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TO:	All Heads of Ministry, Bureau, Agency, or Office
		of the National Government
	The Minister of the Budget

WHEREAS, it is essential that government fiscal priorities be directed towards anticipating possible adverse consequences of the international energy crisis;

WHEREAS, unnecessary projects and activities must be eliminated so as to ensure that those activities of the highest priority can be fully supported;

WHEREAS, the CY 1980 budget must be formulated to support priorities in food production and other basic needs;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby Order and.Instruct:

1. The Minister of the Budget shall review and submit a report on compliance with the Cabinet agreement for all agencies of government, including state universities and colleges, to generate an additional 5% savings on total budget program for current operating expenditures.  It is reiterated that no agency shall be exempt from these reserves.
2. The implementation of newly created organizational units shall be suspended, consistent with the provisions of LOI No. 728.  No funds shall be released for such new-organizational units, nor shall savings of existing agencies be utilized to start any now organizational unit without specific approval of the Committee created under LOI No. 728.
3. All Ministries and Heads of Office shall study the workload of their employees and shall redeploy them as may be necessary to accomplish existing and anticipated workload without any additional personnel.
4. The operating budgets of government corporations receiving operating subsidies, particularly the National Grains Authority, National Irrigation Administration, Fertilizer Industry Authority, and the Philippine Coconut Authority, shall be reviewed with the purpose of minimizing such operating subsidies.
5. The CY 1980 budget shall be prepared under the following guidelines:
   1. No project or agency shall be entitled to an automatic percentage increase. Each activity shall be examined as to its place in the overall priority structure.  Funding allocations shall be made accordingly.
   2. Relatively loss essential projects shall be deferred, as may be necessary to generate sufficient budgetary support to food production programs, energy exploration, public transportation, and the basic necessities.
   3. New emphasis shall be given in food production to cassava, legumes, and protein sources such as cattel and other food animals, mongo, seguidillas, and soya beans.  Alcogas development,  irrigation, farm-to-market roads, and energy exploration shall be given full support in the preparation of the budget program.
   4. The creation of new positions shall be authorized only in extremely meritorious cases, particularly technical staff in regional or field offices.  Agencies shall not be allowed any increase in the amount of lump sums for contractual, casual, and non-itemized positions.
   5. The budgets of coordinative bodies shall be limited to the minimum necessary for purely coordinative, as against implementing, functions. Requirements for implementing activities shall be included in the budgets of the line agencies concerned.

Done in the City of Manila, this 23rd day of May, nineteen hundred and seventy-nine.