Question & AnswerQ&A (EXECUTIVE ORDER NO. 431)
The main purpose is to revert all dormant accounts, unnecessary special, and trust funds maintained outside the control of the Bureau of Treasury back to the General Fund to augment national government funds and ease fiscal pressures.
The Permanent Committee consists of the Secretary of Finance as Chairman, the Secretary of Budget and Management, and the Chairman of the Commission on Audit as members.
Section 29(3), Article VI of the 1987 Philippine Constitution provides that once the purpose for which a special fund was created has been fulfilled or abandoned, the balance must be transferred to the government's General Fund.
The Permanent Committee must examine, evaluate, and review all existing cash deposits outside the Bureau of Treasury, determine their legal basis, prepare an inventory of these cash accounts, and recommend to the President the transfer of funds without legal impediments to the National Treasury.
All departments, bureaus, and agencies of the National Government are required to cooperate, open their books of accounts, and assist the Permanent Committee and its authorized representatives.
Section 44, Chapter 5, Book VI of EO No. 292 (Administrative Code of 1987) and Section 65 of PD 1445 mandate that all income accruing to departments, offices, and agencies should be deposited in the National Treasury or in any authorized government depository and shall accrue to the unappropriated surplus of the General Fund.
Violations of EO No. 431 shall be sternly dealt with in accordance with the law, implying administrative, civil, or criminal sanctions depending on the nature of the violation.
The Permanent Committee is directed to issue necessary rules and regulations for the proper and efficient implementation of the Executive Order.
Yes, EO No. 431 applies to all existing cash deposits of whatever nature, including both foreign and local currency maintained outside of the Bureau of Treasury.
EO No. 431 took effect immediately upon its issuance on May 30, 2005.