Executive Order No. 292 [BOOK VI/Chapter 1-General Provisions]


National Government Budgeting


General Provisions

SECTION 1. Constitutional Policies on the Budget.—(1) All appropriations, revenue or tariff bills, bills authorizing increase of the public debt, bills of local application, and private bills shall originate exclusively in the House of Representatives but the Senate may propose or concur with amendments.

(2) The Congress may not increase the appropriations recommended by the President for the operation of the Government as specified in the budget. The form, content and manner of preparation of the budget shall be prescribed by law.

(3) No provision or enactment shall be embraced in the general appropriations bill unless it relates specifically to some particular appropriation to which it relates.

(4) The procedures in approving appropriations for the Congress shall strictly follow the procedure for approving appropriations for other departments and agencies.

(5) A special appropriations bill shall specify the purpose for which it is intended, and shall be supported by funds actually available as certified by the National Treasurer or to be raised by a corresponding revenue proposal therein.

(6) No law shall be passed authorizing any transfer of appropriations. However, the President, the President of the Senate, the Speaker of the House of Representatives, the Chief Justice of the Supreme Court and the heads of Constitutional Commissions may, by law, be authorized to augment any item in the general appropriations laws for their respective offices from savings in other items of their respective appropriations.

(7) Discretionary funds appropriated for particular official shall be disbursed only for public purposes to be supported by appropriate vouchers and subject to such guidelines as may be prescribed by law.

(8) If, by the end of any fiscal year, the Congress shall have failed to pass the general appropriations bill for the ensuing fiscal year, the general appropriations law for the preceding fiscal year shall be deemed reenacted and shall remain in force and effect until the general appropriations bill is passed by the Congress.

(9) Fiscal autonomy shall be enjoyed by the Judiciary, Constitutional Commissions, Office of the Ombudsman, Local Government and Commission on Human Rights.

SECTION 2. Definition of Terms.—When used in this Book:

(1) “Appropriation” refers to an authorization made by law or other legislative enactment, directing payment out of government funds under specified conditions or for specified purposes.

(2) “Allotment” refers to an authorization issued by the Department of the Budget to an agency, which allows it to incur obligations for specified amounts contained in a legislative appropriation.

(3) “Budget” refers to a financial plan required to be prepared pursuant to Section 16(1), Article VIII of the Constitution, reflective of national objectives, strategies and programs.

(4) “Current operating expenditures” refers to appropriations for the purchase of goods and services for current consumption or for benefits expected to terminate within the fiscal year.

(5) “Capital outlay” or “capital expenditures” refers to an appropriation for the purchase of goods and services, the benefits of which extend beyond the fiscal year and which add to the assets of the Government, including investments in the capital of government-owned or controlled corporations and their subsidiaries.

(6) “Continuing appropriation” refers to an appropriation available to support obligations for a specified purpose or project, even when these obligations are incurred beyond the budget year.

(7) “Expected result” means service, product, or benefit that will accrue to the public, estimated in terms of performance measures or targets.

(8) “Fiscal year” refers to the period beginning with the first day of January and ending with the thirty-first day of December of each calendar year.

(9) The “Government” means the National Government, including the Executive, the Legislative and the Judicial Branches, and the Constitutional Commissions.

(10) “Department and agency” and “department or agency” include all departments, bureaus, offices, boards, commissions, courts, tribunals, councils, authorities, administrations, centers, institutes, state colleges and universities, and all other establishments and instrumentalities of the National Government as defined in the preceding paragraph.

(11) “Obligation” refers to an amount committed to be paid by the Government for any lawful act made by an authorized officer for and in behalf of the government.

(12) “Program” refers to the functions and activities necessary for the performance of a major purpose for which a government agency is established.

(13) “Project” means a component of a program covering a homogenous group of activities that results in the accomplishment of an identifiable output.

Executive Order No. 292