Question & AnswerQ&A (Republic Act No. 266)
The main purpose of Republic Act No. 266 is to appropriate sums released by the Central Bank representing excess monetary reserves and authorize the President of the Philippines to issue bonds, certificates, or other evidences of indebtedness covering such amounts.
The Central Bank, upon decision of its Monetary Board, has the authority to turn over to the National Treasury sums considered in excess of the currency reserves essential for the stability and convertibility of the currency.
The appropriated sums may be used to: cover deficiencies in government financial obligations, rehabilitate or construct irrigation projects, pay for expropriation proceedings for a new capitol site, develop water power and industries, purchase lands for resale to occupants or tenants, expand or establish industries essential to the economy, finance resettlement projects, increase funds of the Rehabilitation Finance Corporation, and construct homes for laborers and low-salaried employees.
The release is subject to the provisions of section 137 of Republic Act No. 265 (the Central Bank Act), and the Monetary Board must consider that the sums released are in excess of the currency reserves essential to maintain currency stability and convertibility.
The President must report to Congress within ten days after the beginning of each regular session detailing the amounts paid by the Central Bank into the National Treasury and the amounts set aside for each appropriation purpose detailed in Section 2.
Funds may be used to acquire private lands for the new capitol site, subdivide agricultural or residential lands for resale to actual occupants or tenants, and finance resettlement projects similar to those by the National Land Settlement Administration.
Issuance of bonds, certificates, or other evidences of indebtedness by the President is discretionary.
The Act took effect upon its approval on June 15, 1948.