Economic Context and Justification
- Acknowledges the rising cost of living triggered by an ongoing energy crisis and global economic downturn.
- Notes previously granted basic pay increases effective January 1, 1976, amounting to approximately a 74% increase in total compensation for military personnel.
- Highlights financial constraints faced by the government due to fiscal priorities including procurement of military equipment and supplies.
Funding Source and Limitations
- The increase in subsistence allowance shall be funded by savings from programmed appropriations allocated for AFP current operating expenditures for calendar years 1977 and 1978.
- The amount of increase is conditional upon the availability of savings but is capped at a maximum of P2 (two pesos) per day.
Implementation and Administrative Directives
- Mandates the Secretary of National Defense and the Commissioner of the Budget to jointly formulate and issue the necessary rules and regulations to effectuate the increase.
Effectivity Date and Formalization
- Specifies that the increased subsistence allowance shall take effect retroactively from December 1, 1977.
- The order was issued under the authority of the President of the Philippines, formalized in Manila on May 30, 1978.