BATAS PAMBANSA Blg. 230
An Act Appropriating Funds for the Operation of the Government of the Republic of the Philippines from January One to December Thirty-One, Nineteen Hundred and Eighty-Three and for Other Purposes
Section 1. Appropriation of Funds. The following sums, or so much thereof as may be necessary are hereby appropriated out of any funds in the National Treasury of the Philippines not otherwise appropriated, for the operation of the Government of the Republic of the Philippines from January one to December thirty-one, nineteen hundred and eighty-three except where otherwise specifically provided herein:
[For the sake of brevity, the itemization under this Section of the funds appropriated for the operation of the Government had been deleted. Please refer to the unbridged version of the pertinent General Appropriations Acts for the details.]
Section 2. Fees, Charges and Assessments. All fees, charges, assessments, and other receipts or revenues collected by Ministries, bureaus, offices or agencies in the exercise of their functions, at such rates as are now or may be approved by the Minister concerned, shall be deposited with the National Treasury and shall accrue to the General Fund pursuant to Section 50 of P.D. No. 1177: Provided, That certain receipts may be recorded as income of a Special Fund, a Fiduciary or a Trust Fund, or a fund other than the General Fund, when authorized as may be issued by the Permanent Committee created under Section 51 of P.D. No. 1177: Provided, further, That all revenues or income accruing to special accounts in the General Funds may be made available for expenditures subject to the Special Provisions in this Act for the agencies concerned and to Special Budgets required under Section 40 of P.D. No. 1177: and Provided, finally, That whenever practicable and taking into account the cost reduction program of the government when an agency arranges with another government office for fabrication or furniture or equipment, or for computer, printing or other services, the agency rendering such services may assess the requesting agency for the cost of production and services rendered and may utilize the said proceeds subject to Sec. 40 of P.D. No. 1177, except as otherwise provided in this Act.
Section 3. Revolving Fund. Receipts derived from business-type activities of Ministries, bureaus, offices or agencies which are authorized by law or by the Special Provisions in this Act to be constituted into a Revolving Fund shall be separately recorded and deposited in an authorized government depository bank, except as may otherwise be determined by the Permanent Committee created under Sec. 51 of P.D. No. 1177, and may be made available for operational expenses of the said activity of the agency concerned, subject to the conditions prescribed under the Special Provisions of the agency concerned and the rules and regulations as may be prescribed by the aforementioned Permanent Committee. The Revolving Fund shall be considered self-perpetuating and self-liquidating and all obligations or expenditures incurred by virtue of said business-type activities shall be charged against the Revolving Fund: Provided, That all interest earned shall accrue to and form part of the Revolving Fund: Provided, further, That interest earned shall accrue to and form part of the Revolving Fund to be used for the same purpose for which the fund is authorized.
The Agency concerned shall submit to the Office of Budget and Management a monthly report of the income from this Fund and a quarterly report of expenditure. In case of failure to submit said requirements, the Office of Budget and Management shall order the suspension of all transactions on this account until such time that said requirements are complied with.
Section 4. Trust Receipts. Receipts from non-tax sources authorized by law for specific purposes which are collected/received by a government office or agency acting as a trustee, agent or administrator, or which have been received as guaranty for the fulfillment of an obligation, and all other collections classified by law or regulations as trust receipts, shall be treated as a trust liability of the agency concerned and deposited in an authorized government depository bank or in the National Treasury, as the case may be, subject to the conditions prescribed under the Special Provisions of the agency concerned and to the rules and regulations as determined by the Permanent Committee created under Section 51 of P.D. No. 1177: Provided, That deposits in authorized government depository banks shall be withdrawable on the joint signatures of the authorized representatives of the agency and the Commission on Audit without the need of Special budget or the issuance of a Cash Disbursement Ceiling: Provided, further, That if the amount is deposited in a savings account, the interest shall accrue to the General Fund which shall be remitted to the National Treasury at the end of each quarter.
Section 5. Seminar and Conference Fees. Ministries, bureaus, offices or agencies which conduct training programs approved jointly by the Office of Budget and Management and the Civil Service Commission are authorized to collect seminar and conference fees from government and private agency participants, the rates of which shall be determined in accordance with Letter of Instructions No. 565. The proceeds derived from such seminars or conferences may be deposited in an authorized government depository bank as a trust liability and shall be made available for expenditure without the need for a Cash Disbursement Ceiling, to defray the costs incurred for handouts, meals and other incidental expenses, including speakers’ honoraria at rates prescribed pursuant to P.D. No. 985, but not for entertainment or representation expenses, withdrawable on the joint signatures of the authorized representatives of the agency concerned and the Commission on Audit: Provided, That if the income is deposited in a savings or time deposit account, the interest thereof shall accrue to the General Fund and shall be remitted to the National Treasury at the end of each quarter: Provided, further, That no appropriations authorized in this Act shall be used to support or augment expenses of seminars or conferences for which fees are collected: and Provided, finally, That any income remaining in the bank account at the end of the fiscal year shall be withdrawn and deposited with the National Treasury as income of the General Fund. The Office of Budget and Management and the Commission on Audit shall promulgate the necessary rules and regulations to implement this provision.
