Legal basis and reenacted provisions
- Section 1 authorizes appropriations “pending” the approval of the General Appropriation Act by using the various items of appropriations on the yearly basis authorized in Commonwealth Act No. 723, as amended, for government operation starting July 1, 1946.
- Section 2 amends specified items contained in Commonwealth Act No. 723 by revising their wording and amounts.
- Section 6 re-enacts and makes part of Republic Act No. 1 the provisions of Commonwealth Act No. 723, except Section 5(1) thereof, page 477, that are inconsistent with Republic Act No. 1.
Purpose and interim funding rule
- Section 1 appropriates funds to keep the Government of the Commonwealth of the Philippines operating beginning July 1, 1946.
- Section 1 covers the period until the General Appropriation Act for fiscal year 1946–1947 is approved.
- Section 1 provides that the appropriations are taken from any funds in the National Treasury not otherwise appropriated.
- Section 1 limits the appropriation base to the various Commonwealth Act No. 723 items on a yearly basis, as amended.
Appropriation for government operation (interim)
- Section 1 authorizes the appropriation of sums equal to the various items of appropriations on the yearly basis under Commonwealth Act No. 723, as amended.
- Section 1 ties availability to the government operation beginning July 1, 1946 and continuing until approval of the General Appropriation Act for fiscal year nineteen hundred and forty-seven.
Amendments to Commonwealth Act No. 723 items
- Section 2 amends specified items in Commonwealth Act No. 723 to read as follows:
- For Congress of the Philippines—Senate, the item “A (1)-IV-1, page 8” is amended for traveling and other expenses of Committees of the Senate when authorized by resolution for studies in and outside the Philippines, with an amount of 200,000.00.
- For Office of the President, the item “B-IV (13), page 36” is amended for expenses of the inauguration of the Republic of the Philippines on July fourth, nineteen hundred and forty-six, including transportation, accommodation, entertainment of official guests, and other incidental expenses, with an amount of 200,000.00.
- For Department of Health and Public Welfare, the item “L-I (4)-2, page 440” is amended (Director 7,200.00 Excess of actual salary) with an amount shown as 240.00.
- Section 2 also amends Contingent Funds—Item 1 for covering deficits in appropriations for the Executive Branch of the Government of the Commonwealth of the Philippines which the President may authorize, with an amount of 375,000.00.
Additional appropriations and conditions
- Section 3 appropriates additional sums, or so much thereof as may be necessary, for the purposes specified for the operation of the offices concerned in addition to the appropriation authorized in Commonwealth Act No. 723.
- Section 3 prohibits the use of Department of Justice appropriations items (a) and (b) for the People’s Court and the Office of Special Prosecutors for creating new positions or increasing the compensations authorized for existing positions.
- Section 3 provides that appropriations under Section 3 are available for payment of expenses incurred prior to July 1, 1946.
- Section 3 appropriates specific amounts for named offices, including P100,000.00 for Senate other services and P200,000.00 for House of Representatives other services, plus additional named appropriations across multiple departments and offices.
- Section 3 includes Department of Health and Public Welfare appropriations for relief and rehabilitation of indigent war victims not entitled to benefits under existing laws, including immediate relief to specified categories, with a total amount of P1,000,000.00, and conditions on use and implementation.
Specific named program appropriations
- Section 3 appropriates funds for the following among others:
- Office of the President: P200,000.00 for expenses of investigating committees or commissions as the President may authorize.
- Department of Foreign Affairs (Home Office): specific line items for salaries and wages, sundry expenses, travel expenses, communications services, illumination and power, other services and representation expenses as authorized by the President, consumption of supplies and materials, printing and binding, maintenance and repair of equipment, furniture and equipment, and special purposes, with a stated total for the Home Office of P3,000,000.00.
- Department of Foreign Affairs includes allocations for Embassy, Washington, D. C. and Consulates General in San Francisco, New York City, and Honolulu, and other diplomatic and consular establishments.
- Office of the President—Pensions and retirement: P300,000.00 for pensions to veterans of past Philippine revolutions or wars under Commonwealth Act No. 605, including operating expenses of the Board on Pensions for Veterans; and P300,000.00 for payment of retirement gratuities to officers and employees of the Office of the Resident Commissioner separated upon the establishment of the Government of the Republic of the Philippines on July 4, 1946, subject to Section 4(b).
- Department of the Interior: P24,000.00 for four delegates at P6,000 each; and P500,000.00 for restoration and maintenance of peace and order and other contingent expenses as authorized by the Secretary of the Interior with approval of the President.
- Department of Justice: P650,000.00 for the People’s Court operating expenses under Commonwealth Act No. 682; and P750,000.00 for the Office of Special Prosecutors operating expenses under Commonwealth Act No. 682.
