General Appropriations Act of 1985

November 26, 1984

BATAS PAMBANSA BLG. 866

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-FIVE 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-five except where otherwise specifically provided herein: TCIHSa

[For the sake of brevity, only the Summary of Total New Appropriations is herein included. For the itemization of these sums, please refer to unabridged version of the Act.]

Summary of Total New Appropriations

January 1-December 31, 1985

A.1	The President's Offices	P120,765,000
A.2	Presidential Management Staff	10,556,000
B.1	Board of Energy	6,761,000
B.2	Metropolitan Manila Commission	29,499,000
B.3	National Manpower and Youth Council	100,618,000
B.4	Philippine Racing Commission	6,203,000
B.5	President's Center for Special Studies	10,096,000
B.6	Management Coordinating Board	4,725,000
B.7	National Computer Center	19,722,000
B.8	Central Tender Board	887,000
B.9	Commission on Filipinos Overseas	5,577,000
B.10	National Cartography Authority	20,464,000
B.11	National Commission Concerning Disabled Persons	3,830,000
B.12	Games and Amusements Board	4,847,000
C.1	Office of Budget and Management	82,547,000
D.1	Office of Media Affairs
	D.1.1	Office of the Director-General	37,195,000
D.1.2	Bureau of Broadcasts	28,795,000
D.1.3	Bureau of National and Foreign Information	32,556,000
D.1.4	National Media Production Center	135,882,000
E.1	Office of Muslim Affairs and Cultural Communities
	E.1.1	Office of the Director-General	75,994,000
E.1.2	Philippine Pilgrimage Authority	2,616,000
F.1	National Science and Technology Authority
	F.1.1	National Science and Technology Authority (Proper)	83,966,000
F.1.2	National Academy of Science and Technology	4,862,000
F.1.3	Philippine Atomic Energy Commission	25,579,000
F.1.4	Philippine Council for Agriculture and Resources Research and Development	37,326,000
F.1.5	Philippine Council for Health Research and Development	18,127,000
F.1.6	Philippine Council for Industry and Energy Research and Development	9,136,000
F.2	Food and Nutrition Research Institute	10,584,000
F.3	Forest Products Research and Development Institute	13,555,000
F.4	Materials Science Research Institute	5,675,000
F.5	National Institute of Science and Technology	17,827,000
F.6	Philippine Atmospheric, Geophysical and Astronomical Services Administration	64,052,000
F.7	Institute of Volcanology and Seismology	6,390,000
F.8	Philippine Invention Development Institute	5,878,000
F.9	Science Promotion Institute	34,536,000
F.10	National Research Council of the Philippines	8,297,000
F.11	Philippine Science High School	13,072,000
G.1	Philippine Commission for the International Youth Year	1,421,000
H.1	Philippine Gamefowl Commission	4,197,000
I.1	Board of Review for Motion Pictures and Television	3,017,000
		————————————
Total New Appropriations Office of the President	1,107,632,000
	————————————
II.	Office of the Prime Minister
A.1	Office of the Prime Minister	34,279,000
	A.1.1	Central Visayas Regional Projects Office	993,000
A.1.2	National Council on Integrated Area Development	6,643,000
B.1	General Services Administration
	B.1.1	Office of the Administrator	4,041,000
B.1.2	Building Services and Real Property Management Office	8,111,000
B.1.3	Government Printing Office	28,742,000
B.1.4	Records Management and Archives Office	6,286,000
B.1.5	Supply Coordination Office	12,733,000
	——————————
Total New Appropriations Office of the Prime Minister	101,828,000
	———————————
III.	Batasang Pambansa	200,000,000
	———————————
IV.	National Economic and Development Authority
A.1	Office of the Director-General	96,742,000
A.2	National Census and Statistic Office	111,896,000
A.3	National Tax Research Center	7,773,000
