Baguio: The city government has lifted austerity measures imposed amid the Middle East fuel crisis, clearing the way for the resumption of stalled programs, projects, and activities and the restoration of regular government services. Acting Mayor Faustino Olowan stated that the lifting of the measures will allow the city to address pending concerns and resume projects in line with existing laws, regulations, and approved plans while maintaining prudent use of public funds.

According to Philippines News Agency, Mayor Benjamin Magalong issued Executive Order 124, series of 2026, on September 1 before leaving the country, revoking Executive Order 64, which imposed the austerity measures in March. The earlier order restricted overtime requests, personnel hiring, and monetization of leave credits, except under highly meritorious circumstances recommended by the local finance committee. It also deferred the purchase of motor vehicles, except those deemed critical to health, uniformed services, and disaster risk reduction and management; foreign travel by government personnel, with limited exceptions; and attendance at privately organized conferences charged to government funds.

Educational tours, field trips, and cultural and social celebrations, including barangay fiestas, were also deferred. The order likewise prohibited the construction of new government buildings and facilities and capital outlays not yet ready for implementation, as well as the grant of honoraria except when it was the recipient's only government compensation. The city implemented cost-saving measures, including tighter controls on office supplies, a 20 percent reduction in electricity, water, internet, elevator, and other utility use, and limits on official travel, sports activities, and other expenditures.

Projects facing problems or significant cost overruns could also be deferred to succeeding years, while the city continued its personnel attrition policy. 'The revocation takes effect immediately and is intended to enable the local government to advance the delivery of basic services and proceed with priority development projects that were affected during the implementation of the austerity measures,' Olowan said. He mentioned that the decision followed an assessment of prevailing conditions and the city government's operational requirements, particularly the need to restore the regular implementation of programs and services.

The four-day workweek introduced as part of the austerity measures in March had earlier been rescinded. Olowan emphasized that lifting the measures would also help ensure uninterrupted delivery of city services by easing issues related to the use of logistics.