LESSON 6: EXECUTIVE ORDER

NO. 356 – RENAMING THE BUREAU

OF NON-FORMAL EDUCATION TO
BUREAU OF ALTERNATIVE
LEARNING SYSTEM
PREPARED BY:
FIGUEROA, JONALYN
PASTER, JHON CHRISTOPER B.
REYES, EUNICE
RAMOS, AN ZELRAD C.
 R.A. 9155, SECTION 2
“THE GOVERNANCE OF BASIC EDUCATION ACT
OF 2001”

• TO PROTECT AND PROMOTE THE RIGHT OF ALL CITIZENS TO QUALITY BASIC

EDUCATION AND TO PROMOTE THE RIGHT OF ALL CITIZENS TO QUALITY
BASIC EDUCATION AND SUCH EDUCATION ACCESSIBLE TO ALL BY
PROVIDING ALL FILIPINO CHILDREN IN THE ELEMENTARY LEVEL AND FREE
EDUCATION IN THE HIGH SCHOOL LEVEL. SUCH EDUCATION SHALL ALSO
INCLUDE ALTERNATIVE LEARNING SYSTEM FOR OUT-OF-SCHOOL YOUTH
AND ADULT LEARNERS.
SECTION 12.1 RULES XII OF R.A. 9155

• THE ALTERNATIVE LEARNING SYSTEM IS A PARALLEL LEARNING SYSTEM TO

PROVIDE A VIABLE ALTERNATIVE TO THE EXISTING FORMAL EDUCATION
INSTRUCTION, ENCOMPASSING BOTH THE NONFORMAL AND INFORMAL
SOURCES OF KNOWLEDGE AND SKILLS.
• THE DEPARTMENT OF EDUCATION, THROUGH THE BUREAU OF NONFORMAL
EDUCATION IS MANDATED TO ENSURE THAT ALL LEARNING NEEDS
MARGINALIZED LEARNERS ARE ADDRESSED;
• MOST IMPORTANT INITIATIVES IN NONFORMAL EDUCATION IN THE
PHILIPINES IN THE LAST 10 YEARS IS THE ALTERNATIVE LEARNING SYSTEM
(ALS)
GLORIA MACAPAGAL-ARROYO

SECTION1

• . THE BUREAU OF NONFORMAL EDUCATION IS HEREBY RENAMED TO

BUREAU OF ALTERNATIVE SYSTEM (ALS)
SECTION 2.
THE BUREAU OF ALTERNATIVE SYSTEM SHALL HAVE
THE FOLLOWING FUNCTIONS;
• ADDRESS THE LEARNING NEEDS OF THE MARGINALIZED GROUPS OF THE
POPULATION INCLUDING THE DEPRIVED, DEPRESSED AND UNDESERVED
CITIZENS;
• COORDINATED WITH THE VARIOUS AGENCIES FOR SILLS DEVELOPMENT TO
ENHANCE AND ENSURE CONTINUING EMPLOYABILITY, EFFICIENCY,
PRODUCTIVITY, AND COMPETITIVENESS IN THE LABOR MARKET;
• ENSURE THE EXPANSION OF ACCESS TO EDUCATIONAL OPPORTUNITIES FOR
CITIZENS OF DIFFERENT INTERESTS, CAPABILITIES, DEMOGRAPHIC
CHARACTERISTICS AND SOCIO-ECONOMIC ORIGINS AND STATUS, AND;
• PROMOTE CERTIFICATION AND ACCREDITATION OF ALTERNATIVE LEARNING
PROGRAMS BOTH FORMAL AND INFORMAL IN NATURE FOR BASIC EDUCATION.
SECTION 3

• FUNDS NECESSARY TO CARRY OUT THE PROVSIONS OF THUS EXECUTIVE

ORDER SHALL BE TAKEN FROM THE PRESENT FUNDS AVAILABLE IN THE
DEPARTMENT OF EDUCATION AND SHALL THEREAFTER BE INCLUDED IN THE
GENERAL APPROPRIATIONS ACT.
SECTION 4

• ALL ORDERS, ISSUANCES, RULES AND REGULATIONS, OR PART THEREOF

INCONSISTENT WITH THIS EXECUTIVE ORDER ARE HEREBY REPEALED OR
MODIFIED ACCORDINGLY.
LESSON 7: PRESIDENTIAL DECREE NO. 6-A
(EDUCATIONAL DEVELOPMENT DECREE 1972)

