Law Summary
Declaration of Government Policy
- Government promotes streamlining bureaucracy to enhance civil service efficiency and effectiveness.
- Discourages creation of additional positions, including contractual and casual roles.
- Encourages agencies to utilize existing permanent personnel relevant to programs or projects.
Guidelines on Organizational Structure
- Projects should be assigned to existing agency units (bureaus, offices, departments, or divisions) responsible for the project’s functions.
- Project Management Offices (PMOs) or implementing units may be created if necessary, without creating new government positions.
- Personnel for PMOs can be sourced from within the agency or other government agencies.
- PMOs can be organized internally or formally created upon Department of Budget and Management (DBM) approval.
- Where projects institutionalize new undertakings (i.e., establishing new facilities) requiring additional positions, PMO creation with new posts is allowed subject to DBM approval.
- PMOs are coterminous with their projects; phasing out occurs after project completion or termination.
- A winding-up period not exceeding six months is allowed after completion for accountabilities, costs borne by unused project funds.
Guidelines on Staffing
- Agencies authorized to implement projects must use existing regular personnel.
- Personnel can be augmented by detailing regular staff from other agencies, following established procedures.
- Assignment to projects requires approval by the agency head, based on project needs including number, type, and expertise of personnel.
- Detailed regular personnel are eligible for honoraria according to budget guidelines.
- Regularization of contractual/casual positions in ongoing projects is generally prohibited, except when institutionalization of facilities necessitates additional personnel.
- Such regularization remains subject to prevailing budgeting policies and standards.
Hiring of Consultants and Experts
- Hiring consultants or experts must comply with National Budget Circular No. 433 (March 1, 1994).
- This circular outlines rules and regulations governing hiring of individual consultants or experts for projects.
Repealing Clause
- Previous Department of Budget and Management issuances inconsistent with these guidelines are repealed or modified accordingly.
Effectivity
- The circular takes effect immediately upon issuance on January 11, 1995.