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PIA Press Release
2010/06/25

PGMA streamlining saves government P2.234 billion

Manila (25 June) -- A total of P2.234 billion has been saved as a result of President Gloria Macapagal-Arroyo's order of streamlining the bureaucracy to make it lean but efficient.

In a press briefing, Budget Undersecretary Laura Pascua said the approval of the rationalization plan of 76 government agencies resulted in the abolition of 11,256 positions of which 5,930 were funded positions.

Ninety-four more rationalization plans of departments, agencies or government-owned and controlled corporations are still being evaluated by the Department of Budget and Management, according to Pascua.

The government, she added, has paid P1.2 billion in benefits and incentives but stressed that the benefits paid were "recouped within the year."

Pascua expressed hopes that the Aquino Administration would continue implementing the rationalization program.

EO 366, entitled "Directing a Strategic Review of the Operations and Organizations of Executive Branch and Providing Options and Incentives for Government Employees Who May Be Affected by the Rationalization of the Functions and Agencies of the Executive Branch," aims to promote effectiveness, efficiency, affordability and transparency in government service.

Under the plan, government agencies are required to submit their own rationalization plans to weed out redundant positions and avoid duplication of functions.

The government will allocate funds to pay state employees who opt to voluntarily retire from service under the rationalization program.

The Department of Budget and Management (DBM) will provide "seed funds" to agencies upon submission of the separation and retirement package.

The EO is based on the mandate of Republic Act 9206, as reenacted, authorizing the President to direct changes in the organizational units or key positions in any agency; require the executive branch to conduct comprehensive review of its mandates, missions and operations; and implement structural and functional adjustments to improve the delivery of government services.

It is also grounded on the Administrative Code of 1987, which vests the President the authority to reorganize the executive branch. (PIA-MMIO) [top]

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