NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 890
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of tliC f.- wuvp
*22 JUL26 P2:55
Rl’CBVED E'Y:
Introduced by Senator FRANCIS G. ESCUDERO
AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC 
SERVICE DELIVERY AND FOR OTHER PURPOSES
EXPLANATORY NOTE
This bill is essentially Senate Bill No. 13951 and House Bill No. 57072 which were 
both passed and deliberated during the 17th Congress. Its significance then, until now, 
relates to the rationalization of government bureaucracy through rightsizing expected 
to promote efficiency, effectiveness and economy in the delivery of public service.
Based on the Department of Budget and Management (DBM) Staffing Summary 
for the year 2021, there are 1,862,543 permanent positions in government, including 
ex-ofRcio positions, of which 1,684,669 are filled and 177,874 are unfilled. Comparing 
these figures with the same DBM Staffing Summary in 2015 of 1,244,931 positions, it 
appears that the number of government personnel has continuously grown or has 
always been in an upward trend. Consequently, the corresponding expenditures 
likewise ballooned from 682.62 billion in 2015 to 1,316.3 billion in 2021.3
Moreover, studies show that the governmental organization is bloated and 
overstaffed with overlapping or fragmented functions which already requires re­
organization, streamlining and/or reconfiguration.
On this score, the current administration seeks to revive the rightsizing of the 
bureaucracy as a two-pronged formula, economy on one hand and efficiency on the 
other. It is envisioned to deliver significant billions in savings and at the same time 
get rid of redundant and non-functioning government agencies.
1 Per Committee Report No. 56 as jointly prepared and submitted by the Senate Committees on Civil Service, 
Government Reorganization and Professional Regulation, and Finance on 15 March 2017.
2 Per Committee Report No. 258 as Jointly prepared and submitted by the House Committees on Government 
Reorganization and Appropriation on 24 May 2017.
3 DBM.gov.ph. Staffing Summary.


The intent and purpose are quite tenable given what the studies and the data 
say especially since the direction, as contained in this bill, does not take for granted 
the rights and welfare of government personnel who would be severed from 
employment, and prescribes as well the provisions for checks and balances that would 
ensure competent, credible and accurate rationalization within sets of legislative 
parameters.
Finally, this bill would also provide the timely opportunity to revisit 
decentralization to be in harmony with this rightsizing policy in the light of the 
Mandanas Bx\(\ Garcia^"' ruling which allocates more resources to Local Government 
Units (LGUs) and thus may result in a greater devolution of governmental powers and 
functions.
In view of the foregoing, the passage of this bill is earnestly sought not just as 
a matter of legislative policy on the rationalization of the bureaucracy but to harmonize 
it as well with decentralization.
RESPECTFULLY SUBMITTED.
FRANCIS G. ESCUDERO
GR Nos. 199802 and 208488,22 May 2019.


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S. No.
SENATE
890
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of tl(C £• • 10^0^0
*22 JUL26 P2 55
RECEIVED BY:
Introduced by Senator FRANCIS G. ESCUDERO
AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC 
SERVICE DELIVERY AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled:
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Section 1. Short Title. - This Act shall be known as Rightsizing the National
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Government Act of2022."
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Section 2. Declaration of Policy. - It is hereby declared the policy of the State
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to promote and maintain effectiveness, efficiency and economy In the government,
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and enhance institutional capacity to Improve public service delivery, and to ensure
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the attainment of the country's societal and economic development goals and
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objectives. Consistent with this, the government shall focus its functions and resources
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on the essential role, scope, and level of governance, and minimize, if not eliminate,
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redundancies, overlaps and duplications In its operations and simplify Its rules and
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regulations, and systems and processes.
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Section 3. Coverage. - This Act shall cover all agencies of the Executive Branch,
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Including departments, bureaus, offices, commissions, boards, councils, and all other
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entitles attached to or under their administrative supervision, and Government-Owned
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Or -Controlled Corporations (GOCCs) not covered by Republic Act (RA) No. 10149
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(GOCC Governance Act of 2011).


