Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 711)
The main purpose of Presidential Decree No. 711 is to abolish all existing special and fiduciary funds and transfer their operations and funding to the General Fund of the National Government to facilitate better management and support for social and economic programs.
Presidential Decree No. 711 took effect on July 1, 1975.
All assets, liabilities, surpluses, and appropriations of special and fiduciary funds are transferred to the General Fund of the National Government.
Yes, the personnel whose salaries and/or wages are drawn from special and fiduciary funds shall be paid out of the General Fund, subject to the provisions of Section 2 of the decree.
NEDA determines which existing functions and activities under special and fiduciary funds conform with present social and economic plans and programs and those shall continue to be maintained under the General Fund.
Yes, all taxes, levies, fees, imposts, and other income of all special and fiduciary funds shall continue to accrue to the General Fund.
Yes, all existing laws, decrees, letters of instructions, rules, and regulations inconsistent with the provisions of this decree are repealed or modified accordingly.
They were abolished because many such funds were no longer in conformity with current development programs, some had fulfilled or abandoned their purposes, and the accumulation of large cash balances hindered the effective use of public funds.
The decree aims to enhance government control, avoid unnecessary immobilization of public funds, and facilitate the financing and implementation of essential social and economic programs for the general welfare.