FERDINAND E. MARCOS, PRESIDENT OF THE PHILIPPINES. COMMANDER-IN-

CHIEF OF ALL FORCES OF THHE PHILIPPINES AND PURSUANT TO
PROCLAMATION NO. 1081, SEPTEMBER 21, 1972 AND GENERAL ORDER NO. 1
DATED SEPTEMBER 22, 1972
SECTION 1

• TITLE: THIS DECREE SHALL BE KNOWN AS THE “EDUCATIONAL

DEVELOPMENT DECREE OF O1972”
SECTION 2

• DECLARATION OF POLICY: IT IS HEREBY DECLARED TO THE POLICY OF THE

GOVERNMENT TO ENSURE, WITHIN THE CONTEXT OF A FREE AND
DEMOCRATIC SYSTEM MAXIMUM CONTRIBUTION OF THE EDUCATIONAL
SYSTEM TO THE ATTAINMENT OF THE FOLLOWING NATIONAL DEVELOPMENT
GOALS:
• A. TO ACHIEVE AND MAINTAIN AN ACCELERATING RATE OF ECONOMIC
DEVELOPMENT AND SOCIAL PROGRESS;
• TO ENSURE THE MAXIMUM PARTICIPATION OF ALL THE PEOPLE IN THE
ATTAINMENT AND ENJOYMENT OF THE BENEFITS OF SUCH GROWTH; AND
• TO STRENGTHEN NATIONAL CONSCIOUSNESS AND PROMOTE DESIRABLE
CULTURAL VALUES IN A CHANGING WORLD.
SECTION 3

• STATEMENT OF OBJECTIVES.- TO THIS END, THE EDUCATIONAL SYSTEM AIMS

TO:
• A. PROVIDE FOR A BROAD GENERAL EDUCATION THAT WILL ASSIST
EACH INDIVIDUAL , IN THE PECULIAR ECOLOGY OF HIS OWN
SOCIETY, TO (1) ATTAIN HIS POTENTIAL AS A HUMAN BEING; (2)
ENHANCE THE RANGE AND QUALITY OF INDIVIDUAL AND GROUP
PARTICIPATION IN THE BASIC FUNCTIONS OF THE SOCIETY; AND (3)
ACQUIRE THE ESSENTIAL EDUCATIONAL FOUNDATION FOR HIS
DEVELOPMENT INTO A PRODUCTIVE AND VERSATILE CITIZEN;
• B. TRAIN THE NATION’S MANPOWER IN THE MIDDLE, LEVEL SKILLS
REQUIRED FOR NATIONAL DEVELOPMENT
• C. DEVELOP THE HIGH-LEVEL PROFESSIONS THAT WILL PROVIDE
LEADERSHIP FOR THE NATION, ADVANCE KNOWLEDGE THROUGH
RESEARCH, AND APPLY NEW KNOWLEDGE FOR IMPROVING THE
QUALITY OF HUMAN LIFE; AND
• RESPOND EFFECTIVELY TO CHANGING NEEDS AND CONDITIONS OF
THE NATION THROUGH A SYSTEM OF EDUCATIONAL PLANNING AND
EVALUATION.
SECTION 4

