Restriction upon limit of disbursements.
Section 44
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.