Protection of Classified Civil Service Personnel
- Adoption of the performance budget system shall not lead to layoffs, salary reductions, demotions, or status changes of classified personnel except for legal cause.
Use of Savings to Cover Departmental Deficits
- Savings in personal services, maintenance, and equipment within executive departments may cover deficits in other regular appropriations within the same department.
- Transfers of personal services appropriations accompany authorized position transfers without increasing total personal services expenditure.
- No item appropriation can be augmented by more than 30%.
Quarterly Reporting to Congress
- Auditor General and Commissioner of the Budget must submit quarterly reports on appropriation transfers detailing items and amounts.
- Heads of bureaus/offices using performance budgeting must submit quarterly accomplishment reports.
Authorized Use of Savings for Specific Purposes
- The President may use savings for settling claims and obligations such as:
- Claims for death or injury of personnel in line of duty.
- Commutation of leave for certain officers and employees.
- Replacement of equipment lost or damaged.
- Payment of salaries for exonerated suspended employees.
- Salaries for national officials in new cities/provinces.
- Government contributions to insurance premiums for specific periods.
- Commutation of sick/vacation leave and other compensations.
- Purchase/rental of accounting machines.
- Payment of unpaid claims and gratuities under various laws.
- Support for rural improvement and health programs.
- Includes detailed authorized expenditures under subsections (1) to (25).
Suspension and Transfer of Appropriations by the President
- The President may suspend or stop expenditures for any item except salaries with incumbents.
- Suspended funds become available for other authorized expenditures excluding personal services.
- Transfers of salaries follow position reassignments without increasing total personnel expenditure.
- Transfers or suspensions capped at 30% augmentation.
- Quarterly reporting of such actions to Congress required.
Sanctions for Failure to Report Appropriation Transfers
- Failure by Auditor General or Commissioner of Budget to report timely results in suspension of their salaries until compliance.
Payment of Excess Actual Salaries
- Appropriations cover excess salaries for incumbents receiving higher pay at appointment before basic pay reduction.
- Successors may continue to receive excess salaries if previously entitled.
Preference for Locally Manufactured Purchases
- Equipment, parts, accessories, supplies, and materials purchased must be locally manufactured unless unavailable or exceeding local price limits by more than 10%.
Limitations on Vehicle Rentals
- No appropriations may be used for renting automobiles, jitneys, or trucks continuously for more than 15 days.
Restrictions on Motor Vehicle Purchases
- Purchases of motor vehicles prohibited unless specifically provided.
Officials Entitled to Government Motor Transportation
- Lists high-ranking officials and key government officers entitled to government motor vehicle use charged to appropriations.
Officials Entitled to Transportation Allowance
- Various high-ranking officials granted monthly commutable transportation allowances ranging from 100 to 250 pesos depending on rank.
Government Motor Vehicle Use and Maintenance
- Only specified bureaus and offices may use government vehicles for official business.
- Vehicles must be used with authorized tickets and kept in garages except when on official business outside office hours.
Restrictions on Use of Multiple Vehicles
- No official except the President may use more than one government vehicle; Vice-President, Senate President, and House Speaker may use two.
- Officials with motor transportation allowance from other sources may not use government-funded vehicles.
Disposal of Excess Government Vehicles
- Unneeded government vehicles shall be auctioned to the highest bidder with preference to former users paying equal highest bid.
Prohibition on Payment to Striking Employees
- Salaries/wages shall not be paid to officials/employees who strike against the government or belong to organizations asserting strike rights against government.
- Affidavit by employees considered sufficient evidence of compliance.
Limit on Per Diems for Foreign Travel
- Per diem for officials/employees traveling outside the Philippines capped at 50 pesos.
Prohibition on Transferring Salary Savings to GSIS
- Savings from personal services appropriations shall not be transferred to the Government Service Insurance System.
Reinsurance of Government Buildings
- Government building insurance reinsurance to be fairly distributed among Filipino-owned private insurance companies.
Harmonization of Appropriation Structure
- The Commissioner of the Budget may harmonize appropriation terminology with new classification laws/regulations without changing total amounts.
- Report on harmonization must be submitted to Congress prior to each session.
Congressional Oversight on Public Expenditures
- Senate Finance Committee and House Appropriations Committee authorized to investigate all matters relating to public funds and expenditures anytime.
- Members of Congress may request such investigations individually.
Control on Special Fund Expenditures
- Unallotted balances of special, revolving, and trust funds unavailable for expenditure except upon presidential determination when exigent and income expected to cover.
Appropriations Charged Against Philippine Charity Sweepstakes Fund
- Appropriations for activities previously funded by Sweepstakes Fund to continue charged thereto.
Cash Basis for Government Sales to Private Parties
- Government services/commodities shall only be sold on cash basis to private parties.
- Officials/employees authorizing credit sales held personally liable and subject to removal.
- Does not apply to government corporations or regular government employees.
Mandatory Remittance of Insurance Premiums
- Government insurance premiums for life and retirement to be remitted monthly as due to GSIS.
Limit on Permanent Positions
- Maximum permanent positions in bureaus/offices shall not exceed numbers in budget schedules unless otherwise provided by law.
Appropriations for Reorganized Agencies
- Appropriations deemed applicable to reorganized agencies per approved plans.
- Commissioner of Budget authorized to adjust appropriations and salaries to prevent salary reductions and correct staffing.
- Existing reorganization laws remain unaffected.
Change of Position Designation
- Changes in position designation due to reclassification do not affect incumbent's tenure, rank, salary, or status.
Priority in Release of Appropriations Marked "B"
- Release dependent on excess actual general fund income beyond indispensable import needs.
- Priorities for fund release are social development, economic development, general government, then national defense.
Effective Date
- The Act takes effect on July 1, 1960, except where otherwise noted.