1960 Gov't Budget Appropriation Act

Appropriations and program coverage

Section 1 appropriates funds for the operation of the Government of the Republic of the Philippines for the fiscal period July 1, 1960 to June 30, 1961.
Section 1 limits the appropriated funds to availability out of any funds in the Philippine Treasury not otherwise appropriated, subject to specific exceptions within the Act.
The Act’s operational restrictions and authorities under the General Provisions apply to appropriations for Executive Departments unless a section expressly states a different coverage.

Classified civil service protection

Section 2 requires that adoption of the budgetary system based on functions, activities and projects in terms of expected results shall not result in laying off personnel in the classified Civil Service except for cause as provided by law.
Section 2 prohibits the adoption of the performance budget system from causing the reduction of actual salaries of incumbents, demotion in rank, or change of status.

Use of savings and limits

Section 3 authorizes the use of savings in regular appropriations for “personal services,” “maintenance and other operating expenses,” and “equipment” of bureaus and offices under an Executive Department to cover a deficit in other items of regular appropriations within the same Department.
Section 3 requires President approval for any deficit coverage using savings, except as otherwise provided in the Act.
Section 3 treats transfers of authorized positions from one program to another within the same Department as also transferring the corresponding amounts for personal services, without increasing total outlay for personal services.
Section 3 imposes a ceiling: in no case may any item be augmented by more than 30% of the original appropriation for that item.

Reports on transfers and performance

Section 4 mandates that the Auditor General and the Commissioner of the Budget submit separate quarterly reports to Congress for transfers of appropriation made to cover a deficit.
Section 4 requires quarterly deficit transfer reports to specify the items and the funds involved and to provide copies to each member of Congress in his office.
Section 4 requires heads of bureaus or offices appropriations based on the Performance Budget to submit quarterly reports of accomplishments separately to each member of Congress.

Presidential authority to suspend expenditures

Section 6 authorizes the President, whenever in judgment the public interest requires it, to suspend or stop expenditure of any amount appropriated for Executive Departments, upon notice to the head of the concerned office.
Section 6 excludes amounts for salaries of positions with incumbents from the suspension authority.
Section 6 directs that funds affected by suspension become available for other authorized expenditures in the Act for Executive Departments, except for personal services.
Section 6 requires that if authorized positions are transferred between programs, corresponding personal services amounts are deemed transferred without increasing total outlay for personal services.
Section 6 limits augmentation again: no item may be augmented by more than 30% pursuant to this section.
Section 6 requires the Auditor General and the Commissioner of the Budget to report separately to Congress within 30 days any suspension or transfer made during the previous quarter and to furnish copies to each member of Congress.

Budget execution rules and personnel-related effects

Section 7 provides that failure of the Auditor General or the Commissioner of the Budget to make required reports within the specified period causes automatic suspension of their salaries until compliance.
Section 8 allows appropriations to be used to pay “excess of actual salary” to the incumbent of a position who is actually receiving that excess as part of the salary granted upon appointment before reduction of basic pay to the amount provided.
Section 8 allows the “excess of actual salary” to a successor if the predecessor’s position was vacated and the successor has previously received an equal salary plus the excess in the same or any other branch of government service.
Section 9 restricts purchases of equipment, supplies and materials to locally manufactured items except when none is available in the market or when local prices exceed those determined by the Flag Law by 10%.
Section 10 prohibits using appropriations for Executive Apartments to rent automobiles, jitneys, or trucks on a monthly basis or on a daily basis for a continuous period exceeding 15 days.
Section 11 prohibits use of appropriations for purchase of motor vehicles unless specifically provided in the Act.