Ministries, bureaus, offices or agencies concerned shall submit to the Office of Budget and Management a monthly report of collections and deposits and quarterly report of expenditures and financial status of its training operations, and in case of failure to submit said requirements, the Office of Budget and Management shall order the suspension of all withdrawals from the funds deposited until such time that said requirements are complied with.
Section 6. Sale of Products. Ministries, bureaus, offices or agencies are authorized to sell products of agricultural, industrial or other projects, including official publications, and the proceeds derived therefrom shall be deposited with the National Treasury and accrue to the General Fund, pursuant to Section 50 of P.D. No. 1177, unless otherwise provided by law or authorized by Special Provision in this Act.
Section 7. Donations. Ministries, bureaus, offices, or agencies are authorized to accept donations, contributions, grants, bequests or gifts, in cash or in kind from foreign governments, international agencies, private entities or individuals for purposes relevant to their functions. Cash proceeds shall be deposited with the National Treasury as a Special Account in the General Fund and shall be used or expended only in accordance with the wishes of, and purposes specified by the benefactor or donor, subject to Section 40 of P.D. No. 1177. Contributions or gifts in kind intended for specified beneficiaries, but which are perishable in nature and would require storage or distribution expenditures of more than forty per cent of their current market value may be sold at public auction and the proceeds derived therefrom shall be deposited in like manner as if they were in cash, and shall be used or expended for the same purpose, subject to the conditions imposed by the donor and Section 40 of P.D. No. 1177. All such receipts, including equipment and other fixed assets shall be recorded in the books of the government and shall be subject to pertinent accounting and auditing rules and regulations.
The agency concerned shall submit to the Office of Budget and Management and to the Commission on Audit quarterly/monthly report of the proceeds from such donations, contributions, grants, bequests or gifts, in cash or in kind, including a quarterly report of expenditures or disbursements thereof.
Section 8. Performance Bonds and Deposits. Performance bonds and deposits filed or posted by private persons or entities with agencies of the government shall be deposited with an authorized government depository bank as trust liabilities and under the name of the agency concerned. Upon faithful performance of the undertaking or termination of the obligation for which the bond or deposit was required, any amount due shall be returned to the filing party and the office or agency concerned, withdrawable on the joint signatures of the authorized representatives of the agency and the Commission on Audit without the need for Cash Disbursement Ceiling: Provided, That any interest accruing on deposit accounts and any forfeited amounts shall be recorded as income of the General Fund and shall be remitted to the National Treasury at the end of each quarter. This provision shall apply to bonds posted in cash, such as bidder’s bond, guaranty bonds, bail bonds, judicial deposits for the benefit of clients, cash under litigation deposited in court or quasi-judicial bodies and other refundable and judicial bonds, and all bonds and deposits required by law, rules and regulations to be posted to ensure the faithful performance of an activity or undertaking.
Section 9. Reorganization of the Executive Branch. The President may adjust, realign or modify key budgetary inclusions and appropriations authorized in this Act as may be necessary to implement the reorganization of Ministries and Agencies of the government as approved by law or pursuant to Presidential Decree No. 1416 granting continuing authority to the President of the Philippines to reorganize the administrative structure of the National Government.
The provisions of P.D. No. 1177 and this Section to the contrary notwithstanding, nothing shall be construed as preventing the President from authorizing the realignment of funds from one specific program, project or activity to another, provided that the total amount as realigned does not exceed the grand total of all the appropriations of the Ministries concerned.
Section 10. Authority to Use Savings. Ministries, bureaus, offices and agencies are hereby authorized to use savings realized from appropriations actually released to augment their operational expenses subject to Letter of Implementation No. 29 and P.D. No. 1177: Provided, however, That such savings shall neither be used for personal services for the creation of positions.