A.4	Tariff Commission	6,521,000
B.1	Kalinga Special Development Region	4,693,000
B.2	Philippine National Volunteer Service Coordinating Agency	1,318,000
B.3	National Productivity Commission	3,098,000
		———————————
Total New Appropriations National Economic and Development Authority	232,041,000
	———————————
V.	Ministry of Agrarian Reform
A.1	Office of the Minister	235,224,000
	A.1.a	Bureau of Agrarian Legal Assistance	4,082,000
A.1.b	Bureau of Land Acquisition, Distribution and Development	5,960,000
A.1.c	Bureau of Land Tenure Improvement	1,658,000
A.1.d	Bureau of Resettlement	2,381,000
	———————————
Total New Appropriations Ministry of Agrarian Reform	249,305,000
	———————————
VI.	Ministry of Agriculture and Food
A.1	Office of the Minister	1,005,450,000
	A.1.a	Bureau of Agricultural Economics	24,841,000
A.1.b	Bureau of Agricultural Extension	23,063,000
A.1.c	Bureau of Animal Industry	40,009,000
A.1.d	Bureau of Cooperatives Development	15,926,000
A.1.e	Bureau of Fisheries and Aquatic Resources	34,462,000
A.1.f	Bureau of Plant Industry	33,434,000
A.1.g	Bureau of Soils	25,236,000
B.1	Fertilizer and Pesticide Authority	10,217,000
B.2	Fiber Development Authority	20,696,000
B.3	National Food and Agriculture Council	57,660,000
B.4	National Governing Board, Philippine Training Centers for Rural Development	12,904,000
B.5	National Meat Inspection Commission	3,905,000
B.6	National Nutrition Council	13,120,000
B.7	National Stud Farm	1,830,000
B.8	Regional Cooperatives Development Assistance Office (Region IX)	11,369,000
B.9	Regional Cooperatives Development Assistance Office (Region XII)	11,111,000
		————————————
Total New Appropriations Ministry of Agriculture and Food	1,345,233,000
	————————————
VII.	Ministry of Education, Culture, and Sports
A.1	Office of the Minister	6,094,877,000
	A.1.a	Bureau of Elementary Education	3,001,000
A.1.b	Bureau of Secondary Education	2,360,000
A.1.c	Bureau of Higher Education	2,550,000
A.1.d	Bureau of Sports Development	797,000
A.1.e	Bureau of Technical and Vocational Education	829,000
A.1.f	Bureau of Continuing Education	1,635,000
A.2	Institute of National Language	4,586,000
A.3	National Historical Institute	11,548,000
A.4	National Library	9,258,000
A.5	National Museum	14,466,000
		————————————
Total New Appropriations Ministry of Education, Culture, and Sports	6,145,907,000
	————————————
VII.1	State Universities and Colleges
A.	National Capital Region	686,420,000
		————————————
A.1	Eulogio "Amang" Rodriguez Institute of Science and Technology	23,153,000
A.2	Philippine Merchant Marine Academy	12,744,000
A.3	Philippine Normal College	27,834,000
A.4	Polytechnic University of the Philippines	52,543,000
A.5	Rizal Technological Colleges	21,593,000
A.6	Technological University of the Philippines	44,800,000
A.7	University of the Philippines System	503,753,000
B.	Region I. — ILOCOS	176,862,000
		———————————
B.1	Abra State Institute of Sciences and Technology	6,256,000
B.2	Don Mariano Marcos Memorial State University	40,659,000
B.3	Mariano Marcos State University	43,009,000
	B.3.a	Cotton Research and Development Institute	9,369,000
B.3.b	Philippine Tobacco Research and Training Center	16,421,000
B.4	Mountain State Agricultural College	18,810,000
B.5	Pangasinan State University	24,165,000
B.6	University of Northern Philippines	18,173,000
C.	Region II. — CAGAYAN VALLEY	96,058,000
		——————————
C.1	Cagayan State University	26,774,000
C.2	Ifugao State College of Agriculture and Forestry	11,301,000
C.3	Isabela State University	31,779,000
C.4	Nueva Vizcaya State Institute of Technology	13,512,000
C.5	Nueva Vizcaya State Polytechnic College	6,536,000
C.6	Quirino State College	6,156,000
D.	Region III. — CENTRAL LUZON	118,070,000
