified collectible by the treasurer concerned; and (2) the
total appropriations covering (a) the current operating expenditures;
and (b) capital outlays.
The budget document shall contain:
a budgetary message of the local chief executive setting
forth in brief the significance of the appropriations proposed:
a brief summary of the functions and activities in relation to
the goals and objectives of the local government for the fiscal period;
and
summary financial statements setting forth:
the actual income and expenditures during
the last completed year;
the actual income and expenditures of the first three
quarters and the estimated income and expenditures for the fourth
quarter of the fiscal year in progress;
the estimated income for the ensuing fiscal year from
ordinances and laws existing at the time the proposed budget is
transmitted, together with other revenue-raising proposals, if any;
the estimated expenditures necessary to carry out the
functions and activities of the local government for the ensuing fiscal
year;
all essential facts regarding the bonded and other long-term
obligations and indebtedness of the local government, of any;
summary statement of all statutory and contractual obligations
due; and
such other financial statements and data as are deemed
necessary or desirable in order to make known in all practicable detail
the financial condition of the local government.
Submission of Detailed Statements of Income and Expenditures.
SEC. 16. Submission of Detailed Statements of Income and
Expenditures.—On or before the fifteenth day of April of each year,
the local treasurers shall submit to their respective local chief
executives a certified statement covering the income and expenditures
pertaining to the preceding fiscal year; the actual income and
expenditures of the first three quarters and the estimated income and
expenditures for the fourth quarter of the current year; and the
estimates of income for the ensuing fiscal year. The local treasurer
shall also certify to the reasonable probability of realizing the
estimates of income for the ensuing fiscal year.
Submission of Budget Proposals by Heads of Offices.
SEC. 17. Submission of Budget Proposals by Heads of
Offices.—Each head of office shall submit a statement of the
proposed expenditures recommended by him for his office to the local
chief executive on or before the date the said local chief executive may
determine, but not later than April fifteen of each year and in
accordance with such policy guidelines as the latter may issue in
conformity with the general requirements of this Chapter.
Budget proposals for all offices, departments, or projects,
shall be divided into two primary categories, namely—the current
operating expenditures and the capital outlays. Such
budget proposals shall be supported by:
Personnel schedules containing the following information:
A detailed plantilla of personnel indicating position titles, names
of incumbents, and present and proposed rates of salaries and wages,
excluding those hired on the daily basis;
Proposed new positions and corresponding salary rates;
and
Positions proposed for abolition and the aggregate
amount involved.
Brief narrative description of the nature of the work to be
performed and explanation of the significance and scope of each program.
Preparation of the budget by the local chief executive.
SEC. 18. Preparation of the budget by the local chief
executive.—Upon receipt of the statements of income and expenditures
from the treasurer and the budget proposals of the head of offices as
provided for in the preceding sections, the local chief executives shall
prepare the budget for the ensuing fiscal year in accordance with
Legislative authorization of the budget.
SEC. 19. Legislative authorization of the budget.—On
or before the end of the fiscal year, the local board or council shall
approve through the enactment of an appropriation ordinance the annual
budgets for each fund of the local government unit for the ensuing
fiscal year on the basis of the statement unit of the certified
estimated income and budget proposals submitted by the local chief
executive. In the case of cities, the budgets thus enacted by the local
board or council shall be subject to further approval by the City Mayor.
Majority vote required in the approval of budgets.
SEC. 20. Majority vote required in the approval of
budgets.—Approval by the board or council of the budgets of the
local government shall require the affirmative votes of a majority of
all the members thereof.
Veto power of the city mayor.
SEC. 21. Veto power of the city mayor.—Within ten
days after receipt of the appropriation ordinance, or any resolution or
motion directing the payment of money or creating liability, the city
mayor shall return it with his approval or veto. If he takes no action
within the time prescribed, it shall be deemed to have been approved.
If he returns it with his veto, his reasons therefor must be
stated in writing. The ordinance, resolution, or motion may then be
re-enacted by the affirmation votes of at least two-thirds of all the
members of the board or council, in which case the same shall again be
forwarded to the city mayor for his approval. If within ten days after
receipt of the re-enacted ordinance, resolution, or motion, the city
mayor takes no action, it shall be deemed to have been approved, but if
within said time the city mayor again returns it with his veto, stating
writing his reasons therefor, the ordinance, resolution, or motion, if
re-enacted by a two-thirds vote, shall be forwarded forthwith by the
board or council to the Secretary of Finance for his approval or
disapproval within thirty days after receipt thereof. The decision of
the Secretary shall be final.
Sealing, recording and distribution of appropriation ordinances.
SEC. 22. Sealing,
recording and distribution of appropriation ordinances.—Each
approved ordinance, resolution or motion hereinabove referred to shall
bear the official seal of the local government concerned, signed by the
presiding officer of the board or council and attested to by the board
or council secretary, and recorded in a book kept for the purpose. It
shall be the duty of the board or council secretary to furnish the local
treasurer concerned with a least three copies of the approved
appropriation ordinance within ten days from the approval thereof. In
the case of provinces and cities, the local auditor shall likewise be
furn shed with copies thereof.