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The Legislature, the Judiciary, Constitutional Commissions, Commission on 
Human Rights and Office of the Ombudsman may, within their respective authorized 
appropriations, likewise rightsize their respective offices, consistent with the principles 
and guidelines contained in this Act, and within the parameters of the Unified Position 
Classification and Compensation System established under RA No. 6758, as amended.
Local Government Units (LGUs) may also rightsize their respective offices, 
consistent with the governing principles and guidelines contained in this Act and the 
provisions of RA No. 7160 (Local Government Code of 1991), and subject to their 
financial capability.
The Governance Commission for GOCCs shall continue to exercise its authority 
under RA No. 10149 to reorganize, merge, streamline, abolish or privatize any GOCC, 
in consultation with the agency to which the GOCC Is attached.
Section 4. Governing Principles. - The National Government shall Implement a 
Rightsizing Program in accordance with the following principles:
a) The role of government and the scope, level, and prioritization of 
government programs, activities and projects, as well as the appropriate 
manner by which public goods and services are provided, shall be 
determined in accordance with the Constitutional mandate, political and 
socio-economic contexts and objectives of the government, and available 
resources;
b) Government shall establish a conducive policy environment to encourage 
active private sector engagement in the production and delivery of goods 
and services;
c) The delineation of functional assignments and responsibilities between the 
National Government and the LGUs in the provision of public goods and 
services shall be clearly defined, consistent with the provisions of Republic 
Act No. 7160 or the Local Government Code of 1991, and other pertinent


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laws and issuances, for purposes of providing a more seamless, accessible, 
and responsive government services to the people;
d) A whole-of-government approach shall be adopted to ensure seamless 
operations of agencies within and across sectors and to be more responsive 
to public needs;
e) Government operations shall be simplified so that the agencies could focus 
on the performance of their core functions and Implementation of programs 
and projects that will lead to the attainment of the desired sectoral and 
national goals and outcomes;
0 Government systems and processes shall be streamlined and digitalized to 
improve government Interoperability, ensure shared and secured access of 
information in government, and enable remote government operations to 
provide transparent, timely, convenient, undisrupted, and efficient delivery 
of public goods and services to the Filipino people and raise the overall 
productivity of the public sector;
g) Government rules, procedures and requirements shall be rationalized to 
reduce the regulatory burden on citizens, businesses and other 
stakeholders, as well as reduce the administrative burden on the part of 
the government; and
h) The organizational structure of agencies shall be designed so as to facilitate 
the effective, efficient and economical implementation of programs and 
projects, and attainment of organizational outputs and outcomes, and the 
appropriate staffing mix shall be determined based on the skills and 
competencies required.
Section 5. Authority of the President of the Phiiippines to Rightsize the 
Operations of the Executive Branch. - Pursuant to the governing principles, policies, 
standards, and guidelines stipulated in this Act, the President is hereby granted the 
following authority in the rightsizing of the operations of the different agencies of the 
Executive Branch:
a) To pursue the following functional shifts/modifications:


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a.l Strengthen functions of the agency which directly contribute to the 
targeted ultimate societal outcomes of the National Government 
and/or the targeted sector/sub-sector outcomes of the agency; 
a.2 Scale down, phase out, eliminate or discontinue functions, programs, 
projects or activities that could be better carried out or undertaken by 
the private sector, or have already been devolved to LGUs consistent 
with the governing principles provided In this Act; and
a. 3 Transfer/integrate functions from one agency to another which could
better perform the same.
b) To implement the following organizational actions, upon determination of 
the Committee on Rightsizing created under this Act that it is to the best 
interest of the State to reorganize, merge, streamline or abolish agencies 
and offices:
b. l Regularize ad hoc offices whose functions are vital and significant,
thus must be continually undertaken by the government; 
b.2 Merge or consolidate agencies whose functions are unnecessarily 
overlapping or duplicating and could be undertaken by a single entity, 
or clients are similar or related, to rationalize the use of government 
resources;
b.3 Split agencies with multifarious functions which are deemed distinct 
but equally Important aspects of governance; 
b.4 Transfer offices to other agencies where their functions are more 
aligned; and
b.5 Subject to evaluation and favorable recommendation of the 
Committee on Rightsizing, abolish agencies when any of the following 
standards are present: (i) the functions are already redundant or no 
longer relevant or necessary, or could be better undertaken by 
another entity; (ii) agency is no longer achieving the objectives and 
purposes for which they were originally created; (iii) continued 
operation is not cost-effective since they do not generate the desired 
level of outputs and outcomes vis-a-vis the resource Inputs; and/or


