WHEREAS, Administrative Order No. 270 was issued on February 21, 1992, approving and adopting the Rules and Regulations Implementing the Local Government Code of 1991, declaring the same as an integral part of the said Administrative Order;

WHEREAS, the Department of Budget and Management issued Local Budget Circular No. 53 dated September 1, 1993, adopting and applying, among others, the second paragraph of Article 77 of the aforesaid IRR of RA 7160;

WHEREAS, recent developments have caused financial problems and confusion in various local government units pertaining to the payment of salaries, compensation and benefits of the youth and barangay representatives as ex officio members in the sangguniang panlalawigan, sangguniang bayan and sangguniang panlungsod;

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby declare and order:

SECTION 1.       Article 77, paragraph 2, of the Rules and Regulations Implementing the Local Government Code of 1991 (RA 7160) is hereby amended to read as follows:

"Art. 77.         Compensation and Benefits. - x x x

'(2) The ex officio members in the Sangguniang Panlalawigan representing the sangguniang kabataan and the liga ng mga barangay shall receive the full amount of their authorized salaries and emoluments from the provincial government where they sit as ex officio members. The province shall appropriate in full the needed amount for the aforementioned benefits equivalent to the amount actually due their regular elective counterparts in the said sanggunian: Provided, however, That the president of the provincial federation of sanggunian members of municipalities and component cities who likewise sit as ex officio member in the sangguniang panlalawigan shall receive his authorized salary and other emoluments from the component city or municipality which he represents and the province shall appropriate only for the additional allowances of said member such that his total compensation shall be equivalent to the compensation actually received by his elective counterpart in the sangguniang panlalawigan."

SECTION 2.       The remaining provisions of Article 77 of the IRR which are not hereby affected shall remain in full force and effect.

SECTION 3.       All other administrative issuances or any part or parts thereof which are inconsistent herewith are hereby amended, modified or repealed accordingly.

SECTION 4.       This Administrative Order shall take effect immediately.

Adopted: 22 May 1997

	(SGD.) FIDEL V. RAMOS
	President of the Philippines

BY THE PRESIDENT:

(SGD.) RUBEN D. TORRES
Executive Secretary