ABOLISHING ALL EXISTING SPECIAL AND FIDUCIARY FUNDS AND TRANSFERRING TO THE GENERAL FUND THE OPERATIONS AND FUNDING OF ALL SPECIAL AND FIDUCIARY FUNDS.

• Number: Presidential Decree No. 711
• Sections: 6

Preamble

WHEREAS, the current pattern of social and economic

development being undertaken by the (National Government is based upon a

structural system of priorities of all continuing, coordinated, and

fully integrated social and economic plans and programs;

WHEREAS, there are various distinct, separate and special

projects previously authorized to be implemented and funded from special

and fiduciary funds which, in some cases, are no longer in conformity

with the present development program and/or otherwise run counter to the

objectives of social and economic plans formulated consistent with

national development goals;

WHEREAS, there are special and fiduciary funds the purposes

for which such funds were created had been fulfilled or abandoned, or

that the laws creating such special and fiduciary funds contain certain

restrictions such that the objectives for which the funds were created

cannot be fully attained resulting in the accumulation of big cash

balances in the special and fiduciary funds involved;

WHEREAS, the accumulation of big cash balances in special

and fiduciary funds is adversely affecting the management and control of

such cash resources in the National Treasury, resulting in the useless

immobilization of public funds which otherwise could be advantageously

availed of to finance the prosecution of various essential public

services;

WHEREAS, the transfer of the funding and operation of all

existing special and fiduciary funds into the general fund would

facilitate the implementation of social and economic programs and

projects of the government for the benefit and general welfare of the

masses;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution,

do hereby order and decree:

Section 1

SECTION 1. All existing special and fiduciary funds are

hereby abolished and all assets, liabilities, surpluses and

appropriations pertaining to all special and fiduciary funds as

authorized by the corresponding acts, laws, or decrees creating such

special and fiduciary funds, as well as the financing and operations

thereof, are hereby transferred to the General Fund of the National

Government; provided that the personnel whose salaries and/or wages are

drawn from such special and fiduciary funds shall be paid out of the

General Fund subject to the provisions of Section 2 hereof.

Section 2

SEC. 2. The existing functions and activities authorized

under present laws creating each of the special and fiduciary funds

which, as determined by the National Economic and Development Authority,

are in conformity with the present social and economic plans and

programs formulated consistent with national development goals shall

continue to be maintained under the General Fund. All taxes, levies,

fees, imposts and other income of all special and fiduciary funds duly

authorized under existing laws shall remain in force and shall accrue to

the General Fund.

Section 3

SEC. 3. The Secretary of Finance, the Commissioner of the

Budget, and the Chairman of the Commission on Audit shall issue the

necessary rules and regulations for the effective implementation of the

provisions of this Decree.

Section 4

SEC. 4. All existing laws, decrees and letters of

instructions, as well as rules and regulations, which are inconsistent

with the provisions of this Decree are hereby repealed and/or modified

accordingly.

Section 5

SEC. 5. This Decree shall take effect on July 1, 1975.

Done in the City of Manila, this 27th day of May, in the year of Our

Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary