WHEREAS, Administrative Order (AO) No. 103 (s. 2004) directed the continued adoption of austerity measures in the government;

WHEREAS, said AO was issued in order to meet the country's fiscal targets, maintain its macroeconomic stability, improve investors' confidence, and for the national government, its agencies and instrumentalities to undertake cost-cutting measures for purposes of reducing expenses and channelling its scarce resources, in order to attain a sound budget policy and ensure a balanced budget by 2009;

WHEREAS, the country's fiscal condition from the time AO No. 103 took effect has already significantly improved due to public expenditure management reforms, tax administration reforms, and sound and prudent debt management;

WHEREAS, with the country's improved fiscal situation, the government could, among other initiatives, increase infrastructure and social spending, implement public expenditure management reforms with greater intensity, streamline government operations, and make public service delivery more efficient in order to give the Filipino people the best value for their taxes;

WHEREAS, most of the provisions of AO No. 103 are already covered or superseded by pertinent provisions of the General Appropriations Act and recent issuances of the Office of the President, Department of Budget and Management (DBM), Civil Service Commission and other relevant agencies, which direct the judicious and prudent use of government funds;

WHEREAS, repealing AO No. 103 is aligned with the strategies of the Philippine Development Plan 2017-2022, which provides for, among others, the formulation and implementation of public expenditure management reforms that will improve budget utilization and address underspending of government agencies;

NOW, THEREFORE, I, RODRIGO ROA DUTERTE, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. AO No. 103 (s. 2004) is hereby repealed.

Notwithstanding the repeal of AO No. 103, existing laws, rules and regulations mandating the judicious and prudent use of government funds shall remain in full force and effect, and all agencies and instrumentalities shall continue to ensure that no irregular, unnecessary, extravagant, excessive and unconscionable expenses shall be incurred by the Government.

Section 2. Within thirty (30) days from the issuance of this Order, the DBM shall issue the necessary guidelines to inform and remind all national government agencies and instrumentalities of the existing laws, rules, regulations and other issuances governing the matters previously covered by the austerity measures of AO No. 103.

Nothing in this Order shall hinder the appropriate government agencies from issuing rules and regulations on the use of public funds within the bounds of their respective mandates.

Section 3. Should any part or provision of this Order be declared invalid or unconstitutional, the other parts or provisions hereof not affected thereby shall remain valid and subsisting.

Section 4. All orders, rules and regulations, issuances or any part thereof inconsistent with the provisions of this Order are hereby repealed, amended, or modified accordingly.

Section 5. This Order shall take effect immediately.

DONE in the City of Manila, this 19 th day of September in the year of Our Lord, Two Thousand and Seventeen.

(SGD.) RODRIGO ROA DUTERTE

 

By the President:

(SGD.) SALVADOR C. MEDIALDEA
Executive Secretary