Section 11. Use of Savings. The President of the Philippines is authorized to use savings in the appropriations for the Ministries provided in this Act for the settlement of the following obligations and activities incurred during the current year:
a. Payment of hazard duty pay and of retirement gratuity or separation pay of employees who are entitled thereto under existing law or are laid off as a result of the elimination of their positions under authorized procedures;
b. Payment of the share of the National Government in the salaries of officials and employees in newly created and/or reclassified local government units where no appropriation has been provided in this Act or where the authorized appropriation is not sufficient to cover the salaries of the said officials and employees;
c. Provision for social and economic opportunities and such other activities intended for the welfare of the cultural minorities as may be undertaken by the Presidential Assistant on National Minorities;
d. Organization, activation, training and operation of military units for the purpose of implementing agency development projects in areas adversely affected by peace and order problems, including salaries and allowances of all military personnel assigned thereto;
e. Payment of obligations of National Government or any of its Ministries or agencies arising from perfected and valid contracts or international agreements;
f. Purchase or repair of equipment and furniture, including motor vehicles, to replace those lost or destroyed through theft or robbery, accident, fire, typhoon and other natural calamities, and to replace unserviceable and condemned items;
g. Expansion of essential facilities and services, including the opening of additional classes in elementary, secondary and vocational schools, as may be approved by the President;
h. Funding of foreign exchange and peso requirements of foreign-assisted projects.
Section 12. Key Budgetary Inclusions. The Key Budgetary Inclusions (KBI) of Ministries, bureaus, offices, or agencies shall be released and used only for the indicated purposes and conditions, except as may be otherwise approved by the President, pursuant to P.D. No. 1177: Provided, That the amounts herein appropriated and funded from loan proceeds or donations shall be released only to the extent of actual loan availments or receipts, as the case may be, and shall not be used for any purpose other than that specified in the loan agreement or in the deed of donation.
Section 13. Expenditure Component. No change or modification shall be made in the expenditure items referred to in the General Appropriations Act and other Appropriations Laws except by act of the Batasang Pambansa or of the President, as the case may be, upon recommendation of the Office of Budget and Management.
Section 14. Cash Advances for Foreign-Assisted Projects. Any provision of law to the contrary notwithstanding, cash advances may be authorized to meet the expenditure requirements of foreign-assisted projects in cases where the approved project/loan agreement provides specifically for a reimbursement mechanism for expenses incurred, subject to the approval of the Office of Budget and Management and to applicable accounting and auditing regulations.
Section 15. Foreign Purchases and Other Importations. Purchases under foreign military sales agreements, heavy equipment imports for infrastructure projects and other importations of agencies which are financed by foreign borrowings or by Central Bank consolidated borrowing programs shall be subject to the requirement of certification of availability of appropriations released for the purpose, to the requirements of LOI No. 880 and to applicable laws, rules and regulations.
Section 16. Foreign Exchange Requirements. Except as otherwise provided in this Act, the appropriations for Ministries, bureaus, offices or agencies allotted for maintenance and other operating expenses may be used for foreign exchange requirements of duly approved activities, including payment of dues to international organizations, subject to the prior approval of the Office of Budget and Management.
Section 17. Legal Assistance. With the approval of the President and upon recommendation of the Minister of Justice and the Presidential Commission on Reorganization, the funds herein appropriated for legal assistance activities, including those in the Ministry of Justice, Ministry of Labor and Employment, Ministry of Agrarian Reform, Ministry of Agriculture, and other agencies may be realigned so as to ensure a fully integrated legal assistance program.
Section 18. Purchase of Computer Equipment. The appropriations authorized in this Act for the purchase of computer equipment shall be released only with the approval of the President upon recommendation of the National Computer Center and the Office of Budget and Management.
Section 19. Purchase of Motor Transport Equipment. No appropriations authorized in this Act shall be used directly or indirectly for the purchase of motor transport equipment unless otherwise directly authorized by the President or as approved by the Executive Committee upon recommendation of the Office of Budget and Management as provided by Letter of Instructions No. 1220.
Section 20. Limitation on Purchase of Supplies, Materials and Equipment Spare Parts. The stock on hand of supplies, materials and equipment spare parts, to be acquired thru ordinary purchase out of appropriations herein provided, shall at no time exceed normal three-month requirements, subject to pertinent rules and regulations issued by competent authority: Provided, That heads of Ministries, bureaus, offices or agencies or other instrumentalities of the government may approve the build-up of stocks on hand of critical supplies and materials as defined or specified by the Office of Budget and Management in anticipation of cost increases, of requirements of a national emergency, or of an impending shortage in the items concerned; specifying maximum quantities of individual items, but in no case shall these stocks exceed more than one year’s need, unless otherwise approved by the President, upon the joint recommendation of the Minister concerned and the Chairman of the Commission on Audit.
