Directing the Adoption of Economy Measures to Generate Funds for the Implementation of Certain Priority Programs

May 17, 1990

NATIONAL EMERGENCY MEMORANDUM ORDER NO. 24

DIRECTING THE ADOPTION OF FURTHER ECONOMY MEASURES FOR THE PURPOSE OF GENERATING FUNDS FOR THE IMMEDIATE IMPLEMENTATION OF CERTAIN PRIORITY PROGRAMS FOR FISCAL YEAR (FY) 1990

WHEREAS, Section 3 (8) of Republic Act No. 6826 authorizes the President to issue rules and regulations as may be necessary to carry out the following: LexLib

"Subject to the provisions of paragraph 5, Section 25, Article VI of the Constitution, to decrease expenditures of the Executive Department of the National Government and government-owned or controlled corporations and their subsidiaries through the suspension of services, activities or operations which are of no immediate necessity, and for this purpose the President shall order that all departments, agencies and instrumentalities of the government create a reserve fund equivalent to ten percent (10%) of their respective appropriations, except those pertaining to personnel services, construction and repair of school buildings and hospitals: Provided, however,That in all cases, the security of tenure of civil service employees shall be respected;"

WHEREAS, in addition to the aforesaid ten percent (10%) reserve imposition, further economy measures must be adopted to ensure the immediate implementation of certain priority programs for fiscal year 1990 which require funding and to maintain the budget deficit to a manageable level;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the Constitution and Republic Act No. 6826, do hereby order:

SECTION 1. All government agencies, including government owned or trolled corporations, are hereby enjoined to adopt and implement the following economy measures for the remaining period of the fiscal year 1990:

1. Deferment of construction of new office buildings or building annexes, renovations, except those already contracted as of the effectivity of this Memorandum Order, and those which are funded for the purpose of meeting bilateral or multilateral commitments.

2. Deferment of acquisition of land or land improvements, except infrastructure projects, projects to support tourism development and projects necessary to fulfill international commitments.

3. Disallowance of all official travels abroad, except travels which are funded by donor agency, or involve attendance in meetings required to carry out international commitments (e.g.,ASEAN, GATT),or attendance in government trade and loan negotiations.

4. Discontinuance of all in-house publications which are addressed to employees of the agencies.

5. Limiting of the filling of positions to only 25% of vacant positions in the central office.

6. Suspension of gift givings, donations and contributions, as well as holding of athletic, cultural and sports activities, official entertainments and public relations activities funded from agency appropriations.

7. Disallowance of paid media advertisements except those concerned with the issuance of agency guidelines, rules and regulations, public biddings, as well as those concerned with informational and public service campaigns.

8. Limiting of disbursements of office supplies and materials as well as water and illumination to their 1989 actual levels.

9. Deferment of the purchase of management and staff vehicles.

10. Deferment of the purchase of office equipment, furniture and fixtures except those required in the development of information systems.

11. Discontinuance of the hiring of all consultants, except those needed in the implementation of foreign-assisted projects.

12. Disallowance overtime payment in excess of forty (40) hours per month except as may be authorized by the Department Secretary or the head of agency concerned pursuant to the provisions of Memorandum Order No. 228, Series of 1989.

SECTION 2. The head of the agency shall issue the internal guidelines to implement the foregoing economy measures and report to the Department of Budget and Management the estimated savings to be generated from these economy measures on or before May 30, 1990.

SECTION 3. The Department of Budget and Management shall monitor the compliance of the agencies within this Memorandum Order and submit to the Office of the President a report on the savings generated from these economy measures.

SECTION 4. This urgent Memorandum Order shall take effect two (2) days after its publication in at least two (2) national newspapers of general circulation.

DONE in the City of Manila, this 17th day of May, in the year of our Lord, nineteen hundred and ninety.