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TO :	The Minister of Local Government and Community
		Development
	The Minister of the Budget
SUBJECT:	All Governors, City and Municipal Mayors
SUBJECT:	Providing for the Immediate Creation of Local Budget Offices

WHEREAS, local government budget functions have in the past been discharged by local Treasurers;

WHEREAS, it is necessary to strengthen local government budget administration in order to see to the prompt implementation of P.D. No. 1375;

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

1. All local government units shall create, on or before June 30, 1980, a regular provincial, city or municipal budget office, as the case may be, which shall implement in full the provisions of P.D. No. 1375 within their respective jurisdiction.
   
   
2. The local budget office shall be staffed following guidelines issued by the Ministry of the Budget.
   
   
3. The Local Chief Executive shall appoint the provincial, city or municipal officer, subject to the qualification requirements issued by the Ministry of the Budget and the appropriate civil service laws, rules and regulations.
   
   
4. The Provincial/City/Municipal Budget Officer shall have the rank and salary equivalent to the rank and salary of a department head as defined under Section 8 of P.D. No. 1136.  The compensation of the other members of the local budget staff shall be in accordance with the Position Classification and Pay Plans of the local government units concerned as approved by the Joint Commission on Local Government Personnel Administration, pursuant to P.D. No. 1136 and shall be funded from local funds.  The salary of the provincial city and municipal budget officer, however, shall be subsidized as follows for a period of three years starting January 1, 1980 to December 31, 1982;
   
   
   1. For class I-A, I-B, I-C provinces and cities - 20% of annual budget officer's salary;
      
      
   2. For class 2, 3, provinces and cities - 30% of annual budget officer's salary;
      
      
   3. For class 4, 5, provinces and cities - 40% of annual budget officer's salary;
      
      
   4. For class I-A, I-B, I-C municipalities - 30% of annual budget officer's salary;
      
      
   5. For class 2, 3, municipalities - 40% annual budget officer's salary;
      
      
   6. For class 4, 5, 6 municipalities - 50% of annual budget officer's salary;
      
      
5. The Local Chief Executive shall report to the Ministry of the Budget through its Regional/ District Offices, on the extent of compliance with the requirement for the creation of the local budget offices.
   
   
6. Exceptions to this Letter may be approved by the Minister of the Budget in cases where a satisfactory alternative can be proposed such as a budget office jointly established by a group of local government units.
   
   
7. This Letter shall take effect immediately.

Done in the City of Manila, this 19th day of June, in the year of Our Lord, nineteen hundred and eighty.