MANILA, Philippines - The Aquino administration will implement belt-tightening measures next year after approving a proposal by the Development Budget Coordinating Committee to submit a lower national budget for 2011.
From a national budget of P1.757 trillion this year, the Aquino administration is eyeing a reduced national budget of P1.654 trillion for 2011.
Because of this, government agencies will not be allowed to create new positions and hire new employees except for population-based positions such as teachers, health workers and policemen. The government will also maintain the present number of casual and contractual government employees.
The administration will also prohibit the construction of new government buildings but will allow the construction of classrooms and health centers. Renovation of old government buildings is also allowed.
The government will also prohibit the purchase of new vehicles next year.
Budget Secretary Florencio "Butch" Abad said the government will also look into adjusting excessive benefits of executives of government-owned and controlled corporations and government financial institutions.
"From the very start, the President has been saying that we have to be frugal and conscious of the deficit that we inherited. I think that call may have an impact," he told reporters.