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(iv) agency has already become non-operational or dormant and/or
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outlived its purpose.
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c) 
To undertake other functional/organizational actions, as necessary,
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consistent with the policies, principles, framework and standards of this Act.
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d) 
To develop and provide safety nets, including their Implementation
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strategies, for employees of agencies who may be affected by the
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government's rightsizing efforts.
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e) To formulate an Organizational Development Program to strengthen the
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institutional capacity of the agencies and Improve productivity of
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employees.
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Section 6. Creation of a Committee on Rightsizing the Executive Branch. -
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A Committee on Rightsizing the Executive Branch is hereby created to oversee the
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Implementation of the Rightsizing Program, in accordance with the provisions of this
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Act.
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The Committee shall be composed of the following officials or their duly
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authorized representatives: Executive Secretary as Chairperson, and the Secretary of
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the Department of Budget and Management (DBM) as Co-Chairperson, with the
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Secretary of the National Economic and Development Authority, Chairperson of the
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Civil Service Commission (CSC), and the Director-General of the Anti-Red Tape
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Authority, as members. The duly authorized representative shall be at least a third
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(3rd) ranking official of the agency.
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The Committee shall be organized within fifteen (15) days from the effectivity of
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this Act.
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The Committee shall organize Sub-Committees composed of experts on
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government operations, organizational development, and human resource
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management to assist in the performance of its functions.
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The DBM shall provide the necessary secretariat services to the Committee and
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its Sub-Committees.
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In the spirit of transparency and participatory governance, the Committee shall
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consult the agencies concerned, accredited public sector unions and other


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stakeholders relative to the implementation of the Executive Branch’s Rightsizing
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Program.
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Section 7. Powers and Functions of the Committee on Rightsizing the
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Executive Branch. -The Committee shall have the following powers and functions:
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a) To develop the policies, framework, strategies and mechanisms to be
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adopted in the implementation of the Executive Branch's Rightsizing
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Program;
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b) To conduct studies on the functions, programs, projects, operations,
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structure and manpower complement of the different agencies;
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c) To develop and prepare the rightsized organizational structure of agencies
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concerned and the corresponding executive Issuances for approval by the
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President, In accordance with the provisions of Section 5 of this Act;
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d) To develop and prepare the overall Change Management Program,
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including a Communication Plan, to effectively manage the transition and
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ensure the smooth implementation of the Rightsizing Program;
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e) To formulate the mechanisms to safeguard the welfare of employees who
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may be affected by the rightsizing efforts, 
as well 
as the appropriate
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Organizational Development Program, for approval of the President;
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f) To monitor the implementation by the different agencies of their respective
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approved Rightsizing Plans, and report to the President any issue that must
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be addressed;
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g) To engage the services of experts/consultants, through the DBM, to assist
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the Committee and its Sub-Committees in the performance of their
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functions; and
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h) To formulate the implementing rules and regulations (IRR) of this Act.
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Section 8. Submission of the Rightsized Organizational Structure and Proposed
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Executive Issuances to the President. - The Committee on Rightsizing the Executive
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Branch shall submit to the President the rightsized organizational structure of agencies


