Legal basis and amended provision
- Republic Act No. 11640 amends Section 62 of the General Appropriations Act of 2021, Republic Act No. 11518 (Section 1).
- The amendment extends the validity of certain 2021 appropriations under the cash budgeting system regime in Section 62 (Section 1).
- The reversion rule for lapsing appropriations and reverting funds is anchored on Section 28, Chapter 4, Book VI of E.O. No. 292 (Section 1).
Purpose: extend appropriations availability
- Republic Act No. 11640 extends the availability of appropriations authorized in Republic Act No. 11518 for cash release, obligation, and, where allowed, disbursement, to December 31, 2022 (Section 1).
Cash budgeting system validity periods
- Appropriations authorized in Republic Act No. 11518, including budgetary support to GOCCs and financial assistance to LGUs, are available for release and obligation for the purpose specified and under the same general and special provisions applicable, until December 31, 2022 (Section 1).
- Personnel services are available for release, obligation and disbursement until December 31, 2021 (Section 1).
- Statutory shares of LGUs are available for release, obligation and disbursement until appropriations are fully utilized and funds fully disbursed (Section 1).
- The law requires that contribution of infrastructure projects, delivery of goods and services, and inspection and payment must be completed not later than December 31, 2022 (Section 1).
Lapse, reversion, and fund control rules
- After the end of the validity period, all unreleased appropriations and unobligated allotments lapse (Section 1).
- Unexpected or undisbursed funds revert to the unappropriated surplus of the General Fund under Section 28, Chapter 4, Book VI of E.O. No. 292 (Section 1).
- Unexpected or undisbursed funds become unavailable for expenditure after reversion except by subsequent legislative enactment (Section 1).
- Departments, bureaus, and offices of the National Government including constitutional offices enjoying fiscal autonomy, SUCs, and GOCCs must strictly observe (a) the validity of appropriations and (b) the reversion of funds (Section 1).
Rules on obligated-but-not-used balances
- Except for transfers between LGUs, all balances of fund transfers between or among agencies, instrumentalities, GOCCs and LGUs that are obligated but not actually used, utilized, expended or disbursed to pay for completed construction, goods delivered, and services rendered, inspected and accepted as of December 31, 2022 must revert to the unappropriated surplus of the General Fund (Section 1).
DBM guidelines and required reporting
- The DBM is authorized to issue the necessary guidelines for effective implementation of the cash budgeting system (Section 1).
- A report on releases, obligations and disbursements must be submitted to the Speaker of the House of Representatives, the President of the Senate of the Philippines, and the House Committee on Finance, in printed form or by way of electronic document (Section 1).
Repealing and modification clause
- All laws, decrees, executive issuances, rules and regulations inconsistent with Republic Act No. 11640 are repealed or modified accordingly (Section 2).