Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. _____ 
INTRODUCED BY REPRESENTATIVES ALAN PETER “COMPAÑERO” S. CAYETANO, 
MARIA LAARNI L. CAYETANO, LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR., RANEO E. 
ABU, AND DAN S. FERNANDEZ 
AN ACT  
MANDATING ALL EXECUTIVE DEPARTMENTS, BUREAUS, OFFICES, AGENCIES, AND 
INSTRUMENTALITIES, INCLUDING GOVERNMENT-OWNED OR CONTROLLED 
CORPORATIONS (GOCCS), AND GOVERNMENT FINANCIAL INSTITUTIONS (GFIS) TO 
IMPLEMENT STREAMLINING ACTIVITIES IN ORDER TO RAISE AT LEAST 5% IN 
BUDGETARY SAVINGS TO BOLSTER RESPONSE EFFORTS AGAINST COVID-19 
EXPLANATORY NOTE 
God made man in his own image. One who loves God, loves others as well. As a god-fearing 
people, Filipinos always keep families and communities in mind. Now, more than ever, our 
people need bayanihan. We were not meant to just survive since we all want to build fruitful 
lives in fulfillment of the Lord’s plans to prosper and not to harm us. During these challenging 
times of high prices in terms of fuel, food, goods, and other necessities, the government needs 
to step-in through a pro-people fiscal policy to help Filipinos carry on with their lives.  
As we try to recover from the country’s economy in disarray – the worst economic 
contraction since World War II (Philippine GDP plunged by 9.5% in 2020), the highest 
recorded annual unemployment rate in fifteen years (17.7% in April 2020 or 7.3 million 
Filipinos), the fastest acceleration in the price of goods in two years (4.9% inflation rate in 
August 2021), and prospects of an uncertain and weak recovery, among others – a concerted 
effort from each of us, especially the government, is required.  
Thus, we need to scale down unnecessary and redundant activities in order to augment 
programs, projects, and activities relative to the COVID-19 response and recovery efforts. 
This measure aims to address the deeply-rooted problems in the country, especially our 
failure to prioritize certain aspects in the delivery of public services, while spending on 
others which are unnecessary at this time of crisis and recovery. In this time of great need, it 
is possible to give the Philippine economy  another round of stimulus, provided that we 
streamline and come up with an airtight government budget while getting  rid of unneeded 
programs.   
This bill proposes a 5% mandatory savings on all government departments, bureaus, offices, 
agencies, and instrumentalities, including GOCCs, and GFIs, as well as state universities and 
March 31, 2022
10:36 am
10832


colleges in order to generate a projected amount of Two Hundred Fifty Billion Pesos to fund 
assistance to our countrymen who are in dire need to recover from the adverse effects of the 
present pandemic.  
It is, thus, our responsibility as servants to our nation and of the Filipino People to provide 
the best assistance we can offer – pang-ahon rather than pangtawid. 
Foregoing considered, the immediate passage of this bill is sought. 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. _____ 
INTRODUCED BY REPRESENTATIVES ALAN PETER “COMPAÑERO” S. CAYETANO, 
MARIA LAARNI L. CAYETANO, LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR., RANEO E. 
ABU, AND DAN S. FERNANDEZ 
AN ACT  
MANDATING ALL EXECUTIVE DEPARTMENTS, BUREAUS, OFFICES, AGENCIES, AND 
INSTRUMENTALITIES, INCLUDING GOVERNMENT-OWNED OR CONTROLLED 
CORPORATIONS (GOCCS), AND GOVERNMENT FINANCIAL INSTITUTIONS (GFIS) TO 
IMPLEMENT STREAMLINING ACTIVITIES IN ORDER TO RAISE AT LEAST 5% IN 
BUDGETARY SAVINGS TO BOLSTER RESPONSE EFFORTS AGAINST COVID-19 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:  
SEC. 1. Short Title. – This Act shall be known as the “Mandatory Savings Act of 2022”. 
1 
2 
SEC. 2. Declaration of Policy. – The health crisis has struck the country, its citizens, 
3 
and economy. It is the declared policy of the State to promote the right of the people to health 
4 
and to free them from poverty so they may enjoy the right to life in this time of crisis. The 
5 
pandemic continues to impede the efforts to revive the economy. It disrupts the lives of our 
6 
countrymen while it leaves the vulnerable worse off than they already were before the 
7 
pandemic. 
8 
9 
As Filipinos are in dire straits during these extraordinary times, there is a need for 
10 
extraordinary measures to bolster the financial position of every Filipino as they face the 
11 
economic effects of the pandemic amidst the rising prices of essential goods. To this end, it 
12 
is hereby the policy of the State to prevent more Filipinos from succumbing to poverty, 
13 
hunger, and sickness by providing much needed aid while vaccinations are ongoing. It is, 
14 
therefore, incumbent upon the government to effectively allocate its limited fiscal resources 
15 
to effectively help Filipinos and to bring economic recovery during this crisis. 
16 
17 
SEC. 3. Scaling Down and Phase-Out of Activities of Agencies within the 
18 
Executive Branch. – The heads of departments, bureaus, offices and agencies are hereby 
19 
directed to identify their respective activities which are no longer essential in the delivery of 
20 
public services and which may be scaled down, phased-out or abolished, subject to civil 
21 
service rules and regulations. Said activities shall be reported to the Office of the President 
22 
through the Department of Budget and Management and to the Chairperson of the 
23 
Committee on Appropriations of the House of Representatives and the Chairperson of the 
24 
Committee of Finance of the Senate. 
25 
10832


