President Sergio Suico Osmeña, the only Cebuano so far to become president of the country, delivered a speech to Congress on June 18, 1945 for the national budget for fiscal year ending June 20, 1946.
The proposed budget was a reproduction of the 1942 General Appropriations Act, with only such modifications as were necessary in view of the requirements at that time. President Osmeña said that due to the paralysis of business, the destruction of our industries, and the disruption of our foreign trade as a result of the war, it was impossible at that time to make an estimate of the income of the government for the fiscal year 1946 with any degree of accuracy.
President Osmeña proposed a total appropriation of P102,136,619.50 pesos for recurring expenditures, of which P93,117,249.50 is for ordinary operating expenses of the government and P9,019,370 was for fixed expenditures authorized by law, such as for the amortization of and interests on the public debt, for retirement gratuities and pensions, and for contributions to the Government Service Insurance System.
Osmeña also provided P5,000,000 for expenses for the elections to be held the following year and P30,000,000 for advances to provinces, cities, and municipalities to help them meet their operating expenses for essential ordinary services. The expenses totaled P137,136,619.50.
The President also increased the appropriation of P300,000 which was authorized for the Senate for only six months was increased to P600,000 to cover the whole year. The budge also proposed the creation of One Assistant Secretary to the President at P9,000 authorized in Administrative Order No. 5, dated May 25, 1945, to meet the increased activities of the Office of the President. It also proposed the appropriation of P60,000.00 provided for salaries and allowances, transportation and other expenses of pensioners and fellows in the United States (at that time, our government sent Filipinos to study in the United States especially in medical courses).
The budget also provided for the salaries and other expenses of officials and employees of the Commonwealth Government still in the United States and for sundry expenses and purchase of furniture and equipment of their respective offices. The amount was P213,460.00.
President Osmeña cognizant of diplomatic duties, also provided P150,000 for delegates of international conventions and conferences, including payment of membership fees. The additional outlay was made in order to provide for the anticipated attendance of Filipino delegations to international conferences, including the peace conference held the following year.
The budget also provided for the salaries and wages of the personnel of the newly created "Office of Information" under the Department of Instruction and Information which has been recognized under the provisions of Executive Order No. 27, dated February 27, 1945.
Since the Supreme Court created four additional Justices whose positions have been created under Executive Order No. 40, an additional appropriation of P74,000 was appropriated.
The sum of P17,830,272.50 authorized in Commonwealth Act No. 654 for the expenses of the Philippine Army was embodies in the budget. The expenses of the Philippine Army was paid by the United States Army, except for salaries of civilian personnel and the salaries of the officers who have not been inducted into the armed forces of the United States but retained in the service of the Commonwealth.
The operating expenses of the Office of the Emergency Control Administrator an appropriations of P2,000,000 was authorized, of which P1,000,000 has been set aside under Executive Order No. 39.