Title
Appropriation of Central Bank Excess Reserves
Law
Republic Act No. 266
Decision Date
Jun 15, 1948
Republic Act No. 266, enacted in 1948, grants the President of the Philippines the authority to issue bonds and use excess monetary reserves for various purposes, including covering government obligations, constructing irrigation projects, and acquiring private lands for government use.
A

Appropriation and Authorized Uses of Released Funds

  • The funds transferred to the National Treasury are appropriated for specific governmental uses only.
  • These include covering deficits from prior appropriations related to recognized government financial obligations.
  • Rehabilitation and construction of irrigation projects are authorized uses.
  • Funds may be used for expropriation payments related to new capitol site acquisition and development, including construction of public buildings approved by the Capitol and Public Buildings Commission.
  • Development of water power and related industrial enterprises is included.
  • Financing the purchase and resale of agricultural or residential lands aimed at benefiting actual occupants or tenants.
  • Promoting industrial expansion or establishing new industries vital for national economic development.
  • Supporting resettlement initiatives similar to those by the National Land Settlement Administration.
  • Providing advances to the Rehabilitation Finance Corporation for rehabilitation and development loans.
  • Financing construction of housing specifically for laborers and low-income workers.

Presidential Reporting Obligations to Congress

  • The President is required to submit a detailed report to Congress each regular session.
  • This report must account for the amounts paid by the Central Bank into the National Treasury under this Act.
  • It must also specify the allocation of these funds to the enumerated purposes outlined in Section 2.
  • The reporting timeline is within ten days after the start of each regular session of Congress.

Effectivity Clause

  • The Act took effect immediately upon its approval on June 15, 1948.
  • Compliance with these provisions began from the date of effectivity allowing operationalization of the fund transfers and appropriations.

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