NINETEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES }
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriquez “<< INO)

House Bill No. 2460
EXPLANATORY NOTE

This bill was filed during the 18" Congress and was approved by the House of
Representatives.

In today’s very complex, modem and rapid-changing world, planning becomes very
important for a country to be able to adapt quickly. This highlights the need for a lead Agency
or Department to be able to plan and implement long-term, continuing, integrated, and
coordinated programs and policies for national development.

Hence this bill which seeks to transform NEDA in a Department which will be the lead
integrator of economic development programs and policies of the government. This
Department will also be the one to implement continuing, integrated, and coordinated policies,
plans, and programs, for an equitable distribution of opportunities, income and wealth; a
sustained increase in the amount of goods and services produced by the nation for the benefit
of the people; and an expanding productivity as the key to raising the quality of life for all.

This bill also implements Section 9, Article XII of the 1987 Philippine Constitution which
provides that the Congress may establish an independent economic and planning agency
headed by the President of the Philippines, which shall, after consultations with the appropriate
public agencies, various private sectors, and local government units, recommend to Congress,
and implement continuing integrated and coordinated programs and policies for national
development.

In view of the foregoing, immediate approval of this bill is earnestly requested.

RUF} . Re IGUEZ


NINETEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez

House Bit! No. 2480

AN ACT
CREATING THE DEPARTMENT OF ECONOMICS AND DEVELOPMENT PLANNING,
DEFINING ITS FUNCTIONS, AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

CHAPTER 1

ARTICLE!
TITLE AND POLICY

SECTION 1. Short Title. - This Act shall be known as the “Department of Economics and
Development Planning Act”

SEC. 2. Declaration of Policies and Principles. - The State shall adopt and implement
continuing, integrated, and coordinated policies, plans, and programs towards equitable
distribution of opportunities, income and wealth; ensure a sustained increase in the amount of
goods and services produced by the nation for the benefit of the people; and expand
productivity to raise the quality of life for all

Itis therefore vital that major programs and projects of different government agencies
must be properly reviewed by and coordinated by a national government agency to ensure
their consistency with established national and subnational priorities; that the linkage between
development planning, programming and budgeting shall be of highest priority in identifying
programs, activities, and projects; and that the public and private sectors at the national and
subnational levels participate in the process of formulating, implementing, monitoring, and
evaluating policies, plans, and programs.

The State recognizes that, pursuant to the Section 9, Article XII of the Constitution,
Congress may establish an independent economic and planning agency headed by the
President of the Philippines, which shall, after consultations with the appropriate public
agencies, various private sector groups, and local government units (LGUs), recommend
priority legislative measures to Congress.

ARTICLE Il
THE DEPARTMENT OF ECONOMICS AND DEVELOPMENT PLANNING

SEC. 3. The Department of Economics and Development Planning. - There is hereby
created the Department of Economics and Development Planning, hereinafter to be referred
to as the DEDP, which shall serve as the primary government agency tasked to prepare and
recommend national economic development goals, policies, and programs, and monitor the
implementation of the same. the DEDP shall take over the powers, duties, and functions of
the National Economic and Development Authority


SEC. 4. Mandate of the DEDP. - The DEDP shall be the agency that shall direct the
government's planning and investment programming processes towards sustainable and
inclusive economic growth; equitable distribution of opportunities, income, and wealth; and
increased productivity. As such, it shall formulate the country's continuing, integrated, and
coordinated policies, plans, and programs for development; foster a culture of planning across
all government organizations; ensure the vertical and horizontal alignment and coherence of
national and subnational policies, plans, programs, and projects; ensure alignment of
appropriations for programs with national and subnational development plans towards optimal
use of financial resources; and oversee the country's public investment program.

SEC. 5. Powers and Functions of the DEDP. -In accordance with Chapter | Article III of this,
Act, the DEDP shall have the following powers and functions:

{a) Visioning and plan formulation;

(b) Harmonization of plans;

(c) Investment programming;

(d) Linkage of planning with budgeting;

(e) Policy advisory;

(f) Project appraisal;

(Q) Monitoring and assessment;

(h) Evaluation;

()) Independent review;

() Research;

(k) Knowledge management and communication;

() Transparency and accountability reports;

(m) Capacity building of development planning;

(n) Economic and financial literacy;

(0) Innovation and futures thinking, or the creative processing, exploration, and

management of change as a component of strategy and policy development; and
(p) Secretariat support to the Economics and Development Planning Council

SEC. 6. Stakeholder Engagement. - In the discharge of these functions, the DEDP shall
undertake consultations with appropriate public agencies, civil society organizations, non-
government organizations, people's organizations, academe, private sector, and LGUs to
incorporate their respective priority needs in the formulation of policies, plans, programs and
projects.

SEC. 7. Organization of the DEDP. - The DEDP shall consist of the Office of the Secretary,
the offices of the undersecretaries and assistant secretaries, technical and sectoral staff,
operations support staff, and regional offices.

SEC. 8. The Secretary of Economics and Development Planning. - The DEDP shall be
headed by the Secretary who shall be appointed by the President of the Philippines, subject
to the confirmation by the Commission on Appointments, and shall hereinafter be referred to
as the Secretary.