- Department of Justice: P300,000.00 for organizing and operating liaison offices between specified U.S. military agencies and the Philippine Government to help veterans, widows, and orphans of Filipino citizens who served in the U.S. Armed Forces, and Filipino citizens with war-related losses/damages not exceeding P2,000, plus training of personnel for enforcement of claims.
- Department of Agriculture and Commerce: P1,000,000.00 for purchase and production of breeding animals for increased meat production; P500,000.00 for restocking breeding stations and stock farms; P150,000.00 for reconditioning, reestablishment, equipment, operation and maintenance of the Sisiman Quarantine Station and Slaughterhouse; and P600,000.00 for purchase of seeds and planting materials and propagation/distribution to increase agricultural production.
- Department of Labor: P250,000.00 for labor placement offices, including demobilized and unemployed groups enumerated in the Act, with first priorities in procurement of employment.
- Contingent Funds (bonuses): P38,000,000.00 for bonuses to employees embraced in Grades 10 to 5 and the first rate of Grade 4 of the present salary schedule, with rates by grade of P50, P45, P40, P35, P30, P25, and P15 respectively for the first rate of Grade 4.
Bonus mechanics and presidential control
- Contingent Funds in Section 3 authorizes bonuses for employees in Grades 10 to 5 and the first rate of Grade 4, with the following amounts by grade:
- Grade 10: P50
- Grade 9: P45
- Grade 8: P40
- Grade 7: P35
- Grade 6: P30
- Grade 5: P25
- First rate of Grade 4: P15
- The bonuses apply only to employees whose salaries correspond to the prescribed rates for the corresponding grade in which the said salary falls.
- The law mandates that no employee receiving salary other than any of the rates prescribed for the corresponding grade in which the salary falls shall be given less than the salary, including bonus, of another employee in the next lower rate.
- The law requires that bonuses to employees whose salaries are chargeable against special funds must be paid out of those special funds.
- The President may, at any time during the fiscal year nineteen hundred and forty-seven, order reduction of authorized bonus rates or suspend or stop payment whenever, in the President’s judgment, the public interest requires it.
- If there is a reduction, it must be general and must be uniform for similar rates of bonus.
Expenditure restrictions and Resident Commissioner rule
- Section 4(a) prohibits authorizing any expenditure from appropriations under Commonwealth Act No. 723 for specified items with amounts shown as:
- Item 5, page 35: P5,265
- Item 8, page 35: P160,095
- Item 10, page 35: P75,000
- Item 12, page 36: P22,500
- Item 18, page 40: P37,500
- Item 16, page 101: P17,310
- Item 7, page 238: P18,750
- Item 2, page 444: P7,035
- Item 4, page 445: P60,000
- Item 2, page 470: P5,000,000
- Item 2, page 475: P3,000,000
- Item 3, page 475: P10,000,000
- Section 4(b) limits appropriations for the Office of the Resident Commissioner of the Philippines to the United States: only so much as corresponds to a period of one month is available for further expenditure beyond June 30, 1946.
- Section 4(b) directs that any officer or employee of the Office of the Resident Commissioner who is not reemployed or reassigned by August 31, 1946 after July 31, 1946 is considered retired.
- For those considered retired, Section 4(b) provides payment of retirement gratuity chargeable to the appropriation authorized under Office of the President, item (d), Section 3 at one-half month’s pay for every year of continuous service, not exceeding six months.
- Section 4(b) requires return transportation to the Philippines in kind if availed of not later than December 31, 1946.
- Section 4(b) requires a refund if a person who received retirement gratuity is recalled to the service prior to expiration of the gratuity period, refunding the gratuity corresponding to the unexpired portion from the date of recall, regardless of whether accepted by the officer or employee.
Department of Health conditions for indigent relief
- Section 3 appropriates P1,000,000.00 for relief and rehabilitation of indigent widows, orphans, invalids, and other indigent war victims not entitled to benefits under existing laws.
- The appropriation includes immediate relief to indigent widows and orphans of specified categories, including those connected with the USAFFE, volunteer guards, “bolo” battalions, duly recognized guerrillas, and unrecognized guerrillas killed by the Japanese for guerrilla activities.
- The law requires that when the United States Veterans Administration begins payment of claims or allowances, the recipients must refund the amount of relief received from the proceeds of their claims against the United States Veterans Administration.
- The appropriation limits use: not more than P40,000 may be used for salaries and wages of new or additional social workers and other employees.
- The law requires that disposition of the appropriation must follow rules and regulations promulgated by the Secretary of Health and Public Welfare with approval of the President.