Authorization to Pay Salaries Outside Prescribed Rates
- Incumbent employees may receive salaries not conforming to Commonwealth Act No. 402 rates.
- New appointments must conform to rates prescribed by the said Act.
Protection of Personnel Under Performance Budget
- Adoption of performance budgeting shall not cause layoffs except for cause under the law.
- No reduction of salaries, demotion, or change of status for classified civil service employees.
Inclusion of Plantillas of Personnel
- Appendix of personnel plantilla for various bureaus and offices made part of the Act.
Use of Savings to Cover Deficits
- Savings from personal services, maintenance, and equipment within executive departments may cover deficits in other items within the same department with Presidential approval.
- Transfers must not increase total personal services outlay.
- Augmentation limited to 40% of the original appropriation for any item.
Quarterly Reporting to Congress
- Auditor General and Budget Commissioner to submit quarterly reports on appropriation transfers, specifying items and amounts.
- Heads of bureaus/offices to report quarterly on performance accomplishments.
Use of Savings for Settling Obligations
- President authorized to use savings to settle various government obligations including claims, leaves, furniture replacement, salaries for exonerated employees, insurance premiums, and others as enumerated.
- Includes payments for maternity leave commutations, additional compensations, insurance purchases, and pre-war obligations.
Suspension of Appropriation Expenditures
- President may suspend expenditure of funds for executive departments, except salaries of incumbents.
- Suspended funds become available for other authorized expenditures.
- Transfers must not increase total personal services costs and are capped at 40% augmentation.
- Quarterly report required to Congress on such suspensions or transfers.
Penalty for Non-Compliance with Reporting
- Auditor General and Budget Commissioner’s salary suspended automatically for failure to report appropriation suspensions or transfers within 30 days.
Payment of Excess Actual Salaries
- Appropriations may cover excess salaries paid before basic pay reductions.
- Successors inheriting such salaries are also entitled to the excess.
Preference for Locally Manufactured Goods
- Purchases from appropriations must be for locally made furniture, equipment, and supplies unless unavailable or more expensive beyond 10% threshold.
Prohibitions on Vehicle Rentals and Purchases
- Renting motor vehicles on a monthly basis or continuously beyond 15 days is prohibited.
- Appropriations not to be used for the purchase of motor vehicles unless specifically provided.
Officials Entitled to Government Motor Transportation
- Enumerates high-ranking officials entitled to government motor vehicles, including executive and legislative leaders, justices, military chiefs, and diplomats.
Transportation Allowance for Certain Officials
- Specified Department Heads and other officials granted fixed monthly transportation allowances.
- Allowances vary by rank and position and are chargeable to respective office appropriations.
Authorized Bureaus and Offices to Operate Government Vehicles
- Lists bureaus and offices authorized to maintain and operate government motor vehicles for official purposes.
- Specifies purposes such as national security, public health, inspections, and law enforcement.
Payment of Representation Allowance from Savings
- Heads of Departments, Cabinet members, and Auditor General granted representation allowances payable out of departmental savings.
Strict Regulation of Government Vehicle Use
- Government vehicles require trip tickets signed by bureau chiefs.
- Vehicles used only for official business with government plates and kept in bureau garages after hours.
Limits on Use of Multiple Government Vehicles
- No official (except President) may use more than one government vehicle; certain high officials allowed two.
- Officials with government corporation vehicles cannot use vehicles funded by this Act.
Disposal of Unused Government Vehicles
- Unneeded government vehicles to be auctioned publicly with preference to former users matching highest bid.
Prohibition Against Paying Salaries of Striking Employees
- Funds may not pay officers or employees on strike against the Government or members of organizations asserting strike rights or advocating government overthrow.
- Affidavit required as proof of compliance.
Per Diem Limit for Foreign Travel
- Per diem for officials and employees traveling abroad capped at fifty pesos.
Prohibition on Transfer of Salary Savings to GSIS
- Savings from personal services may not be transferred to the Government Service Insurance System.
Distribution of Government Building Reinsurance
- Reinsurance of government buildings to be equitably distributed among private Philippine insurance companies majority-owned by Filipinos.
Restriction on Transfer of Department of National Defense Appropriations
- Defense funds cannot be transferred to other Executive Departments despite general transfer authority.
Harmonization of Appropriation Structure
- Budget Commissioner can harmonize appropriation classifications with new account terminology without altering total appropriations.
Congressional Oversight of Expenditures
- Senate Finance and House Appropriations Committees authorized to review all government expenditures, including government-owned corporations.
- Individual Congress members may also request reviews.
Restrictions on Spending from Special Funds
- Spending from special, revolving, trust and automatically appropriated funds limited to the funds available unless exigent service and expected income justify advances.
Appropriations Charged to Philippine Charity Sweepstakes Fund
- Activities previously financed by Philippine Charity Sweepstakes Fund to continue charged thereto with allocation by its Board of Directors.
Immediate Payment Policy for Government Sales
- No government goods/services to be sold or rendered on credit to private parties.
- Violation results in personal liability and possible removal from office.
- Does not apply to government-owned corporations or regular government employees.
Mandatory Remittance of GSIS Premiums
- Life and retirement insurance premiums to be remitted monthly by government employees and instrumentalities to GSIS.
Authority to Change Position Designations and Assignments
- Bureau/office heads may change position designations and assignments as necessary, provided no demotion or salary reduction results.
- Changes subject to Civil Service Commissioner approval.
Limits on Number of Permanent Positions
- Maximum permanent positions in a bureau/office not to exceed the numbers listed in the budget schedules.
Appropriation and Salary Adjustments for Reorganized Agencies
- Appropriations follow agencies as reorganized per approved plans.
- Commissioner of the Budget authorized to adjust appropriations and salaries to prevent salary reductions or injustice.
- Does not repeal or modify approved reorganization plans.
Limitation on Special Details of Officials and Employees
- Salaries only payable to employees performing assigned duties at designated places.
- Special assignments limited to 180 days and cannot be renewed.
- Officials permitting improper salary payments must refund amounts paid.
Effective Date
- The Act takes effect July 1, 1957, except where otherwise provided.