The Secretary, who shall serve as the country’s Chief Economist, shall have the
following minimum qualifications: a natural-born citizen and resident of the Philippines: of
good moral character, of recognized probity, competence, and independence; must be
professionally distinguished in public, civic, or academic service in the field of economics;
must have been in active professional practice for at least ten years; and must not have been
a candidate for any elective national or local office in the immediately preceding elections,
whether regular or special

SEC. 9. Powers and Functions of the Secretary of Economics and Development
Planning. - The Secretary shall have the following powers and functions:


(a) Advise the President of the Philippines on the promulgation of executive or
administrative orders and other issuances, and en the formulation of regulatory
and legislative proposais, pertaining to matters of national economic and social
development;

(b) Render a report on the status of implementation of national and subnational plans
a inputs to the State of the Nation Address by the President of the Philippines;

(©) Serve as Vice-Chairperson of the Economics and Development Planning Council,
created under Sec. 43 of this Act;

(d) Lead the discourse on futures thinking in the public sector, and pursuant thereto,
consider the latest trends, strategic issues, and key developments in the country
in order to assist government agencies better anticipate and address their
implications;

(e) Direct the conduct of research on development matters, examine evaluation
results, and gather current information and data for evidence-based formulation of
broad policies, plans and relevant programs;

(f) Exercise executive direction, control, and supervision over the entire operations of
the DEDP, and its agencies, bureaus, officers, and personnel;

(g) Establish policies and standards for the effective, efficient, and economical
operations of the DEDP, in accordance with the programs of the government;

(h) Promuigate rules and regulations, and exercise other powers as may be required
to implement the objectives of this Act; and

(i) Perform other functions as may be provided by law or as may be assigned by the
President of the Philippines.

SEC. 10. The Undersecretaries and Assistant Secretaries. - The Office of the Secretary
of Economics and Development Planning shall be composed of at least four (4)
undersecretaries and eight (8) assistant secretaries.

The undersecretaries and assistant secretaries shall be appointed by the President of
the Philippines, upon the recommendation of the Secretary, subject to the rules and
regulations promulgated by the Career Executive Service Board. The Secretary shall have
the flexibility to determine the respective assignments of the Undersecretaries and Assistant
Secretaries and to reorganize the DEDP, depending on the DEDP’s strategic directions and
‘on emerging development trends affecting the country's economy. As the duties and
responsibilities of the DEDP are expanded, the number of Undersecretaries and Assistant
Secretaries may be increased as deemed necessary.

SEC. 41. Offices and Staff. - The DEDP shall be composed of the following technical and
sectoral staff, administrative and support staff, and regional offices for the following offices:

(a) | Macroeconomics;

(b) Trade, services, and industry;

(c) Agriculture, natural resources, and environment;

(4) Governance;

{e) Social development;

(f) Strategic foresight and futures;

(g) Innovation;

(h) Public investment;

() Social infrastructure;

(@) Connectivity infrastructure;


(k) Spatial planning and regional development;
(Program evaluation;

(m) Project monitoring;

(n) Knowledge management and communication;
(0) Development planning training;

(p) Administrative;

(q) Human resource development;

() Financial planning and management;

(s) __ Information and communications technology;
() Legal;

(u) Internal audit service;

(v) Legislative liaison office; and

(w) Regional offices.

The Secretary shall recommend to the Department of Budget and Management (DBM)
for approval, the creation of additional offices, positions, or staffing modifications as may be
necessary.

‘The DEDP's organizational structure and staffing requirements shall be submitted to
the DBM for review and approval. It shall adopt a position classification and compensation
structure consistent with the existing polices, rules and regulations.

SEC. 12. DEDP Regional Offices. - The DEDP Regional Offices, hereinafter referred to as
DROs, shall have the following functions:

(a) Ensure that regional and local development priorities are integrated in the national
and subnational plans;

(b) Ensure the alignment of the provincial development and physical framework and
the comprehensive development plans of highly urbanized cities and independent
component cities with the national and regional development plans;

(c) Oversee the integration of plans and programs of regional agencies, state
universities and colleges (SUCs), special development bodies, and local
government units (LGUs) into the regional and national plans. The DROs shall
provide assistance to regional line agencies, LGUs, SUCs and special
development bodies in identifying and developing programs and projects;

(d) Evaluate and review proposed policies, land use plans, programs and projects in
the region;

(e) Monitor and evaluate the implementation of plans, policies, programs and projects;

() Provide technical and secretariat support to their respective Regional
Development Councils (RDCs);

(g) Undertake research and ensure knowledge utilization for regional development
and productivity; and

(h) Provide technical assistance to development partners in the region in accordance
with the functions of the DEDP.

SEC. 13. Attached Agencies. - The agencies currently attached to the National Economic
and Development Authority (NEDA) shall hereinafter be attached to the DEDP and shall
continue to operate and function in accordance with their respective charters, laws, or orders
creating them, except as otherwise provided in this Act, the Administrative Code of 1987, and
subsequent laws.
The following agencies shall be attached to the DEDP for policy and program
coordination purposes:
(a) Commission on Population and Development, created pursuant to Republic Act
No. 6365, otherwise known as the “Population Act of 1971, as Amended.”
() Philippine Institute for Development Studies, created pursuant to Presidential
Decree 1201 dated September 26, 1977;


(©) Philippine National Volunteer Service Coordinating Agency, created pursuant
Executive Order 635, series of 1980;

(d) Philippine Statistics Authority, created pursuant to Republic Act No. 10625,
otherwise known as the “Philippine Statistical Act of 2013”. and

(e) Philippine Statistical Research and Training Institute, created pursuant to Republic
Act No. 10625.

The following agencies shall be attached to the DEDP for administrative purposes
only:
(a) Public-Private Partnership Center of the Philippines, created pursuant Executive
Order No. 8, series of 2010 as amended by Executive Order No. 136, series of
2013; and
(b) Tariff Commission (TC), created pursuant to Republic Act No. 10863, otherwise
known as the “Customs Modernization and Tariff Act (CMTA)”.