Effectivity of budgets.
SEC. 23. Effectivity of budgets.—The
approved annual budget shall be deemed to be operative and in full
force and effect as of the beginning of the fiscal year. A supplemental
budget, however, shall take effect upon its approval or on the date
fixed in the appropriation ordinance for its effectivity.
The role of the treasurer in the budget process.
SEC. 24. The role of the treasurer in the budget
process.— The provincial, city and municipal treasurer shall be the
chief financial officer of their respective local governments and in
such capacity shall provide technical and staff services to the chief
executive and other local officials in budget preparation,
authorization, execution and accountability.
Changes in the annual budget.
SEC. 25. Changes in the annual budget.—Changes in
the annual budget may be made within the fiscal year by way of
supplemental budgets which shall be enacted in the same manner as the
annual budget but not oftener than once a month. Additional supplemental
budgets, however, may in times of emergency be enacted in the manner
herein provided to set aside appropriations for the purchase of supplies
and materials and/or the payment of services which are exceptionally
urgent or absolutely indispensable to prevent imminent danger to, or
loss of, life or property.
Whenever any change is made in the budget, the supplemental
appropriation ordinance shall clearly indicate the various items of
appropriations affected and the reasons for the change.
SEC.
26. Failure to enact an annual budget.—If the local
legislative body shall fail to pass the annual budget before the
beginning of the ensuing fiscal year, or when the budget which has been
enacted is declared inoperative in its entirety by the reviewing
officer, the annual appropriations for salaries and wages of existing
positions, statutory and contractual obligations, and essential
operating expenses authorized in the annual and supplemental budgets for
the preceding fiscal year shall be deemed re-enacted and disbursements
of funds shall be in accordance therewith until a new budget or a
revised budget meeting the objections of the reviewing officer is
approved.
In the implementation of a re-enacted budget, the local
treasurer concerned shall exclude from the estimates of income for the
preceding fiscal year those realized from non-recurring sources, like
national aids, proceeds from loans, sale of assets, prior year
adjustments, and other analogous sources of income.
Should the
revised income estimates be less than the aggregate re-enacted
appropriations, the treasurer shall accordingly advise the local board
or council which shall, within ten days from receipt of such advice,
make the necessary adjustments or reductions. The revised appropriations
authorized by the board or council shall then be the basis for
disbursements.
Budgetary Requirements.
SEC. 27. Budgetary Requirements.—The
budgets of provinces, cities and municipalities for any fiscal year
shall comply with the following requirements:
The aggregate amount appropriated shall not exceed the
estimated income certified collectible by the local treasurer;
Full provisions shall be made for all statutory and contractual
obligations of the local government concerned;
Twenty per cent of the national internal revenue allotment
accruing to the general fund of the local government shall be
appropriated for developmental projects or activities;
Aids to legally constituted barrios shall be provided in amounts
not exceeding P500.00 per barrio; and
Two per cent of the estimated revenue from regular sources,
shall be set up as a yearly unappropriated reserve to cover unforeseen
expenditures arising from the occurrence of natural calamities or
financial dislocation on account thereof.
General limitations.
SEC. 28. General limitations.—
The total annual appropriations for salaries and wages of
provincial, city and municipal officials and employee for one fiscal
year shall not exceed forty-five per cent (45%), in the case of all
first and second class provinces, cities and municipalities and
fifty-five per cent (55%), in the case of those lower than second class,
of the total annual income actually realized from regular sources
during the next preceding fiscal year or the current fiscal year
estimates from the same sources certified as collectible by the
provincial or city treasurer concerned, whichever is lower. The
appropriations for salaries and wages of officials and employees in the
public schools, hospitals, health and agricultural services, public
utilities, markets and slaughter-houses, and other economic enterprises
owned, operated and maintained by the province, city or municipality, as
well as representation and emergency cost-of-living allowances, shall
not be included in the computation of the maximum amount expendable for
salaries and wages.
The Secretary of Finance, however, may authorize appropriations in
excess of the percentages hereinabove fixed subject to such conditions
as he may impose, but in no case shall the excess in appropriations for
salaries and wages be more than twenty-five per cent (25%) of the
maximum expendable amounts nor shall such exemption be granted in case
of overdraft or imminence thereof.
No official or employee shall receive a salary rate higher than
the maximum fixed by law or regulation for his position or other
positions of equivalent rank.
No local fund shall be appropriated to increase or adjust
salaries or wages of officials and employees of the national
government assigned in the local government, except as may
hereafter be expressly authorized by law.
In case a reduction of salaries and wages becomes necessary,
such reduction shall be general in character and the percentage thereof
shall be uniform for similar rates of salaries and wages. In cases of
abolition of positions in the competitive or career service, such
abolition shall be made in accordance with pertinent provisions of the
Civil Service Law and Rules, and in the case of officials or employees
appointed at the national level such reduction in that portion of their
salary paid out of local funds as authorized by law or abolition of
position shall not be given effect unless approved by the Head of the
National Department or Commission concerned.
Non-funding of existing positions in the competitive or
non-competitive services which are occupied by incumbents holding
permanent appointments shall be unlawful.