• GUIDING PRINCIPLES OF THE TEN-YEAR PROGRAM- IN ORDER TO LAY THE

FOUNDATION AND TO ADVANCE THE ATTAINMENT OF THESE OBJECTIVES, A
TEN-YEAR NATIONAL EDUCATION DEVELOPMENT PROGRAM SHALL BE
FORMULATED BASED ON THE FOLLOWING:
• A. IMPROVEMENT OF CURRICULAR PROGRAMS AND QUALITY OF
INSTRUCTION IN ALL LEVELS BY WAY OF UPGRADING PHYSICAL
FACILITIES, ADOPTION OF COST-SAVING INSTRUCTIONAL
TECHNOLOGY, AND TRAINING AND RE-TRAINING OF TEACHERS AND
ADMINISTRATORS;
• B. UPGRADING OF ACADEMIC STANDARDS THROUGH
ACCREDITATION SCHEMES, ADMISSIONS TESTING AND GUIDANCE
COUNSELLING;
• C. DEMOCRATIZATION OF ACCESS TO EDUCATIONAL OPPORTUNITIES
THROUGH THE PROVISION OF FINANCIAL ASSISTANCE TO
DESERVING STUDENTS, SKILLS TRAINING PROGRAMS FOR OUT-OF-
SCHOOL YOUTH AND CONTINUING EDUCATION PROGRAM FOR NON-
LITERATE ADULTS;
• D. RESTRUCTURING OF HIGHER EDUCATION TO BECOME MORE
RESPONSIVE TO NATIONAL DEVELOPMENT NEEDS THROUGH A
PLANNED SYSTEM OF INCENTIVES AND ASSISTANCE TO BOTH
PUBLIC AND PRIVATE COLLEGES AND UNIVERSITIES AND
SYNCHRONIZATION OF CURRICULAR PROGRAMS, STAFFING
• EXPANSION OF EXISTING PROGRAMS AND
ESTABLISHMENT OF NEW ONES DESIGNED TO TRAIN
MIDDLE-LEVEL TECHNICAL AND AGRICULTURAL MAN-
POWER; AND
• INSTITUTING REFORM IN THE EDUCATIONAL
FINANCING SYSTEM TO FACILITATE THE SHIFT OF
FUNDING RESPONSIBILITY FOR ELEMENTARY AND
SECONDARY EDUCATION FROM THE NATIONAL TO THE
LOCAL GOVERNMENT, THEREBY INCREASING
GOVERNMENT PARTICIPATION IN HIGHER EDUCATION.
SECTION 5

• EDUCATIONAL DEVELOPMENT PROJECTS.- THE ABOVE-STATED OBJECTIVES

SHALL BE ATTAINED THROUGH THE UNDERTAKING OF THE FOLLOWING
EDUCATIONAL DEVELOPMENT PROJECTS:
• A. MANAGEMENT STUDY OF THE DEPARTMENT OF EDUCATION AND
CULTURE AND INSTITUTION OF ADMINISTRATIVE IMPROVEMENTS
THEREIN;
• B. ESTABLISHMENT AND/OR OPERATION OR IMPROVEMENT OF
SECONDARY SCHOOLS WHICH MAY INCLUDE PROVISION FOR
EXTENSION SERVICES, FACILITIES AND EQUIPMENT TO ALLOW THE
USE OF EXPANDED AND IMPROVED CURRICULUM;
• C. ESTABLISHMENT AND/OR OPERATION, UPGRADING OR
IMPROVEMENT OF TECHNICAL INSTITUTES, SKILLS TRAINING
CENTERS, AND OTHER NON- FORMAL TRAINING PROGRAMS AND
PROJECTS FOR THE OUT-OF-SCHOOL YOUTH AND THE UNEMPLOYED
IN COLLABORATION WITH THE PROGRAMS OF THE NATIONAL
MANPOWER AND YOUTH COUNCIL;
• D. CURRICULUM AND STAFF DEVELOPMENT INCLUDING
MATHEMATICS AND SCIENCE TEACHING;
• E. EXPANSION OF AGRICULTURAL SECONDARY AND HIGHER
EDUCATION PROGRAMS AND EXTENSION ACTIVITIES WHICH
MAY INCLUDE RADIO BROADCASTING AND RURAL TRAINING
SERVICES, AND THE PROVISION OF FACILITIES THEREOF
INCLUDING SEED CAPITAL AND REVOLVING FUNDS;
• F. DESIGN, UTILIZATION, AND IMPROVEMENT OF
INSTRUCTIONAL TECHNOLOGY AND DEVELOPMENT/
PRODUCTION OF TEXTBOOKS AND OTHER INSTRUCTIONAL
MATERIALS; AND
• G. ASSISTANCE AND INCENTIVES, INCLUDING LOANS AND
GRANTS, TOWARD THE PLANNED DEVELOPMENT AND
IMPROVEMENT OF PROGRAMS AND FACILITIES IN BOTH PUBLIC
AND PRIVATE UNIVERSITIES, COLLEGES AND SCHOOLS.

