WHEREAS, both the national and local government budgets are vital instruments in the attainment of the new Government's reconstruction program and development priorities;

WHEREAS, with the emphasis on countryside development, the Ministry of Budget and Management should take a greater role in strictly reviewing the budgets of local government units and closely monitoring the budgetary process of local governments;

WHEREAS, the budget officers of local government units are indispensable officials in the role of the Ministry of Budget and Management in assuring that local budgets are prepared and implemented in consonance with national goals;

WHERAS, it is, therefore, necessary to place all local budget officers under the administrative control and technical supervision of the Ministry of Budget and Management.

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Republic of the Philippines, do hereby direct:

SECTION 1. All budget officers of provinces, cities and municipalities shall be appointed henceforth by the Minister of Budget and Management upon recommendation of the local chief executive concerned, subject to civil service law, rules and regulations, and they shall be placed under the administrative control and technical supervision of the Ministry of Budget and Management.

SECTION 2. The present compensation and other benefits of budget officers of provinces, cities and municipalities shall be maintained and paid in full by the National Government. The amount necessary for CY 1987 shall be drawn form the Compensation and Organizational Adjustment Fund (COAF) authorized under Executive Order No. 87. thereafter, such sums as may be necessary to cover the personnel benefits cost for local budget officers shall be included in the annual appropriations of the Ministry of Budget and Management.

SECTION 3. The present functions of the budget officers of provinces, cities and municipalities under P.D. No. 1375 and P.D. No. 477 are hereby retained subject to policy guidelines as may be issued from time to time by the Minister of Budget and Management.

SECTION 4. All laws, decrees, executive orders, rules and regulations which are inconsistent with this Executive Order are hereby repealed, altered or modified accordingly.

SECTION 5. This Executive Order shall take effect immediately.

Done in the City of Manila, this 24th day of December in the year of Our Lord, Nineteen Hundred and Eighty-Six.


By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary