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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 635 -
ENCOURAGING AND PROVIDING INCENTIVES FOR ECONOMY IN GOVERNMENT
OPERATIONS |
including State Colleges and Universities
The Commissioner of the Budget
WHEREAS, economy in government operations may be encouraged by providing incentives to save;
WHEREAS, agencies have numerous needs for equipment, construction, renovation and other non-recurring outlays;
WHEREAS, allowing agencies to accumulate savings to meet non-recurring expenditures would be an effective way of encouraging and rewarding thrift, particularly when augmented by matching funds;
NOW THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby instruct the following:
1.
Agencies of government, through their heads, Budget Officers and
Management Analysts, shall exercise thrift and economy in the
utilization of budgeted current operating expenditures, limiting
expenses to the minimum necessary to attain top priority objectives;
2. In
accordance with existing law, any funds not committed for valid
obligations at the end of the year shall revert to the National
Treasury. However, amounts equivalent to one hundred ten percent of
savings in maintenance and operating expenses which are actually
reverted to the Treasury by any agency at year-end shall be made
available in subsequent years to the agency as reward for prudence and
economy: Provided, That the reversion of funds does not result in
jeopardizing those activities of the agency for which the funds were
originally intended; and Provided, Further, That the non-utilization of
funds does not rise out of failure to achieve agency work targets.
3. The funds
thus made available may be used for purposes of augmenting agency
budgets for equipment, construction, and other non-recurring expenses,
except allowances/bonuses or other form of staff compensation.
4. The
following shall be excluded from the reckoning of amounts eligible for
future use: (a) transfer of funds from personal services, equipment,
capital outlays or expenditure objects other than regular maintenance
and operating expenses, (b) lump sum appropriations for grants,
contributions, aid, research, or other similar purposes, (c)
expenditures specifically funded by borrowings or donations, (d) blind
certifications to accounts payable, (e) savings arising out of
non-implementation of approved activities or non-attainment of work
targets, and (f) such items whose exclusion may be directed by the
President.
5. The amounts
accumulated under item 2 hereof shall be chargeable to the Special
Activities Fund or other available source in the General Appropriations
Law pertaining to the year in which fund release is needed.
6. Amounts
reverted to the Treasury under these Instructions shall be reviewed and
evaluated by the Departmental and National Cost Reduction Committees
created under LOI No. 506, as basis for matching fund releases by the
Budget Commission.
7. The
Commissioner of the Budget shall issue the rules and regulations needed
to implement this policy.
Done in the City of Manila, this 13th day of December, in the year of Our Lord, nineteen hundred and seventy-seven.
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