SEC. 14. Legislative-Executive Development Advisory Council. - The DEDP shall serve
as the principal secretariat of the Legislative-Executive Development Advisory Council
(LEDAC), pursuant to Republic Act No. 7640, otherwise known as “An Act Constituting the
Legislative-Executive Development Advisory Council”. As principal secretariat, the DEDP
‘shall oversee and coordinate the provision of overall technical and administrative support to
the LEDAC, and shall have the following duties and responsibilities, consistent with Article III,
Section 2 of the rules and regulations issued to implement Republic Act No. 7640:
(a) Provide technical and administrative support to the LEDAC and its sub-
committees, if any;
(b) Determine and prepare the agenda for-and-the-minutes of the LEDAC meetings,
and prepare the minutes of each meeting;
(©) Serve as venue for the initial processing and discussion of the work of the LEDAC;
(d) Receive and prepare communications pertinent to the work of the LEDAC;
(e) Manage and maintain the official records of the LEDAC;
(f) Prepare the annual budget of the LEDAC;
(g) Prepare reports as required by the LEDAC; and
(h) Perform other duties as may be assigned by the LEDAC.

ARTICLE Ill
POWERS AND FUNCTIONS OF DEDP

|. Visioning and Plan Formulation

SEC. 15. Visioning. - The DEDP shall formulate a long-term vision, hereinafter referred to
as the Vision, which embodies the long-term aspirations of all Filipinos. It shall be data-driven
and evidence-based, encompassing all dimensions of economic, social, and environmental
development. The Vision shall undergo a review every ten (10) years in consideration of
changing aspirations and preferences.

SEC. 16. Long-term Development Framework. ~ The DEDP shall formulate the country’s
long-term development framework, hereinafter referred to as the Framework. The Framework
is a high-level and broad strategy spanning twenty-five (25) years that shall guide the nation
towards sustainable growth and development and the attainment of the Vision. It shall serve
a a tool to coordinate, guide, and inform the preparation and consideration of future, more
detailed national and’ subnational development plans, national and subnational ‘public
investment programs, and sectoral and inter-sectoral plans and programs. It shall embody the
development goals and milestones to serve as basis for the overall direction of government
policies, programs, and projects across political administrations.


SEC. 17. Physical Planning Framework. - The DEDP shall formulate the National
Framework for Physical Planning (NFPP), which shall provide policies and principles to
achieve efficient settlement, production, service delivery systems, and sustainable use of land
and other physical resources in the country. At the subnational level, the DEDP Regional
Offices, in consultation with their respective RDCs, shall formulate the regional spatial and
physical framework (RSPF) which shall encompass an implementation period of twenty-five
(25) years. The RSPF shall define the objectives and indicative uses of land and the physical
resources in the region.

The NFPP and RSPF shall serve as the main reference documents in the preparation
of the provincial development and physical framework plans and land use plans of cities and
municipalities.

The NFPP and RSPF shall undergo a review every ten (10) years in consideration of
physical changes, economic and demographic trends, as well as climate projections.

SEC. 18. Planning Call. - The DEDP shall issue a Planning Call to government agencies
and shall provide the standards and guidelines for preparing the national and subnational
development plans and public investment programs. Within one (1) month from the approval
of the Philippine Development Plan by the Economics and Development Planning Council,
national government agencies shall submit to the DEDP their respective short-term
development plans and investment programs.

SEC. 19. Philippine Development Plan and Regional Development Plans. - The DEDP,
in consultation with public agencies, civil society organizations, non-government
organizations, people's organizations, academe, private sector, and LGUs, shall formulate
within six (8) months from the assumption of office of the President of the Philippines a national
economic and development blueprint, known as the Philippine Development Plan, hereinafter
referred to as the PDP, which shall be anchored on the Framework. The PDP shall establish
a set of measurable goals and objectives with corresponding strategies, in terms of policies,
programs, and projects, that shall be the basis for each political administration's pursuit of its
economic and development agenda. At the subnational level, this shall be known as the
Regional Development Pian, hereinafter referred to as the RDP, which shall be formulated by
the DEDP Regional Offices within six (6) months from the assumption of office of the President
of the Philippines, in consultation with public agencies, civil society organizations, non-
government organizations, people's organizations, the academe, the private sector, and local
government units. The RDP shall be aligned with the PDP, defining the region's development
direction.

The PDP and the RDPs shall undergo a midterm review and updating in consideration
of accomplishments, and emerging trends and developments.

SEC. 20. Coordination with Autonomous and Administrative Regions. - The DEDP shall
ensure effective coordination with autonomous and administrative regions that have separate
planning offices in the formulation of the PDP and in the conduct of other relevant planning
activities affecting said regions.

Il. Harmonization of Plans

SEC. 21. Harmonization of Plans. - The DEDP shall direct the government's planning cycle
to ensure the harmonization and coherence of national, subnational, sectoral, and spatial
plans and programs by prescribing standards, guidelines, compliance, and accountability
mechanisms. Moreover, the DEDP shall review the short-term development plans submitted
by the agencies as stipulated in Section 18 of this Act in order to recommend appropriate
action.


I, Investment Programming

SEC. 22. Investment Programming. - The DEDP shall direct and oversee the government's
investment programming process to ensure that the plans are translated into programs and
Projects by prescribing standards and guidelines, as well as compliance and accountability
mechanisms, especially considering the results of relevant evaluation studies, and their
conformity to the NFPP and RSPF which are the main reference references for land use and
physical framework plans as mandated under Section 17 of this Act.

SEC. 23. Public Investment Program and Regional Development Investment Program.
~ The DEDP, in consultation with public agencies, shall formulate the Public Investment
Program, hereinafter referred to as the PIP, which shall identify the priority programs,
activities, and projects (PAPs) that are responsive to the sectoral goals and outcomes of the
POP, for implementation through national government funds or the General Appropriations
‘Act (GAA), Official Development Assistance (ODA), Public-Private Partnership (PPP), joint
ventures (¥), and other viable implementation and financing options. At the subnational level,
this shall be known as the Regional Development Investment Program, hereinafter referred to
as the RDIP, which shall be formulated by the DROs in consultation with their respective
ROCs.

