Appropriating Funds For The Operation Of The Government Of The Republic Of The Philippines From January One To December Thirty-One, Nineteen Hundred And Seventy-Seven And For Other Purposes

Case Overview and Summary

Summary of Presidential Decree No. 1050

Appropriation of Funds (Section 1)
- Appropriates funds for the operation of the Philippine government from January 1 to December 31, 1977.

Authority to Use Savings for Other Purposes (Section 2)
- The President is authorized to use savings in appropriations for the Executive Departments for:
• Payment of separation pay or gratuity to laid-off employees (Section 2a)
• Payment of salaries for national officials and employees in newly created or reclassified cities and provinces (Section 2b)
• Payment of hazard pay (P50 to P150 per month) to officials and employees assigned to danger or strife-torn areas (Section 2c)
• Deficiencies in appropriations for opening additional elementary and secondary classes (Section 2d)
• Improvement of social and economic opportunities for national minorities (Section 2e)
• Hosting international conferences and attendance of officials in conferences abroad (Section 2f)
• Rural improvements and community development projects (Section 2g)
• Organization, activation, training, and operation of military engineering units (Section 2h)
• Food production, housing, sea farming, "blue revolution", reforestation, and other high-priority activities (Section 2i)
• Payment of obligations arising from perfected contracts and international agreements (Section 2j)
• Payment of annual life insurance premiums of barrio captains and councilmen under R.A. No. 4898 (Section 2k)
• Purchase of equipment, including motor vehicles, to replace lost or unserviceable ones (Section 2l)
• Implementation of Proclamation No. 1081 and related orders, decrees, and instructions (Section 2m)

Transfer of Salary Savings to GSIS Prohibited (Section 3)
- Prohibits the transfer of savings from personal services to the Government Service Insurance System (GSIS) for payment of benefits.

Athletic Uniforms and Supplies (Section 4)
- Allows the use of appropriations for maintenance and other operating expenses not exceeding P10,000 per annum for the purchase of athletic uniforms (up to P100 per athlete) and supplies for athletic activities.

Miscellaneous Expenses (Section 5)
- Allows heads of bureaus and offices to use appropriations for sundry expenses or miscellaneous expenses, including official entertainment, up to P3,000 per annum for each agency.

Extraordinary Expenses (Section 6)
- Authorizes a total of P15,000 for extraordinary expenses of undersecretaries of each Department or equivalent, and P3,000 each for heads of bureaus and offices, chargeable against agency appropriations for maintenance and other operating expenses.

Appropriations for Rental (Section 7)
- Allows the use of appropriations for rental or purchase of buildings and grounds for lease-purchase arrangements and contracting with government banking or financial institutions for loans intended for land acquisition or construction of government buildings.

Authority to Charge Seminar Fees (Section 8)
- Authorizes departments, bureaus, offices, and agencies to collect seminar and conference fees from private sector participants and use the proceeds to defray costs, subject to rules and regulations.

Continuation of Privileges Granted in P.D. No. 733 (Section 9)
- Reauthorizes privileges granted in P.D. No. 733, such as per diems, honoraria, hazard or risk pay, flying pay, high differential, extra or additional compensation, allowances, scholarship grants, contracts for janitorial and security guard services, consultancy services, and other similar privileges, subject to review under P.D. No. 985.

Membership Dues in International Organizations (Section 10)
- Allows the use of appropriations for maintenance and other operating expenses for the payment of dues in international organizations, subject to approval.

Foreign Exchange Differentials (Section 11)
- Allows the use of appropriations for maintenance and other operating expenses to pay for foreign exchange differentials.

Maximum Number of Permanent Positions (Section 12)
- Limits the maximum number of permanent positions in a bureau or office to the number included in the approved staffing patterns and itemization of personal services or special budgets, unless additional positions are created to implement regionalization or expand essential services, subject to approval.

No Salary Increase Unless Specifically Authorized (Section 13)
- Prohibits the use of appropriations for salary increases or adjustments unless specifically authorized by law, decree, or appropriate budget circular.

Special Attorneys under P.D. No. 478 (Section 14)
- Authorizes lawyer-personnel appointed as special attorneys by the Solicitor General under P.D. No. 478 to receive an allowance of P100 per appearance, up to P400 per month, chargeable against appropriations for maintenance and other operating expenses.

Officials Entitled to Transportation and Representation Allowances (Section 15)
- Grants commutable transportation and representation allowances to specified officials, with rates ranging from P100 to P350 per month, subject to conditions.

Prohibition of Double Allowances or Benefits (Section 16)
- Prohibits officials and employees from receiving increased transportation and/or representation allowances if they are already receiving such or similar allowances or benefits, unless the total of existing allowances is less than the new rates.

Consultant's Compensation (Section 17)
- Limits the compensation of consultants hired by a department, bureau, or office to an aggregate of P12,000 per annum for salaries, fees, honoraria, per diems, and allowances, unless authorized by the Commissioner of the Budget.

Payment of Honorarium (Section 18)
- Authorizes departments, bureaus, and offices to pay honoraria to resource speakers, researchers, experts, and specialists from their respective appropriations, at rates authorized by the President.

Payment of Salary Difference (Section 19)
- Authorizes heads of departments to pay the difference between the amount provided for a position in the approved staffing pattern and the actual salary of an incumbent, subject to approval by the Commissioner of the Budget.

Seminar Expenses (Section 20)
- Authorizes departments, bureaus, and offices to conduct seminars, workshops, and in-service training courses for their employees, with expenses chargeable against appropriations for maintenance and other operating expenses.