		———————————
D.1	Bulacan College of Arts and Trades	12,135,000
D.2	Central Luzon Polytechnic College	18,055,000
D.3	Central Luzon State University	34,193,000
D.4	Don Honorio Ventura College of Arts and Trades	11,928,000
D.5	Pampanga Agricultural College	12,751,000
D.6	Tarlac College of Agriculture	15,496,000
D.7	Tarlac College of Technology	10,687,000
D.8	Western Luzon Agricultural College	2,825,000
E.	Region IV. — SOUTHERN TAGALOG AND PALAWAN	95,702,000
		——————————
E.1	Don Severino Agricultural College	12,217,000
E.2	Laguna State Polytechnic College	7,304,000
E.3	Marinduque Institute of Science and Technology	5,717,000
E.4	Occidental Mindoro National College	8,046,000
E.5	Pablo Borbon Memorial Institute of Technology	13,389,000
E.6	Palawan National Agricultural College	20,315,000
E.7	Palawan State College	9,035,000
E.8	Rizal College of Agriculture and Technology	5,659,000
E.9	Romblon State College	4,775,000
E.10	Southern Luzon Polytechnic College	9,245,000
F.	Region V. — BICOL	78,273,000
		——————————
F.1	Bicol University	40,475,000
F.2	Camarines Sur State Agricultural College	12,408,000
F.3	Catanduanes State College	25,390,000
G.	Region VI. — WESTERN VISAYAS	74,020,000
		——————————
G.1	Iloilo State College of Fisheries	5,822,000
G.2	Northern Iloilo Polytechnic State College	6,842,000
G.3	Paglaum State College	9,818,000
G.4	Panay State Polytechnic College	15,225,000
G.5	Polytechnic State College of Antique	7,730,000
G.6	West Visayas State College	19,211,000
G.7	Western Visayas College of Science and Technology	9,372,000
H.	Region VII. — CENTRAL VISAYAS	46,771,000
		——————————
H.1	Cebu State College	5,297,000
H.2	Cebu State College of Science and Technology	33,746,000
H.3	Central Visayas Polytechnic College	7,728,000
I.	Region VIII. — EASTERN VISAYAS	120,010,000
		———————————
I.1	Eastern Samar State College	7,001,000
I.2	Leyte Institute of Technology	12,643,000
I.3	Leyte State College	10,535,000
I.4	National Maritime Polytechnic	9,043,000
I.5	Naval Institute of Technology	6,855,000
I.6	Palompon Institute of Technology	5,987,000
I.7	Samar State Polytechnic College	7,842,000
I.8	Tiburcio Tancinco Memorial Institute of Science and Technology	4,207,000
I.9	University of Eastern Philippines	13,478,000
I.10	Visayas State College of Agriculture	42,419,000
J.	Region IX. — WESTERN MINDANAO	59,766,000
		——————————
J.1	Basilan State College	4,027,000
J.2	Sulu State College	5,087,000
J.3	MSU-Tawi-Tawi College of Technology and Oceanography	25,106,000
J.4	Tawi-Tawi Regional Agricultural College	3,582,000
J.5	Western Mindanao State University	21,964,000
K.	Region X. — NORTHERN MINDANAO	57,255,000
		——————————
K.1	Bukidnon State College	12,601,000
K.2	Central Mindanao University	25,881,000
K.3	Don Mariano Marcos Memorial Polytechnic State College	11,972,000
K.4	Misamis Oriental State College of Agriculture and Technology	3,264,000
K.5	Northern Mindanao State Institute of Science and Technology	3,537,000
L.	Region XI. — SOUTHEASTERN MINDANAO	22,275,000
		——————————
L.1	Southern Philippines Agri-Business and Marine and Aquatic School	3,462,000
	of Technology    aCASEH
L.2	University of Southeastern Philippines	18,813,000
M.	Region XII. — SOUTHERN MINDANAO	211,509,000
		———————————
M.1	Cotabato Foundation College of Science and Technology	8,189,000
M.2	Cotabato City State Polytechnic College	9,307,000
M.3	Mindanao State University	125,768,000
M.4	MSU-Iligan Institute of Technology	38,807,000
M.5	University of Southern Mindanao	29,468,000
		————————————
Total New Appropriations State Universities and Colleges	1,842,991,000
	————————————
VIII.	Ministry of Energy
A.1	Office of the Minister	8,102,000
A.2	Bureau of Energy Development	64,667,000
