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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 372
ADMINISTRATIVE ORDER NO. 372 -
ADOPTION OF ECONOMY MEASURES IN GOVERNMENT FOR FY 1998
WHEREAS, the current economic difficulties
brought about by the peso depreciation requires continued prudence in
government fiscal management to maintain economic stability and sustain
the country's growth momentum;
WHEREAS, it is imperative that
all government agencies adopt cash management measures to match
expenditures with available resources;
NOW, THEREFORE, I, FIDEL V.
RAMOS, President of the Republic of the Philippines, by virtue of the
powers vested in me by the Constitution, do hereby order and direct:
Section 1. All
government departments and agencies, including state universities and
colleges, government-owned and controlled corporations and local
government units will identify and implement measures in FY 1998 that
will reduce total expenditures for the year by at least 25% of
authorized regular appropriations for non-personal services items,
along the following suggested areas:
1. Continued
implementation of the streamlining policy on organization and staffing
by deferring action on the following:
a.
Operationalization of new agencies;
b. Expansion
of organizational units and/or creation of positions;
c. Filling of
positions; and
d. Hiring of
additional/new consultants, contractual and casual personnel,
regardless of funding source.
2. Suspension
of the following activities:
a.
Implementation of new capital/infrastructure projects, except those
which have already been contracted out;
b. Acquisition
of new equipment and motor vehicles;
c. All foreign
travels of government personnel, except those associated with
scholarships and trainings funded by grants;
d. Attendance
in conferences abroad where the cost is charged to the government
except those clearly essential to Philippine commitments in the
international field as may be determined by the Cabinet;
e. Conduct of
trainings/workshops/seminars, except those conducted by government
training institutions and agencies in the performance of their regular
functions and those that are funded by grants;
f. Conduct of
cultural and social celebrations and sports activities, except those
associated with the Philippine Centennial celebration and those
involving regular competitions/events;
g. Grant of
honoraria, except in cases where it constitutes the only source of
compensation from government received by the person concerned;
h.
Publications, media advertisements and related items, except those
required by law or those already being undertaken on a regular basis;
i. Grant of
new/additional benefits to employees, except those expressly and
specifically authorized by law; and
j. Donations,
contributions, grants and gifts, except those given by institutions to
victims of calamities.
3. Suspension
of all tax expenditure subsidies to all GOCCs and LGUs.
4. Reduction
in the volume of consumption of fuel, water, office supplies,
electricity and other utilities.
5. Deferment
of projects that are encountering significant implementation problems.
6. Suspension
of all realignment of funds and the use of savings and reserves.
Sec. 2.
Agencies are given the fibility to identify the specific sources of
cost-savings, provided the 25% minimum savings under Sec. 1 is
complied with.
Sec. 3. A
report on the estimated savings generated from these measures shall be
submitted to the Office of the President, through the Department of
Budget and Management, on a quarterly basis using the attached format.
Sec. 4.
Pending the assessment and evaluation by the Development Budget
Coordinating Committee of the emerging fiscal situation, the amount
equivalent to 10% of the internal revenue allotment to local government
units shall be withheld.
Sec. 5. The
Development Budget Coordination Committee shall conduct a monthly
review of the fiscal position of the National Government and if
necessary, shall recommend to the President the imposition of
additional reserves or the lifting of previously imposed reserves.
Sec. 6.
This Administrative Order shall take effect January 1, 1998 and shall
remain valid for the entire year unless otherwise lifted.
DONE in the
City of Manila, this 27th day of December, in the year of our Lord,
nineteen hundred and ninety-seven.
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