In view of the implementation delays in the programs and projects of the national government (NG) due to equity problems of the local government units (LGUs), the NG-LGU Cost-Sharing Policy is hereby temporarily suspended until approval and issuance of a rationalized sharing scheme.

Accordingly, a Joint Technical Working Group (TWG) is hereby constituted for the rationalization of the NG-LGU Cost-Sharing Policy. The TWG shall be composed of a representative from the National Economic and Development Authority (NEDA), as Chairperson; and representatives from the Department of Budget and Management (DBM), Department of Finance (DOF) and Department of the Interior and Local Government (DILG), as members.

The TWG is hereby directed to submit its report and recommendation to the President, through the Office of the Executive Secretary, on or before November 30, 2011.

This Memorandum Order shall take effect immediately.

Done, in the City of Manila, this 19th day of September in the year of our Lord, Two Thousand and Eleven.