Administrative Order No. 372 Dated December 27, 1997 of the President Entitled: "Adoption of Economy Measures in Government for FY 1998"

February 3, 1998 REVENUE MEMORANDUM CIRCULAR NO. 07-98 SUBJECT : Administrative Order No. 372 Dated December 27, 1997 of the President Entitled: "Adoption of Economy Measures in Government for FY 1998" TO : All Revenue Officials and Employees and Others Concerned For the information and guidance of all revenue officials and employees, quoted hereunder is Administrative Order No. 372 of the President dated December 27, 1997: "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; llcd WHEREAS, it is imperative that all government agencies adopt such 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 governments units will identify and implement measures in FY 1998 that will reduce total expenditures for the year by at least 25% or 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; DONE in the City of Manila, this 27th day of December, in the year of Our Lord, nineteen hundred and ninety-seven. cdll By the President: (Sgd) FIDEL V. RAMOS RUBEN D. TORRES" Executive Secretary All revenue officials and employees are enjoined to give this circular as wide a publicity as possible. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue