Directing Strict Compliance With Existing Restrictive Policies on Government Expenditures

August 8, 1972

MEMORANDUM CIRCULAR NO. 593

DIRECTING STRICT COMPLIANCE WITH EXISTING RESTRICTIVE POLICIES ON GOVERNMENT EXPENDITURES

In view of the emergency situation obtaining in various parts of the country and for the duration thereof, all heads of departments and chiefs of bureaus and offices, including government-owned or controlled corporations and local subdivisions, are hereby directed to comply with all policy pronouncements of this Office embodying restrictions on government expenditures.

In this connection, the following guidelines shall be strictly observed:

1. No new activities shall be undertaken nor shall there be expansion of on-going activities except those in direct support of relief and rehabilitation.

2. Suspension of allotments for those activities which have been adequately provided with funds under the new calamity fund.

3. No filling of vacant positions including those created for Fiscal Year 1973. It is understood that this prohibition shall not apply to those cases enumerated in Memorandum Circular No. 319, series of 1970, as amended by Memorandum Circular No. 328, series of 1970, regarding the prohibition against the filling of vacant positions.

4. No release of equipment outlays except those deemed necessary for relief and rehabilitation of damage areas. The provisions of Memorandum Circular No. 518, series of 1971, suspending the purchase by all government offices furniture and equipment, including motor vehicles, are hereby reiterated.

5. No increase in maintenance and other operating expenses over the Fiscal Year 1972 level of expenditures except when due to increases in the costs of services, supplies and materials.

6. No funds shall be provided for government-sponsored seminars or conventions; nor shall expenditure of whatever nature of government funds in connection with attendance in meetings, seminars, workshops, conventions, or the like, sponsored by other organizations be authorized.

7. No implementation of new special salary laws, including the 5% WAPCO salary adjustment.

8. Suspension of all capital outlays except those directly related to relief and rehabilitation activities and to international commitments.

9. No overtime pay. This does not apply to claims for meal allowances duly approved by the Department Heads concerned.

10. The Philippines shall not host international conferences unless it is for the purpose of complying with an international commitment of the Philippine Government or unless it would directly redound to the financial benefit of the country.

11. Travels abroad for any purpose shall be limited to those where no government expenses is involved, except Philippine participation in United Nations conferences and financial meetings, including fellowships, scholarships and training grants involving minimal government expense. Memorandum Circular No. 404, series of 1970, restricting travel abroad is likewise reiterated.

12. Imposition of a 5% budgetary reserve on agencies with a total obligation of P1 million and above.

All heads of departments and chiefs of bureaus and offices, including government-owned or controlled corporation and local subdivisions, are enjoined therefore to review their proposed operating budgets and to reprogram available allotments so as to take care of essential functions and other mandatory requirements of their respective agencies. They shall likewise immediately review standard operating procedures of their respective offices with the aim of effecting economy in operations and preventing wastage in the use of manpower, equipment and supplied without impairing the efficient performance of their respective functions.

This Circular shall take effect immediately.

By Authority of the President:

(SGD.) ALEJANDRO MELCHORExecutive Secretary Manila

August 8, 1972