IV. Linkage of Planning with Budgeting

SEC. 24. Linkage of Planning with Budgeting. - The DEDP shall recommend to the
Development Budget Coordination Committee (DBC) the priorities for budget expenditure
policies including sectoral and regional allocations. Together with the DBM and other relevant
government oversight agencies, the DEDP shall ensure that the annual and multi-year
appropriations for programs and projects are aligned with the development strategies in the
PDP and RDPs.

V. Policy Advisory

SEC. 25. Policy Advisory. ~ The DEDP shall undertake policy reviews to provide objective,
evidence-based, critical analyses of development issues and policy alternatives and report
findings and recommendations to the President of the Philippines, the Congress of the
Philippines, or the Economics and Development Planning Council, created under Sec. 43 of
this Act, as appropriate.

VI. Project Appraisal

SEC. 26. Project appraisal. - The DEDP shall appraise proposed programs and projects as
provided by existing laws and regulations, and as may be determined by the Economics and
Development Planning Council in terms of economic and societal benefits and viability. The
DEDP shall adopt and implement appropriate evaluation measures and criteria to determine
the viability of programs and projects. Only programs and projects that have been found viable
by the DEDP shall be endorsed to the Economics and Development Planning Council through
the appropriate inter-agency committee.

Vil. Monitoring and Assessment

SEC. 27. Monitoring and Assessment. - The DEOP shall monitor and assess the progress
of implementation of priority national and subnational programs and projects, as defined by
the Economics and Development Planning Council, with respect to physical and financial
performance, among others. The DEDP shall also identify implementation bottlenecks and
facilitate resolution of problems. The Department of the Interior and Local Government (DILG)
shall complement the monitoring, reporting, and facilitation of programs and projects at the


sub-regional level. Moreover, the DEDP shall determine the continued viability of national
Programs or projects and recommend corresponding measures to the Economics and
Development Planning Council.

SEC. 28. Philippine Development Report and Regional Development Reports. - The
DEDP and its Regional Offices shall formulate annually the Philippine Development Report
(PDR) and Regional Development Reports (RDRs). The PDR and RDRs shall serve as
monitoring reports on the implementation of the PDP and RDPs, respectively. The results
from such monitoring activities shall serve as inputs to policy and decision makers in the
formulation of policies, budgeting, and implementation of programs and projects. To this end,
the PDRs and RDRs shall contain the latest data and information pertaining to the goals,
policies, and strategies, as specified in the PDP.

‘SEC. 29. Official Development Assistance Portfolio Review. — The DEDP shall review the
‘status of all projects funded by ODA pursuant to Republic Act No. 8182, otherwise known as
the “Official Development Assistance Act of 1996".

Vill. Evaluation

SEC. 30. Evaluation. - The DEDP shall formulate a medium-term national evaluation
agenda to assess the impact and outcomes of programs and projects. It shall oversee the
conduct of evaluation studies consistent with the agenda, in support of good governance,
transparency, accountability, and evidence-based decision-making:

IX. Independent Review

SEC. 31. Independent Review. - In the course of its monitoring and assessment of programs
and projects, the DEDP may independently review and evaluate facts and circumstances as
a means of determining whether sufficient cause exists to initiate appropriate legal action, in
which case, a report shall be prepared and referred to the proper agency or body.

X. Development Research

SEC. 32. Research. ~ The DEDP shall conduct research, special surveys, and related studies
as inputs to the formulation of policies and plans, and the design of programs and projects
The DEDP shall establish a Development Research Program so that broad policies, plans,
and relevant programs can be formulated based on a sound analysis of data and evidence.

XI. Knowledge Management and Communication

SEC. 33. Knowledge Management and Communication. - The DEDP shall develop and
maintain knowledge management systems, applications, and tools for timely and effective
dissemination, accessibility, and comprehensibility of information and knowledge on
economics and development planning issues. It shall develop and sustain communication and
stakeholder engagement platforms towards well-informed and cost-effective public
and private sector participation in the development process.

XII. Transparency and Accountability Reports

SEC. 34, Transparency and Accountability Reports, - Within the first quarter of every year,
the DEDP shall submit a report to the President of the Philippines, Cabinet, Congress, and
the Filipino people through the mass media, on the economic performance of the country. The
report shall include the status and the directions of the fiscal and monetary policies of the
government in coordination with the Bangko Sentral ng Pilipinas, the Department of Finance


(QOF) and the DBM; macroeconomic outlook and labor market prospects; and other relevant
information that may be requested, for purposes of transparency and accountability

SEC. 36. Inter-generational Report. - The DEDP shall submit an Inter-Generational Report
(IGR) to the President of the Philippines and Congress every six (6) years. The IGR shall be
an assessment of the long-term sustainability of existing government policies over the next
25 years, taking into account projected demographic, environmental and other changes.

XIll. Capacity Building of Development Planners

SEC. 36. Capacity Building of Development Planners. ~ The DEDP, in coordination with
appropriate institutions including state universities and colleges, subject to accreditation
procedures, shall establish and implement a capacity building program on development
planning for national and local planners to build, strengthen, and continually update the
technical competencies of development planners in the country. The capacity building
program shall also serve as a platform for wider dissemination of the country’s vision,
development plans, policies, and programs.

SEC. 37. Technical Assistance to Development Planners. - The DEDP shall provide
technical assistance to the LGUs on how to localize national development strategies,
particularly in planning and investment programming to ensure alignment of local
development plans and strategies with the PDP and RDP.

XIV. Economic and Financial Literacy

‘SEC. 38. Economic and Financial Literacy. - The DEDP shall lead the participation of
government agencies and instrumentalities, including LGUs, government-owned and
controlled corporations (GOCCs) and educational institutions, in the conduct of knowledge-
expanding activities on economic and financial literacy, pursuant to Republic Act No. 10922,
otherwise known as the ‘Economic and Financial Literacy Act”.

