Title
Provincial budget autonomy and limits
Law
Republic Act No. 1063
Decision Date
Jun 12, 1954
Republic Act No. 1063 grants provincial boards greater autonomy in preparing provincial budgets, including the submission of detailed statements of receipts and expenditures, appropriations, and the ability to appeal budget decisions to the Secretary of Finance.
A

Annual Provincial Budget Approval and Effectivity

  • Upon receiving the budget, the provincial board details appropriations based on estimated income.
  • The annual budget consists of the previous year’s receipts and expenditures statement plus current year estimates and appropriations.
  • Budget appropriation not exceeding estimated receipts (after provisions for statutory/contractual obligations) takes effect on the fixed date.
  • If appropriation exceeds estimated receipts, approval by Secretary of Finance is required.
  • If Secretary of Finance does not act within 60 days, the budget takes effect.
  • Failure of provincial board to enact a budget results in reenactment of the prior year's budget until a new one is approved.
  • Supplemental budgets may be made during the year with no changes to health appropriations without consultation with the chief of the sanitary division.

Appeal Process for Heads of Offices

  • Heads of offices dissatisfied with the provincial board's budget approval may appeal to the Secretary of Finance within 10 days after notification.
  • Appeal must specify disputed budget portions and grounds for objections.
  • Secretary of Finance must decide the appeal within 30 days of notice.

Limitations on Salary and Wage Expenditures

  • Maximum salary and wage expenditures during a fiscal year are capped as a percentage of the ordinary and regular income from the preceding fiscal year, excluding carried over balances, transfers, and receipts from loans or aids:
    • First class A provinces: 40%
    • First class B provinces: 45%
    • First and second class provinces: 50%
    • Third class provinces: 55%
    • Fourth class provinces: 60%
    • Fifth class provinces: 70%
  • The President may authorize any province to exceed these percentages on the Department of Finance's recommendation under specified conditions.

Repeal and Effectivity

  • Conflicting laws and executive orders are repealed.
  • The Act takes effect immediately upon approval.

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