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TO:	(1)	The National Economic and Development Authority
	(2)	The Ministry of Local Government and Community Development
	(3)	The Ministry of the Budget
	(4)	The Ministry of Finance
	(5)	The Ministry of National Defense
	(6)	The Commission on Audit
	(7)	The National Tax Research Center (NEDA)
	(8)	The Presidential Commission on Reorganization

In order to expedite the organization of and making operational the Sangguniang Pampook and Lupong Taga-pagpaganap ng Pook established in Regions IX and XII pursuant to Batas Pambansa Blg. 20, instructions are given as follows:

1. The National Economic and Development Authority (NEDA) shall (a) conduct a study of and prepare recommendations for the improvement of the planning function such that the primary responsibility of NEDA for planning vis-a-vis the Autonomous Regions shall be with respect to determining the national and inter-regional implications of the regional development plan, while that of the Regional Development Council shall be with respect to formulating the regional development plan, including determining its intra-regional (within the region) implications; and also that the regional planning function will allow a substantial participation of the Autonomous Region in the regional planning process and ensure that development priorities perceived by the Sangguniang Pampook and the Lupong Tagapagpaganap ng Pook as well as local governments are considered in the formulation of the regional development plan; and (b) conduct a study of and prepare recommendations as to what functions and responsibilities of NEDA with respect to regional planning can be turned over or delegated to, or otherwise coursed through, the Autonomous.
   
   
2. The Ministry of Local Government and Community Development shall (a) provide, in coordination with other agencies concerned, assistance to the Sangguniang Pampook in the formulation of its rules of proceedings; and (b) conduct a study of and prepare recommendations as to what regulatory and supervisory powers and development functions of the Ministry of Local Government and Community Development, with respect to local governments, can be appropriately turned over or delegated to, or otherwise coursed through, the Autonomous Regions.
   
   
3. The Ministry of the Budget shall (a) assist the Lupong Tagapagpaganap ng Pook in the formulation of a budgeting system and a budget operations manual to be adopted by the Autonomous Region;   (b) develop a system by which all assistance to local governments as well as fund releases for undertaking regional projects of national government offices in the Autonomous Regions, particularly those that are geared towards the development of the community, shall be coursed through the Lupong Tagapagpaganap ng Pook; and (c) conduct a study of and prepare recommendations as to what regulatory and supervisory powers of the Ministry of the Budget with respect to regional offices and local governments can be appropriately turned over or delegated to, or otherwise coursed through, the Autonomous Regions.
   
   
4. The Ministry of Finance shall (a) with the assistance of the National Tax Research Center, conduct a study of and prepare recommendations for defining the nature and extent of the taxing authority of the Sangguniang Pampook, including an identification of the specific taxes that can be levied by the Autonomous Regions; (b) with the assistance of the National Tax Research Center, study and formulate recommendation for revising the sharing system of local governments from receipts of national taxes, to include the Autonomous Regions in such sharing system; and (c) conduct a study of and prepare recommendations as to what regulatory and supervisory powers of the Ministry of Finance with respect to local governments can be appropriately turned over of delegated to, or otherwise coursed through, the Autonomous Regions.
   
   
5. The Ministry of National Defense shall conduct a study of and prepare recommendations for establishing a system of internal regional security and the adoption of measures and arrengements that will enhance the maintenance of Peace and order in the Autonomous Regions, including the possible organization and maintenance of security and; or Police forces therein.
   
   
6. The Commission on Audit shall formulate and install an accounting system, a chart of accounts and auditing Procedures as would be appropriate with the concept of internal autonomy for financial transactions of the Autonomous Regions.
   
   
7. The Presidential Commission on Reorganization, in coordination with agencies concerned, shall (a) conduct a study of the powers and operations of the regional offices and field units of entities operating in each of the Autonomous Regions and prepare recommendations for effecting a more substantial delegation of substantive authority to these regional offices and field units;  (b)   conduct a study of the functions and operations of government corporations operating in each of the Autonomous Regions, particularly the Southern Philippines Development Administration, and prepare recommendations for ensuring effective coordination with the Lupong Tagapagpaganap ng Pook of the administration and implementation of their respective projects within the region; and (c) conduct a study of the prepared recommendations for defining the desired nature of the administrative supervision that shall be exercised by the Lupong Tagapagpaganap ng Pook over the regional directors of the national agencies engaged in the socio-economic development of the region, including the Ministries of Health, Education and Culture, Public Highways, Agriculture. Social Services and Development, Human Settlements, Public Works. Transportation and Communications, Industry, and Youth and Sports Development.

Whenever necessary and possible, representatives of the Autonomous Regions shall be consulted with respect to the recommendations formulated arising from each studies before these are finalized.

The studies directed hereinabove to be conducted shall be completed and reports thereon shall be submitted to the President, including proposed issuances, within 30 days from the issuance of this Letter of Instructions.

Done in the City of Manila, this 27th day of June, in the year of Our Lord, nineteen hundred and seventy-nine.