XV. Innovation and Futures Thinking

SEC. 39. Innovation. - The DEDP shall provide secretariat support, and prepare and
recommend priorities, policies, programs, projects, strategies, and other outputs to the
National Innovation Council to realize the country’s strategic vision for innovation, pursuant to
Republic Act No. 11293, or the “Philippine Innovation Act’.

SEC. 40. Futures Thinking. - The DEDP shall continually undertake scenario planning
exercises, anticipating future trends or discontinuities, and recommend responsive measures
to the President of the Philippines and the Congress, as appropriate.

SEC. 41. Foresight Tools. - The DEDP shall employ or develop, as circumstances warrant,
foresight tools to deal with emergent trends, understand plausible future states, craft
corresponding strategies, and monitor relevant indicators of anticipated futures.

XVI. Technical and Secretariat Support

SEC. 42. Technical and Secretariat Support. - The DEP shall serve as the Secretariat to
the Economics and Development Planning Council and its Committees, the RDCs, and the
National Innovation Council. In this capacity, the DEDP shall ensure that all policies,
programs, and projects approved by these bodies are strictly aligned with the PDP and RDP.
As secretariat support, it shall have the following duties and responsibilities:

(@) Provide technical and administrative support;

(b) Determine and prepare the agenda;


(©) Prepare the minutes of the meeting;
(@) Manage and maintain the official records; and
(e) Perform other duties as may be assigned by the said bodies.

Furthermore, the DEDP shall provide technical inputs, review, appraisal, or evaluation
as applicable, for all programs and projects as defined by existing and subsequent laws, or
those which may be defined by the Economics and Development Planning Council prior to
the endorsement of such programs and projects to the Council for approval. At the subnational
level, the DEDP Regional Offices shall provide prior technical inputs, review, appraisal, or
evaluation for endorsement of programs and projects to RDCs for approval.

The DEDP shall also provide advisory services to these bodies.

CHAPTER 2

ARTICLE |
THE ECONOMICS AND DEVELOPMENT PLANNING COUNCIL

SEC. 43. The Economics and Development Planning Council, - The Economics and
Development Planning Council is hereby established, hereinafter referred to as the Council.
The Council shall be headed by the President of the Philippines, shall be an executive collegial
body responsible for directing and providing overall policy direction on economic, financial,
social, and environmental matters to achieve inclusive and sustained economic growth.

SEC. 44. Composition of the Council. - The Council shall be composed of the following
(a) President of the Philippines as Chairperson;
(b) Executive Secretary;
(c) Secretary of Economics and Development Planning as Vice-Chairperson;
(d) Principals of the agencies chairing the Committees of the Council;
(e) National of the Union of Local Authorities of the Philippines; and
(f) Governor of the BSP, as a resource institution.

The President of the Philippines may, however, revise the membership of the Council
whenever the same is deemed necessary for the effective performance of the Council's
function.

All members of the Council, except the Governor of the BSP, are voting members. The
presence of a majority of all members of the Council shall constitute a quorum. The Council
may request inputs from the private sector.

SEC. 45. Powers and Functions of the Council. - The Council shall have the following
powers and functions:

(@) Direct the formulation and implementation of policies, plans, and programs that
would promote economic development and address development concerns of
national importance;

(b) Approve the PDP, PIP, and their respective midterm updates;

(c) Approve the level of annual government expenditures, as well as projections,
forecast, resource requirement, and the ceiling of government spending for social
and economic development, national defense, government debt service, and the
proper allocation of expenditures for each development activity between current
operating expenditures and capital outlay;

(d) Approve the level of expenditure program of national government agencies by
region, in accordance with the approved RDPs and RDIPs;


(e) Define cost threshold and other criteria for priority programs and projects that shall
require Council approval, unless already provided by existing laws, rules and
regulations;

() Approve projects, programs, and plans, as endorsed by the DEDP, as required
under existing laws, orders, rules and regulations, and other issuances;

(Q) Initiate the formulation of proposals for the enactment of laws that may be
necessary for the integration and implementation of economic and development
policies, plans and programs or any of their component parts;

(h) Issue rules and regulations necessary for the effective discharge of the powers
and functions vested on the Council; and

(i) Direct the reorganization, or establishment of Committees of the Council, including
the modification of their respective membership, structures, powers, and functions.

SEC. 46. Meetings. - The Council shall meet at least once every quarter. A special meeting
of the Council may be convened by the President of the Philippines to address urgent
concems, or emergencies, such as natural disasters, calamities, or other extraordinary
circumstances which would affect the economy or and national development.

The DEDP shall maintain and preserve a complete record of the proceedings and
deliberations of the Council, including the recordings and transcripts thereof, either in their
original form, or in any secured format made available by existing technology, such as digital
formatting.

SEC. 47. Full Disclosure Rule. - In addition to the requirements of Republic Act No. 6713,
otherwise known as the “Code of Conduct and Ethical Standards for Public Officials and
Employees”, any member of the Economics and Development Council with personal and
pecuniary interest in any matter in the agenda of the Council shall disclose the interest to the
Economics and Development Council and shall withdraw from the meeting when the matter
is taken up. The decision taken on the matter shall be made public. The minutes shall reflect
the disclosure made and the retirement of the member concemed from the meeting.

ARTICLE Il
COMMITTEES OF THE COUNCIL

SEC. 48. Committees of the Economics and Development Council. - The Economics and
Development Council shall have committees that shall act as its primary advisory bodies.

