WHEREAS, the Office of Budget and Management used to be a Ministry;

WHEREAS, the functions and operations of the Office of Budget and Management are central to the basic activities of the national government as well as the local government units and government-owned or controlled corporations;

WHEREAS, the budget is a vital instrument in the attainment of social, political, economic and other government objectives as well as the implementation of priority programs and projects;

WHEREAS, the Office of Budget and Management is involved not only in the preparation and execution of the budget, but also in fiscal planning, improvement of management and accounting systems and procedures in the national, local and corporate levels, and the development and implementation of a progressive compensation system; and

WHEREAS, to underscore and institutionalize the crucial role of the Office of Budget and Management, it should be restored to a Ministry.

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

SECTION 1. The Office of Budget and Management is hereby restored to its former status as a Ministry and shall henceforth be known as the Ministry of Budget and Management.

SECTION 2. The Minister of Budget and Management is hereby authorized to provide the internal structure and staffing pattern of the Minister of Budget and Management.

SECTION 3. The Office of Compensation and Position Classification is hereby retained in the Ministry of Budget and Management.

SECTION 4. Should any provisions of this Executive Order or any part thereof be declared unconstitutional, the remaining provisions or parts thereof shall continue to be valid and binding.

SECTION 5. All laws, decrees, executive orders, rules and regulations which are inconsistent with this Executive Order are hereby repealed, altered or modified accordingly.

SECTION 6. This Executive Order shall take effect immediately.

Done in the City of Manila, this 15th day of December in the year of Our Lord, Nineteen Hundred and Eighty-six.

By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary