Question & AnswerQ&A (Republic Act No. 7663)
RA No. 7663 appropriates funds from the National Treasury for the operation of the government of the Philippines for the entire year 1994, covering all departments, agencies, and instrumentalities as specified in the Act, unless otherwise specifically provided.
All fees, charges, assessments, and other receipts collected by government agencies are required to be deposited with the National Treasury and accrue to the General Fund, unless authorized by law to be recorded as income of special funds or fiduciary/trust funds as provided under the Act.
Revolving funds may be established and maintained only when expressly authorized by law. They are self-perpetuating and self-liquidating funds used for operational expenses derived from business-type activities of agencies, and interest earned on such funds must be remitted to the National Treasury.
Trust receipts from non-tax sources authorized by law for specific purposes must be treated as trust liabilities of the collecting agencies, deposited in authorized government depository banks or the National Treasury. Payments from such funds must be in accordance with the intended purposes and relevant accounting and auditing regulations.
Yes, government agencies conducting training programs jointly approved by the Department of Budget and Management and the Civil Service Commission may collect seminar and conference fees. Proceeds may be used for conducting such programs subject to budget, accounting, and auditing rules, and any excess must be remitted to the National Treasury.
The law restricts the purchase of motor vehicles to specific vehicles (e.g., ambulances, patrol vehicles) and limits foreign travel expenses to necessary cases such as training or international commitments. Payment of honoraria and allowances must be specifically authorized by law, and government funds cannot be invested in private banking institutions or non-government securities.
Personnel benefits, including salaries, allowances, fringe benefits, and retirement gratuities, must be charged against the corresponding funds from which basic salaries are paid. No unauthorized personal services costs may be paid from appropriations under the Act, and officials may be held personally liable for any unauthorized payments.
Before entering into contracts involving expenditure of public funds, the concerned government agencies must secure a certification from the agency Chief Accountant confirming the availability of funds to cover the costs. No contract shall be entered into or work undertaken without such certification.
Savings are balances of appropriations free from obligation or encumbrance after completion or discontinuance of projects. Savings may be used for augmentation of other appropriations but must not fund non-existent projects. The constitution authorizes certain officials to augment their appropriations from savings subject to guidelines.
The Act provides that unauthorized use of funds is null and void, and responsible officials and employees may face disciplinary action under relevant provisions of Executive Order No. 292 as well as appropriate criminal charges under existing penal laws.