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concerned and the corresponding executive issuances within two hundred fifty (250) 
days from the effectivity of the IRR of this Act.
Section 9. Submission of the Detailed Organizational Structure and Staffing to 
the DBM. - Agency Heads shall prepare and submit to the DBM the detailed 
organizational structure and staffing of their respective agencies within ninety (90) 
days after the approval of the proposed executive issuances by the President.
Section 10. Retirement Benefits and Separation Incentives for Personnel Who 
May be Affected by the Executive Branch's Rightsizing Program. - The affected 
personnel hired on a permanent basis and with appointments attested by the CSC 
shall be entitled to retirement benefits and separation incentives.
10.1 The affected personnel shall be given the option to avail themselves of any 
of the following retirement benefits under existing laws, if qualified:
a) 
Retirement gratuity provided under RA No. 1616 (An Act Further Amending 
Section Twelve of Commonwealth Act Numbered One Hundred Eighty-Six, 
as Amended, By Prescribing Two Other Modes of Retirement and for Other 
Purposes), as amended; or
b) 
Retirement benefit under RA No. 660 (An Act to Amend Commonwealth Act 
Numbered One Hundred and Eighty-Six Entitled "An Act to Create and 
Establish a Government Service Insurance System, to Provide for Its 
Administration, and to Appropriate the Necessary Funds Therefor," and to 
Provide Retirement Insurance and for Other Purposes); or
c) 
Retirement, separation or unemployment benefit provided under RA No. 
8291 (An Act Amending Presidential Decree No. 1146, as Amended, 
Expanding and Increasing the Coverage and Benefits of the Government 
Service Insurance System, Instituting Reforms Therein and for Other 
Purposes).
The retirement gratuity benefit of affected personnel who are qualified and 
have opted to avail themselves of RA No. 1616 shall be paid by the


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Government Service Insurance System (GSIS). The GSIS shall no longer 
pay the refund of retirement premiums (both personnel and government 
shares) of the affected personnel who will opt to avail of RA No. 1616 
benefits.
10.2 In addition to said retirement benefits, the affected personnel who would 
opt to retire or be separated shall be entitled to the following applicable 
separation incentives:
a) 
V2 of the actual monthly basic salary for every year of government service, 
for those who have rendered less than 11 years of service;
b) 
3A of the actual monthly basic salary for every year of government service, 
computed starting from the 1st year, for those who have rendered 11 to 
less than 21 years of service;
c) 
the actual monthly basic salary for every year of government service, 
computed starting from the 1st year, for those who have rendered 21 to 
less than 31 years of service; and
d) 
1 V4 of the actual monthly basic salary for every year of government 
service, computed starting from the 1st year, for those who have rendered 
31 years of service and above.
The actual monthly basic salary shall refer to the salary of the affected 
personnel as of the date of approval of his/her agency's detailed 
organizational structure and staffing by the DBM.
A minimum of five (5) years of government service Is required in order for 
an affected personnel to be entitled to avail of the Program's separation 
incentives under Section 10.2 of this Act.
PROVIDED: That for the purpose of computing the total amount of 
separation Incentives that an affected personnel would receive, only his/her 
government service up to age 59 and a fraction thereof would be counted. 
Government service starting at the age 60 would no longer be subject to 
the separation incentives provided herein, without affecting the original 
incentive factor determined as applicable based on the actual years of 
service of the affected personnel.


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PROVIDED FURTHER: That for the purpose of complying with the required 
number of years of service under RA No. 8291, the portability scheme under 
RA No. 7699 (An Act Instituting Limited Portability Scheme in the Social 
Security Insurance Systems by Totalizing the Workers' Creditable Services 
or Contributions in Each of the Systems) may be applied, subject to existing 
policies and guidelines.
The affected personnel. If with permanent appointment attested by the 
CSC, who will not opt to retire from the service shall be placed in a 
manpower pool to be organized and administered by the CSC. The CSC, in 
coordination with other government agencies and relevant private 
institutions, shall retool the subject affected personnel and deploy them to 
agencies which require their qualifications, skills and competencies.
The number of personnel who will avail of the separation incentives under 
Section 10.2 of this Act shall In no case exceed the number of positions 
declared for abolition.
The specific guidelines to carry out the provisions of this Section shall be 
prescribed in the IRR of this Act.
Section 11. Other Benefits of Retired/Separated Personnel. - The affected 
personnel who retired/separated shall, in addition to the applicable benefits above, be 
entitled to the following:
a) 
Refund of Pag-IBIG Contributions - all affected personnel who are members 
of the Pag-IBIG shall be entitled to the refund of their 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 - all affected 
personnel shall be entitled to the commutation of unused vacation and sick 
leave credits In accordance with existing rules and regulations.


