Title
Continued Government Austerity Measures
Law
Op Administrative Order No. 103
Decision Date
Aug 3, 2004
Administrative Order No. 103 in the Philippines directs government agencies to implement austerity measures, including the suspension of foreign and local travels, purchase of motor vehicles, and paid media advertisements, among others, to meet fiscal targets and improve investor confidence.

Q&A (OP ADMINISTRATIVE ORDER NO. 103)

All national government agencies (NGAs), including state universities and colleges (SUCs), government-owned and-controlled corporations (GOCCs), government financial institutions (GFIs), other government corporate entities (OGCEs), their subsidiaries, and other instrumentalities under the Executive Department are covered.

All foreign travel is suspended except for ministerial meetings and grant-funded or no-cost scholarship/trainings. All foreign travels by Presidential appointees require clearance from the Office of the President, and a monthly report of travels must be submitted.

Local travels are suspended unless deemed urgently necessary and allowed by the Secretary or Head of the concerned agency.

The purchase of any type of motor vehicles is suspended except for ambulances and those required by the military and police.

Paid media advertisements are suspended except for those related to issuance of agency guidelines, conduct of public bidding, and dissemination of important public announcements.

There must be a reduction of at least ten percent (10%) in the cost for services of consultants, technical assistants, contractual, and casual employees.

Section 2 adopts the provisions of Republic Act No. 7430, known as the Attrition Law, which prohibits the filling-up of positions vacated by resignation, retirement, dismissal, death or transfer, except under certain conditions.

Honoraria and allowances are limited only to certain teaching personnel, presenters and resource persons in training programs, members of commissions or boards compensated by honoraria, and those involved in government procurement. New or additional benefits are suspended with certain exceptions.

Strict compliance with Republic Act No. 9184 (Government Procurement Reform Act) and its rules is required, including the use of the Government Electronic Procurement System for bidding and reporting bid awards.

Each government entity shall immediately prepare an austerity plan to implement the provisions of Administrative Order No. 103.

They are strongly urged but not mandated to adopt the provisions of the Order.

Heads of agencies are responsible for strict implementation and any violation shall be dealt with accordingly, though specific penalties are not detailed in the Order.

The Order took effect immediately upon its publication in two newspapers of general circulation.


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