• IN ADDITION, OTHER EDUCATIONAL DEVELOPMENT PROJECTS

NECESSARY PURSUANT TO THE OBJECTIVES OF THIS DECREE
ARE LIKEWISE TO BE UNDERTAKEN: PROVIDED, THAT FOR SUCH
PROJECTS TO QUALIFY UNDER THIS DECREE, THE SAME MUST
BE CONSISTENT WITH THE PRINCIPLES ENUNCIATED IN SECTION
4 HEREOF, SUPPORTED BY SUFFICIENT STUDIES, DATA AND
PLANS OF OPERATION AND IMPLEMENTATION, ENDORSED BY
THE NATIONAL BOARD OF EDUCATION TO, AND APPROVED BY
AN EDUCATION SPECIAL COMMITTEE, HEREINAFTER PROVIDED,
TO FORM PART OF THE EDUCATIONAL DEVELOPMENT
PROGRAM.
•SECTION 6
WORKING ARRANGEMENTS. — FOR THE ATTAINMENT OF THE
OBJECTIVES OF THIS DECREE, AN EDUCATION SPECIAL
COMMITTEE, COMPOSED OF THE SECRETARY OF EDUCATION
AND CULTURE AS CHAIRMAN AND THE SECRETARY OF FINANCE
AND THE COMMISSIONER OF THE BUDGET AS MEMBERS, IF
HEREBY CREATED WHICH SHALL:
• (A) APPROVE AND EVALUATE THE SPECIFIC PROJECTS,
ENDORSED TO IT BY THE NATIONAL BOARD OF EDUCATION, TO
BE FINANCED OUT OF THE RESOURCES PROVIDED FOR IN THIS
DECREE; AND
• (B) ADMINISTER THE EDUCATIONAL INSTITUTIONS
DEVELOPMENT FUND AS HEREINAFTER PROVIDED, EXCEPT
THAT THE RESOURCES ACCRUING INTO THE FUND SHALL BE
MANAGED BY REPUTABLE FUND MANAGERS OR FINANCIAL
• THE NATIONAL BOARD OF EDUCATION, AS REORGANIZED PURSUANT TO
PRESIDENTIAL DECREE NO. 1 DATED SEPTEMBER 24, 1972, SHALL, IN
ADDITION TO ITS FUNCTIONS, PERFORM THE FOLLOWING:
• (A) FORMULATE EDUCATION OBJECTIVES AND POLICIES CONSISTENT WITH
THOSE ENUNCIATED IN SECTION 2 HEREOF; AND
• (B) PROVIDE POLICY GUIDELINES IN THE ADMINISTRATION OF THE
ASSISTANCE AND INCENTIVE PROGRAMS PROVIDED FOR IN SECTION 5(G)
HEREOF, WHICH SHALL INCLUDE A SYSTEM OF EDUCATIONAL PRIORITIES
CONSISTENT WITH NATIONAL, REGIONAL AND/OR LOCAL REQUIREMENTS
FOR EDUCATION AND SKILLS TRAINING, AND SUCH OTHER PROCEDURES
AND REQUIREMENTS AS WILL ENSURE THE CONTINUAL UPGRADING OF THE
QUALITY OF EDUCATION, THE RATIONALIZATION AND INSTITUTIONAL
GROWTH, AND THE DEMOCRATIZATION OF ACCESS TO EDUCATION.
• IN THE DISCHARGE OF ITS FUNCTIONS, THE NATIONAL BOARD OF
EDUCATION SHALL BE ASSISTED BY AN OFFICE OF PLANNING AND
RESEARCH KNOWN AS PLANNING SERVICE IN THE DEPARTMENT OF
EDUCATION AND CULTURE.
• A PROJECT UNIT TO BE KNOWN AS THE EDUCATIONAL DEVELOPMENT
PROJECTS IMPLEMENTING TASK FORCE IS HEREBY ESTABLISHED UNDER THE
OFFICE OF THE SECRETARY OF EDUCATION AND CULTURE TO BE HEADED BY
A DIRECTOR AND BE COMPOSED OF TECHNICAL STAFF MEMBERS AND SUCH
CONSULTANTS AS ARE NECESSARY. ITS FUNCTIONS ARE:
• (A) TO SUPERVISE AND IMPLEMENT FOREIGN-ASSISTED DEVELOPMENT
PROJECTS; AND
• (B) TO IMPLEMENT SUCH OTHER DEVELOPMENT PROJECTS AS MAY BE
ASSIGNED TO IT BY THE SECRETARY OF EDUCATION AND CULTURE. WHERE
THE PROJECT INVOLVES AN OFFICE, AGENCY OR INSTRUMENTALITY OF THE
GOVERNMENT OTHER THAN THE DEPARTMENT OF EDUCATION AND
CULTURE, APPROPRIATE WORKING ARRANGEMENTS SHALL BE ESTABLISHED
