Philippine National Budget System Act

"Budget" refers to the comprehensive financial plan required by the Constitution to be submitted by the President to Congress.
"Government" denotes the National Government distinct from local governments.
"Department and agency" includes all executive branch establishments.
"Current operating expenditures" cover annual expenses for goods and services, including typical office equipment.
"Capital outlays" are funds spent on assets with life expectancy extending beyond the fiscal year, excluding usual office equipment.
"Expected results" means the anticipated services or benefits provided to the public along with unit cost estimates.

A Budget Commission is created under the President's executive control.
Composed of a Budget Commissioner and Deputy appointed by the President with consent from the Commission on Appointments.
The Deputy performs duties as assigned and acts for the Commissioner when absent.

Preparation of the National Budget and appropriation proposals under Presidential policies.
Authority to assemble, revise, and harmonize appropriation requests across departments and agencies into a coherent executive program.
Conduct detailed studies of government departments to improve efficiency and economy, reporting findings to the President.
Department or agency cooperation is mandated, including providing necessary information; authorized access to records is granted for the Commission.
Development of statistical programs and enforcement of regulations for data gathering and dissemination.
Provide assistance and information to Congressional committees on revenue or appropriations upon request.

The President must submit the budget within fifteen days after Congress opens each regular session.
Supplemental or deficiency appropriations may be transmitted with explanations when necessary.
If supplemental appropriations aggregate to significant amounts, the President must make formal recommendations to Congress.

The budget contains two main parts: current operating expenditures and capital outlays.
Includes general fund, special funds, trust funds, and bond funds controlled by different agencies.
Appendices include proposed Appropriation Acts.
Accompanied by budgetary message, government function summaries, financial statements detailing expenditures, receipts, treasury condition, debts, and other fiscal data.

Any legislative changes to budget form require the President to submit explanatory notes and comparisons to Congress showing correspondence with prior budgets.

Heads of departments/agencies must submit appropriation requests by a prescribed deadline and regulation.
Estimates are divided into current operating expenditures and capital outlays, aligned by major functions and projects.
Supporting documents include personnel schedules and narrative explanations detailing work scope, significance, progress, and unit costs.

Legislative appropriation proposals must be approved by the head of the relevant department before submission to the Budget Commissioner or the President.
No proposals transmitted to Congress without Presidential approval.

Each department or agency head must appoint a Budget Officer responsible for preparing estimates and other budget-related tasks.

Ordinary income must primarily cover current government operations.
Except in emergencies declared by the President, appropriations for current operations cannot exceed ordinary income.
Estimated income should cover appropriations plus a reasonable surplus.
Proposals for appropriations not covered by current income must include revenue bills for new funding sources.
This provision does not limit Congress's power to enact revenue or appropriations bills or the President's authority to propose special measures post-budget submission.

Funds appropriated are available solely for specific purposes authorized and may not be diverted.

No expenditure may occur without an approved request for allotment submitted by department heads to the Budget Commissioner.
Allotments are generally quarterly but can be adjusted for practicality.
The Commissioner reviews, adjusts as needed, and promptly notifies agencies of approved allotments.
Total allotments must not exceed appropriations.
Quarterly reports must be submitted to the Commissioner detailing status and results.
Requests and allotments may be modified to reflect changing conditions.
Reductions in allotments may be made if anticipated revenues fall short, subject to Presidential approval and notification.
Records of allotments and related financial data are maintained and shared with relevant government officials and committees.

The Budget Commissioner may establish reserves from appropriations for contingencies and emergencies.
Reserves may be released as justified by changing conditions upon departmental request.

Disbursal and obligations require prior certification by the corresponding Chief Accountant confirming fund availability.

On lawful transfer of functions between agencies, available appropriations may also be transferred and merged into corresponding accounts with Presidential approval.

Funds cannot be used to pay salaries to officers or employees engaging in strikes against the Government or belonging to organizations asserting strike rights or advocating violent overthrow, based on the Secretary of Justice's opinion.
Affidavits can be used as proof of compliance with this prohibition.

Heads of departments and agencies must not incur expenditures beyond appropriated amounts.
Those responsible for overdrafts are personally liable.

Expenditures or obligations made in violation of the Act are void.
Persons authorizing or receiving such payments are liable to the Government jointly and severally.
Violation grounds removal and possible administrative action, with the President empowered to remove offending officers after due process.

Income collected by departments accrues to the National Treasury or authorized depositaries.
Except for special or trust funds, such income accrues to the unappropriated general fund.

Unused appropriations revert to the unappropriated general fund at fiscal year-end.
The Auditor General may transfer surplus balances upon certification by the responsible official.

Prior Budget Act (Commonwealth Act No. 246) and inconsistent laws and policies are repealed.

The Act takes full effect starting fiscal year 1956-1957, with partial implementation permitted in 1955-1956 where practicable.