Changes in designation or nomenclature of positions resulting
in a promotion or demotion in rank and/or increase or decrease in
compensation shall not be authorized, except when the position is
actually vacant, and the filling of such positions shall be strictly
made in accordance with the Civil Service Law and Rules.
Except as may be expressly authorized by law, creation of new
positions and salary increases or adjustments shall not be retroactive
but, rather, invariably prospective in effect.
The annual appropriations for discretionary purposes of the local
chief executive shall not exceed one per cent of the real property tax
collections actually realized during the next preceding fiscal year or
P100,000.00, whichever amount is lower.
Review of Provincial and City Budgets.
SEC. 29. Review of Provincial and City Budgets.—Within
ten days from receipt by the provincial or city treasurer of copies of
the provincial or city budget approved by the local board or council, he
shall furnish copies thereof to the Secretary of Finance who shall have
the power to review the same in order to ascertain compliance with the
foregoing requirements and general limitations. If within ninety days
after receipt of his copies of the provincial or city budgets, the
Secretary of Finance takes no action thereon, the same shall be deemed
to have been passed in accordance with law and shall continue to be in
full force and effect. If within the same period the Secretary of
Finance shall have ascertained that a provincial or city budget has not
complied with the budgetary requirements set forth in Section 27 hereof,
the budget shall be declared inoperative in its entirety. Items of
appropriations contrary to, or in excess of, any of the general
limitations prescribed in Section 28 hereof shall be disallowed or
reduced accordingly and any violation of any of the aforesaid general
limitations shall constitute sufficient ground for declaring the budget
inoperative either in part or in its entirety.
The Secretary of
Finance shall, within the ninety-day period hereinabove fixed, advise
the provincial governor or the city mayor concerned thru the local
treasurer or any action taken on the budget under review. Following
receipt of such advice, it shall be unlawful for the local treasurer to
make further disbursement of funds from any of the items of
appropriation declared inoperative, disallowed or reduced.
SEC.
30. Review of Municipal Budgets.—Municipal budgets shall be
reviewed by the provincial treasurer in the same manner and within the
same period as prescribed in the preceding section. The budgetary
requirements and general limitations prescribed for provincial and city
budgets shall likewise be applicable to municipal budgets.
If
within ninety days from receipt of his copies of the municipal budget
from the municipal treasurer concerned, the provincial treasurer takes
no action thereon, the same shall be deemed to have been passed in
accordance with law and shall continue to be in full force and effect.
If within the ninety days the provincial treasurer shall have
ascertained that a municipal budget has not complied with the budgetary
requirements set forth in Section 27 hereof or when the income estimates
certified by the municipal treasurer are found to be unrealistic and
improbable of collection, the provincial treasurer shall, within the
ninety-day period hereinabove fixed declare the budget inoperative in
its entirety. Items of appropriation contrary to, or in excess of, any
of the general limitations prescribed in Section 28 hereof shall be
disallowed or reduced accordingly and any other violation of any of the
aforesaid general limitations shall constitute sufficient ground for
declaring the budget inoperative either in part or in its entirety.
The provincial treasurer shall within the ninety-day period advise the
municipal mayor thru the municipal treasurer of any action taken on the
budget under review. Following receipt of such advice, it shall be
unlawful for the municipal treasurer to make further disbursement of
funds from any of the items of appropriation declared inoperative,
disallowed, or reduced.
Duration of appropriations; closing special budgets.
SEC. 31. Duration of
appropriations; closing special budgets.—Appropriations for ordinary
administrative purposes shall terminate with the fiscal year and all
unexpended balances thereof shall be reverted on the thirtieth day of
June of each year to the unappropriated account by way of a special
budget which shall serve as a supporting document to the corresponding
journal voucher. Similarly, thru the special budget, all income accounts
shall be brought into balance before closing the books, reducing the
classes of income that have been over-estimated and increasing those
that have been underestimated to the amounts actually realized.
Such special budgets reverting unexpended appropriations for ordinary
administrative purposes and of income receivable and actual income
adjustments shall not require any action by the local legislative body.
However, legislative action by the local board or council is necessary
in the following cases: (1) where overdrafts in any of the appropriation
accounts have been incurred; and (2) reversions of continuing
appropriation or appropriations obligated by the contract as may be
authorized by law.
The annual barrio budget.
SEC. 32. The annual barrio budget.—The
annual barrio budget shall primarily consist of two parts: (a) the
estimates of income certified collectible by the municipal treasurer on
the basis of estimates prepared by the barrio treasurer from local
sources; and (2) the total appropriations covering current operating
expenditures and capital outlays, if any.
Submission of detailed statements of income and expenditures for the barrio budget.
SEC. 33. Submission of detailed statements of income
and expenditures for the barrio budget.—On or before the fifteenth
day of April of each year, the municipal treasurer shall furnish the
barrio captain with a certified statement covering the estimates of
income from local sources and expenditures pertaining to the ensuing
fiscal year and thereby certify to the reasonable probability or
realizing the estimates of income prepared and submitted by the barrio
treasurer.
Preparation of the barrio budget the barrio captain.