BY THE EDUCATIONAL DEPARTMENT PROJECTS IMPLEMENTING TASK FORCE
AND THE OFFICE, AGENCY OR INSTRUMENTALITY CONCERNED, INCLUDING
THE TURNOVER OF THE PROJECT UPON ITS COMPLETION TO SUCH OFFICE,
AGENCY OR INSTRUMENTALITY TO BE INTEGRATED WITH AND BE PART OF
THE REGULAR ACTIVITIES THEREOF.
SECTION 7
• AUTHORITY TO BORROW. — THE PRESIDENT OF THE PHILIPPINES, IN BEHALF OF THE
REPUBLIC OF THE PHILIPPINES, MAY CONTRACT LOANS, CREDITS OR INDEBTEDNESS WITH
ANY FOREIGN SOURCE OR LENDER, UNDER SUCH TERMS AND CONDITIONS AS MAY BE
AGREED UPON, ANY PROVISION OF LAW, INCLUDING REPUBLIC ACT NUMBERED FORTY-
EIGHT HUNDRED AND SIXTY AS AMENDED BY REPUBLIC ACT NUMBERED SIXTY-ONE
HUNDRED AND FORTY-TWO, ACT NUMBERED FORTY-TWO HUNDRED AND THIRTY NINE,
COMMONWEALTH ACT NUMBERED ONE HUNDRED THIRTY-EIGHT, COMMONWEALTH ACT
NUMBERED FIVE HUNDRED FORTY-ONE, REPUBLIC ACT
• NUMBERED NINE HUNDRED TWELVE, REPUBLIC ACT NUMBERED FIFTY-ONE HUNDRED
EIGHTY-THREE, AND OTHER RELATED LAWS TO THE CONTRARY NOTWITHSTANDING, FOR A
TOTAL AMOUNT NOT EXCEEDING ONE HUNDRED MILLION UNITED STATES DOLLARS OR THE
EQUIVALENT THEREOF IN OTHER CURRENCIES, AS MAY BE NECESSARY TO MEET THE
DIRECT AND INDIRECT FOREIGN EXCHANGE REQUIREMENTS OF THE PROJECTS
AUTHORIZED UNDER THIS
• DECREE, TO COVER THE COSTS OF FEASIBILITY STUDIES, EQUIPMENT, MACHINERIES,
SUPPLIES, CONSTRUCTION, INSTALLATION AND RELATED SERVICES OF ANY SUCH PROJECTS:
PROVIDED, THAT THE LOANS, CREDIT OR INDEBTEDNESS AUTHORIZED HEREIN SHALL BE
INCURRED ON TERMS OF PAYMENT OF NOT LESS THAN TEN (10) YEARS.
SECTION 8
• UTILIZATION OF PROCEEDS. — THE PROCEEDS OF SUCH LOANS, CREDITS OR
INDEBTEDNESS, AS WELL AS THE APPROPRIATIONS UNDER SECTION 9 HEREOF, SHALL BE
USED EXCLUSIVELY FOR FINANCING THE EDUCATIONAL DEVELOPMENT PROJECTS
AUTHORIZED UNDER THIS DECREE: PROVIDED, THAT FOR THE PURPOSE OF ENSURING
CONTINUED ASSISTANCE TO THE PLANNED DEVELOPMENT AND IMPROVEMENT OF
PROGRAMS AND FACILITIES IN BOTH PUBLIC AND PRIVATE UNIVERSITIES, COLLEGES AND
SCHOOLS, THERE IS HEREBY AUTHORIZED TO BE ESTABLISHED AN EDUCATIONAL
INSTITUTIONS DEVELOPMENT FUND IN AN AMOUNT OF NOT LESS THAN TEN MILLION
PESOS ( 10,000,000), PHILIPPINE CURRENCY, ANNUALLY FOR A PERIOD OF TEN (10) YEARS.
THE SAID FUND SHALL BE ADMINISTERED AS A SEPARATE FUND, AND] LENDING OR
RELENDING OPERATIONS TO PRIVATE UNIVERSITIES, COLLEGES AND SCHOOLS SHALL BE
SUBJECT TO THE RULES AND REGULATIONS TO BE PROMULGATED BY THE NATIONAL
BOARD OF EDUCATION WITH THE APPROVAL OF THE SECRETARY OF FINANCE.
• CITIES, PROVINCES AND MUNICIPALITIES MAY UNDERTAKE EDUCATIONAL DEVELOPMENT
PROJECTS PURSUANT TO THE OBJECTIVES OF THIS DECREE AND ARE HEREBY
AUTHORIZED TO AVAIL THEMSELVES OF PROCEEDS OF LOANS, CREDITS OR INDEBTEDNESS
HEREIN AUTHORIZED AS WELL AS THE APPROPRIATIONS UNDER SECTION 9 HEREOF AND
RECEIVE FINANCIAL ASSISTANCE SUBJECT TO SUCH CONDITIONS AS MAY BE PROVIDED
