An Act Further Amending Certain Sections Of P.D. No. 1177, As Amended, Entitled "Revising The Budget Process In Order To Institutionalize The Budgetary Innovations Of The New Society"

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PRESIDENTIAL DECREE No. 1777

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

WHEREAS, the Presidential Decree No. 1177, as amended, was promulgated to improve national budget policy and practice, to institutionalize budgetary reforms and innovations realized during the New Society and to put into effect the changes in budget principles embodied in the Constitution of 1973;

WHEREAS, there is need to further clarify certain provisions of the decree in order to further improve the budget process and procedures in the light of experience in the application of P.D. No. 1177.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby Order and Decree:

Section 1. Parts of Section 2 of P.D. No. 1177, as amended by Section 1 of P.D. No. 1421, are hereby further amended to read as follows:

(a) "Budget" refers...

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Summary of Presidential Decree No. 1777

Definitions and Coverage:
- "Budget" refers to the financial program of the National Government for a designated calendar year, containing estimated receipts and expenditures. (Section 1a)
- "Government" includes the Executive, Legislative, and Judicial branches, Constitutional Commissions, regional commissions, state universities and colleges, local government units, and government-owned or controlled corporations. (Section 1b)
- "Government-owned or controlled corporations" are corporations created by laws as agencies of the state, owned wholly or majority-owned by the government, performing government and/or proprietary functions, excluding state universities and colleges. (Section 1g)
- "Local Government Units" refer to the political subdivisions mentioned or authorized to be created under Article XI of the Constitution. (Section 1h)
- "Appropriation" is an authorization under legislative enactments, allowing obligations and payments to be made with government funds under specified conditions and/or purposes. (Section 1j)

Budget Preparation and Approval:
- The budget calendar, format, and procedure for the preparation and approval of operating budgets of local government units and government-owned or controlled corporations shall be governed by rules and regulations issued by the President. (Section 2)

Budget Submission and Appropriations:
- The President shall submit the national government budget of estimated receipts and expenditures within 30 days from the opening of each regular session of the National Assembly. (Section 3)
- The President shall submit the General Appropriations Bill with the budget, embodying proposed appropriations for current operations and capital outlays. Additional appropriations proposals may be submitted, and continuing appropriations may be enacted for public works, highways, and other infrastructure projects requiring more than one year for construction. (Section 4)
- The Committee on Finance shall report revenue bills forming part of the budget estimates within 10 consecutive session days after being referred to it. (Section 5b)
- Public works, highways, and other bills requiring appropriations may be filed and considered by the National Assembly at any time during the sessions. (Section 5c)

Supplemental Appropriations:
- After the President submits and the Assembly acts upon the General Appropriations Bill, supplemental appropriations measures shall be considered only if supported by actually available funds as certified by the National Treasurer or by new revenue measures. (Section 6)
- The budget and the General Appropriations Act may provide lump sums to support bills for later action by the Assembly, and the Treasury certification requirement shall be deemed complied with in certain cases. (Section 6)

Nomenclature Change:
- All references to "Commissioner of the Budget," "Budget Commission," "Secretary," and "Department" in P.D. 1177 shall be changed to "Minister of the Budget," "Ministry of the Budget," "Minister," and "Ministry," respectively. (Section 7)

Effectivity:
- This Decree shall take effect immediately. (Section 8)