SEC. 34. Preparation of the barrio budget the barrio
captain.—Upon receipt of the foregoing statements, the barrio
captain shall prepare the budget for the ensuing fiscal year. The said
budget shall contain the estimate of income as certified by the
municipal treasurer and the proposed expenditures for the ensuing fiscal
year.
The barrio captain shall submit the budget to the barrio
council not later than May sixteen of the year.
Action of the barrio council.
SEC. 35. Action
of the barrio council.—On or before the end of the fiscal year, the
barrio council may enact through an appropriation ordinance the annual
barrio budget for the local fund for the ensuing fiscal year on the
basis of the statement of the certified estimated income and budget
proposals submitted by the barrio captain.
Effectivity of barrio budgets.
SEC. 36. Effectivity of barrio budgets.—Any
provision of law to the contrary notwithstanding, the barrio budget
approved by the barrio council shall be deemed operative and in full
force and effect at the beginning of the fiscal year. A barrio
supplemental budget shall take effect upon its approval or on the date
fixed in the appropriation ordinance for its effectivity.
Changes in the barrio budget.
SEC. 37. Changes in the barrio budget.—Changes in
the budget in the case of appropriations for ordinary administrative
purposes may be made within the fiscal year by way of supplemental
budgets which shall be adopted in the game manner as the annual budget.
Review of the barrio budget.
SEC. 38. Review of the barrio budget.—Within ten
days from its approval, copies of the barrio budget shall be submitted
by the barrio council to the municipal treasurer concerned who shall
have the power to review such budget in order to see to it that the
aggregate amount appropriated has not exceeded the estimated income
cerified collectible; that full provisions have been made for all
statutory and contractual obligations; that no officials or employee
shall receive per diems, wages or salaries an excess of existing laws or
executive orders. If within ninety days after receipt of his copies of
the budget the municipal treasurer takes no action thereon, the same
shall be deemed to have been passed in accordance with law and shall
continue to be in full force and effect. If within the same period the
municipal treasurer concerned shall have ascertained that a barrio
budget has approved appropriations excess of the estimates of income
duly certified collectible or that the same has not fully provided for
statutory or contractual obligations, the budget shall be declared
inoperative in its entirety. Items of appropriation in excess of
existing salary laws and executive orders shall be disallowed or reduced
accordingly. The municipal treasurer shall, within the ninety-day
period hereinabove fixed, advise the barrio captain concerned, thru the
barrio treasurer, of any action taken on the budget under review.
Following receipt of such advice, it shall be unlawful for the barrio
treasurer or the municipal treasurer who has custody of the funds to
make further disbursement of funds from any of the items of
appropriation declared inoperative, disallowed or reduced.
Disbursement of appropriations for development projects.
SEC. 39. Disbursement of appropriations for development
projects.—Appropriations for development projects funded from the
twenty per cent of the annual internal revenue allotment of the local
government and from the barrio development fund shall not be disbursed
until after the corresponding work programs shall have been reviewed by
the Secretary of Local Government and Community Development or his duly
authorized representative. The Secretary shall issue the guidelines
necessary in the proper implementation of this Section.
Administrative issuances; Budget operations manual.
SEC. 40. Administrative issuances; Budget operations
manual.—The Secretary of Finance shall have rules and regulations as
may be necessary to facilitate effective implementation of the
provisions of this Chapter and shall within one year from the
effectivity hereof, promulgate a Budget Operations Manual for local
governments to improve and systematize methods, techniques and
procedures employed in budget preparation, authorization, execution and
accountability.
CHAPTER IV.—Expenditures, Disbursements
Disbursement of Local Government Funds in General.
SEC. 41. Disbursement
of Local Government Funds in General.—Revenue funds shall not be
paid out of any-local treasury except in pursuance of lawful
appropriation or other specific statutory authority. Trust funds shall
not be paid out of any local treasury except in fulfillment of the
purpose for which the trust was created or fund received.
Prohibition against expenditures for religious or private purposes.
SEC. 42. Prohibition against expenditures for
religious or private purposes.—No public money or property shall be
appropriated or applied for the benefit of any religious sect or
activity nor any other undertaking or purpose of a private character.
Use of appropriated funds.
SEC. 43. Use of appropriated funds.—Funds shall be
available exclusively for the specific purposes for which they have been
appropriated. No transfers or reversions of appropriations from one
item to another shall be made except by the local legislative body.
Restriction upon limit of disbursements.
SEC. 44. Restriction upon limit of disbursements.—Disbursements
in accordance with appropriations in the approved local budget may be
made from any local funds in the custody of the treasurer but the total
disbursements from any local fund shall in no case exceed the actual
collections plus fifty per cent in the case of provinces and cities and
twenty-five per cent in the case of municipalities, of the uncollected
estimated revenue accruing to such fund: Provided, however, That no cash
overdraft in any local fund shall be incurred at the end of fiscal
year.
In case of emergency caused by typhoon, earthquake, or any other
public calamity, the Secretary of Finance in the case of provinces and
cities and the provincial treasurer in the case of municipalities, may
authorize the treasurer to continue making disbursements from any local
fund in his possession in excess of the limitation herein provided, but
only for such purposes and amounts included in the approved local
budgets as the said officials shall determine, after consultation with
the local board or council.