FOR AND/OR PROMULGATED BY THE NATIONAL BOARD OF EDUCATION PURSUANT TO THIS
DECREE.
SECTION 9
• APPROPRIATIONS. — IN ADDITION TO THE PROCEEDS OF THE LOANS,
CREDITS OR INDEBTEDNESS MENTIONED IN SECTION 7 HEREOF, THERE IS
HEREBY APPROPRIATED FOR THE PROJECTS AUTHORIZED HEREIN THE SUM
OF FIVE HUNDRED MILLION PESOS (P500,000,000) OUT OF THE FUNDS IN THE
• NATIONAL TREASURY NOT OTHERWISE APPROPRIATED WHICH SHALL BE
PROGRAMMED AND RELEASED IN THE FOLLOWING MANNER: FIFTY MILLION
PESOS (P50,000,000) FOR FISCAL YEAR 1972-73 AND FIFTY MILLION PESOS
(P50,000,000) ANNUALLY THEREAFTER UNTIL JUNE THIRTY, NINETEEN
HUNDRED EIGHTY-TWO: PROVIDED, THAT NOTWITHSTANDING THE SAID
SCHEDULE, RELEASES IN A GIVEN YEAR SHALL BE ADJUSTED IN
ACCORDANCE WITH THE ACTUAL REQUIREMENTS OF THE PROJECTS BEING
IMPLEMENTED DURING THE FISCAL YEAR: PROVIDED, FURTHER, THAT
SHOULD THERE BE ANY SURPLUS IN THE ANNUAL APPROPRIATIONS HEREIN
PROVIDED, THE SAME SHALL ACCRUE TO THE EDUCATIONAL SPECIAL
ACCOUNT HEREIN CREATED IN THE GENERAL FUND WHICH SHALL BE MADE
AVAILABLE TO FINANCE THE PROJECTS DURING THE SUBSEQUENT FISCAL
YEARS.
SECTION 10
• CREATION OF EDUCATIONAL SPECIAL ACCOUNT. — THERE IS HEREBY
ESTABLISHED IN THE NATIONAL TREASURY AN EDUCATIONAL SPECIAL
ACCOUNT TO MEET THE APPROPRIATIONS HEREIN PROVIDED, WHICH SHALL
BE CONSTITUTED FROM THE FOLLOWING SOURCES:
• (A) PROCEEDS FROM BOND ISSUES AS PROVIDED FOR UNDER SECTION 11
• OF THIS DECREE;
• (B) TWENTY MILLION PESOS (P20,000,000) ANNUALLY FROM THE SHARE OF
THE NATIONAL GOVERNMENT IN THE SPECIAL EDUCATION FUND UNDER
REPUBLIC ACT NUMBERED FIFTY-FOUR HUNDRED FORTY-SEVEN AS
PROVIDED IN SECTION 12 HEREOF;
• (C) FIFTEEN MILLION PESOS (P15,000,000) FROM THE SPECIAL SCIENCE FUND
FOR FISCAL YEAR 1972-73, AND FIFTY PER CENTUM (50%), ANNUALLY
THEREAFTER UNTIL JUNE 30, 1982, OF THE TOTAL ANNUAL RECEIPTS FROM
THE TAXES PROVIDED FOR UNDER REPUBLIC ACT NUMBERED FIFTY-FOUR
HUNDRED AND FORTY-EIGHT, AS PROVIDED IN SECTION 13 HEREOF;
• (D) FUTURE SAVINGS OF THE DEPARTMENT OF EDUCATION AND CULTURE
THAT MAY RESULT FROM THE IMPLEMENTATION OF REFORMS CONSEQUENT
TO MANAGEMENT STUDY, AS PROVIDED IN SECTION 14 HEREOF; AND
• (E) AUGMENTATIONS FROM THE GENERAL FUNDS WHICH ARE HEREBY
AUTHORIZED IN CASES WHERE THE ABOVE SOURCES ARE NOT SUFFICIENT
TO COVER EXPENDITURES REQUIRED IN ANY YEAR, AS PROVIDED IN
SECTION 15 OF THIS ACT. THE DEPARTMENT OF EDUCATION AND CULTURE IS
HEREBY AUTHORIZED TO RECEIVE AND SPEND OR UTILIZE DONATIONS
AND/OR BEQUESTS MADE IN PURSUANCE OF THE PURPOSES AND FOR
PROJECTS ENUNCIATED IN THIS DECREE WHICH DONATIONS AND/OR
BEQUESTS SHALL BE EXEMPT FROM THE PAYMENT OF GIFT TAXES.
SECTION 11
• BOND ISSUES. — THE SECRETARY OF FINANCE MAY ISSUE AND SELL BONDS NOT
EXCEEDING TWENTY MILLION PESOS ANNUALLY UNDER THE AUTHORITY OF
REPUBLIC ACT NUMBERED FOUR THOUSAND EIGHT HUNDRED SIXTY-ONE, ANY
PROVISION OF LAW TO THE CONTRARY, NOTWITHSTANDING.