A.3	Bureau of Energy Utilization	6,640,000
A.4	Alcohol Commission	1,957,000
		——————————
Total New Appropriations Ministry of Energy	81,366,000
	——————————
IX.	Ministry of Finance
A.1	Office of the Minister	48,023,000
	A.1.a	Gold Mining Industry Assistance Board	1,161,000
A.2	Bureau of Customs	163,784,000
A.3	Bureau of Internal Revenue	333,211,000
A.4	Finance Ministry Intelligence Bureau	30,019,000
A.5	Bureau of the Treasury	74,302,000
A.6	Insurance Commission	16,298,000
A.7	Securities and Exchange Commission	26,630,000
		———————————
Total New Appropriations Ministry of Finance	693,428,000
	———————————
X.	Ministry of Foreign Affairs
A.1	Office of the Minister	611,864,000
A.2	Foreign Service Institute	6,195,000
A.3	UNESCO National Commission of the Philippines	1,851,000
A.4	RP-US Business Development Council	14,950,000
		———————————
Total New Appropriations Ministry of Foreign Affairs	634,860,000
	———————————
XI.	Ministry of Health
A.1	Office of the Minister	2,071,149,000
	A.1.a	Bureau of Dental Health Services	2,201,000
A.1.b	Bureau of Health Services	2,538,000
A.1.c	Bureau of Medical Services	1,352,000
A.1.d	Bureau of Research and Laboratories	17,850,000
A.1.e	Bureau of Food and Drugs	5,854,000
A.1.f	Jose R. Reyes Memorial Medical Center	26,591,000
A.1.g	Rizal Medical Center	17,975,000
A.1.h	Hospital ng Bagong Lipunan	21,393,000
A.1.i	Jose Fabella Memorial Hospital	25,817,000
A.1.j	National Children's Hospital	8,538,000
A.1.k	National Mental Hospital	64,885,000
A.1.l	National Orthopedic Hospital and Rehabilitation Medicine Center	32,432,000
A.1.m	Quirino Memorial General Hospital	10,412,000
A.1.n	San Lazaro Hospital	24,720,000
A.1.o	Research Institute for Tropical Medicine	8,212,000
A.2	Bureau of Quarantine	9,311,000
B.1	Dangerous Drugs Board	13,792,000
B.2	Philippine Medical Care Commission	49,589,000
B.3	Schistosomiasis Control Council	1,012,000
B.4	Tondo Medical Center	9,658,000
		————————————
Total New Appropriations Ministry of Health	2,425,281,000
	————————————
XII.	Ministry of Human Settlements
A.1	Office of the Minister	236,152,000
	A.1.1	KKK Secretariat	86,912,000
A.2	Human Settlements Regulatory Commission	25,055,000
A.3	Intramuros Administration	40,186,000
A.4	National Environmental Protection Council	7,392,000
A.5	National Pollution Control Commission	9,603,000
A.6	Sacobia Development Authority	15,896,000
A.7	National Commission on the Role of Filipino Women	3,741,000
A.8	National Parks Development Committee	21,605,000
		———————————
Total New Appropriations Ministry of Human Settlements	446,542,000
	———————————
XIII.	Ministry of Justice
A.1	Office of the Minister	127,041,000
A.2	Bureau of Prisons	101,599,000
A.3	Citizens' Legal Assistance Office	40,869,000
A.4	Commission on Immigration and Deportation	18,537,000
A.5	National Land Titles and Deeds Registration Administration	63,400,000
A.6	National Bureau of Investigation	64,407,000
A.7	Office of the Government Corporate Counsel	6,097,000
A.8	Probation Administration	33,339,000
A.9	Commission on the Settlement of Land Problems	7,355,000
A.10	Office of the Solicitor General	13,373,000
		———————————
Total New Appropriations Ministry of Justice	476,017,000
	———————————
XIV.	Ministry of Labor and Employment
A.1	Office of the Minister	77,101,000
B.1	Philippine Overseas Employment Administration	22,569,000
B.2	National Labor Relations Commission	19,757,000
B.3	National Wages Council	4,040,000
		———————————
Total New Appropriations Ministry of Labor and Employment	123,467,000
	———————————
XV.	Ministry of Local Government
A.1	Office of the Minister	221,047,000
	A.1.a	Bureau of Local Government Development	5,997,000
A.1.b	Bureau of Local Government Supervision	10,139,000
	———————————