Any overdraft which may incurred at
the end of the year in any local fund by virtue of the provisions hereof
shall be covered with the first collections of the following fiscal
year accruing to such local fund.
Prohibition against advance payments.
SEC. 45. Prohibition
against advance payments.—No money shall be paid on account of any
contract for which no services have as yet been rendered or no
deliveries have as yet been made except with the prior approval of the
President upon recommendation of the Secretary of Finance and the
Commission on Audit.
Cash Advances.
SEC. 46. Cash Advances.—No cash advance shall be
granted to any local official or employee, appointive or elective,
unless in accordance with the rules and regulations as the Commission on
Audit may prescribe.
Persons accountable for government funds property.
SEC. 47. Persons accountable for government funds
property.—Every officer of the local government whose duties permit
or require the possession or custody of the government funds shall be
accountable and responsible therefor and for the safekeeping thereof in
conformity with the provisions of this law. Other officers who, though
not accountable by the nature of their duties, may likewise be similarly
held accountable and responsible for the government funds through their
participation in the use or application thereof.
Prohibition against pecuniary interest.
SEC. 48. Prohibition against pecuniary interest.—It
shall be unlawful for any local treasurer or other accountable officer
to have any pecuniary interest, direct or indirect, in any contract,
work or other business of the local government unit of which he is the
treasurer or accountable officer.
SEC. 49. Liability for acts done upon direction of
superior officer, or upon participation of other department heads or
officers of equivalent rank.—The local treasurer or other
accountable officer shall not be relieved of liability for illegal or
improper use or application or deposit of government funds or property
by reason of his having acted upon the direction of a superior officer,
elective or appointive, or upon participation of other department heads
or officers of equivalent, rank. The superior officer directing, or the
other department head participating in such illegal or improper use or
application or deposit of government funds or property, shall be jointly
and severally liable with the local treasurer or other accountable
officer for the sum or property so improperly used, applied or
deposited.
Prohibition against expenses for receptions and entertainment.
SEC. 50. Prohibition against expenses for
receptions and entertainment.—No money shall be appropriated, used or
supplied for entertainment or receptions except to the extent of
representation allowances authorized by law or executive order or for
the reception of visiting dignitaries of foreign governments or foreign
missions, or when expressly authorized by the President in specific
cases.
Certification on, and approval of, vouchers.
SEC. 51. Certification on, and approval of, vouchers.—
Monies shall not be disbursed unless the treasurer concerned certifies
that appropriations and funds are available for the purpose. Vouchers
and payrolls shall be certified to and approved by the head of the
department or office who has administrative control of the fund
concerned, as to validity, propriety and legality of the claim involved.
In the case of municipalities, the approval of the local chief
executive shall be required when local funds are involved.
In case of temporary absence or incapacity of the department
head or chief of office, the officer next-in-rank shall automatically
perform this function and he shall be fully responsible therefor.
Officials authorized to draw checks in settlement of obligations.
SEC. 52. Officials authorized to draw checks in settlement of
obligations.—Checks in settlement of obligations shall be drawn by
the Provincial and City Treasurer, as the case may be, and shall be
countersigned by the Provincial or City Auditor.
In case of
temporary absence or incapacity of the above-named officials, these
duties shall devolve upon the immediate assistant.
SEC. 53.
Disbursement of local funds and statement of accounts.—Disbursements
shall be made in accordance with the appropriations provided by the
local legislative body without the necessity of further approval by said
body. Within forty days after the close of each month, the local
treasurer shall furnish the local legislative body with such financial
statements as may be prescribed by the Commission on Audit. In case of
the-year-end statement of accounts, the period shall be sixty days.
Rendition of accounts.
SEC. 54. Rendition of accounts.—Local treasurers
and other local accountable officers shall render their accounts within
such time, in such form, style and contents and under such regulations
as the Commission on Audit may prescribe.
Provincial and city auditors shall certify the balances arising
in the accounts settled by them to the Chairman of the Commission on
Audit and to the proper local treasurer and accountable officer. Similar
certifications shall be prepared for other local officers who may be
held jointly and severally liable for any loss or improper or
unauthorized use or misappropriation of government funds or property.
Auditorial visitation.
SEC. 55. Auditorial visitation.—The books, accounts,
papers and cash of any local treasurer or other accountable officer
shall at all times be open to the inspection of the Commission on Audit
or its duly authorized representative.
In case an examination of
the accounts of a local treasurer discloses a shortage in cash which
should be on hand, it shall be the duty of the examining officer to
seize the office and its contents, notify the Commission on Audit and
the local chief executive, and thereupon immediately take full
possession of the office and its contents, close and render his accounts
to the date of taking possession, and temporarily continue the public
business of such office.
The Auditor who takes possession of the
office of the local treasurer under this Section shall ipso facto
supersede the local treasurer until the officer involved is restored or
other provision has been lawfully made for filling the office.
SEC.
