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Saturday, March 29, 2008

 

Government rationalization
program nets P402 million

 
THE government saved almost half-a-billion pesos with the implementation of its rationalization program since 2004, data from the Department of Budget and Management showed.

In a paper submitted to the Philippines Development Forum, the Budget department said 2,132 positions have been abolished after the approval of 30 state-institutions’ rationalization plan, making the government save P402 million from total personnel services.

Because of the program, 1,742 government personnel were affected. But the department said 94 percent or 1,632 affected personnel opted to retire and be separated from the service, while 6 percent or 110 employees transferred to other agencies.

Incentives and terminal leave benefits paid to those who have opted to retire or be separated amounted to P160 million.

The Budget department and the Civil Service Commission are mandated by law to implement the rationalization program, which will help the executive branch become more effective and efficient.

Under the plan, all departments or agencies of the executive branch will conduct a strategic review of their operations and organizations to identify the functions, programs, activities and projects which can be scaled down, phased out or abolished.

The savings generated from the program will be plowed back to the departments and agencies concerned to beef up funds for items like maintenance, other operating expenses and capital outlay.

Of the approved 30 institutions, two were from department level offices, five attached agencies, 15 other government agencies, and eight government-owned and controlled corporations (GOCCs).

The Departments of Finance, Health, and Transportation and Communications, meanwhile, have yet to complete their rationalization plans.

In the implementation of the program, 20 departments and department-level offices, 28 other executive offices or other government agencies, and 60 GOCCs are expected to submit their rationalization plan.

Of these, 82 entities or 76 percent have already submitted their plans to the Budget department as of March 15 of this year.
-- Chino S. Leyco

   

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Severino O. Frayna Jr., Benjie Dela Rosa
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