Preparation and Contents of the Infrastructure Program
- The NEDA Committee on Infrastructure prepares the annual program by October 15.
- The Cabinet Standing Committee reviews and submits recommendations to the President by November 15.
- The Minister of the Budget releases obligational authority and CDC within three weeks after presidential approval.
- The program and fund release documents specify quarterly cash requirements per project based on work schedules.
- Determination involves MPW, MPH, or MTC, their planning and finance officers, NEDA, Treasury, and Budget Ministry coordination.
- Lump sum allocations cover accounts payable for prior years, revalidation of lapsed CDC, and unused allotments.
- Charges to lump sums are reviewed by the Cabinet Standing Committee based on comprehensive lists by the respective ministries.
Fund Release Schedule
- Minister of the Budget may release in advance funds for preliminary engineering and up to 5% of the year’s CDC for new projects.
- These advance releases are charged to the preceding year's infrastructure program.
- Ministries must issue sub-CDCs to regional and district offices within specified time frames to facilitate prompt payments.
- Copies of CDC releases must be sent to regional/district offices, Assemblymen, and Governors for monitoring.
- The Minister of the Budget shall adjust releases to ensure compliance with foreign-assisted project funding.
Validity Period of CDC
- CDC validity extends through all succeeding quarters in the calendar year.
- Unused CDC as of December 31 automatically extends to the first quarter of the subsequent year, but only for accounts payable.
- Disbursements must adhere to quarterly CDC amounts plus carried over unused CDC for each project.
- Specific provisions extend some CDCs (e.g., irrigation and flood control works) until June 30 of the next year.
Use of CDC
- CDCs are project-specific and cover current obligations and accounts payable based on the approved program.
- Use of new-obligation CDC for prior year accounts payable requires Budget Minister approval.
- Realignment of CDCs within ministry ceilings may be approved quarterly by the Cabinet Standing Committee.
- Year-end CDCs for accounts payable require creditor lists identified by project with payment limits tied to initial obligational authority.
- Retentions for defects/damages require CDCs justified by creditor lists.
- Expired CDCs may be revalidated if used for accounts payable against lump sum CDCs.
- Equipment rental fees are deducted from project CDCs and remitted to the Bureau of Equipment and the National Treasury.
- Up to 5% of CDC may cover direct engineering expenses strictly related to the project implementation.
- Engineering expenses exclude overhead or general agency costs and must be reflected in project work plans.
Reversion of Appropriations
- Commission on Audit reviews infrastructure program accomplishments annually.
- Unused obligational authority releases must revert to the General Fund.
- Accounts payable must be classified between work completed and contracts for work scheduled post year-end.
Monitoring of Project Implementation
- Local government units, community organizations, and farmer-based associations monitor government projects to ensure effective fund and property utilization.
- National Treasury records payments per project and reports to the Minister of Finance, Budget Minister, and implementing ministries.
Application to Other Capital Outlays
- Government capital outlays, other than those under MPW, MPH, and MTC, must follow applicable provisions relating to infrastructure projects.
Current Operating Expenditures
- Salaries of permanent positions listed in the current year's Personal Services Itemization may be paid without CDC.
- CDCs issued for operating expenses from the first to the third quarter automatically carry over and lapse only at year-end.
- Fourth quarter CDCs lapse at the end of the first quarter of the next year; unused amounts may pay outstanding accounts payable from the budget year.
- Outstanding accounts payable not paid during the fourth quarter are subject to CDC issuance upon creditor list submission.
- Bureau of Internal Revenue may withdraw Treasury funds without CDC for refunding excess withholding or income taxes related to government contractors.
Concluding Provisions
- Letter of Instructions No. 362 (May 22, 1979) is revoked.
- These instructions apply starting with the CDC for the fourth quarter of 1979 but are immediately effective otherwise.
- The Minister of the Budget is tasked with issuing implementing rules and regulations.