Protection of Classified Civil Service Personnel
- Adoption of the Performance Budget system shall not lead to layoff of classified civil service personnel except for cause.
- No reduction in salaries, demotion in rank, or change of status due to budget system adoption.
Use of Savings to Cover Deficits Within Departments
- Savings in appropriations for personal services, maintenance, and equipment may be used to cover deficits in other items within the same Executive Department with Presidential approval.
- Transfers of authorized positions include transfer of corresponding personal services funds without increasing total personal services outlay.
- No augmentation by more than 30% of original appropriation per item.
Quarterly Reporting to Congress
- Auditor General and Commissioner of the Budget to submit quarterly reports on fund transfers covering deficits.
- Heads of bureaus/offices must submit quarterly accomplishment reports to members of Congress separately.
Authorization for Use of Savings for Specific Obligations
- President may use savings for settling claims related to work-related injury/death, leave commutation, equipment replacement, salaries of exonerated suspended employees, government shares in salaries for new cities/provinces, insurance system contributions, and various other specified purposes.
- Includes payments for salaries, gratuities, maternity commutation, rural improvements, salary adjustments, and assistance to certain provinces and institutions.
Suspension of Appropriations
- President may suspend or stop expenditure of any appropriation item for Executive Departments except salaries of incumbents.
- Suspended funds can be redirected to other authorized expenditures within the departments.
- Transfers of personal services follow position transfers without raising total personal services expenditure.
- Reporting to Congress on suspensions and transfers within 30 days is required.
Penalty for Failure to Report Appropriation Transfers
- Auditor General and Commissioner of the Budget’s salaries will be suspended automatically if they fail to submit required reports on fund transfers on time.
Payment of Excess Actual Salary
- Appropriations may cover excess actual salaries granted prior to basic pay reductions.
- Successors may also be entitled to excess if previously received.
Preference for Locally Manufactured Supplies
- Purchases of equipment, parts, accessories, supplies, and materials must be locally manufactured unless unavailable or overpriced beyond 10% compared to Flag Law prices.
Limitation on Vehicle Rentals
- Prohibits renting vehicles for more than 15 continuous days to avoid long-term rentals charged to appropriations.
Restriction on Motor Vehicle Purchases
- Prohibits use of appropriations for vehicle purchases unless specifically authorized.
Officials Entitled to Government Motor Transportation
- Enumerates top government officials and key legislative, judicial, diplomatic, and military officers entitled to government vehicles.
Officials Eligible for Transportation Allowance
- Specifies monthly commutable transportation allowance rates for various government officials and ranks.
Authorized Use of Government Motor Vehicles and Boats
- Lists specific bureaus and offices authorized to use and maintain government vehicles and launches exclusively for official purposes.
- Includes provisions for maintenance, inspections, public service, enforcement, research, and emergency and military operations.
Authorization to Pay Representation Allowance
- Heads of Departments, Cabinet members, and specified officials allowed representation allowances from savings within their respective appropriations.
Regulation of Government Vehicle Use
- Each trip by government vehicles requires an official trip ticket signed by a chief or administrative officer.
- Vehicles must be used strictly for official business and kept in designated garages after office hours.
Prohibition on Multiple Government Vehicle Usage
- Except for the President, no official or employee may use more than one government vehicle.
- Exceptions permitted for Vice-President, Senate President, and House Speaker (up to two vehicles each).
- Officials receiving vehicle allowances from government corporations cannot also use government vehicles funded by appropriations.
- Auditor General empowered to set rules on this.
Disposal of Unused Government Vehicles
- Vehicles not needed by bureaus/offices to be sold at public auction to highest bidder, with preference to former users matching the highest bid.
Prohibition Against Paying Salaries to Striking Employees
- Disallows use of government funds to pay officers or employees who engage in strikes against the government.
- Includes members of organizations asserting the right to strike or advocating overthrow by force.
- Affidavit evidence suffices to prove compliance.
Limits on Per Diem Payments Abroad
- Officials or employees traveling outside the Philippines shall not receive per diems exceeding fifty pesos.
Restriction on Transfer of Salary Savings to Insurance Fund
- Savings from personal services under various funds shall not be transferred to the Government Service Insurance System despite contrary provisions.
Equitable Distribution of Reinsurance Among Private Insurers
- Government building insurance reinsurance must be fairly distributed among private insurance companies meeting ownership criteria.
Harmonization of Appropriation Structure
- Commissioner of the Budget may harmonize appropriation structures with new account classifications without altering total appropriations.
- Report must be submitted to Congress before each session.
Congressional Oversight of Public Expenditures
- Senate Committee on Finance and House Committee on Appropriations authorized to investigate matters relating to public funds, expenditures, auditing, and claims.
- Members of Congress may request investigations independently or as committee members.
Management of Special Funds
- Unallotted balances of special, revolving, trust funds not available for expenditure unless the President deems exigency.
- Expenditures must not exceed fund or Treasury cash balances except under exigent circumstances with expected income coverage.
Appropriations Charged to Philippine Charity Sweepstakes Fund
- Activities previously financed from this Fund shall continue to be charged against it.
- The Board of Directors shall allot funds accordingly.
Cash Basis for Government Services and Sales
- Services or sales to private parties must be on cash basis; officials allowing credit are personally liable and subject to removal.
- Does not apply to transactions involving government-owned/controlled corporations or government employees.
Timely Remittance of Insurance Premiums
- Life and retirement insurance premiums due to the Government Service Insurance System must be remitted monthly as they are collected.
Limits on Number of Permanent Positions
- Maximum permanent positions in agencies shall not exceed those in the approved budget unless otherwise provided by law.
Appropriations and Salary Adjustments for Reorganized Agencies
- Appropriations for reorganized agencies deemed appropriated upon approval.
- Commissioner of the Budget and department heads may adjust appropriations and salaries to ensure no incumbent suffers reduction.
- Adjustments cover new appointments, promotions, and corrections.
- Act does not repeal nor modify approved reorganization plans.
Effects of Position Reclassification on Incumbents
- Changes in position designation under WAPCO classification do not affect incumbents’ tenure, rank, salary, or status.
Priority for Release of Funds Marked "B"
- Release dependent on actual General Fund income exceeding indispensable service needs.
- Priority of release: Social development, Economic development, General government, National defense.
Effective Date
- The Act takes effect July 1, 1960, except where otherwise provided.