56. Accounting for revenues.—Estimated revenues which remain
unrealized at the close of the fiscal year shall not be booked nor
credited to the unappropriated surplus or any other account.
Accounting for obligations.
SEC. 57. Accounting for obligations.—All lawful
expenditures and obligations incurred during a year shall be taken up in
the accounts of that year.
General liability for unlawful expenditures.
SEC. 58. General liability for unlawful expenditures.—
Expenditures of funds or use of property in violation of law shall be a
personal liability of the official or employee responsible therefor.
The official fiscal year.
SEC. 59. The official fiscal year.—The official
fiscal year of local governments shall be the period beginning with the
first day of July and ending with the thirtieth day of June of the
following year.
CHAPTER V. ORGANIZATION FOR LOCAL FISCAL
Provincial or City Treasurers.
SEC. 60. Provincial or City Treasurers.—In
each province or city, there shall be a distinct and separate office to
be headed by a provincial or city treasurer, who shall be appointed by
the President of the Philippines upon recommendation of the Secretary of
Finance, in the manner provided herein. The provincial or city
treasurer shall be the chief financial officer of the local government
unit concerned and, as such, shall excercise the following functions:
Advise the provincial board, the municipal board or city council,
the provincial or city officers, and the national officers concerned
with the disposition of the provincial or city funds, on all matters
relative to public finance and the acquisition and disposition of
property of the Government.
Collect taxes throughout the province or city, including
national, provincial or city, and municipal taxes and other revenues
authorized by law.
Have custody and supervision of all provincial or city funds
and property, including the provincial or city buildings and grounds
and, subject to the approval of the provincial governor or city mayor,
assign rooms to provincial or city officers and other public officials
who by law are entitled to office space in the provincial
or city buildings.
Have charge of the disbursement of all provincial or city funds
and other funds the custody of which may be entrusted to him by law or
other competent authority.
Exercise direct and immediate supervision, administration and
control over public markets and the personnel thereof, including those
whose duties concern the maintenance and upkeep of the market and
market premises, in accordance with local ordinances and other
pertinent rules and regulations. The provincial treasurer shall
exercise general supervision over municipal public markets.
Acquire for the provincial or city government all necessary
supplies, materials, and equipment for which the proper appropriation
has been authorized by the provincial board, municipal board or city
council or other competent authority.
Upon designation by the Secretary of Finance, act as Treasury
Fiscal Examiner in the province or city under the administrative
authority of the Treasurer of the Philippines and in
accordance with the pertinent rules and regulations.
Act, with the approval of the Secretary of Finance, as agent of
the Philippine National Bank in case the same has established an agency
in the province or city, with such powers and duties and subject to such
conditions as the Board of Directors of the Philippine National Bank
may confer and impose upon him.
Inspect, under the authority of the provincial board, municipal
board or city council, the operation of public utilities belonging to,
leased or operated by, the provincial or city government or other local
governments, such as telegraph and telephone, land and water
transportation, waterworks, electric-light plants, irrigation systems,
bonded warehouses, ferries, slaughterhouses, and other commercial and
industrial enterprises of the province and the municipalities or of the
city, and all private commercial and industrial establishments within
the province or city in relation with local tax ordinances.
In case of vacancy in the office of the provincial or city-treasurer
owing to illness, absence or other cause, the Secretary of Finance may
designate another treasurer already in the service or any other
competent person to act temporarily in said office and, upon affirmation
of said designation by the President of the Philippines, such treasurer
or person thus designated shall receive the compensation attached to
the vacant position and to continue until such time that a regular or
permanent appointment shall have been issued in accordance with law. The
Secretary of Finance may, in his discretion, authorize the payment of
per diems during the period of such designation.
Qualifications.
SEC. 61. Qualifications.—No
person may be appointed as provincial or city treasurer unless he is a
citizen of the Philippines; of good moral character; a holder of a
college degree (preferably in law, commerce or public administration)
from a recognized school; a first grade civil service eligible or its
equivalent; has been an assistant provincial or city treasurer for at
least three years; and possesses such other qualifications or
requirements that the Secretary of Finance may prescribe.
SEC.
62. Compensation and emoluments.—Provincial or city
treasurers shall receive such compensation as fixed by law, and such
other emoluments as may be authorized by law or executive order.
Subprovincial treasurers.
SEC. 63. Subprovincial treasurers.—There shall be
in each subprovince a subprovincial treasurer who shall be appointed by
the Provincial Treasurer in conformity with, the Civil Service Law and
rules with the approval of the Secretary of Finance. He shall receive
compensation as fixed by law and shall perform duties and functions as
may be assigned to him by the Provincial Treasurer in accordance with
law and regulations.
Assistant Provincial or City Treasurer.
SEC. 64. Assistant Provincial or City Treasurer.—In
all offices of the provincial and city treasurers, there shall be an
assistant provincial or city treasurer who shall be appointed by the
provincial or city treasurer in conformity with the provisions of the
Civil Service Law, subject to the approval of the Secretary of Finance.
In the highest class of provinces and cities as classified by
the Department of Finance and in the Special cities of Manila and Quezon
City, there may be created an additional position of assistant
provincial or city treasurer which shall be filled in the manner
provided herein.