Per Diems Outside of the Philippines (Section 21)
- Limits per diems for officials or employees traveling outside the Philippines to the equivalent of $50 per day, unless approved by the President.

Uniform and Shoes Allowance (Section 22)
- Allows the use of appropriations for each department, bureau, or office for uniform and shoes allowance of personnel at not more than P150 each per annum, subject to conditions.

Purchase of Locally Manufactured Products (Section 23)
- Requires appropriations for the purchase of equipment, supplies, and materials to be used for locally manufactured products, except when none is available in the market or when the price exceeds those determined by the Flag Law by 15%.

Limitation of Ordinary and Emergency Purchase of Supplies, Materials, and Equipment Spare Parts (Section 24)
- Limits the stock of supplies, materials, and equipment spare parts acquired through ordinary and emergency purchases to not exceed normal three-month requirements, subject to rules and regulations.

Emergency Purchase of Supplies, Materials, and Spare Parts (Section 25)
- Authorizes departments, bureaus, or offices to make emergency purchases of supplies, materials, and spare parts up to P5,000 per month, chargeable against appropriations for maintenance and other operating expenses.

Purchase of Computer Equipment (Section 26)
- Requires the approval of the National Computer Center for the purchase of computer equipment.

Officials Entitled to Government Motor Transportation (Section 27)
- Specifies officials entitled to use government motor transportation, with costs chargeable against appropriations for their respective offices.

Purchase, Use, Operation, and Maintenance of Motor Transport Equipment (Section 28)
- Prohibits the use of appropriations for equipment for the purchase of motor transport equipment unless specifically approved by the President, but allows the use, operation, and maintenance of previously authorized or donated motor transport equipment.

Proper Use of Government Motor Vehicles (Section 29)
- Requires the use of government motor vehicles to be authorized through serially numbered tickets signed by authorized officials, and sets rules for their proper use and storage.

Use of More Than One Motor Vehicle Prohibited (Section 30)
- Prohibits government officials from using more than one motor vehicle, except for the President and the Chief Justice of the Supreme Court, who may use two vehicles.

Limitation in Rental of Motor Vehicles (Section 31)
- Prohibits the use of appropriations for the Executive Departments for renting automobiles, jitneys, or trucks on a monthly basis or on a daily basis for a continuous period exceeding 15 days.

Authority to Accept Donations and Disposition of Proceeds (Section 32)
- Authorizes departments, bureaus, agencies, and offices to accept donations, grants, bequests, or gifts, and use the proceeds in accordance with the wishes and purposes specified by the benefactor or donor, subject to accounting and auditing rules and regulations.

Fees and Charges (Section 33)
- Authorizes departments, bureaus, agencies, or offices to collect fees for services rendered, with rates subject to approval by the department head concerned, and requires the income to be deposited with the National Treasury as income of the General Fund, unless otherwise provided by law.

Incentive Fees (Section 34)
- Allows incentive or service fees paid by the GSIS or private companies to be deposited with the National Treasury as trust funds, withdrawable upon approval of a Special Budget, with payments to individuals made in accordance with approved rates, not exceeding 50% of their annual salary.

Income of State Colleges and Universities and National Vocational and Secondary Schools (Section 35)
- Appropriates and makes available incomes of state colleges, universities, and national vocational and secondary schools from tuition, fees, land grants, cafeterias, and other sources for necessary expenses, subject to procedures and restrictions.

Income of Hospitals (Section 36)
- Appropriates and makes available incomes of hospitals from Medicare receipts and other sources for necessary expenses, subject to procedures and restrictions.

Use of Salary Lapses (Section 37)
- Allows savings resulting from the non-filing of new positions in state colleges, universities, and schools under the Department of Education and Culture from January to April 1977 to be used to augment appropriations for equipment and maintenance and other operating expenses.

Salary of Substitute Employee (Section 38)
- Allows the use of savings in appropriations for personal services for the payment of salaries of substitute employees hired to replace those on military duty, leave, study grant, or temporarily absent.

Continuing Capital Outlays (Section 39)
- Allows appropriations for capital outlays, except equity contributions to government corporations, to be available for expenditure until the projects are completed.

Sale of Publications (Section 40)
- Allows the sale of official publications of departments, bureaus, agencies, or offices, with receipts accruing to the General Fund, unless otherwise provided by existing law.

Loan Proceeds (Section 41)
- Requires expenditures funded from foreign or domestic borrowings to be provided for in full within the expenditure program of the agency concerned, and prohibits the use of loan proceeds without the corresponding release of funds through a Special Budget.

Sub-Allotments to Regional Units (Section 42)
- Prohibits the withholding of funds released for specified regional units by the central or other offices of the agencies concerned, except as authorized under Letter of Instructions No. 447 and related rules and regulations.

Quarterly Report on Accomplishment of Government Agencies (Section 43)
- Requires heads of departments, bureaus, offices, or other agencies whose appropriations are based on the Performance Budget to submit a Quarterly Report of their accomplishments and corresponding costs to the Commissioner of the Budget.

Itemization of Personal Services (Section 44)
- Specifies that the itemization of personal services and organization charts of departments, bureaus, and offices, as approved by the President, together with approved implementing rules and regulations, shall form part of and be governed by the provisions of this Decree.

Repealing Clause (Section 45)
- Repeals or modifies all laws, rules, and regulations inconsistent with this Decree.

Effectivity (Section 46)
- Specifies that this Decree shall take effect on January 1, 1977, except where otherwise provided.