SECTION 12
PORTIONS OF THE SPECIAL EDUCATION FUND. — ANY PROVISION OF LAW TO THE
CONTRARY NOTWITHSTANDING, EFFECTIVE JULY 1, 1972, UNTIL JUNE 30, 1982,
TWENTY MILLION PESOS (P20,000,000) OF THE ANNUAL SHARE OF THE NATIONAL
GOVERNMENT FROM THE SPECIAL EDUCATION FUND PROVIDED FOR UNDER
REPUBLIC ACT NUMBERED FIFTY-FOUR HUNDRED AND FORTY-SEVEN SHALL ACCRUE
TO THE EDUCATIONAL SPECIAL ACCOUNT
HERE IN PROVIDED. THEREAFTER, THE SAID SHARE SHALL ACCRUE TO THE GENERAL
FUND. IN THIS CONNECTION, THE SHARES OF THE LOCAL GOVERNMENTS FROM THE
SAID FUND MAY BE USED BY THEM TO FINANCE SUCH PROJECTS AS MAY BE
ESTABLISHED IN THEIR LOCALITY UNDER THE AUTHORITY OF THIS DECREE
REGARDLESS OF ANY RESTRICTION IMPOSED THEREON.
SECTION 13
• PORTION OF SPECIAL SCIENCE FUND. — ANY PROVISION OF LAW TO THE
CONTRARY NOTWITHSTANDING, EFFECTIVE UPON APPROVAL OF THIS
DECREE, FIFTEEN MILLION PESOS (P15,000,000) OF THE SPECIAL SCIENCE
• FUND ESTABLISHED UNDER REPUBLIC ACT NUMBERED FIFTY-FOUR-
HUNDRED AND FORTY-EIGHT AS AMENDED AS HEREBY TRANSFERRED TO
THE EDUCATIONAL SPECIAL ACCOUNT HEREIN PROVIDED. STARTING JULY 1,
1972, UNTIL JUNE 30, 1982, FIFTY PER CENTUM (50%) OF THE TOTAL
COLLECTIONS FROM THE TAXES IMPOSED UNDER REPUBLIC ACT NUMBERED
FIFTY-FOUR HUNDRED AND FORTY-EIGHT AS AMENDED SHALL ACCRUED TO
THE EDUCATIONAL SPECIAL ACCOUNT. THEREAFTER, SAID PORTION SHALL
ACCRUE TO THE GENERAL FUND.