Total New Appropriations Ministry of Local Government	237,183,000
	———————————
XVI.	Ministry of National Defense
A.1	Office of the Minister	56,602,000
	A.1.a	National Defense College of the Philippines	6,267,000
A.2	Armed Forces of the Philippines	6,250,111,000
		———————————
A.2.a	General Headquarters	1,240,084,000
A.2.b	Philippine Air Force	862,756,000
A.2.c	Philippine Army	1,608,700,000
A.2.d	Philippine Constabulary	1,215,526,000
A.2.e	Philippine Navy	1,323,045,000
A.3	Government Arsenal	62,873,000
A.4	Bureau of Coast and Geodetic Survey	14,879,000
A.5	Integrated National Police	1,280,323,000
A.6	National Police Commission	70,642,000
A.7	Office of Civil Defense	7,365,000
A.8	Philippine Veterans Affairs Office	139,612,000
		————————————
Total New Appropriations Ministry of National Defense	7,888,674,000
	————————————
XVII.	Ministry of Natural Resources
A.1	Office of the Minister	75,856,000
A.2	Bureau of Forest Development	419,043,000
A.3	Bureau of Lands	228,486,000
A.4	Bureau of Mines and Geo-Sciences	70,093,000
B.1	Forest Research Institute	26,010,000
B.2	Mineral Reservations Development Board	2,983,000
B.3	Natural Resources Management Center	13,671,000
B.4	Presidential Committee on Wood Industries Development	2,444,000
		———————————
Total New Appropriations Ministry of Natural Resources	838,586,000
	———————————
XVIII.	Ministry of Public Works and Highways
A.1	Office of the Minister	2,018,225,000
B.1	National Water Resources Council	17,141,000
		————————————
Total New Appropriations Ministry of Public Works and Highways	2,035,366,000
	————————————
XIX.	Ministry of Social Services and Development
A.1	Office of the Minister	139,431,000
	A.1.a	Bureau of Assistance	2,542,000
A.1.b	Bureau of Family and Child Welfare	8,054,000
A.1.c	Bureau of Rehabilitation	3,122,000
A.1.d	Bureau of Youth Welfare	2,640,000
B.1	Commission on Population	201,026,000
B.2	Council for the Welfare of Children	1,900,000
		———————————
Total New Appropriations Ministry of Social Services and Development	358,715,000
	———————————
XX.	Ministry of Tourism
A.1	Office of the Minister	59,492,000
A.2	Bureau of Tourism Services	9,856,000
A.3	Bureau of Tourism Promotion	16,235,000
B.1.	Civil Aeronautics Board	3,885,000
		——————————
Total New Appropriations Ministry of Tourism	89,468,000
	——————————
XXI.	Ministry of Trade and Industry
A.1	Office of the Minister	139,383,000
	A.1.a	Bureau of Domestic Trade	7,400,000
A.1.b	Bureau of Industrial Development	7,140,000
A.1.c	Bureau of Small and Medium Industries	21,801,000
A.1.d	Product Standards Agency	8,798,000
A.1.e	Bureau of Foreign Trade	46,307,000
A.1.f	Philippine Patent Office	8,134,000
B.1	Board of Investments	35,493,000
B.2	Construction Industry Authority of the Philippines	13,665,000
B.3	Design Center Philippines	10,949,000
B.4	Garments and Textile Export Board	23,769,000
B.5	Philippine Textile Research Institute	6,786,000
B.6	Technology Transfer Board	1,695,000
		———————————
Total New Appropriations Ministry of Trade and Industry	331,320,000
	———————————
XXII.	Ministry of Transportation and Communications
A.1	Office of the Minister	19,938,000
A.2	Bureau of Posts	340,034,000
A.3	Bureau of Telecommunications	113,405,000
A.4	Bureau of Air Transportation	129,485,000
A.5	Bureau of Land Transportation	79,909,000
B.1	Board of Transportation	9,405,000
B.2	Maritime Industry Authority	9,201,000
B.3	National Telecommunications Commission	8,614,000
		———————————
Total New Appropriations Ministry of Transportation and Communications	709,991,000
	———————————
XXIII.	The Judiciary
A.1	Supreme Court of the Philippines	65,793,000
	A.1.a	Regional Trial Courts	282,853,000
A.1.b	Metropolitan Trial Courts	25,907,000
A.1.c	Municipal Trial Courts in Cities	31,669,000
