Baguio city: The city government has intensified its austerity measures by mandating all offices to cut their maintenance and other operating expenses by 20 percent as the country remains under a state of national energy emergency.
According to Philippines News Agency, Mayor Benjamin Magalong announced this directive during the Monday flag-raising ceremony at City Hall, stressing the necessity of saving funds for potential future needs to assist residents. The mandated reduction includes limiting newspaper subscriptions and sports activity expenditures, while also encouraging private sector participation.
Since the onset of the energy emergency, prompted by the conflict in the Middle East, Baguio City has already expended millions to support the transport sector, which is severely affected by rising fuel prices. The city has commenced distributing 50 kilos of rice to 1,500 of the 13,000 beneficiaries, with plans to extend assistance to micro, small, and medium enterprises, minimum wage earners, and other sectors requiring support.
As part of these cost-cutting measures, Mayor Magalong issued Executive Order No. 64-2026, prohibiting overtime requests, new personnel hiring, and monetization of leave credits. The order also defers motor vehicle purchases, except those critical for health, uniformed services, and disaster risk preparedness and response.
Additional savings strategies include reducing foreign travel for government personnel unless approved by the Office of the President or funded by external sponsors, limiting attendance at privately funded conferences, and restricting trainings, workshops, and seminars unless conducted by government training institutions or funded through foreign grants. The order also prohibits cultural and social celebrations, such as barangay fiestas, and the construction of new government buildings or facilities not ready for implementation. Granting honoraria is also limited except where it is the only compensation from the government.
Previously, the city adopted a four-day workweek as an immediate cost-cutting measure. The order allows for deferring projects facing problems and significant cost overruns to future years and underscores the need for continued implementation of personnel attrition and fleet efficiency to reduce fuel consumption.
Mayor Magalong emphasized limiting official travels to essential functions, minimizing elevator use by encouraging stair usage for short distances, and ensuring electrical equipment, air conditioning units, and lighting fixtures are turned off after office hours to prevent unnecessary energy consumption.
Mayor Magalong also urged the private sector to adopt similar austerity measures to help mitigate the energy crisis effects.
