WHEREAS, the success of ongoing economic stabilization
efforts significantly hinges on the control of the public sector deficit within
manageable limits;
WHEREAS, the public sector deficit exerts pressures on the
balance of payment deficit, and;
WHEREAS, government corporate operations have contributed
significantly to the public deficit in the recent past;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Republic of the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order the following:
Any provision of law to the contrary notwithstanding, all direct borrowings
from domestic and foreign sources by government-owned and/or controlled
corporations, including their subsidiaries, as well as loan guarantees extended
by them, shall have the prior approval of the President, upon recommendation of
the Prime Minister.
Government-owned and/or controlled corporations, including their
subsidiaries shall submit their Capital Investment Programs for prior approval
of the President, thru and upon recommendation of the Prime Minister. All such
programs shall be based on attainable levels of resources from borrowings,
internal cash generations, and feasible equity or subsidy contributions from the
general fund. The implementation of such programs shall be guided by pertinent
existing laws and administrative issuances including Executive Order Nos. 518
and 936.
The implementing details of this decree shall be formulated by the Government
Corporate Monitoring Committee (GCMC) established by Executive Order No. 936 and
shall be promulgated by the Prime Minister.
Done in the City of Manila, this 6th day of June in the year of our Lord,
nineteen hundred and eighty four.