A.1.d	Municipal Circuit Trial Courts	71,657,000
A.1.e	Municipal Trial Courts	83,122,000
A.1.f	Shari'a District Courts	1,680,000
A.1.g	Shari'a Circuit Courts	8,463,000
A.2	Sandiganbayan	11,835,000
A.3	Intermediate Appellate Court	35,429,000
A.4	Court of Tax Appeals	2,376,000
		———————————
Total New Appropriations The Judiciary	620,784,000
	———————————
XXIV.	Constitutional Offices
A.1	Civil Service Commission	49,039,000
	A.1.a	Career Executive Service Board	5,752,000
A.1.b	Professional Regulation Commission	16,188,000
A.2	Commission on Audit	368,006,000
A.3	Commission on Elections	87,302,000
		———————————
Total New Appropriations Constitutional Offices	526,287,000
	———————————
XXV.	Tanodbayan	11,446,000
	———————————
XXVI.	Autonomous Regions
A.1.	Sangguniang Pampook and Lupong Tagapagpaganap ng Pook,	36,726,000
	Region IX
A.2	Sangguniang Pampook and Lupong Tagapagpaganap ng Pook,
	Region XII	36,726,000
	————————————
Total New Appropriations Autonomous Regions	73,452,000
	————————————
XXVII.	Calamity Fund	1,500,000,000
	————————————
XXVIII.	Corporate Equity Investments Fund
A.1	Equity Investments in Government Corporations	2,675,000,000
A.2	Trust Funds Administered by Government Corporations	25,000,000
		————————————
Total New Appropriations Corporate Equity Investments Fund	2,700,000,000
	————————————
XXIX.	International Commitments Fund	500,000,000
	————————————
XXX.	National Assistance to Local Government Units
A.	Local Roads Construction	100,000,000
B.	Repair and Maintenance of Local Roads	613,774,000
C.	Aid to Local Schools	250,000,000
D.	Barangay Development Fund	945,031,000
E.	Budgetary Aid to Local Government Units	781,878,000
F.	Provincial Development Assistance Project Fund	391,478,000
G.	Provincial Health and Agricultural Program	38,000,000
H.	Repair and Construction of Local School Buildings	42,500,000
I.	Support for Local Development Projects	50,000,000
J.	Sharing of National Revenue	5,100,000,000
K.	Town Planning and Zoning Fund	4,000,000
L.	Financial Assistance for the Local Resources Management Program	15,000,000
		————————————
Total New Appropriations National Assistance to Local Government Units	8,331,661,000
	————————————
XXXI.	National Priorities Support Fund
A.	Capital Expenditures Adjustments Fund	500,000,000
B.	Consultants Fund	5,000,000
C.	Contingent Fund	200,000,000
D.	Feasibility Studies Fund	35,000,000
E.	Foreign-Assisted Projects Support Fund	2,200,000,000
F.	National Livelihood Program Support Fund	1,000,000,000
G.	Integrated Area Development Projects Fund	45,000,000
H.	Special Activities Fund	2,500,000,000
I.	Economic Support Fund	1,348,000,000
		—————————————
Total New Appropriations National Priorities Support Fund	7,833,000,000
	—————————————
XXXII.	Personnel Benefits Fund
A.	Employees Compensation Insurance Premium Fund	100,000,000
B.	Health Insurance (Medicare) Fund	91,800,000
C.	Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya,	148,500,000
	Gobyerno (Pag-Ibig) Fund
D.	Retirement Gratuity Fund	630,000,000
E.	Salary Adjustment Fund	3,100,000,000
F.	Terminal Leave Benefits Fund	77,210,000
		—————————————
Total New Appropriations Personnel Benefits Fund	4,147,510,000
	—————————————
XXXIII.	Property Insurance Fund	140,000,000
XXXIV.	Social Pricing Development Adjustments Fund	—————————————
A.	Price Stabilization Subsidy	400,000,000
B.	Tax Payment Compliance Fund	500,000,000
C.	Subsidies to Government Corporations	349,600,000
		——————————————
Total New Appropriations Social Pricing and Development Adjustments Fund	1,249,600,000
	——————————————
XXXV.	General Fund Adjustments	2,100,000,000
	——————————————
Grand Total, New Appropriations, CY 1985	P58,328,941,000
	=============