Qualifications and Functions.
SEC. 65. Qualifications and Functions.—No
person may be appointed as assistant provincial or city treasurer
unless he is a citizen of the Philippines; of good moral character; a
holder of a college degree (preferably in law, commerce or public
administration) from a recognized school; a first grade civil service
eligible or its equivalent; has been at least two years as
administrative deputy; and possesses such other qualifications or
requirements that the Secretary of Finance may prescribe.
The
assistant provincial or city treasurer shall assist the provincial or
city treasurer and perform such other duties as the latter may assign to
him. He shall have authority to administer oaths concerning notices and
notifications to those delinquent in the payment of the real property
tax and concerning official matters relating to the accounts of
provincial or city treasurers or otherwise arising in the offices of the
provincial or city treasurer and the provincial or city assessor.
Compensation.
SEC. 66. Compensation.—Assistant provincial or city
treasurers shall receive such compensation as fixed by law.
Administrative Deputy.
SEC. 67. Administrative Deputy.—There shall
likewise be in each provincial or city treasury an administrative deputy
who, like the provincial or city treasurer and assistant treasurer,
shall be a transient official and who shall be appointed by the local
chief executive in conformity with the Civil Service Law and rules and
subject to the approval of the Secretary of Finance.
Qualifications and Functions.
SEC. 68. Qualifications and Functions.—No person
may be appointed as administrative deputy unless he is a citizen of the
Philippines; has finished at least two years of college education
leading to a bachelor's degree preferably in law, commerce or public
administration; has rendered at least five years of continuous service
in the local treasury service; a first grade civil service eligible or
its equivalent; and possesses such other qualifications or requirements
that the Secretary of Finance may prescribe.
The functions of the Administrative Deputy shall be as follows:
Maintain personnel discipline in the office and undertake
administrative investigations filed against erring provincial and
municipal or city treasury personnel.
Coordinate the functions and internal activities of the various
divisions in the provincial or city treasury in relation to the
municipal treasurers in the case of provinces and deputies in the case
of cities.
Discharge the duties of the assistant provincial or city
treasurer during the temporary absence of the assistant.
Perform other duties which may be assigned to him from time to
time by the provincial or city treasurer.
Compensation.
SEC. 69. Compensation.—The compensation of the
Administrative Deputy shall be as fixed by law or executive order.
Municipal or Municipal District Treasurer.
SEC. 70. Municipal or Municipal District Treasurer.—In
each municipality or municipal district, there shall be a separate and
distinct office to be headed by a municipal or municipal district
treasurer, who shall be appointed by the Provincial Treasurer in
accordance with the Civil Service Law subject to the approval of the
Secretary of Finance. The municipal or municipal district treasurer
shall be the financial officer of the municipality or municipal district
and, with respect to the collection of revenue, shall be the deputy of
the provincial treasurer.
The principal duties of the municipal or municipal district
treasurer shall be:
Collect and receive all moneys due or accruing to the
municipality or municipal district and, except as otherwise
specifically provided, all other government revenue collectible therein.
Requisition, upon application by the head of a department or
office of the municipality or municipal district, all necessary
supplies, materials and equipment for which the proper appropriation has
been authorized by the local legislative body or other competent
authority.
Inspect, under the authority of the local legislative body,
the operation of public utilities belonging to, leased or operated by,
the municipality or municipal district such as telegraph and telephone,
land and water transportation, waterworks, electric light plants
irrigation systems, bonded warehouses, ferries, slaughterhouses, and
other commercial and industrial enterprises belonging to the
municipality or municipal district, and all private commercial and
industrial establishments within the municipality or municipal district
in relation with local tax ordinances.
Exercise direct and immediate supervision, administration and
control over public markets and the personnel thereof, including those
whose duties concern the maintenance and upkeep of the market and market
premises in accordance with local ordinances and other pertinent rules
and regulations.
Keep a detailed account of all moneys received and pay or
dispose of the same pursuant to lawful authority.
Keep a complete record of all property pertaining to every fund,
local or otherwise, and render accounts for the same.
Perform, as deputy of the provincial treasurer in the
municipality or municipal district, such other duties not inconsistent
with law as the provincial treasurer may assign to him.
Qualifications.
SEC. 71. Qualifications.—No person may be appointed as
municipal or municipal district treasurer unless he is a citizen of the
Philippines; has completed at least two years of college education in a
recognized school leading to a bachelor's degree; has rendered at least
five years of continuous service in the local treasury service; holds
an appropriate civil service eligibility; and possesses such other
qualifications or requirements that the Secretary of Finance may
prescribe.
Compensation.
SEC. 72. Compensation.—Each municipal or municipal
district treasurer shall receive such compensation as fixed by law.
Treasury and auditorial visitations.
SEC. 73. Treasury and auditorial visitations.—The
cash and accounts of the municipal or municipal district treasurers
shall at all times be open to the inspection of the provincial treasurer
or his deputy specifically authorized for that purpose, and of the
provincial auditor or his representative at least once in every quarter
without prejudice to the regular audit of all financial transactions
thereof.
Assistant Municipal or Municipal District Treasurer.
