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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 828 -
DIRECTING THE REDUCTION OF GOVERNMENT EXPENDITURES AND THE ADOPTION OF
FISCAL RESTRAINT MEASURES |
WHEREAS, price and cost increases create serious strain on government finances necessitating the elimination of non-essential government expenditures;
WHEREAS, it is necessary that essential government programs and projects to be pursued expeditiously and with minimum "red-tape";
WHEREAS, it is imperative that standards of government service performance be observed in personnel and other aspects of government operations;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines Order and Instruct:
1.
Compulsory Savings. — All government ministries, agencies, offices
including state universities and colleges, shall effect compulsory
savings of no less than five per cent of current operating expenditures
in addition to reserves earlier imposed.
2.
Non-essential Expenditures. — In reducing expenditures so as to
generate this five per cent savings, all concerned shall be guided by
the following:
a.
Attendance in conventions, seminars, workshops and similar activities
conducted by private groups shall be minimize;
b. Training
programs conducted by agencies shall be limited to the most essential
ones;
c.
Contributions and other similarly non-essential expenses shall be
eliminated;
d.
Unnecessary, redundant and duplicative publications shall be eliminated;
e. Meetings in
expensive hotels and restaurants shall be avoided;
f. Foreign
domestic travel shall be held to a minimum;
g. Purchases
and usage of materials and supplies shall be controlled;
h.
Transactions between Regional and Central Offices shall be programmed
carefully so as to cut down unnecessary costs due to travel and related
expenses.
a.
The hiring of casuals, temporary and emergency employees, including
consultants and contractual personnel shall be allowed in order not to
hamper essential projects and services, subject to the findings of the
Personnel Effectiveness Audit Committee created by Letter of
Instruction No. 806.
b. Additional
compensation other than meal allowances shall be allowed only in
accordance with the provisions of LOI No. 565, including the reporting
requirement therein provided.
c.
Substitutionary appointments for temporary vacancies may be allowed for
vacancies of at least three months' duration.
d. The use of
personnel services savings shall be strictly limited to urgently needed
purposes and in any case shall be subject to Sec. 40 of P.D. No. 1177.
5. Organizational Units. — The implementation of new organizational units shall be authorized subject to the recommendations of Ad Hoc Committee on Organizational Units created under LOI No. 728.
6. Accounts payable. — The Commission on Audit shall review the accounts payable recorded in agency books and shall revert to the General Fund unsubstantiated items.
7. Applicability
a.
These instructions shall apply to all Ministries, Bureaus, Offices, and
Agencies of National Government, including state universities and
colleges and non-profitable government owned or controlled
corporations. The governing boards of profitable government
corporations shall review their respective budgets and shall adopt
measures consistent with these Instructions, to the extent warranted by
the corporations' finances.
b. Hospitals
and national schools shall be exempt from the additional forced savings
called for by these Instructions. They shall, however, also adopt
economy measures so as to minimize the effective usage of public funds.
c. These
Instructions supersede LOI No. 805 and amend LOI No. 806.
9. Effectivity. — These instructions shall apply to Calendar Year 1979.
Done in the City of Manila, this 14th day of March, in the year of Our Lord, nineteen hundred and seventy-nine.
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