Title
Abolition of Special and Fiduciary Funds
Law
Presidential Decree No. 711
Decision Date
May 27, 1975
Presidential Decree No. 711 abolishes all special and fiduciary funds in the Philippines, transferring their assets and liabilities to the General Fund to facilitate the implementation of government programs and projects.

Law Summary

Definitions and Transfers under the Decree

  • "Special and fiduciary funds" refer to funds created by specific laws, acts, or decrees for particular projects or purposes.
  • All assets, liabilities, surpluses, and appropriations of such funds are transferred to the General Fund.
  • Personnel previously paid from special and fiduciary funds will now be compensated from the General Fund.

Continuation of Functions According to National Development Plans

  • Functions and activities authorized under existing laws for special and fiduciary funds may continue if they align with the current social and economic plans.
  • Continuation is subject to determination by the National Economic and Development Authority (NEDA).
  • Taxes, levies, fees, imposts, and other income authorized under existing laws related to such funds will continue but shall accrue to the General Fund.

Administration and Implementation

  • The Secretary of Finance, Commissioner of the Budget, and Chairman of the Commission on Audit are mandated to issue necessary rules and regulations for the decree’s implementation.
  • Ensures a coordinated approach among key government agencies responsible for financial management.

Repeal and Modification of Inconsistent Laws

  • All laws, decrees, letters of instruction, and other rules inconsistent with this decree are repealed or modified.
  • Facilitates legal clarity and removes conflicting provisions to support the decree’s objectives.

Effectivity

  • The decree takes effect on July 1, 1975.
  • Provides a clear date for implementation, allowing government agencies to prepare for the transition.

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