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LETTER OF INSTRUCTIONS

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LETTER OF INSTRUCTIONS NO. 760

LETTER OF INSTRUCTIONS NO. 760 - RELATIVE TO THE ANALYSIS OF THE BUDGET  OF THE ARMED FORCES OF THE PHILIPPINES

TO    :      The Minister of National Defense

        The Minister of the Budget
        The Chief of Staff


WHEREAS, the budget of the Armed Forces of the  Philippines is one of the largest single components of the  national government budget;

WHEREAS, the financial position of the Philippine  government and the anticipated difficulties that the  economy faces in the next few years makes it necessary to  review the cost of all government programs;

WHEREAS, the existing practice of a uni-budget  for the various Military Service does not allow full  evaluation of the cost of the various military activities.

NOW, THEREFORE, I, FERDINAND E. MARCOS,  President of the Philippines, do hereby order and instruct:

1.     The Chief of Staff shall prepare a Work and  Financial Plan for each of the Services of the Armed   Forces of the Philippines, including the General Headquarters,  identifying cost estimates for each Program,  Project and Activity as listed in the General Appropriations  Act.

2.     The estimated cost of major sub-activities shall  also be specified, including the amount earmarked for intelligence  activities in each Program/Project/Activity.  The Minister of National Defense shall prepare a list of  the major sub-activities to be included by the Chief of  Staff in the Work and Financial Plan.  

3.     The cost of each Program, Project, Activity and  Sub-Activity shall be identified by Command.

4.     Amounts withheld by GHQ and the Services as  budgetary reserves corresponding to each  Program/Project/Activity/Sub-Activity shall be identified  as such.

5.     The total cost of each Program — Project/Activity/Sub-Activity shall be identified  by object of expenditure, specifically noting the  cost of personal services, maintenance and operating expenses,  equipment, land acquisition, and construction.

6.     The format of the Work and Financial Plan  herein required shall be prepared jointly by the Minister   of National Defense and the Minister of the Budget.

7.     The Work and Financial Plan shall be prepared  by the Chief of Staff, reviewed by the Minister of National  Defense and the Minister of the Budget, and submitted  to the President for final approval prior to the  release of funds at the beginning of each budget year.

8.     Deviations from the approved Work and Financial  Plan and from the implementing budgetary releases  shall be subject to the approval of the Minister of National  Defense acting upon guidelines issued by the President:  Provided, That no increase in compensation,  allowances and fringe benefits shall be implemented  without the written approval of the President, copy of  which shall be furnished the Minister of the Budget.


Done in the City of Manila, this 30th day of October,  in the year of Our Lord, nineteen hundred and seventy-eight.

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