Section 21. Emergency Purchases. Unless otherwise provided in this Act, Ministries, bureaus, offices or agencies of the National Government are authorized to make emergency purchases of supplies, materials and spare parts of motor transport equipment that are urgently needed for the repair of ambulances, motor vehicles, vessels and aircrafts or to meet an emergency which may involve the loss of, or danger to, life and/or property, or are to be used in connection with a project or activity which cannot be delayed without causing detriment to the public service, in a monthly amount not exceeding four per centum of the annual agency expenditure program for supplies and materials out of the appropriations allotted for maintenance and other operating expenses of the agency concerned, except as may be authorized by the President, upon the joint recommendation of the Office of Budget and Management and the Commission on Audit.
Section 22. Repair of Buildings. Ministries, bureaus, offices or agencies, including public schools, courts of justice and hospital may use their appropriations allotted for maintenance and other operating expenses for minor repairs of their offices and buildings which are governed-owned.
Section 23. Cultural and Athletic Activities. Appropriations allotted for maintenance and other operating expenses not exceeding P15,000 per annum for each Ministry, bureau, office or agency, and ₱5,000 for each Regional Office of each regionalized Ministry, bureau, office or agency, may be used for cultural and athletic activities, including purchase of uniforms at not more than ₱250 for each participant, and for supplies and necessary expenses for said activities. The amounts fixed in this section constitute the allowable maximum to be expended by any bureau, office or agency for its cultural and athletic activities, except as otherwise approved by the President: Provided, That these amounts may be pooled by the Minister concerned into one fund, programmed and controlled to best serve the needs of all the offices, bureaus and agencies therein.
Section 24. Extraordinary and Miscellaneous Expenses. Appropriations herein authorized may be used for extraordinary expenses not exceeding: (a) ₱30,000 for each Minister or equivalent, (b) ₱10,000 for each Deputy Minister or equivalent; (c) ₱4,000 for each Assistant Secretary or head of bureau or organization of equal rank to a bureau and for each Ministry Regional Director; and (d) ₱2,000 for each Bureau Regional Director. In addition, official entertainment and other miscellaneous expenses not exceeding ₱6,000 per annum shall be authorized for each of the following offices:
1. Office of the Minister;
2. Office of the Deputy Minister;
3. Office of the Assistant Secretary;
4. Bureau of Organizations of Equal Rank to a Bureau;
5. Office of the Ministry Regional Director; and
6. Office of the Bureau Regional Director.
These expenditures shall be payable on a reimbursement basis upon presentation of receipts and chargeable to appropriations allotted for maintenance and other operating expenses of the corresponding office.
For purposes of this Section, extraordinary and miscellaneous expenses shall include, but not limited to, expenses incurred for or during meetings, seminars and conferences, official entertainment, public relations, educational, athletic and cultural activities, contributions to civic or charitable institutions, membership fees in government associations, subscription to professional technical journals and informative magazines, library books and materials, office equipment and supplies and other similar expenses that are not supported by the regular budget, allocation: Provided, That no portion of the amounts authorized herein shall be used for the creation of positions, nor for salaries, wages, allowances, intelligence and confidential expenses.
Section 25. Conditions for the Release of Intelligence and Confidential Funds. Intelligence and confidential funds provided for in the budgets of Ministries, bureaus, offices or other agencies of the National Government, including amounts from savings authorized by special provisions to be used for intelligence and counter-intelligence activities, shall be released only on a project basis upon approval of the President.
Section 26. Information Outlay. The appropriations pertaining to information activities of the various Ministries, bureaus, offices or agencies shall be released upon presentation of an appropriate program of activities prepared in coordination with the Office of Media Affairs, copies whereof shall be furnished the Members of the Batasang Pambansa.
Section 27. Loans Outlay. The amounts authorized for loans outlay in the budgets of Ministries, bureaus, offices and other agencies, including accumulated balances and receivables, shall be remitted to government financial institutions to be constituted and administered as a trust fund under such terms and conditions as may be agreed upon by the head of the agency and the government financial institution concerned.
The rules and regulations governing the use of the trust fund shall be formulated by the Office of Budget and Management.
Section 28. Funding of Contracts. Notwithstanding the availability of deferred payment terms, Ministries, bureaus, offices or agencies concerned, before entering into a contract involving the expenditure of public funds, including contracts for services or consultancy, contracts of lease, equipment rental, construction of partitions or improvements in leased buildings, or contracts involving an increase in the approved contract price shall secure a certification of availability of funds for the purposes from the agency Chief Accountant, subject to applicable rules and regulations as may be issued by the Office of Budget and Management and to Sections 46 and 64, P.D. No. 1177: Provided, That the certification of availability of funds sufficient to cover the cost of the contracted activities shall be contained in and made part of the contract duly signed by the Chief Accountant of the contracting agency, as provided for by LOI No. 968.
