IMPLEMENTING AUSTERITY MEASURES IN GOVERNMENT FOR 1997

12.00

WHEREAS, in the light of the current currency crisis, the government has
reassessed its financial condition to ensure that its targeted fiscal position
remains on track;

WHEREAS, the recent peso depreciation and associated rise in interest rates
will increase government expenditures in terms of higher foreign-denominated
costs and larger expenditures for debt servicing, among others;

WHEREAS, there is a need to maintain a prudent and firm fiscal posture to
send positive signals about the government’s genuine commitment to economic
stability and sustainable growth and facilitate the reduction of the country’s
current account deficit and domestic interest rates;

WHEREAS, the Consultative Conference on Socio-Economic Development on 26
September 1997 has reaffirmed the need for government to identify
cost-reduction measures to meet the fiscal targets for the year and augment
resources for priority economic and social projects.

NOW, THEREFORE, I, FIDEL
V. RAMOS, President of the Republic of the
Philippines, by virtue of the power 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 government units shall implement austerity measures to reduce
expenditures and enhance cost effectiveness and efficiency in government
programs and projects. For this purpose, they shall identify and undertake
measures that will reduce expenditures by at least five (5%) percent of
authorized regular appropriations for non-personal services items.

SEC. 2. The measures may include the implementation of any or all of the
following:

Continued implementation of the
policy on personnel attrition;

Deferment of any of the
following activities;

a. Acquisition of motor
vehicles;

b. All foreign travels of
government personnel, except those approved by the Office of the President and
those associated with scholarships and trainings funded by sponsors other than
the government;

c. Attendance to conferences by
private sector entities where the cost shall be charged to the government;

d. Conduct
trainings/workshops/seminars except those conducted by government training
institutions and agencies in the performance of their regualr functions and
those that are funded by foreign grants;

e. Conduct of cultural and
social celebrations except milestone anniversaries;

f. Construction of new office
buildings except those that have already been contracted; and

g. Grant of honororia except in
cases where it constitutes the only source of compensation from government
receioved by the person concerned.

2.3 Cost saving on the use of office
supplies, electiricity and other utilities, including communication and other
regualr operating expenses; and

2.4 Projects that are
encountering problems and significant cost-overruns may be identified and
deferred to succeeding years.

SEC. 3. Agencies are given the flexibility to identify sources of
cost-savings, provided the 5% minimum savings under Section 1 is compiled with.

SEC 4. All agencies shall prepare their respective austerity programs and
submit a report thereon to the Office of the president, through the Department
of Budget and Mangement (DBM), on or before November 15, 1997.

SEC. 5. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 31^st day of October, in the
year of our Lord,Nineteen Hundred and Ninety-Seven.

(Sgd.) FIDEL
V. RAMOS
President of the Philippines

By the President:

(Sgd.) RUBEN D. TORRES
Executive Secretary

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