These Committees shall be the main coordinating mechanism that ensures that the
policy environment is conducive to the promotion of rapid, inclusive, and sustained economic
growth that raises the quality of life for all

The President of the Philippines shall designate the respective Chairpersons of the
Committees. The DEDP shall serve as the Secretariat for all Committees, unless otherwise
provided in this Act. The Council may create new committees, modify or abolish existing ones
with respect to their structures, composition, powers, and functions. It may also create sub-
committees, whenever appropriate, for the purpose of dispensing with any of their respective
functions. To avoid duplication and ensure policy coherence, no other inter-agency body with
the same or similar mandates to the Council's Committees shall be created.

Members of Congress may, upon invitation of the President of the Philippines, serve
as resource persons in any of the Committees.

SEC. 49. Development Budget Coordination Committee (BudgetCom). - The
Development Budget Coordination Committee (BudgetCom) shall be composed of the


Secretaries of the DBM, the DEDP, the DOF, the Executive Secretary, and the Governor of
the BSP.

A technical committee of the BudgetCom, composed of duly designated
Undersecretaries of the same member agencies, is hereby established to conduct a technical
review of matters that require appropriate action by BudgetCom.

The BudgetCom shall discharge the following functions:

(a) Endorse for final approval of the Council:

i. The level of annual government expenditures and the ceiling of government
spending for economic and social development, national defense, and
government debt service;

ii, The budget to be allocated for current operating expenditures and capital
outlays of government programs and projects;

iii, A strategic multi-year fiscal program which supports the long-term and
medium-term development objectives of the country; and
iv. A domestic and foreign borrowing program.

(b) Assess the overall economic situation of the country, which includes economic
growth, monetary, fiscal, and possible economic risks which may require policy
reforms;

(©) Ensure that the regional allocations are responsive to poverty, development gaps,
and economic opportunities; and

(4) Conduct periodic review of fiscal and macroeconomic targets, and the revenue
and expenditure projections of the government, including general examination of
costs, accomplishments and performance standards applied in undertaking
development projects; and

(e) Perform such other functions as may be necessary to carry out the mandates of
the BudgetCom.

The DBM shall serve as the Secretariat to the BudgetCom.

SEC. 50. Investment Coordination Committee (InvestmentCom). - The Investment
Coordination Committee (InvestmentCom) shall be composed of the Secretaries of the DOF,
the DEDP, the DBM, the DILG, the DTI, the Executive Secretary, and the Governor of BSP.
A technical committee of the InvestmentCom, composed of duly designated
Undersecretaries of the same member agencies, is hereby established to conduct a technical
review of matters that require appropriate action by InvestmentCom.
The InvestmentCom shall discharge the following functions:

(a) Ensure the efficient and effective evaluation of major capital programs and
projects of the country by determining levels of acceptability and viability relative
to overall economic and fiscal conditions of the country;

(6) Endorse the following to the Council for its approval:

i. Timetable of the implementation of major capital programs and projects on a
regular basis;

i. Public-private partnerships, privatization, and other funding options to augment
government's financing capacity;


Modalities of development financing and capital market development in
support of long-term programs and projects for both national and local
government, and GOCCs;

iv. Specific major programs and projects with respect to technical, financial,
economic, social, environmental, legal, institutional, feasibility, and viability as
well as from the context of sectoral plans and geographical strategies, as may
be required by law, orders, and other legal issuances; and

v. Major capital projects based on a cost threshold or other criteria as may be set
by the Council.

(c) Submit to the President of the Philippines a status of the fiscal, monetary and
balance of payment (BOP) implications of major capital programs and projects;
and

(4) Perform such other functions as may be necessary to carry out the mandates of
the InvestmentCom.

SEC. 51. Economic Development Committee (EconDevCom). - The Economic
Development Committee (EconDevCom) shall be composed of the Secretaries of the DEDP,
the DOF, the DTI, the DBM, the Department of Public Works and Highways (DPWH), the
Department of Transportation (DOTr), the Department of Information and Communications
Technology (DICT), the Department’ of Energy (DOE), the Department of Science and
Technology (DOST), the Department of Tourism (DOT), the Department of Agriculture (DA),
the Department of Labor and Employment (DOLE), , the DILG, the Governor of BSP, and the
Executive Secretary.

A technical committee of the EconDevCom, composed of duly designated
Undersecretaries of the same member agencies, is hereby established to conduct a technical
review of matters that require appropriate action by EconDevCom.

The EconDevCom shall endorse for approval of the Council:

(@) Policies that would ensure equitable and sustainable distribution of economic
opportunities and benefits to Filipinos;

(b) Policies towards the development of agriculture, industry, and services which are
vital to achieving food security and more equitable and sustainable growth;

(©) Policies for the improvement of national productivity, competition and
‘competitiveness of domestic products and services;

(d) Policies and measures to promote an environment conducive to the growth and
‘competitiveness of private enterprises and the creation of jobs that will empower
people and provide them with opportunities to rise above poverty to improve the
quality of their lives; and

(©) Perform such other functions as may be necessary to carry out the mandates of
the EconDevCom.

SEC. 52. Infrastructure Committee (InfraCom). - The Infrastructure Committee
(InfraCom) shall be composed of the Secretaries of the DPWH, the DEDP, the DBM, the
DOF, the DICT, the DOTr, the DTI, the DOE, the DA, the DOT, and the Executive Secretary.


A technical committee of InfraCom, composed of duly designated Undersecretaries of
the same member agencies, is hereby established to conduct a technical review of matters
that require appropriate action by InfraCom.