SECTION 14
FUTURE SAVINGS. — SUCH AMOUNT OF SAVINGS RESULTING FROM THE
IMPLEMENTATION OF REFORMS CONSEQUENT TO THE MANAGEMENT STUDY
AUTHORIZED UNDER SECTION 5 AS MAY BE NECESSARY TO PROSECUTE THE
PROJECTS UNDER THIS DECREE SHALL ACCRUE TO THE EDUCATIONAL SPECIAL
ACCOUNT.
SECTION 15
• AUGMENTATION FROM GENERAL FUND. — IN CASES WHERE FUNDS FROM SOURCES
SPECIFIED IN SECTION 10 (A), (B), (C) AND (D) ARE NOT SUFFICIENT TO MEET THE
REQUIREMENTS IN ANY FISCAL YEAR, SUCH AMOUNTS AS ARE NECESSARY TO MEET SUCH
REQUIREMENTS ARE HEREBY APPROPRIATED OUT OF THE FUNDS IN THE GENERAL FUNDS NOT
OTHERWISE APPROPRIATED, AND TRANSFERRED TO THE EDUCATIONAL SPECIAL ACCOUNT.

SECTION 16
TAX EXEMPTION. — THE LOANS, CREDITS OR INDEBTEDNESS INCURRED PURSUANT TO THIS
DECREE, THE PAYMENT OF THE PRINCIPAL, INTERESTS AND OTHER CHARGES THEREON, THE
EARNINGS OF THE FUND CREATED UNDER
• SECTION 8, AS WELL AS THE IMPORTATION OF ARTICLES, MATERIALS, EQUIPMENT,
MACHINERIES AND SUPPLIES, INCLUDING ALL BUILDING MATERIALS BY THE DEPARTMENT OF
EDUCATION AND CULTURE OR OTHER OFFICES, AGENCIES OR INSTRUMENTALITIES OF THE
GOVERNMENT AND BY PRIVATE OR CHARTERED ENTITIES AUTHORIZED BY EDUCATION
SPECIAL COMMITTEE TO UNDERTAKE THE PROJECTS AUTHORIZED IN THIS ACT SHALL BE
EXEMPT FROM ALL TAXES, DUTIES, FEES, IMPOSTS, OTHER CHARGES AND RESTRICTIONS,
INCLUDING IMPORT RESTRICTIONS, IMPOSED BY THE REPUBLIC OF THE PHILIPPINES OR ANY
OF ITS AGENCIES OR POLITICAL SUBDIVISIONS. THE
• SECRETARY OF FINANCE SHALL PROMULGATE RULES AND REGULATIONS NECESSARY FOR
THE PURPOSE.
SECTION 17
• ADDITIONAL APPROPRIATIONS. — THERE IS HEREBY AUTHORIZED TO BE
APPROPRIATED, OUT OF ANY FUNDS IN THE NATIONAL TREASURY NOT
OTHERWISE APPROPRIATED, SUCH SUMS AS MAY BE NECESSARY TO PAY THE
PRINCIPAL, INTERESTS AND OTHER CHARGES ON THE LOANS, CREDITS OR
INDEBTEDNESS INCURRED UNDER THE AUTHORITY OF THIS DECREE AS AND
WHEN THEY BECOME DUE.

SECTION 18
• REPEALING CLAUSE. — ALL LAWS, EXECUTIVE ORDERS, RULES OR
REGULATIONS OR PARTS THEREOF WHICH ARE INCONSISTENT WITH THIS
DECREE ARE HEREBY REPEALED AND/OR MODIFIED ACCORDINGLY.

SECTION 19
• AFFECTIVITY. — THIS DECREE SHALL TAKE EFFECT IMMEDIATELY.
• DONE IN THE CITY OF MANILA, THIS 29TH DAY OF SEPTEMBER, IN THE YEAR
OF OUR LORD, NINETEEN HUNDRED AND SEVENTY-TWO.