Savings generated by departments, bureaus, offices and agencies on the abolition, 
1 
phase-out or scaling down of unnecessary activities may be used by the President to augment 
2 
the respective programs, projects and activities relative to the COVID-19 response and 
3 
related assistance programs. 
4 
SEC. 4. Coverage. – This act shall cover all executive departments, bureaus, offices, 
5 
agencies, and instrumentalities, including government-owned and controlled corporations 
6 
(GOCCs), and government financial institutions (GFIs), as well as state universities and 
7 
colleges (SUCs).  
8 
SEC 5. Assessment and Streamlining of Operations and Organization. – All heads 
9 
of departments, bureaus, offices, agencies, and instrumentalities, including GOCCs, and GFIs, 
10 
as well as state universities and colleges are directed to conduct a comprehensive 
11 
assessment of their respective operations and organizations with a view to achieve the 
12 
following:  
13 
a)  Elimination of unnecessary department, bureau, office, agency, and/or 
14 
instrumentality functions, programs, projects, and/or activities;  
15 
b)  Abolition of redundant, irrelevant, and outdated functions, programs, projects, 
16 
and/or activities; 
17 
c) Provision of stronger organizational, financial, and manpower support to key 
18 
functions and priority program, projects and activities, through the appropriate 
19 
focusing and re-allocation of agency resources; and 
20 
d) Generation of five percent (5%) budgetary savings.  
21 
 
22 
SEC. 6. Streamlining Criteria. – In the assessment and streamlining department, 
23 
bureau, office, agency, and/or instrumentality operations and/or organization, the following 
24 
may serve as criteria for phasing out or abolition of functions, programs, projects, and/or 
25 
activities:  
26 
a)  Those which are not producing desired effects or are not effective in accomplishing  
27 
intended purpose;  
28 
b)  Those which are no longer relevant to the mandate of the department, bureau, 
29 
office,  agency and/or instrumentality;  
30 
c)  Those which are not cost efficient;  
31 
d)  Those which duplicate or overlap with other programs, projects, and or/ activities 
32 
within  
33 
the same department, bureau, office, agency, and/or instrumentality; and  
34 
e)  Those which are outdated.  
35 
 
36 
Programs, projects, and/or activities which are not presently considered as high priority  
37 
may be scaled down.  
38 
 
39 
SEC. 7. Purpose of Budgetary Savings. – The mandated generation of 5% budgetary 
40 
savings from all executive departments, bureaus, offices, agencies, and instrumentalities, 
41 
including GOCCs, and GFIs as well as state universities and colleges shall be intended for 
42 
COVID-19 response, such as, but not limited to, cash aid, testing, and vaccination.  
43 
 
44 
SEC. 8. Implementation of streamlining – Actual scaling down, phase-out or 
45 
abolition of the activities shall be effected pursuant to circulars or orders issued for the 
46 
purpose by the Office of the President.  
47 
 
48 
SEC. 9. Reportorial Requirement. Sixty (60) days after issuance of the 
49 
Implementing Rules and Regulations, all heads, through the Department of Budget and 
50 
Management (DBM), shall submit a Streamlining Report to the House of Representatives 
51 
containing the actions taken to fulfill the provisions of this Act.  
52 


 
SEC. 10. Separability Clause. – If any part or provision of this Act is declared invalid 
1 
or unconstitutional, the other parts hereof not affected thereby shall remain valid.  
2 
 
3 
SEC. 11. Repealing Clause. – All laws, acts, presidential decrees, executive orders, 
4 
administrative orders, rules and regulations inconsistent with or contrary to the provisions 
5 
of this Act are deemed amended, modified or repealed accordingly.  
6 
 
7 
SEC. 12. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
8 
in the Official Gazette or in a newspaper of general circulation.  
9 
 
 
Approved,