The InfraCom shall discharge the following functions:

(a) Endorse for Council approval a national infrastructure development strategy that
will coordinate, integrate and accelerate the development initiatives across all
infrastructure subsectors in the country;

)

Advise the Council on all matters concerning infrastructure development, including
roads, highways, and bridges; airports, seaports, offshore infrastructure and shore
protection; railways and subways; power generation, transmission and
distribution; ICT, telecommunications; irrigation, flood control and drainage; water
supply, sewerage and sanitation; national buildings for government offices;
hospitals and related buildings; state colleges and universities, elementary and
secondary school buildings; reclamation; and other public works, whether
procured or financed. through traditional means, public-private partnerships, or
any other method;

©)

Coordinate the activities of agencies, including GOCCS involved in infrastructure
development; and

(@) Perform such other functions as may be necessary to carry out the mandates of
the InfraCom.

SEC. 53. Social Development Committee (SocialDevCom). - The Social Development
Committee (SocialDevCom) shall be composed of the Secretaries of the Department of
Social Welfare and Development (DSWD), the DEDP, the DBM, the Department of Education
(DepEd), the Department of Agrarian Reform, the DA, the Department of Health, the DILG,
the DOLE, and the Executive Secretary,

A ‘technical committee of SocialDevCom, composed of duly designated
Undersecretaries of the same member agencies, is hereby established to conduct a technical
review of matters that require appropriate action by SocialDevCom.

The SocialDevCom shall discharge the following functions:

(a) Endorse for approval of the Council policies and programs that enhance the
welfare and reduce risks of Overseas Filipino Workers, older persons, differently-
abled persons, children, women, indigenous peoples, marginalized farmers and
fisher folk, and informal urban and upland settlers;

(b) Advise the Council on matters concerning social development, including
education, skills development, health and nutrition, population and family
planning, housing, human settlements, social protection, and the delivery of other
social services; and

(©) Perform such other functions as may be necessary to carry out the mandates of
the SocialDevCom.

SEC. 54. Committee on Trade and Related Matters (TradeCom). - The Committee on
Trade and Related Matters (TradeCom) shall be composed of the Secretaries of the DTI,
DEDP, DA, DBM, the Department of Environment and Natural Resources (DENR), DOF,
Department of Foreign Affairs, DICT, DOTr, the Executive Secretary, the Governor of BSP,
and the Chairperson of the Tariff Commission.


A technical committee of TradeCom, composed of duly designated Undersecretaries
of the same member agencies, is hereby established to conduct a technical review of matters
that require appropriate action by TradeCom.

The TradeCom shall discharge the following functions:

(a) Endorse for approval of the Council a continuous rationalization policy and
program for the country’s tariff structure;

(b) Advise the Council on trade and related matters, as well as the effects of various

international developments on the country;

Coordinate government agency positions and recommend national positions for

international economic negotiations; and

Perform such other functions as may be necessary to carry out the mandates of

the TradeCom.

©
@

SEC. 55. Regional Development Committee (RDCom). - The Regional Development
Committee (RDCom) shall be composed of the Secretaries of the DEDP, DILG, DBM, DTI,
three (3) RDC Chairpersons representing Luzon, Visayas and Mindanao, and one (1)
representative from the Union of Local Authorities of the Philippines.

A technical committee of RDCom, composed of duly designated Undersecretaries of
the same member agencies, is hereby established to conduct a technical review of matters
that require appropriate action by RDCom.

‘The RDCom shall discharge the following functions:

(a) Formulate and monitor the implementation of policies that reduce regional
development disparities;

(b) Promote equitable allocation of resources among regions by providing
recommendations to the DBCC on the guidelines for the regional allocation of
budgetary resources;

(©) Periodically review the viability of the regional configuration of the country, and
recommend to the Council the re-delineation of regions, as may be necessary;
and

(d) Perform such other functions as may be necessary to carry out the mandates of
the RDCom.

SEC. 56. Marine Resource and Land Use Committee (MaRLUCom). — The Marine
Resource and Land Use Committee (MaRLUCom) shall be composed of the Secretaries of
the DEDP, the DAR, the DA, the DOE, the DENR, the DILG, the DOST, the DOT, and the
Department of Human Settlements and Urban Development, the Chairperson of the National
Commission on Indigenous Peoples, the Chairperson of the National Coast Watch Council,
and the presidents of the League of Provinces, the League of Municipalities, and the League
of Cities

A technical committee of MaRLUCom, composed of duly designated Undersecretaries
of the same member agencies, is hereby established to conduct a technical review of matters
that require appropriate action by MaRLUCom.

The MaRLUCom shall discharge the following functions:

(a) Advise the Council on matters concerning Marine Resource Use Planning and
Land Use Physical Planning;

(b) Endorse for approval of the Council the NFPP as provided in Section 17 of this Act
that guides the rational utilization and management of the country's marine


resources, land resources, and other physical resources, and the preparation of
sub-national physical framework plans;

(c) Endorse for approval of the Council resolutions concerning marine resource use
and land use policy conflicts among agencies of the national government;

(d) Ensure the integration of marine resource use, land use and physical planning
policies, plans, and programs, including disaster risk management, into national
‘socioeconomic plans and programs; and

(e) Perform such other functions as may be necessary to carry out the mandates of
the MaRLUCom.

SEC. 57. Governance Committee (GovCom). — The Governance Committee (GovCom)
shall be composed of the Secretaries of the DBM, the DEDP, the DILG, the DOF, the DTI, the
Executive Secretary, the Department of Justice, the Chairperson of the Commission on Audit,
the Director General of the Anti-Red Tape Authority, and the Chairperson of the Governance
Commission for GOCCs.

A technical committee of GovCom, composed of duly designated Undersecretaries of
the same member agencies, is hereby established to conduct a technical review of matters
that require appropriate action by GovCom.

‘The GovCom shall endorse for approval of the Council:

(a) Policies that promote transparency, accountability, and participatory governance;

(b) Policies that strengthen public institutions to effectively and efficiently implement
their respective mandates;

(c) Policies, plans, and programs that improve policy and regulatory environment to
reduce cost of doing business and promote market competition; and

() Perform such other functions as may be necessary to carry out the mandates of
the GovCom.

