REPUBLIC OF THE PHILIPPINES hi DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT — ‘(4/0 ‘A. Francisco Gold Condominium I] EDSA cor. Mapagmahal St Diliman, Quezon City OFFICE OF THE SECRETARY October 1, 2004 MEMORANDUM CIRCULAR NO. 2004-130 To ALL PROVINCIAL GOVERNORS, CITY MAYORS, MUNICIPAL MAYORS, DILG REGIONAL DIRECTORS AND OTHERS CONCERNED SUBJECT OBSERVANCE OF AUSTERITY MEASURES AND UTILIZATION OF THE 20% DEVELOPMENT FUND The continued adoption and impiementation of austerity measures are necessary in order to meet the country’s fiscal targets, maintain its macro- economic stability and improve investor confidence. In a consultation with the Union of Local Authorities of the Philippines (ULAP), the imperative of adopting austerity measures and optimally utilizing the 20% Development Fund were emphasized. Towards this end, al local chief executives are hereby enjoined to A. On Austerity Measures 1. Suspend all non-essential local and foreign travels which are not urgent and do not bring immediate socio-economic benefits among local constituents; 2. Suspend attendance to training, seminars, workshops or conventions which are not directly related to the 10-point agenda of the government; 3. Observe a moratorium in the hiring of consultants, contractual and casual employees 4. ! — Rationalize the utilization of fuel, electricity and office spaces; 5. Regulate the rendering of overtime services. In the event, however, that circumstances warrant such services, to adopt a scheme of compensating overtime services through time or days-off work in lieu of overtime pay. subject to applicable guidelines, rules and regulations.B. On the 20% Development Fund 1 Utilize the 20% Development Fund to finance programs or projects that a) Improve the quality of the human resource particularly the illiterates and out-of-school youth; b) Enhance health conditions and nutritional status of children especially those from the marginalized sectors; ©) Increase agricultural productivity through the construction, maintenance or improvement of post-harvest facilities, irrigation and other agricultural production systems; and d) Improve solid waste management services. Allocate a portion of the said Fund as Livelihood Development Assistance Fund for the marginalized sectors; and Refrain from using the 20% Development Fund, or a portion thereof, for personal services. All DILG Regional Directors are, likewise, enjoinec » cause the immediate and widest dissemination of this Memoraridi: » Circular to local authorities within their regional assignments. They shall monitor: and submit compliance reports to the SILG, through the Bureau of Local Government Supervision (BLGS), with the initial report reaching the Central Office on or before the end of October 2004. Subsequent reports shall be submitted on a quarterly basis to reach OSEC, through BLGS, on or before the 5" day of the month immediately following the end of the quarter. ANGELO T. REYES Secretary raat en i