Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1177)
The title of Presidential Decree No. 1177 is the "Budget Reform Decree of 1977."
The fiscal year is the period beginning on January 1 and ending on December 31 of each calendar year.
"Budget" refers to the budget required to be prepared pursuant to Section Sixteen (1), Article VIII of the Constitution, which includes estimated receipts based on existing and proposed revenue measures, and estimated expenditures for the national government.
Continuing appropriations refer to appropriations available to support obligations for a specified purpose or project even when these obligations are incurred beyond the budget year.
The Commissioner of the Budget has the authority to approve requests for allotments of appropriations to government agencies.
The National Assembly shall in no case increase the appropriation of any project or program over the amount submitted by the President in his budget proposal.
Unexpended balances of appropriations authorized in the General Appropriations Act shall revert to the unappropriated surplus of the General Fund, except appropriations for capital outlays which remain valid until fully spent or reverted.
Unauthorized changes are null and void, and persons making such changes are criminally liable for falsification of legislative documents under the Revised Penal Code and, if government officials, shall be dismissed from service.
The President shall submit the national government budget to the National Assembly within thirty days from the opening of each regular session, including expenditure proposals of all branches and constitutional bodies, and may also transmit supplemental or deficiency appropriations as necessary.
Savings in appropriations may, with the approval of the President and Commissioner of the Budget, be used to cover specific obligations such as claims for death or injury in service, retirement gratuities, pay adjustments due to reorganization, and priority activities promoting economic well-being, among others.
"Government" means the National Government, including the Executive, Legislative, and Judicial Branches, and the Constitutional Commissions.
Agency proposals are reviewed on their own merits using a zero-base approach considering their relationship with approved development plans, agency capability, complementarity with other agencies, and other criteria, with no automatic percentage increases or decreases.
Every official or employee authorizing or making illegal payments shall be jointly and severally liable to the government for the amount involved and may be dismissed from service after due process.
Agencies may contract specific services not provided by regular staff for a specific period and expected output; recurrent activities should not be contracted except for individual contractual personnel, and contract costs must not exceed what regular employees' costs would be, except with approval.
No part of government funds shall be used to pay salaries or wages of officials or employees engaging in a strike against the government, subject to civil service rules and proper procedures.