Section 29. Loans Agreements. Ministries, bureaus, offices or agencies shall in no case enter into foreign or domestic loan agreements, whether in cash or in kind, unless the whole amount of the loan component is covered by an obligational authority certifying to the availability of programmed appropriations pursuant to LOI No. 880.
Section 30. Contracts for Security and Janitorial Services. Ministries, bureaus, offices or agencies are authorized to contract for security and janitorial services with private firms after public bidding. The cost thereof may be paid from savings in the appropriations of the Ministry, bureau, office or agency concerned. The execution of the contract for security and janitorial services shall not operate to automatically abolish or render vacant any existing occupied security or janitorial position in the contracting office of agency: Provided, however, That when said security or janitorial position shall subsequently become vacant, said position shall be considered automatically abolished.
Section 31. Future Payment of Contractual Obligations. Ministries, bureaus, offices or agencies, before entering into contracts for delivery of goods or services against future payment, shall first secure a certification of the availability of the full contracted amount for such goods or services out of the agency’s appropriations. No contracts shall be entered into nor work shall be undertaken without such certification of fund availability.
Section 32. Conditions for Lease-Purchase Agreements. Ministries, bureaus, offices or agencies may enter into agreements for lease-purchase of equipment subject to the public bidding and to the approval of the Office of Budget and Management, and other pertinent accounting and auditing regulations. Details of the payment shall be indicated in the lease-purchase agreement and accompanied with certification of availability of equipment outlay authorized for the agency in this Act to cover the full contract cost: Provided, That lease-purchase agreements may be entered into only for specialized equipment with high unit costs and not for such equipment as typewriters, adding machines, automobiles the purchase price of which is at least P50,000.00: and Provided, further, That all lease-purchase agreements of equipment with a total value in excess of P200,000.00 shall be subject to the approval of the President.
Personal Services Benefits
Section 33. Funding of Personnel Benefits. The personnel benefits costs of government officials and employees shall be charged against the respective funds from which their compensation and/or salaries are paid.
All authorized supplementary/additional compensation, fringe benefits and other personal services costs of officials and employees whose salaries are drawn from special accounts or special funds, such as salary increases and adjustments, merit increases, incentive/ service fees, vacation and sick leaves, retirement and life insurance premiums, compensation insurance premiums, health insurance (Medicare) premiums, Pag-I.B.I.G. contributions, hospitalization and medical benefits, scholarship and educational benefits, training and seminar expenses, all kinds of allowances, whether commutable or reimbursable, in cash or in kind, and other personnel benefits and privileges authorized by law, including the payment of retirement gratuities, separation pay and terminal leave benefits shall be charged against the corresponding fund from which their basic salaries are drawn and in no case shall such personnel benefits costs be charged against the General Fund of the National Government.
Officials and employees on detail with other offices, including the representatives and support personnel of auditing units assigned to serve other offices or agencies, shall be paid their salaries, emoluments, allowances and the foregoing supplemental compensation, fringe benefits and other personal services costs from the appropriations of their parent agencies and in no case shall such be charged against the appropriations of the agencies where they are assigned or detailed, except when authorized by law.
Section 34. Transportation and Representation Allowances. The following officials and those of equivalent rank as may be determined by the Office of Budget and Management are hereby granted monthly commutable transportation and representation allowances payable from the programmed appropriations provided for their respective offices, not exceeding the rates indicated below, which shall apply to each type of allowance:
a. At P1,000 for Ministers;
b. At P750 for Career Executive Service Rank I Officials;
c. At P650 for Career Executive Service Rank II Officials;
d. At P550 for Career Executive Service Rank III Officials;
e. At P475 for Career Executive Service Rank IV Officials;
f. At P400 for Career Executive Service Rank V Officials,
g. At P325 for Chiefs of Divisions, identified as such in the Personal Services Itemization.
The transportation allowance herein authorized shall not be granted to officials who are assigned a government vehicle or use government motor transportation, except as may be approved by the President. Unless otherwise provided by law, no amount appropriated in this Act shall be used to pay for representation and/or transportation allowances, whether commutable or reimbursable, which exceeds the rates authorized under this Section. Previous administrative authorizations not consistent with the rates and conditions herein specified shall no longer be valid and payment shall not be allowed.
Allowances of those officials who are receiving salaries from special accounts or special funds shall be charged against the corresponding fund from which their salaries are charged. Officials on detail with other offices, including officials of the Commission on Audit assigned to serve other offices or agencies, shall be paid the allowance herein authorized from the appropriations of their parent agencies.
