Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Declaration of Policy.-It is declared to be the policy of Congress to promote simplicity, economy, and .efficiency, and to improve the service in the transaction of the public business in the departments, bureaus, agencies, boards, commissions, offices, and other instrumentalities of the government, including all corporations owned or controlled by the government by:

1. Limiting expenditures to the lowest amount consistent with the efficient performance of essential services, activities, and functions;
   
2. Eliminating duplication and overlapping of services, activities, and functions;
   
3. Consolidating services, activities and functions of a similar nature;
   
4. Abolishing   services,   activities,   and   functions   not necessary to the efficient conduct of the government; and
   
5. Defining  and  limiting  executive   functions,   services
   and activities.
   

SEC. 2. For the purpose of carrying out the policy set forth in section one of this Act, the President of the Philippines is hereby authorized to effect by executive order from time to time, for a period not exceeding one year from the date of the approval of this Act, and within the limits of the total current appropriation such reforms and changes in the different executive departments, bureaus, offices, agencies and other instrumentalities of the government including the corporations owned or controlled by the government as he may deem necessary, with the power to diminish, add to or abolish those existing and create new ones; consolidate related undertakings; transfer functions, appropriations, equipment, property, records, and personnel from one department, bureau, office, agency or instrumentality to another; to eliminate duplicated services or authorize new ones not provided for; classify, combine, split or abolish positions; standardize salaries and do whatever is necessary and desirable to effect economy and promote efficiency in the government service.

SEC. 3. Officers and employees whose positions are abolished or who may be separated from the service as a consequence of the reorganization provided in this Act shall not lose their civil service eligibility for a period of ten years from the date of their separation from the service, nor their right to any gratuity which the Congress may provide. In case an office needs the services of additional personnel, preference in the appointment shall be given to the officers or employees who may be separated from the service as a result of this reorganization and in accordance with the recommendation of the Commissioner of Civil Service.

SEC. 4. Any action taken by the President pursuant to the provisions of this Act shall be immediately reported to Congress and shall be valid and subsisting until Congress shall provide otherwise.

SEC. 5. This Act shall take effect upon its approval.

Approved, January 6, 1950.