Directing All Departments, Bureaus, Offices, Units and Agencies of the National Government, Including Government- Owned Or Controlled Corporations, To Revise Their Fees and Charges At Just and Reasonable Rates Sufficient To Recover At Least the Full Cost of Services Rendered

EXECUTIVE ORDER NO. 159 February 23, 1994

DIRECTING ALL DEPARTMENTS, BUREAUS, OFFICES, UNITS AND AGENCIES OF THE NATIONAL GOVERNMENT, INCLUDING GOVERNMENT- OWNED OR CONTROLLED CORPORATIONS, TO REVISE THEIR FEES AND CHARGES AT JUST AND REASONABLE RATES SUFFICIENT TO RECOVER AT LEAST THE FULL COST OF SERVICES RENDERED

WHEREAS, pursuant to Section 54, Chapter 12, Book IV, of Executive Order No. 292 (Administrative Code of 1987), the heads of bureaus, offices, or agencies may, upon approval of the department head, charge and collect the cost of the services rendered by the bureau, office or agency or other rate in excess of cost prescribed by law or approved by the same authority;

WHEREAS, it is the goal of government; 1) to promote full recovery of cost of services to free other government revenues for priority projects; and 2) to ensure equitable distribution of the burden of cost recovery by having the direct recipients of governments services account for the costs; and

WHEREAS, efficiency in government is enhanced by an accentuated cost-consciousness and...

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Summary of Executive Order No. 159

Directive to Revise Fees and Charges
- All government departments, bureaus, offices, units, agencies, and government-owned or controlled corporations are directed to revise their fees and charges. (Section 1)
- The revised fees and charges should recover at least the full cost of services rendered. (Section 1)

Definition of Full Cost
- The full cost is equivalent to the appropriation for the year under the relevant General Appropriations Act or the approved Corporate Operating Budget. (Section 1)

Determination of Revised Rates
- The revised rates should be uniform for similar or comparable services and functions. (Section 1)
- The revised rates shall be determined by the respective department heads, governing boards, or equivalent functionaries. (Section 1)

Exemptions
- The order does not apply to fees related to constitutionally mandated free or subsidized services, such as in education and health. (Section 1)
- The order does not apply to fees exempted by international agreements, as determined by the President. (Section 1)

Implementation and Compliance
- Department heads are responsible for implementing the order within their respective jurisdictions. (Section 2)
- No appropriation shall be released by the Department of Budget and Management until a compliance report is submitted to the Office of the President. (Section 3)

Budget Submission Requirements
- Government entities shall submit a summary of expected revenues along with their proposed budgets. (Section 4)

Higher Rates under Special Laws
- Entities charging higher rates than those provided for under this order by virtue of special laws shall continue to charge such higher rates. (Section 5)

Rules and Regulations
- The Department of Finance and the Department of Budget and Management shall jointly promulgate the rules and regulations to implement this order. (Section 6)