Section 35. Official Vehicles and Transport. Government motor transportation may be used by the following official, and those who may be specifically authorized by the President with costs chargeable to the appropriations authorized for their respective offices:
a. The President of the Philippines;
b. The Prime Minister;
c. The Speaker of the Batasang Pambansa;
d. The Chief Justice of the Supreme Court;
e. The Deputy Prime Minister;
f. The Ministers, Deputy Ministers and officials of equivalent rank;
g. The Ministers of State;
h. The Presiding Justice of the Intermediate Appellate Court,
i. Ambassadors, Ministers, Plenipotentiary and Consuls in charge of Consulates, in their respective stations abroad;
j. The Chief of Staff, the Vice Chief of Staff, and the Commanding Generals of the major services of the Armed Forces of the Philippines; and
k. The Heads of Constitutional Offices.
Section 36. Uniform/Clothing Allowance. The appropriations herein provided for each Ministry, bureau or office may be used for uniform and/or clothing allowance at not more than P250 each per annum of female employees and employees occupying positions which require the wearing of specialized uniform such as security guards, prison guards, customs police/guards, quarantine officers, letter carriers, hospital attendants, road maintenance men, street weepers, and other employees as may be determined by the Office of Budget and Management. Savings in the appropriations for each Ministry, bureau or office may be used for this purpose where no amount is specifically appropriated in this Act.
Section 37. Hazardous Duty Pay. Upon recommendation of the Ministry Head and approval of the Office of Budget and Management, hazard pay may be allowed to officials, and employees who are actually assigned in hardship or difficult areas, strife-torn or embattled areas, distressed or isolated stations, prison camps, mental hospitals, radiation exposed clinics or laboratories, or disease-infected areas which expose them to great danger, contagion, radiation, volcanic activity/eruption, occupational risks or perils to life, chargeable to savings in the appropriations of the Ministry/Agency concerned, which shall not be less than P50 nor more than P150 each per month, except in cases where the rates are specifically provided for under special laws, charters or enabling acts, in which cases such rates shall govern: Provided, That hazard pay by reason of strife-torn or embattled areas shall be subject to the certification issued by the Minister of National Defense and the rates thereof shall be determined by the Office of Budget and Management on the basis of the area classification certified by the Minister of National Defense. The Office of Budget and Management and the Minister of National Defense shall review from time to time authorization for the payment of hazardous duty pay in strife-torn and embattled areas earlier issued and shall terminate such authorizations in areas if conditions no longer justify the continuation of hazardous duty pay.
Section 38. Honoraria. Ministries, bureaus, offices or agencies are authorized to use their respective appropriations for payment of honoraria as compensation for services rendered by researchers, experts and specialists who are acknowledged authorities in their field of specialization, at such rates as the Office of Budget and Management may authorize, unless otherwise specifically provided by law.
Section 39. Incentives or Service Fees. Incentive or service fees paid by the Government Service Insurance System or by private companies which are intended for employees servicing them shall be deposited with the National Treasury and shall accrue to the General Fund, pursuant to Sec. 50 of P.D. No. 1177. Such fees may be made available for payment of incentive or service fees of the employees of the agency in accordance with rates approved by the Minister concerned, subject to Section 40 of P.D. No. 1177: Provided, That the share of any employee may not, in the aggregate, exceed fifty per centum of his annual salary.
Section 40. Special Counsel Allowance. Lawyer-personnel in the legal staffs of Ministries, bureaus, offices or agencies of the National Government appearing in Court as special counsel in collaboration with the Solicitor-General and/or Fiscals concerned are hereby authorized an allowance of P100 for each appearance, chargeable to savings in the appropriations allotted for personal services of their respective offices, but not exceeding P400 a month.
Section 41. Conditions for Entitlement to Quarters Allowance. Except as may be authorized by law, government officials and employees who, by virtue of their positions, are furnished free quarters or are charged only a nominal rate in government-owned buildings, such as dormitories or living quarters in hospitals, state colleges, universities and schools, foreign posts and elsewhere, shall forfeit entitlement to any quarters allowance. Where portions of rented private buildings are authorized to be utilized for officials’ quarters, the excess of rental cost over the quarters allowance of the official shall be borne by him. Those who enjoy free quarters in government-owned or rented buildings but who are not entitled to quarters privileges shall be charged the corresponding cost of rentals therefor. Unless fixed by law or regulations, the rate of quarters allowance or rental, as the case may be shall be determined by the Office of Budget and Management.