Government motor transportation entitlements and controls

Section 12 grants government motor transportation chargeable against appropriations authorized in the Act to the listed senior officials and named offices, including top executive leadership, presiding officers and committee chairmen, the Supreme Court leadership, the Auditor General, designated ambassadors/ministers/consuls abroad, and major Armed Forces command officers.
Section 13 grants commutable transportation allowance at fixed monthly rates to specifically enumerated officials and personnel, including:
- PHP 250 per month for Department Secretaries and a listed set of officials;
- PHP 200 per month for Undersecretaries and officials with the same rank and other enumerated officials;
- PHP 100 per month for certain directors, chiefs, bureau and office officials, and the Sergeant-at-Arms of the House of Representatives.
Section 14 prohibits any bureau or office from using, operating, or maintaining government service cars/jeeps/station wagons/vans/service trucks/pickup trucks/launches/speedboats/motorcycles/etc. from appropriations authorized in the Act except for the enumerated offices and specific functional uses listed.
Section 16 requires that official use of government motor vehicles by bureaus and offices under section fourteen must be authorized only through a serially numbered ticket, duly signed by the chief or administrative officer, for each trip.
Section 16 requires strict official use, government plates only, and storage in the authorized garage after office hours except when used strictly for official business outside office hours.
Section 17 prohibits officials and employees (except the President) authorized to use a vehicle from using more than one such motor vehicle, and allows the Vice-President, President of the Senate, and Speaker of the House of Representatives to use two motor vehicles each.
Section 17 prohibits any official who has been furnished motor transportation allowance by any government corporation or any other official from using motor vehicle transportation operated and maintained in funds appropriated under this Act.
Section 17 empowers the Auditor General to issue rules and regulations for proper implementation and enforcement of Sections 13, 14 and 16.
Section 18 requires that motor vehicles owned or assigned to National Government departments, bureaus, offices, and branches that are not needed for the purposes enumerated in Sections 12 and 14 shall be disposed of at public auction by the highest bidder, with sale announced in a newspaper of general circulation at least 10 days before the sale.
Section 18 requires giving the former user preference if he offers and pays a price equal to the highest bid by others.

Other execution limits, cash handling, and allowances

Section 15 authorizes heads of departments and certain officials to receive representation allowance at a rate of not exceeding PHP 250 per month and authorizes certain undersecretaries and other officials to receive representation allowance at a rate of not exceeding PHP 200 per month, commutable monthly.
Section 15 requires representation allowance to be paid out of savings in the appropriations for the respective departments and offices.
Section 19 prohibits the use of any funds or appropriations by covered agencies to pay salary or wages of any officer or employee who:
- engages in a strike against the Government of the Republic of the Philippines; or
- is a member of an organization that asserts the right to strike against the Government; or
- advocates, or is a member of an organization that advocates, overthrow of the Government by force or violence.
Section 19 allows an affidavit to serve as sufficient evidence that the person making the affidavit has not, contrary to the section, engaged in a strike, and is not a member of an organization asserting the right to strike against the Government by force or violence.
Section 20 limits per diems outside the Philippines to PHP 50 maximum for any official or employee.
Section 21 prohibits transfer of savings from personal services under the general fund and the special/revolving/trust/depository and other funds to the Government Service Insurance System, notwithstanding Republic Act No. 660, as amended.
Section 22 requires that where appropriations pay premiums covering insurance of government buildings with the Property Insurance Fund, reinsurance shall be equitably distributed among private insurance companies doing business in the Philippines that meet citizenship ownership criteria: at least 60% of the capital stock owned by citizens of the Philippines, on uniform terms, conditions and premium rates.
Section 23 authorizes the Commissioner of the Budget to harmonize appropriation structure with new terminology of classification of accounts prescribed by law or regulations, without increasing or decreasing aggregate sums appropriated for affected objects and requires submission of a report to Congress before the beginning of each session.

Special funding rules and disbursement controls

Section 25 states that except as otherwise provided, no unallotted balance of special, revolving, and trust funds and receipts automatically appropriated is available for expenditure.
Section 25 requires that no expenditure be incurred nor disbursement made from such funds and receipts automatically appropriated that will exceed at any one time either the fund itself or the cash in the National Treasury pertaining to the fund.
Section 25 authorizes an exception: if the President determines the exigency of the service requires it and sufficient income or receipts are expected to accrue to cover the expenditure or disbursement, the necessary amount may be advanced from the general fund.
Section 26 continues appropriations in this Act for activities heretofore financed from receipts of the Philippine Charity Sweepstakes Fund as charged against that Fund.
Section 26 requires the Board of Directors of the Philippine Charity Sweepstakes to allot the amount in distributing the Philippine Charity Sweepstakes Fund.
Section 27 requires that to ensure immediate collection of income due for services rendered or sale of commodities/articles produced or manufactured, no service shall be rendered and no sale shall be made except on a cash basis in government transactions with private parties.
Section 27 imposes personal liability: any official or employee who allows service on account or sale on account is personally liable, and the act is sufficient ground for removal from office.
Section 28 requires monthly remittance to the Government Service Insurance System of premiums for life and retirement insurance of employees of the National Government and its instrumentalities as they become due and are collected.
Section 29 limits the maximum number of permanent positions in a bureau or office to the number of permanent positions included in the budget document schedules, except as otherwise provided by law.

