WHEREAS, pursuant to Section 54, Chapter 12, Book IV, of Executive Order No. 292 (Administrative Code of 1987), the heads of bureaus, offices, or agencies may, upon approval of the department head, charge and collect the cost of the services rendered by the bureau, office or agency or other rate in excess of cost prescribed by law or approved by the same authority;

WHEREAS, it is the goal of government: 1) to promote full recovery of cost of services to free other government revenues for priority projects; and 2) to ensure equitable distribution of the burden of cost recovery by having the direct recipients of governments services account for the costs; and

WHEREAS, efficiency in government is enhanced by an accentuated cost-consciousness and public accountability through a system of reportorial requirements and sanctions.

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 order:

Section 1. All departments, bureaus, offices, units, and agencies, including government-owned or controlled corporations, are hereby directed to revise their fees and charges to recover at least the full cost of services rendered.

The full cost of services for the year rendered by a government department, bureau, office, unit, or agency, including government-owned or controlled corporation, shall be equivalent to the appropriation of said department, bureau, office, unit or agency for the year under the relevant General Appropriations Act or under the Corporate Operating Budget submitted by the government-owned or controlled corporation as approved by the Department of Budget and Management.

The revised rates shall, wherever practicable, be uniform for similar or comparable services and functions and shall be determined by the respective department heads, governing boards, or equivalent functionaries; Provided that, this Executive Order shall not apply to fees charged by departments, bureaus, offices, units, and agencies, including government-owned or controlled corporations, related to constitutionally mandated free or subsidized services, such as in education and health, as well as to those exempted by international agreements, as shall be determined by the President.

Section 2. The heads of departments shall be responsible for the implementation of this Executive Order by the bureaus, offices, units, and agencies, including government-owned or controlled corporations, within their respective jurisdictions.

Section 3. No appropriation for a particular department, bureau, office, unit, or agency, including government-owned or controlled corporation, shall be released by the Department of Budget and Management until after a report of compliance hereto has been submitted by the department, bureau office, unit, or agency, including government-owned or controlled corporation, to the Office of the President through the Department of Budget and Management.

Section 4. In submitting their proposed budgets with the Department of Budget and Management, government departments, bureaus, offices, units and agencies, including government-owned or controlled corporations, shall also be required to submit a corresponding summary of expected revenues.

Section 5. Government departments, bureaus, offices, units, and agencies, including governments- owned or controlled corporation, charging higher rates than those provided for under this Executive Order by virtue of special laws for services rendered shall continue to charge such higher rates under such special laws.

Section 6. The Department of Finance and the Department of Budget and Management shall jointly promulgate the rules and regulations to implement this Executive Order.

Section 7. All executive issuances or parts thereof which are inconsistent with any of the provisions of this Executive Order are hereby repealed or modified accordingly.

Section 8. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 23rd day of February in the year of Our Lord, Nineteen Hundred and Ninety-Four.

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

By the President:

(Sgd.) TEOFISTO T. GUINGONA, JR.
Executive Secretary