SEC. 58. Regional Development Council. - The Regional Development Councils (RDCs)
are the regional counterparts of the Council, Each RDC shall be composed of the provincial
governors, the city mayors, the mayors of the municipalities designated as provincial capitals,
the presidents of the provincial league of mayors, the mayors of municipalities designated as
regional centers, the regional directors of the agencies represented in the Council, the regional
directors of the DepEd, the DSWD, and the DOT, and the private sector representatives who
shall comprise one-fourth (1/4) of the members of the fully constituted RDC.

The President of the Philippines shall appoint the Chairperson and Vice-Chairperson
of the RDC. The DROs shall serve as secretariat of the RDCs

CHAPTER 3
TRANSITORY AND OTHER MISCELLANEOUS PROVISIONS

SEC. 59. Transitory Provision. - The National Economic and Development Authority (NEDA)
is hereby abolished. The powers and functions, applicable funds and appropriations, records,
files, equipment, facilities, supplies, property, and personnel of the NEDA are hereby
transferred to and absorbed by the DEDP. All current officials and employees of the NEDA
shall be retained under the DEDP. Any reference to the NEDA, or to the Director General of
the NEDA or the Secretary of Socio-economic Planning in any existing law, Executive
Order, Administrative Order, or Presidential Proclamation, rules and regulations, and other
issuances with respect to any duty or function assumed by the DEDP created in this Act, shall


be deemed hereinafter to be referenced to the DEDP or to the Secretary of Economics and
Development Planning, respectively

Within six (6) months upon effectivity of this Act, the DEDP shall prepare the 25-year
Framework. For this purpose, the amount necessary to carry out the necessary preparation
of the Framework shall be provided for in the General Appropriations Act

All programs and projects submitted to the NEDA for appraisal and those endorsed by
the current Investment Coordination Committee for the approval of the NEDA Board prior to
the effectivity of this Act shall be processed by the DEDP and the Economics and
Development Council, respectively, subject to the prevailing laws, rules and regulations,
guidelines, and issuances at the time of submission or endorsement.

SEC. 60. Transfer of Rights and Obligations. - The DEDP shall, by virtue of this Act, be
subrogated to all the rights and assume all the obligations of the NEDA, and all its liabilities
that pertain to its pertinent funds and appropriations, records, files, equipment, facilities,
supplies, property, and personnel, including unexpended portions of its members’ respective
salaries.

SEC. 61. Separation and Retirement from Service. - The NEDA employees who are
separated from service as a result of the consolidation and reorganization under the provisions
of this Act, shall be entitled to the following applicable separation incentives:
A. One half (1/2) of the actual monthly basic salary for every year of service, for those
who have rendered less than eleven (11) years of service;
8. Three-fourths (3/4) of the actual monthly basic salary for every year of service,
computed starting from the first year, for those who have rendered eleven (11) to
less than twenty-one (21) years of service;

C. The actual monthly basic salary for every year of service, computed starting from
the first year, for those who have rendered twenty-one (21) to less than thirty-one
(31) years of service; and

D. One and one-fourth (1%) of the actual monthly basic salary for every year of
service, computed starting from the first year, for those who have rendered thirty-
one (31) years of service and above.

The NEDA employees who opt to retire under existing retirement laws shall also be
entitled to the above incentives in addition to the retirement benefits to which they may be
entitled under applicable laws and issuances: Provided, That personnel who avails of the
separation incentives under this Act shall not be re-employed in any agency of the executive
branch for a period of five (5) years, except as a teaching or medical staff in educational
institutions and hospitals, respectively: Provided, further, That retired or separated personnel
who are re-employed within the prohibited period shall refund the separation incentives
received on a pro-rated basis:

For purposes of the additional separation incentives, the actual monthly basic salary
shall refer to the salary of the affected personnel as of the date of approval of the department's
organizational structure and staffing pattern by the DBM.

‘SEC. 62. Other Benefits of Retired and Separated Personnel. - The affected personnel
who shall retire or are separated from the service shall, in addition to the applicable benefits
abovementioned, be entitled to the following:
‘A. Refund of Pag-IBIG contributions, both personal and government, pursuant to
existing rules and regulations of the home development mutual fund; and
B. Commutation of unused vacation and sick leave credits of the affected personnel
in accordance with existing rules and regulations.

SEC. 63. Appropriations. - The amount necessary to cover the initial implementation of this
Act shall be charged against the current year’s appropriations of the NEDA. Thereinafter, such


sums as may be necessary for the continued and effective implementation of this Act shall be
included in the annual GAA.

‘Such sums as may be necessary to implement the Capacity Building Program of the
DEDP, DEDP Research Program and DEDP Evaluation Program shall also be included in the
annual GAA.

SEC. 64. Implementing Rules and Regulations. - Within ninety days (90) days after the
effectivity of this Act, the DEDP shall promulgate the rules and regulations, as well as the
Necessary issuances required for the proper implementation of the provisions of this Act.

SEC. 65. Separability Clause. - If any provision or portion of this Act is declared
unconstitutional, the remainder of this Act or any provision not thereby affected shalll remain
in full force and effect.

SEC. 66. Repealing Clause. — Executive Order No. 230, Series of 1987, entitled
“Reorganizing the National Economic and Development Authority,” and Book V, Title lI,
Subtitle C, entitled “The National Economic And Development Authority’ of Executive
Order No. 292, Series of 1987, otherwise known as the “Administrative Code of 1987,” are
hereby repealed. All other laws, ordinances, orders, rules, regulations, and other
issuances, or parts thereof, which are contrary or inconsistent with any provision of this
Act, are hereby repealed, amended, or modified accordingly.

SEC. 67. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,