Government vehicles and employee position limits

Section 30 deems appropriations for agencies reorganized in accordance with approved reorganization plans as appropriated for agencies as reorganized upon approval and promulgation of Reorganization Implementation Reports by the President.
Section 30 authorizes the Commissioner of the Budget to make necessary appropriation adjustments to carry out reorganized agency funding.
Section 30 authorizes department heads, with approval of the Commissioner of the Budget, to make salary adjustments so that no incumbent receives a reduction in salary, to adjust salaries resulting from new personnel selection for staffing patterns, and to adjust for interim changes due to appointments, promotions or salary increases.
Section 30 authorizes adjustments to correct mistakes, discriminations, or injustices in the preparation of staffing patterns, and allows giving due course to authorized but not yet reflected staffing pattern changes by adjusting corresponding appropriations.
Section 30 provides that nothing in the Act repeals or modifies the approved reorganization plans under Republic Act No. 997, as amended.

Reclassification and fund release priorities

Section 31 provides that change of designation of any position authorized in the Act due to classification under the WAPCO Plan shall not affect incumbent tenure, shall not constitute demotion in rank or salary, and shall not result in change of status or assignment.
Section 31 treats incumbents as appointed in that position and class, and provides that any change in designation in the Act shall not affect status or tenure.
Section 32 imposes a release condition for appropriations marked “B”: the Commissioner of the Budget shall not release funds to implement the items unless the Commissioner finds that actual income of the General Fund at any time is in excess of the amount required to fund indispensable services covered under items of appropriations not marked “B.”
Section 32 allows withdrawal of any balance of such releases at any time to avoid deficit in the General Fund.
Section 32 requires release order substantially following the priority sequence: Social development, Economic development, General government, and National defense.

Appropriation administration, audits, and congressional oversight

Section 24 authorizes the Committee on Finance of the Senate and the Committee on Appropriations of the House of Representatives to look into matters relating to public expenditures at any time, covering:
- funds for expenditures of the National Government and payment of public indebtedness;
- auditing of accounts and expenditures of the National Government, including government-owned or controlled corporations;
- claims against the Government; and
- generally all matters relating to public expenditures.
Section 24 preserves each member of Congress’s right to request that the committee look into matters referred to the section either as committee members or as members of Congress.
Section 27 requires cash-basis government transactions with private parties and creates removal consequences for officials or employees who permit sales or services on account.

Strike-related salary prohibition and evidentiary rule

Section 19 imposes a salary and wage payment prohibition for covered agencies against any person who meets the defined strike/advocacy/membership conditions.
Section 19 allows affidavits as sufficient evidence for compliance with the prohibition when the affidavit-maker asserts non-involvement as defined in the section.

Miscellaneous fiscal and accounting rules

Section 21 bars the transfer of savings from personal services to the Government Service Insurance System.
Section 23 requires harmonization of appropriation structure with account classification terminology without changing aggregate sums and mandates a congressional report before each session.
Section 27 establishes cash-basis government-private party transactions as a condition for services and sales, with personal liability and removal ground for violations.

Policy and purpose

Section 1 appropriates funds for the operation of the national government for the period July 1, 1960 to June 30, 1961 and authorizes “other purposes” through the Act’s General Provisions governing execution of appropriations.
Sections 2 through 32 implement operational guardrails on personnel effects, budget execution, vehicle use, disbursement limits, cash transaction rules, and congressional reporting to ensure lawful use and control of public funds.