Article 117p. 117

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

in the budget preparation process. After the President

shall

have

submitted

the

Budget,

no

supplemental

appropriation measure supported from existing revenue

measures shall be passed by the Congress. However,

supplemental or deficiency appropriations involving the

creation of new offices, programs or activities may be

enacted if accompanied and supported by new revenue

sources.

SECTION 28. Reversion of Unexpended Balances of

Appropriations,

Continuing

Appropriations .

—

Unexpended balances of appropriations authorized in the

General

Appropriation

Act

shall

revert

to

the

unappropriated surplus of the General Fund at the end of

the fiscal year and shall not thereafter be available for

expenditure except by subsequent legislative enactment:

Provided , that appropriations for capital outlays shall

remain valid until fully spent or reverted: Provided , further ,

that

continuing

appropriations for current operating

expenditures

may be specifically recommended and

approved as such in support of projects whose effective

implementation

calls

for

multi-year

expenditure

commitments: Provided, finally , that the President may

authorize the use of savings realized by an agency during

a given year to meet non-recurring expenditures in a

subsequent year.

The balances of continuing appropriations shall be

reviewed

as

part of the annual budget preparation

process and the preparation process and the President

may approve upon recommendation of the Secretary, the

reversion of funds no longer needed in connection with

the activities funded by said continuing appropriations.

SECTION 29. Loan Proceeds . — Expenditures funded

by foreign and domestic borrowings shall be included

within

the

expenditure

program

of

the

agency

concerned. Loan proceeds, whether in cash or in kind,

shall not be used without the corresponding release of

funds through a Special Budget as herein provided.

SECTION 30. Contingent Liabilities . — Government

agencies, particularly government-owned or controlled

corporations, shall periodically report to the Secretary of

Finance and the Secretary of Budget on the status of

obligations they have entered into and which are the

subject of government guarantees.

SECTION 31. Liability for Unauthorized Printing Press

Revisions . — It shall be unlawful for any person to make

any unauthorized revision of any figure, text or provision

in the General Appropriations Act and in the other

budget documents during or in the process of the

printing.

Any

unauthorized

change

made

either

by

addition, modification or deletion, shall be null and void.

Persons who, in violation of this section, make any

unauthorized revision in the budget documents, shall be

criminally liable for falsification of legislative documents

under the Revised Penal Code. When the offender is a

government official or employee, he shall, in addition to

criminal prosecution, be dismissed from the service.

CHAPTER 5 Budget Execution

SECTION

32.

Use

of

Appropriated

Funds .

— All

moneys appropriated for functions, activities, projects

and programs shall be available solely for the specific

purposes for which these are appropriated.

SECTION

33.

Allotment

of

Appropriations .

—

Authorized appropriations shall be allotted in accordance

with the procedure outlined hereunder:

(1) Appropriations authorized for any Department or

agency of the Government may be made available for

expenditure when the head for each Department or

agency submits to the Secretary a request for allotment

of funds showing the estimated amounts needed for

each function, activity or purpose for which the funds are

to be expended during the applicable allotment period.

The form and the time of submission of the request for

allotment showing the proposed quarterly allotments of

the whole authorized appropriation for the department

or agency, shall be prescribed by the Secretary.

(2) In the administration of the allotment system

herein provided, each calendar year shall be divided into

four quarterly allotment periods beginning, respectively,

on the first day of January, April, July and October. In any

case where the quarterly allotment period is found to be

impractical or otherwise undesirable, the Secretary may

prescribe a different period suited to the circumstances.

(3) Request for allotment shall be approved by the

Secretary who shall ensure that expenditures are covered

by appropriations both as to amount and purpose and

who shall consider the probable needs of the department

or agency for the remainder of the fiscal year or period for

which the appropriation was made.

(4) At the end of every quarter, each department or

agency shall report to the Secretary the current status of

its appropriations, the cumulative allotments, obligations

incurred or liquidated, total disbursements, unliquidated

obligations and unexpended balances and the result of

expended appropriations.

(5) Releases of funds appropriated for a given agency

may be made to its regional offices if dictated by the

need and urgency of regional activities.

(6) The Secretary shall have authority to modify or

amend any allotment previously issued. In case he shall

find at any time that the probable receipts from taxes or

other sources of any fund will be less than anticipated

and that as a consequence the amount available for the

remainder of the term of the appropriations or for any

allotment period will be less than the amount estimated

or allotted therefor, he shall, with the approval of the

President and after notice to the department or agency

concerned, reduce the amount or amounts allotted so as

to conform to the targeted budgetary goals.

(7)

The Secretary shall maintain a control record

showing quarterly by funds, accounts, and other suitable

classifications, the amounts appropriated, the estimated

revenues, the actual revenues or receipts, the amounts

allotted and available for expenditures, the unliquidated

obligations,

actual

balances

on

hand,

and

the

unencumbered

balance

of

the

allotments

for

each

department or agency of the Government.

SECTION

34.

Program

of

Expenditure .

—

The

Secretary of Budget shall recommend to the President

the year's program of expenditure for each agency of the

government on the basis of authorized appropriations.

The approved expenditure program shall constitute the

basis for fund release during the fiscal period, subject to

such policies, rules and regulations as may be approved

by the President.

SECTION

35.

Special

Budgets

for

Lump-Sum

Appropriations .

—

Expenditures

from

lump-sum

appropriations authorized for any purpose or for any

department, office or agency in any annual General

Appropriations Act or other Act and from any fund of the

National Government, shall be made in accordance with a

special budget to be approved by the President, which

shall include but shall not be limited to the number of

each kind of position, the designations, and the annual

salary proposed for which an appropriation is intended.

This provision shall be applicable to all revolving funds,

receipts

which

are

automatically made available for

expenditure

for

certain

specific

purposes,

aids

and

donations for carrying out certain activities, or deposits

made to cover to cost of special services to be rendered to

private parties. Unless otherwise expressly provided by

law, when any Board, head of department, chief of bureau

or office, or any other official, is authorized to appropriate,

allot, distribute or spend any lump-sum appropriation or

special, bond, trust, and other funds, such authority shall

be subject to the provisions of this section.

In case of any lump-sum appropriation for salaries and

wages

of

temporary

and

emergency

laborers

and

employees, including contractual personnel, provided in

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