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TO:	The Secretary of Local Government and Community Development The Secretary of Finance The Commissioner of the Budget All Heads and Budget Officers of Local Government Units

WHEREAS, P.D. No. 144 established the policy of national government aid to deserving local government projects;

WHEREAS, the implementation of the policy has been hampered by difficulties in establishing project priorities and in evaluating submitted projects;

WHEREAS, rapid attainment of national progress calls for close cooperation among national and local authorities;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do issue the following instructions:

1. The Secretary of Local Government and Community Development, the Secretary of Finance and the Commissioner of the Budget are hereby constituted into an Inter-Agency Committee for National Government Aid to Local Government Units (referred to as "Committee"), with the principal aim of recommending to the President an annual integrated program for national government assistance to local government units pursuant to Presidential Decree No, 144„ The Secretary of Local Government and Community Development shall be the Chairman of the Committee.
2. An annual program shall be prepared following a timetable consistent with the national and local government budget cycles and shall be completed early in the budget year as basis for fund release and implementation.
3. The Committee shall activate local government projects, collate proposals received and evaluate these, keeping in mind development priorities, funding availability from both local and national sources, and availability of local counterpart financing for submitted projects. Any and all requests now pending among the participating agencies shall be turned over to the Technical staff of the Committee for immediate evaluation.
4. Local government units shall identify development projects that are responsive to community needs and shall prepare adequate project studies for consideration of the Committee, citing among others, (a) local government development plan, (b) local government financial capability, and (c) availability of local government counterpart for the projects submitted for supports The Budget Officers of local government units shall incorporate the necessary aspects of project identification and development into the regular budget process.
5. The Committee shall be assisted by a Technical Staff to be constituted with the part-time detail of staff members from three (3) agencies. The size of the Technical Staff shall be determined on the basis of need. The Chairman of the Technical Staff shall be the senior representative of the DLGCD.
6. The release of fifty thousand pesos is authorized from the unallocated portion of the Apportionment to Local Government Fund to cover the expenses of the Committee and its Technical Staff until the end of 1977.  Thereafter, the sum of not less than two hundred thousand pesos per annum shall be allotted to cover Committee expenses, which amount will be taken from the same source.
7. The Committee shall formulate the necessary guidelines for compliance with these Instructions.

Done in the City of Manila, this 13th day of December, in the year of Our Lord, nineteen hundred and seventy-seven.