SEC. 74. Assistant Municipal or Municipal District
Treasurer.—In the office of the municipal or municipal district
treasurer, there shall be an assistant municipal or municipal district
treasurer who shall be appointed by the provincial treasurer with the
approval of the Secretary of Finance in conformity with the provisions
of the Civil Service Law.
Qualifications and Functions.
SEC. 75. Qualifications and Functions.—No person
shall be appointed assistant municipal or municipal district treasurer
unless he is a citizen of the Philippines; has completed at least two
years of college education in a recognized school leading to a
bachelor's degree; has rendered at least three years of continuous
service in the local treasury service; holds an appropriate civil
service eligibility; and possesses such other qualifications or
requirements that the Secretary of Finance may prescribe.
The assistant municipal or municipal district treasurer shall
assist the municipal or municipal district treasurer and perform such
other duties as the latter may assign to him.
Compensation.
SEC. 76. Compensation.—Each
assistant municipal or municipal district treasurer shall receive such
compensation as fixed by law or executive order.
Temporary succession to office.
SEC. 77. Temporary succession to office.—In the
absence, suspension or other disability of the municipal or municipal
district treasurer, the provincial treasurer shall designate an
office-in-charge from the ranks of regular treasurer or assistant
treasurers who shall temporarily discharge the duties of the office. He
may also designate as officer-in-charge of a municipal treasury any
competent person in his office permanently appointed to a position
equivalent in rank to an assistant municipal treasurer.
Appointment of treasury personnel in provinces, cities, municipalities and municipal districts.
SEC. 78. Appointment of treasury personnel in
provinces, cities, municipalities and municipal districts.—The local
chief executive shall appoint all other local treasury personnel whose
appointments are not otherwise provided for in this Decree, the number
and salaries of whom shall be determined by the local board or council,
in accordance with existing salary laws, rules and regulations.
Local treasury career service.
SEC. 79. Local treasury career service.—All local
treasurers, their respective assistants, and other subordinates shall
comprise the Local Treasury Career Service for which the Department of
Finance shall conduct in-service training programs or seminars as may be
deemed necessary in improving the technical and administrative skills
essential to the conduct and management of the financial affairs and
operations of the local governments. For this purpose, the Secretary of
Finance may coordinate with, other national departments or agencies and
academic institutions and may designate local treasury officials to act
as trainors or instructors. Completion of an approved seminar or
training program shall be considered a factor in the matter of
promotions in the local treasury career service.
The Secretary of Finance may, in coordination with the Civil
Service Commission, conduct entrance examinations for qualified
applicants who may desire to enter the local treasury career service and
qualifying examinations for purposes of promotion of those already in
the service.
CHAPTER VI. FINAL PROVISIONS
Transitory provisions.
SEC. 81. Transitory provisions.—The
local governments shall have one year from the date of effectivity of
this Decree to change the form of their annual and supplemental budgets
from the line-item type to the form and contents provided for in Section
16, Article I, of Chapter III of this Decree and to establish the
Infrastructure Fund created under Section 7, Article I, of Chapter II
hereof. Upon the establishment of the Infrastructure Fund herein
provided, the road and bridge funds of provinces, cities and
municipalities and the permanent public improvement funds of
municipalities shall be deemed ipso facto abolished, and all
assets, resources, liabilities, surplus and deficits of the funds herein
abolished are hereby automatically transferred to the Infrastructure
Fund.
An incumbent provincial, city or municipal treasurer,
assistant treasurer, or administrative deputy who does not possess the
educational requirements herein provided may be promoted to the next
higher position or higher class of province, city or municipality, as
the case may be:
Provided, however, That he has the
necessary experience that may be substituted for every year he lacks in
college education and for such other qualifications as may be prescribed
by the Secretary of Finance: And provided, further, That five
years after the effectivity of this Decree, no person shall be appointed
Provincial or City Treasurer, Assistant Provincial or City Treasurer,
Administrative Deputy, Municipal Treasurer, or Assistant Municipal
Treasurer unless he possesses the educational qualifications prescribed
under this Decree.
Nothing herein shall be construed as depriving
any provincial, city or municipal treasurer, or assistant treasurer, or
administrative deputy of his right to continue to hold office or
withdrawing or reducing his benefits and privileges as provided for
under existing laws.
Separability clause.
SEC. 82. Separability clause.—If,
for any reason, any section, or provision of this Decree shall be held
to be unconstitutional or invalid, no other section or provision hereof
shall be affected thereby.
Repealing clause.
SEC. 83. Repealing clause.—All laws, acts, decrees,
executive orders, proclamations and/or administrative regulations, or
part or parts thereof, including the pertinent portions of city charters
which are contrary to, or inconsistent with, the provisions of this
Decree are hereby repealed and/or modified accordingly.
Effectivity.
SEC. 84. Effectivity.—This Decree shall take
effect upon approval.
Done in the City of Manila, this 3rd day of June, in the year of
Our Lord, nineteen hundred and seventy-four.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary
Section 15 hereof.
The local chief executive shall submit the
budget to the local board or council not later than May sixteen of the
year.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
