1.

No money shall be paid out of any public treasury of depository except in pursuance of an
appropriation law or other specific statutory authority.

2. Government funds or property shall be spent or used solely for public purposes.

Meaning that no government funds or property shall be spent or used for private purpose. The
congress by passing a bill or appropriation act must see to it that the government funds shall be
used solely for public purpose, otherwise such act shall be considered us violative of the
fundamental law hence unconstitutional.

3. Trust funds shall be available and may be spent only for the specific purpose for which the
trust was created or the funds received.

This means that the trust funds shall only be spent for the specific purpose. As what the
constitution provides, these special funds or trust funds will not be spent for any purpose other
than its specific purposes prescribe under the fundamental law.

4. Fiscal responsibility shall, to the greatest extent, be shared by all those exercising authority
over the financial affairs, transactions, and operations of the government agency.

Fiscal responsibility implies a government pursues the appropriate level of government

spending and tax to Maintain sustainable public finances. Ensure fiscal policy aids the optimal
rate of economic growth. Maintain appropriate levels of public investment and to improve
accountability and transparency.

5. Disbursements or disposition of government funds or property shall invariably bear the

approval of the proper officials.

The head of any agency of the government is immediately and primarily responsible for all
government funds and property pertaining to his agency. Persons entrusted with the possession
or custody of the funds or property under the agency head shall be immediately responsible to
him, without prejudice to the liability of either party to the government.

6. Claims against government funds shall be supported with complete documentation.

Before any person can claim against the government funds such as in the form of damages as a
result of suit between the state and a private person, the claims must be supported with
complete document or material evidence to ascertain the claim.

7. All laws and regulations applicable to financial transactions shall be faithfully adhered to.

It is the declared policy of the State that all resources of the government shall be managed,
expended or utilized in accordance with laws and regulations, and safeguarded against loss or
wastage through illegal or improper disposition, with a view to ensuring efficiency, economy and
effectiveness in the operations of government. The responsibility to take care that such policy is
faithfully adhered to rests directly with the chief or head of the government agency concerned
8. Generally accepted principles and practices of accounting as well as of sound management
and fiscal administration shall be observed, provided that they do not contravene existing laws
and regulations.

This means that all laws pertaining to practices of accounting as well as sound management and fiscal
administration shall be observed as long as it is not contrary to any existing laws or under the
fundamental laws of the state.