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.

Suspension of Specific Activities and Expenditures

  • Foreign travels suspended except for ministerial meetings and grant-funded scholarships/training.
  • All foreign travels by Presidential appointees must be cleared by the Office of the President.
  • Monthly reporting to the Office of the President on foreign travels detailing officials, reasons, and costs.
  • Suspension of local travels unless urgently necessary and authorized.
  • Prohibition on the purchase of motor vehicles, except ambulances, military, and police vehicles.
  • Suspension of paid media advertisements except for essential agency communications.
  • Suspension of training, seminars, and workshops unless grant-funded or cost-recoverable.
  • No expansion or creation of organizational units or positions unless following "scrap and build" policy.
  • Prohibition on non-core celebrations and cultural/sports activities except public school athletics.
  • Suspension of donations, contributions, grants, and gifts unless mandated by the donor-agency.

Reduction Mandates

  • At least 10% reduction in costs for consultants, technical assistants, contractual and casual employees.
  • At least 10% reduction in consumption of fuel, water, supplies, electricity, and utilities.
  • Authorization to install energy-saving equipment and optimize internet use for cost savings.

Financial and Procurement Directives

  • Suspension of all tax expenditure subsidies to GOCCs, OGCEs, and local government units unless approved by Fiscal Incentives Review Board.
  • Overtime compensation is to be given as time or days off instead of pay, per DBM and CSC guidelines.
  • Strict compliance with Government Procurement Reform Act (RA 9184) and its Implementing Rules, including use of Government Electronic Procurement System.
  • Prioritization of capital expenditures with realignment or use of savings to fund capital projects supporting the 10-Point Legacy Agenda.

Implementation of Attrition Law Provisions

  • Adoption of RA No. 7430 provisions, specifically the prohibition on filling vacated positions, subject to certain exceptions until lifted by the President.

Regulation on Allowances and Benefits

  • Limitation on granting honoraria and allowances to specific teaching personnel and appointed officials involved in seminars, commissions, or procurement.
  • Suspension of new/additional benefits to full-time officials and employees, except for certain collective negotiation agreement incentives or presidentially authorized benefits.
  • Suspension and reduction of benefits for non-full-time officials, with a cap on combined per diems, honoraria, and benefits at P20,000 per month.

Austerity Plan Preparation and Responsibility

  • Requirement for every NGA, SUC, GOCC, GFI, or OGCE to prepare and implement an austerity plan.
  • Responsibility of heads and governing boards for strict implementation of this Order and Memorandum Order No. 20 dated June 25, 2001.
  • Violations are subject to corresponding sanctions.

Extension to Other Government Branches and Entities

  • Strong urging for Legislative and Judicial branches, constitutional commissions, and local governments to adopt austerity provisions.
  • Reminder for local governments to adhere to personal services expenditure limits under the Local Government Code.
  • Emphasis on maximizing use of 20% of Internal Revenue Allotments for development projects.
  • Call for the Commission on Audit to monitor and ensure compliance.

Effectivity

  • Immediate effectivity upon publication in two newspapers of general circulation.

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