WHEREAS, the full funding requirements of Republic Act No. 6758, otherwise known as the Compensation and Position Classification Act of 1989, have not been incorporated in the 1990 budgets of all the agencies;

WHEREAS, there are deficiencies in the funding requirements of mandatory and priority programs and projects of the government;

WHEREAS, Section 60 of Republic Act No. 6831 mandates the imposition of reserves equivalent to ten percent (10%) of the total non-personal services appropriations, excluding appropriation for school buildings, hospital buildings and court houses for CY 1990, of individual agencies and offices of the national government including government owned or controlled corporations;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The ten percent (10%) mandatory reserves imposed on the CY 1990 appropriations of all national government agencies and offices are hereby made available to fund the deficiency in the salary standardization, and the mandatory and priority programs and projects of the government.

SECTION 2. The Department of Budget and Management is hereby authorized to withdraw the appropriations reserves of the different agencies and offices and consolidate the same into a Reserve Control Account against which all releases for the aforesaid purposes shall be charged.

SECTION 3. The Department of Budget and Management shall issue the necessary guidelines to implement this Administrative Order, and shall insure compliance with the reportorial requirement under Section 60, of Republic Act No. 6831.

Done in the City of Manila, this 31st day of May, in the year of Our Lord, nineteen hundred and ninety.


By the President:
(Sgd.) CATALINO MACARAIG, JR.
Executive Secretary