Section 42. Compensation of Contractual Personnel. Heads of Ministries, bureaus, offices or agencies, when authorized in their respective appropriations as provided under this Act, may hire consultants, experts and other contractual personnel to perform specific vital activities or services which cannot be provided by the regular staff of the agency, limited to such period when their services are reasonably required and to activities that shall have a definite expected output. Such contractual personnel may be paid compensation inclusive of fees, honoraria, per diems and allowances not exceeding 120% of the minimum salary of an equivalent position in the National Classification and Compensation Plan, except as may be authorized by the Office of Budget and Management in the following instances: (a) when the consultant or expert is an acknowledged authority in his field of specialization; and (b) where the consultant or expert is hired to perform a specific activity or service that requires technical skill and expertise which local force cannot provide, or if such expertise is available, the supply is limited: Provided, That in no case shall such compensation exceed the salary of his immediate superior, except as may be otherwise approved jointly by the Civil Service Commission and the Office of Budget and Management: Provided, further, That no amount appropriated in this Act shall be used for payment of retirement gratuity under Section 12(c) of C.A. No. 186, as inserted by R.A. No. 1616, as amended, nor for leave benefits pertaining to services rendered under contractual employment, nor use the compensation received for the same period as basis for computation of leave benefits, except where specifically provided by law.1avvphi1
For purposes of this Section, appointments to positions funded from lump-sum appropriations for personal services for the payment of consultants, technical, professional and expert services, confidential assistants or other similar positions, or from capital outlays, feasibility studies fund, subsidies, donations, special projects fund, either funded by the General Fund and/or supported by domestic or foreign loans, and other similar funds which may be used for personal services, are considered contractual in nature. Appointments which are funded from special lump-sum appropriations, subsidies and contributions from other agencies, shall likewise be considered as contractual in nature, and subject to the above restrictions and limitations, except as may be determined by the Office of Budget and Management.
Section 43. Restriction on the Use of Appropriations for Retirement Gratuity and Terminal Leave. Unless otherwise authorized by law, no amount appropriated in this Act shall be used for payment of retirement gratuity under the provisions of Section 12(c) of C.A. No. 186, as inserted by R.A. No. 1616, as amended, and terminal leave benefits of retiring officials and employees which include in the computation thereof additional compensation received for: (a) overtime services rendered beyond regular office or school hours; (b) per diems for attendance in board or committee meetings or conferences or for travel outside official stations; (c) mid-year, Christmas, thirteenth month and other bonuses; (d) allowances for cost of living, subsistence, quarters, housing, laundry, clothing/ uniform, family, education, hazardous occupation, overseas duty, post/station, medical/dental/hospitalization, reimbursable representation, transportation, extraordinary and miscellaneous, amelioration, inflation, incentive and such other similar allowances; (e) fees on per capita basis as members/examiners of professional regulation and other examination boards; (f) honoraria as resource speaker or lecturer in conferences or seminars or as instructions in classrooms for excess teaching loads granted over basic pay rendered at night or on Saturdays, holidays and summer vacation; (g) fees for consultancy or similar services rendered to committees, boards, offices or agencies; and (h) services fees for extra services and other similar compensation paid for rendition of additional services.
Section 44. Unauthorized Pre-Retirement Promotions and Salary Increases. No portion of the appropriations provided in this Act shall be used for automatic promotions or for salary increases and adjustments granted to retiring officials and employees, which are not authorized by law and duly formalized in the form of a National Compensation Circular.
Section 45. Personal Liability of Officials for Payment of Unauthorized Personal Services Cost. No official or employee of any Ministry, bureau, office, agency, commission, board, state university or college, of the National-Government, including those of government-owned or controlled corporations shall be granted and/or paid any unauthorized compensation, either basic, additional or supplementary, or fringe benefits and allowances of any kind, including payment of retirement benefits and terminal leaves computed in violation of the General Provisions in this Act or other existing laws, which are chargeable against the appropriations authorized in this Act or under other appropriation laws or from other income of the Government.
The payment of any unauthorized compensation, allowance, fringe benefits or personal services costs made in violation of this Section or of the General Provisions in this Act is null and void and is the personal liability of the head of the office or agency who authorized such payment, the Resident Auditor, other officials and employees who participated or took part therein, and the person who received such payments, who shall be jointly and severally liable for the refund of the full amount so paid and received, in addition to any disciplinary action that may be instituted against such erring officials under provisions of Sections 49 and 87 of P.D. No. 1177 and to any criminal action under the Revised Penal Code and other penal laws.
Local Government Units
Section 46. Sharing of National Revenues. The computation of appropriations herein authorized for local government revenue sharing established under P.D. Nos. 144 and 436 (as amended) shall be based on revenues excluding income recorded but charged to the General Fund Adjustments and Customs Duties Fund provided in this Act assessed on otherwise tax-exempt government agencies and corporations. Compliance with the sharing formula as provided by law shall be determined taking into account all funds allocated and released for local government units, except for the budgetary aid fund herein appropriated pursuant to Item No. 7 of P.D. No. 144.
