1.    Budget officers of all agencies of the National Government shall:

a.    evaluate the operations of their respective agencies for the purpose of identifying (1) new sources of non-tax revenues so as to increase General Fund income and thus augment the limited resources now available to government and (2) ways of increasing existing non-tax revenue sources;

b.    develop a long-term organization for their respective agencies, working hand in hand with agency management analysts, in preparation for the type of government organization outlined in the approved long-term development plan; 

c.    suggest the components of a long term compensation plan that will ultimately rationalize existing disparities of compensation in the public and private sectors and among different positions in the national and local governments, keeping in mind the limited funds available to government and the targeted levels of government expenditure included in the national development plan;

d.    identify specific priority activities within each agency's budgetary programs and projects, representing the implementation of the national development plan, and including activities financed by foreign and domestic borrowings, peso requirements of foreign-assisted projects, agency participation in regional development activities, agency activities undertaken as part of multi-agency undertakings, sequential implementation of continuing long term projects, and other activities that call for similarly continuous monitoring and special budgetary treatment;

e.    incorporate in the budge preparation process those activities that are proposed to be financed by borrowings, both foreign and domestic, consistent with standing policy for a national resource budget that incorporates all expenditures regardless of financing source. Planning and budget officers of agencies shall work together in the identification of projects and the preparation of project studies and of work and financial plans pertaining to these projects, for the purpose of preparing an annual national debt program, including activities requiring full or partial financing from project borrowings and a schedule of cash flows during project construction and operation;

f.    identify ways and means of expediting regional budgeting as directed under LOI 447 and 448, notably the identification of authority and responsibility in budget preparation, execution and accountability which need to be delegated to regional offices; and 

g.    study existing work measurement units of agency programs and projects, for purposes of identifying those units of work that are more suitable for performance budgeting and evaluation and for use as decision packages in the implementation of a zero-base budgeting approach.

Since 19.07.98.