Budget dep’t reports savings from rationalization scheme

THE GOVERNMENT has saved a total of P2.3 billion from the rationalization plan which abolishes redundant functions and outdated positions in the bureaucracy, a Budget official said yesterday.

Because of this, Budget Assistant Secretary Amelita D. Castillo said the department is recommending for the next administration to continue its implementation.

As of June 23, Ms. Castillo said in a briefing that there are 11,256 unnecessary government positions that were scrapped.

Out of this total, 5,526 of which are contractual positions and 5,730 are funded positions.

The abolition of contractual positions and funded positions saved P400 million, and P1.9 billion, respectively.

“There is no specific policy yet if the new administration will still pursue the rationalization program but we are hopeful [that they will] continue implementing the rationalization program in view of the benefits that it is expected to attain,” Ms. Castillo said.

“It’s not just about removing positions. It’s about improving the efficiency of government services because the rationalization program tries to focus the operations of agencies to their core mandates.”

Ms. Castillo said P1.28 billion in benefits and incentives were given to those who opted to retire or retrenched.

The rationalization program, launched in 2007, is contained in Executive Order (EO) 366, which called for a strategic review of the operations and organizations of the executive branch.

EO 366, signed in October 2004 by President Gloria Macapagal-Arroyo, directed all department secretaries to conduct a strategic review of their agencies’ operations and organizations in order to improve efficiency and quality of services through rationalization.

The Department of Budget and Management has approved a total of 76 rationalization plans from various government agencies, and government-owned corporations. — Ana Mae G. Roa, Businessworld