Section 47. Conditions for Release of Funds for Training Programs. Ministries, bureaus, offices or agencies shall formulate and review their training programs in light of the need to train personnel in skills and attitudes. Such training programs shall be submitted to the Training Coordination Committee created under LOI No. 754, which shall review and evaluate the training activities. No appropriation for training shall be released without such review and evaluation.
Section 48. Direct Release of Funds to Regional Offices. Funds allotted for regional offices but included in the budgets of their central offices or which are specifically allocated for the different regions shall be released directly to said regional offices when dictated by the need and urgency of regional activities, pursuant to Sec. 38(e) of P.D. No. 1177. Imposition of any retention or deduction as reserves shall not be allowed except as may be authorized by the Office of Budget and Management. For this purpose, the Office of Budget and Management shall identify by region the expenditure programs of agencies in the national government budget and shall release funds intended for them in accordance with the approved regional distribution of expenditures, specifying the region of destination.
Section 49. Prohibition Against Deduction/Retention of Allotment. Fund releases from appropriations provided in this Act for any project or activity shall be transmitted intact or in full to the office or agency concerned and no retention or deductions as reserves or overhead shall be made, except as authorized by law or upon direction of the President. The Commission on Audit shall ensure compliance with this provision to the extent that sub-allotments by Ministries and/or Central Agencies to their subordinate offices are in conformity with allocations in budgetary Advice of Allotments issued by the Office of Budget and Management.
Section 50. Release of Appropriations to Local Government Units. Funds appropriated herein for local government units shall be released only after the approval of their respective budgets pursuant to the provisions of P.D. No. 1375, except as may be authorized jointly by the Ministry of Local Government and the Office of Budget and Management.
Section 51. Administration of the Releases of Funds Allotted for Operating Expenses and Equity Investments in Government Corporations. Funds herein appropriated for operating expenses contributions and equity investments in government-owned or controlled corporations and other public corporate bodies which are included as separate programs under the Ministry to which the government corporation is attached, including those attached to the Office of the President, shall be under the administration of the Office of Budget and Management. Said funds shall be directly released to the recipient corporation through the Bureau of the Treasury on the basis of a Work and Financial Plan prepared and submitted by the Corporation concerned, subject to Sec. 40 of P.D. No. 1177 and Letter of Implementation No. 29.
Section 52. Corporate Equity Investments. The appropriations herein authorized for equity investments may be used by the National Treasurer for the payment of loans relent to corporations, including the obligations incurred by the said corporations for the reimbursement of advances made by the National Treasury on obligations guaranteed by the Government of the Republic of the Philippines, subject to the approval of the President upon recommendation of the Office of Budget and Management.
Section 53. Submission of Financial Statements. All government-owned or controlled corporations shall submit to the Office of Budget and Management and to the members of the Batasan their respective financial statements, including plans, programs, targets and other reports as may be required from time to time. The annual reports shall be done and submitted as herein provided on or before March 31, of the succeeding year.
Section 54. Unauthorized Organizational Units. Unless otherwise created by law or directed by the President, no organizational unit in any Ministry, bureau, office or agency shall be authorized in their respective organizational structures and be funded from appropriations provided by this Act, without authority from the Presidential Commission on Reorganization and the Office of Budget and Management. Organizational units created by the administrative authorizations shall be considered as ad hoc arrangements that shall be staffed by contractual personnel or staff members on detail.
Section 55. Implementation of Capital Outlays for Construction Projects. Construction projects funded from capital outlays authorized in this Act under the various ministries, bureaus, offices or agencies of the National Government, including the construction of buildings for state universities, colleges, schools, hospitals, sanitaria, health centers and health stations, roads and bridges, shall be implemented only in accordance with the appropriate standards and specifications for the planning, survey, design and construction of the projects as prescribed by the Ministry of Public Works and Highways of the Ministry of Transportation and Communications, through either of said Ministries as the case may be. In addition, land use and zoning guidelines shall be prescribed by the Ministry of Human Settlements. In the prosecution of the construction projects, Sections 2, 3, 4, 5, 6, 7, 9 and 10 of Batas Pambansa Blg. 50 entitled "An Act Appropriating Funds for Public Works and Highways Projects and for For Other Purposes", and other legislations on public works shall be strictly complied with whenever applicable.
Section 56. Separability Clause. If for any reason any section or provision of this Act is declared unconstitutional or invalid, other sections or provisions hereof which are not affected thereby shall continue to be in full force and effect.
Section 57. Effectivity. The provisions of this Act shall take effect on January one, nineteen hundred and eighty-three unless otherwise provided herein.
Approved: September 11, 1982
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