General Provisions

Receipts and Income

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 and Section 3 of B.P. Blg. 325: 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 by law and following such rules and regulations 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 Fund 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 of 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 Section 40 of P.D. No. 1177, except as otherwise provided in this Act.

SECTION 3. Revolving Fund. — Revolving funds shall be established and maintained in this Act only in cases where said funds are expressly created and authorized by a special or substantive law.

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 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. TaDAIS

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 collection 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. SICaDA

Authorized Expenditures

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.

SECTION 10. Use of Savings. — Ministries, bureaus, offices and agencies are hereby authorized, subject to LOImp. No. 29 and P.D. No. 1177, to use savings realized from appropriations actually released 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 the 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;

i.Foreign-exchange differential arising from peso devaluation;

j.Augmentation of operational expenses.

SECTION 11. 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 appropriated in this Act and funded from donations shall be released only to the extent of actual receipts, and shall not be used for any purpose other than that specified in the deed of donation.

SECTION 12. Expenditures Funded from Borrowings. — The amounts appropriated in this Act and funded from local or foreign borrowings shall be released in accordance with loan drawdowns or in the manner stipulated in the financing agreement concerned, subject to Section 40, P.D. No. 1177. HCEISc

SECTION 13. Expenditure Components. — 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. Purchases of Computer Equipment. — The appropriations authorized in this Act for the purchase of computer equipment except as provided in LOI No. 1380 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 17. 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 upon recommendation of the Office of Budget and Management pursuant to Section 82 of P.D. No. 1177 and Letter of Implementation No. 29.

SECTION 18. 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 19. Emergency Purchase. — 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 20. Cultural and Athletic Activities. — An amount not exceeding P15,000 per annum out of the appropriations allotted for maintenance and other operating expenses for each Ministry, bureau, office or agency, and P5,000 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 P250 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 pay 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. SDITAC

For purposes of this Section the term "office or agency" shall be so construed to refer only to Ministries and bureaus, and the regular government offices or agencies under them.

SECTION 21. Extraordinary and Miscellaneous Expenses. — Appropriations herein authorized may be used for extraordinary expenses not exceeding: (a) P30,000 for each Minister or equivalent; (b) P10,000 for each Deputy Minister or equivalent; (c) P4,000 for each Assistant Minister/Secretary or head of bureau or organization of equal rank to a bureau and for each Ministry Regional Director; and (d) P2,000 for each Bureau Regional Director. In addition, official entertainment and other miscellaneous expenses not exceeding P6,000 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 Minister/Secretary;

4.Bureau or 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 relation, 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 22. 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 upon approval of the President.

SECTION 23. 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: Provided, That each Ministry, Bureau, Office or Agency shall include in its program of information dissemination, the adequate and timely reproduction of relevant laws and other administrative issuances for distribution to its lowest field organizational units, including those units over which it exercises supervision: Provided, further, That assistance of the Office of Media Affairs in printing such documents shall be made to achieve economical, efficient and effective dissemination thereof.

SECTION 24. Loans Outlay. — The amounts authorized for loans outlay in the budgets of Ministries, bureaus, offices and other agencies, including accumulated balances and receivables shall, in cases expressly provided for by law, be remitted to government financial institutions to be constituted and administered as trust funds under such terms and conditions as may be agreed upon by the head of the agency and the government financial institution concerned. TaCDcE

The rules and regulations governing the use of trust funds covered under this section shall be formulated by the Office of Budget and Management.

SECTION 25. Release of Funds. — Any provision of law to the contrary notwithstanding, the appropriations authorized for the Judiciary, the Batasang Pambansa, the Civil Service Commission, the Commission on Audit and the Commission on Elections in this Act shall be automatically released in accordance with an operating budget to be submitted at the start of the calendar year as basis for release of funds by the Office of Budget and Management in accordance with existing procedures.

Contracts

SECTION 26. Funding of Contracts and Future Payment of Contractual Obligations. — 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 purpose 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.

Ministries, bureaus, offices or agencies, before entering into contracts for delivery of goods or services against future payment shall likewise 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 27. Loan Agreements. — Ministries, bureaus, offices or agencies may enter into foreign or domestic loan agreements, whether in cash or in kind: Provided, That such loan agreements shall be in accordance with the provisions of R.A. No. 245, as amended, LOI No. 880 and LOI No. 1307. Report of such agreement shall be furnished the members of the Batasang Pambansa. AaCcST

Foreign borrowings shall not be incurred except for purposes and under conditions authorized under LOI No. 1307, LOI No. 1366, P.D. No. 1914, and R.A. No. 4860, as amended.

