Department of Finance sources said the savings may be used to finance possible "adjustment"in the benefits of state workers for 2004.
The sources said some P10 billion has already been allocated for 2003 as "streamlining cost" which will cover the separation pay and other benefits of employees of agencies affected by the bureaucracy rationalization.
According to the sources, the implementation of the streamlining will also yield savings in maintenance and operations expenses of the government, amounting to roughly about P5.3 billion.
"A P5.3-billion savings from compensation of those separated from the service. (This) savings is not captured in the program for 2003," the documents said.
Sources said Finance Secretary Jose Isidro N. Camacho has recommended the use of the extra ordinary savings to finance any plan to increase the benefits of about 1.4 million government workers.
"Savings from the 2003 reorganization effort may be used for adjustment on allowances and salary increases of government personnel for 2004," Camacho was quoted as saying.
But the possible increase in the benefits of government workforce was recommended on condition that there would be "no new hiring (of personnel) in 2004 and the medium-term, except on a scrap and build basis."
It was learned that Malacañang is set to issue an administrative order calling for the rationalization of the government’s bureaucracy by reducing the existing workforce of government agencies through voluntary retirement program.
In an interview, Camacho said the rationalization is part of the administration’s overall program to streamline government operations, cut expenditures and improve and increase personnel efficiency.
As this developed, Camacho said they have submitted to Congress a compensation package that would satisfy those who will affected by the creation of the National Authority for Revenue Administration (NARA), the proposed successor of the Bureau of Internal Revenue (BIR).
Camacho said that based on the DOF proposal, there would be two stages in the planned restructuring of the BIR.
"The first stage will involve voluntary separation with a more generous separation package of two months severance pay for every year of service.