TO:	Chairman and Heads of Government Owned or       Controlled Corporations The Chairman, Commission on Audit The Chairman, Civil Service Commission The Minister of the Budget

Whereas, Executive Order No. 518 establishes the policy, procedure and timetable for the preparation and approval of the operating budges  of government owned or controlled corporations;

Whereas, certain government owned or controlled corporations have submitted for approval, their respective operating budgets in compliance with the said Executive Order and the implementing rules and regulations;

Whereas, the new system for the approval of corporate budgets is being  implemented for the first time in 1980, with the attendant transitional difficulties;

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

1. The internal operating budgets of the government owned or controlled corporations included in the list herewith attached are hereby approved pursuant to  the provisions of Executive Order No. 518 and subject to the conditions herein established.   The Minister of the Budget shall officially advise the corporate  Chairmen and Heads of the details of the approved budgets;
   
   
2. Executive  Order No. 518 requires that no government owned or controlled corporation shall incur obligations or make payments for current operating or capital expenditures after the beginning of each calendar year without a budget approved the said Order.   However, as a transitional measure for the corporations not covered by item no. 1 hereof are hereby authorized to incur obligations and make payments during the months of January and February 1980 within the limits of their average monthly expenditure levels in 1979.  These corporations shall submit their operating budgets for approval on or before February 15, 1980.  The provision of Section 15 of E.O. No. 518 shall be  strictly enforced beginning March 1, 1980.
   
   
3. Approval of the proposed expenditure levels shall not be construed to mean automatic approval of increases in salary, allowances, fringe benefits or other components of personnel compensation that are otherwise supportable by the said expenditure levels.  Any increases in compensation shall be subject  to the provisions of P.D. No. 985 and the applicable implementing Presidential Order.
   
   
4. The Heads of government owned or controlled corporations shall submit on or before February 15, 1980, their respective plantilla of itemized positions,  observing such format and submitting such information as may be required by the Minister of the Budget.
   
   
5. The Chairman, Commission on Audit,  the Chairman Civil Service  Service Commission, and the Minister of the Budget shall see to it that  the provisions of the Letter of Implementation governing the salaries, allowances and fringe benefits of corporate officials and employees are fully observed.
   
   
6. Approval of the proposed expenditure levels shall not be construed to mean automatic approval of proposed government equity investments and proposed borrowings, both of which shall be subject to review and approval in accordance with established law and procedure.
   
   
7. Notwithstanding the approval of the expenditure levels proposed by corporations, it shall be understood that expenditures, whether for current operating expenditures or for capital outlays, shall be made only with the availability of funds realized from the revenue, borrowing, or equity investments  approved as the source of funding of the said expenditures.
   
   
8. Any supplemental budgets, including additional funds appropriated or deemed appropriated, which are approved by corporate  Government Boards, shall be submitted to the Minister of the Budget for appropriate action as called for under Action 10 of E. O. No. 518.

Done in the City of Manila,  this 31st day of December, nineteen hundred and seventy-nine.


List of Government Owned or Controlled Corporations whose CY 1980 operating budgets are approved pursuant to the provisions of E.O. No. 518

Financial Institutions     Development Bank of the Philippines
Land Bank of the Philippines     Masaganang Sakahan, Inc.
Lumang Bayan Realty Development Corporation   Philippines National Bank     National Investment and Development Corporation
PNB International Finance Ltd. HK   Social Security System
Government Service Insurance System
National Home Mortgage Finance Corporation
Home Development Mutual Fund
Philippine Deposit Insurance Corporation     Infrastructure/Utilities       National Electrification Administration
National Housing Authority
Philippine Aerospace Development Corporation
Philippine Ports Authority     Industrial/Area Development       Laguna Lake Development Authority
Leyte Sab-A Basin Development Authority
Public Estates Authority
Export Processing Zone Authority     Educational/Social/Scientific/Cultural       Employees Compensation Commission
Metals Industry Research and Development Center
National Research Council of the Philippines
Philippine Institute of Development Studies
Philippine Veterans Assistance Commission
Science Foundation of the Philippines