SECTION 28. 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 of which the cost thereof may be paid from savings in the appropriations of the Ministry, bureau, office or agency concerned: Provided, That 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 or agency: Provided, further, That when said security or janitorial position shall subsequently become vacant, said position shall be considered automatically abolished.

SECTION 29. Lease-Purchase Agreements. — Ministries, bureaus, offices or agencies may enter into agreements for lease-purchase of equipment subject to 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 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 30. Funding of Personnel Benefits. — The personnel benefits cost 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 31. 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; DTcHaA

e.At P475 for Career Executive Service Rank IV Officials;

f.At P400 for Career Executive Service Rank V Officials; and

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 exceed 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 allowances herein authorized from the appropriations of their parent agencies.

SECTION 32. Official Vehicles and Transport. — Government motor transportation may be used by the following officials, and those who may be specifically authorized by the President with costs chargeable to the appropriations authorized for the 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 33. Uniform/Clothing Allowance. — The appropriations herein provided for each Ministry, bureau or office may be used for uniform and/or clothing allowance of employees at not more than P300 each per annum. 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 34. 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 case 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 authorizations 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. EaCSHI

SECTION 35. 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 36. Incentive or Service Fees. — Incentive or service fees paid by the Government Service Insurance System, by other government offices or agencies authorized by law to pay such incentive or service fees, 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 37. Special Counsel Allowance. — Lawyer-personnel in the legal staffs of Ministries, bureaus, offices or agencies of the National Government appearing in Courts 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 38. 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 officials shall be borne by him. Those who enjoy free quarters in government-owned or rented buildings but who are not entitled to quarters privilege 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 39. 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 labor 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.

SECTION 40. Restriction on the Use of Appropriations for Retirement Gratuity and Terminal Leave. — Release of appropriations authorized in this Act to cover retirement gratuity benefit claims shall be made on the basis of creditable services as computed by the Government Service Insurance System in accordance with the provisions of existing retirement laws. Unless otherwise authorized by law, no amount appropriated in this Act shall be used for payment of retirement gratuity under the provisions of Sec. 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 as defined under retirement laws and excluding all bonuses, per diems, allowances and overtime pay, or salary, pay or compensation given in addition to the base pay of the position or rank as fixed by law or regulation.

The rules and regulations to implement this Section shall be issued jointly by the Office of Budget and Management, the Government Service Insurance System and the Commission on Audit. aITDAE

SECTION 41. Unauthorized Pre-Retirement Promotions and Salary Increase. — 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 42. 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 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 the 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 Governments Units

SECTION 43. 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. aHECST

Administrative Procedures

SECTION 44. 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 45. 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 46. 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 47. 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 by the Ministry of Local Government and the Office of Budget and Management.

SECTION 48. Administration of the Releases of Funds Allotted for Operating Expenses and Equity Investments in Government Corporations. — Funds herein appropriated for operating expense contributions and equity investments in government-owned or controlled corporations and other public corporate bodies 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, pursuant to Executive Order No. 518, subject to Sec. 40 of P.D. No. 1177 and Letter of Implementation No. 29.

SECTION 49. Off-sets Against Corporation Equity Investments and/or Subsidy. — The appropriations herein authorized for equity investments and/or subsidy 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 50. 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 51. 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 administrative authorizations shall be considered as ad hoc arrangements that shall be staffed by contractual personnel or staff members on detail. aSIETH

SECTION 52. Implementation of Construction Projects. — Construction projects funded from capital outlays authorized in this Act under the various Ministries, bureaus, the 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 or 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, and B.P. Blg. 132 entitled "An Act Appropriating Funds for Public Works, Highways, Transportation and Communications Projects and for Other Purposes," and other legislations on public works shall be strictly complied with whenever applicable.

Concluding Provisions

SECTION 53. 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 54. Effectivity. — The provisions of this Act shall take effect on January one, nineteen hundred and eighty-five unless otherwise provided herein.

Approved, November 26, 1984.