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Section 12. Period of Availability of the Retirement Benefits and Separation 
Incentives. - The retirement benefits and separation incentives provided in this Act 
shall be available within sixty (60) days upon approval by the DBM of the detailed 
rightsized organizational structure and staffing of agencies concerned.
Section 13. Prohibition on Reemployment of Personnel Retired/Separated from 
the Service. - Affected personnel who retired/separated from the service as a result 
of the implementation of the Rightsizing Program shall not be reemployed in any 
agency of the National Government, Including in GOCCs, for a period of five (5) years, 
except as teaching or medical staff in educational institutions and hospitals, 
respectively.
The reemployment of retired/separated personnel under the Program within the 
prohibited period shall cause the refund of the separation incentives received by 
subject personnel under Section 10.2 of this Act on a pro-rated basis.
Section 14. Joint Congressional Oversight Committee on the Rightsizing Program. 
- There Is hereby created an Oversight Committee to oversee, monitor and evaluate 
the Implementation of this Act.
The Oversight Committee shall be composed of five (5) members each from the 
Senate and from the House of Representatives, which shall include representatives of 
the Senate Committees on Civil Service, Government Reorganization and Professional 
Regulation, and Finance, and the House Committees on Government Reorganization 
and Appropriations.
Section 15. Conduct of an Impact Assessment. - The DBM shall commission the 
conduct of an independent Impact assessment on the Executive Branch's Rightsizing 
Program three (3) years from its completion to, among others, determine the effects 
of, and gains from, the implementation of the Program.
Section 16. Report to Congress. - The President shall submit a report to Congress 
on the results of the Program after the completion of its implementation.
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Section 17. Sunset Provision, - The authority given to the President under this 
Act, as well as the existence of the Committee on Rightsizing the Executive Branch, 
shall end three (3) years after the effectivity of this Act
Section 18. Implementing Rules and Regulations. - The Committee on Rightsizing 
the Executive Branch shall formulate the necessary IRR within thirty (30) days from 
the organization of the Committee. Such rules and regulations shall take effect fifteen 
(15) days after its publication in a newspaper of general circulation.
Section 19. Provisions Applicable to Other Branches of Government, 
Constitutional Commissions, Commission on Human Rights, Office of the Ombudsman, 
and the LGUs. - The governing principles, policies, standards, and guidelines, as well 
as the conditions and limitations provided in this Act, shall be followed in the 
implementation of the Rightsizing Program by other branches of government. 
Constitutional Commissions, Commission on Human Rights, Office of the Ombudsman, 
and the LGUs.
The heads of said offices shall issue their respective IRR and furnish a copy 
thereof to the Senate Committees on Civil Service, Government Reorganization and 
Professional Regulation, and Finance, the House Committees on Government 
Reorganization and Appropriations, and the DBM.
Section 20. Funding Requirements. - The amount necessary for the initial 
implementation of this Act shall be sourced against any applicable appropriation items 
under the current General Appropriations Act. Subsequent amount needed to continue 
the implementation of the National Government's Rightsizing Program shall be 
included in the succeeding appropriations.
In the event that the Legislature, the Judiciary, Constitutional Commissions, 
Commission on Human Rights, and the Office of the Ombudsman rightsize their 
respective offices in accordance with the provisions of this Act, funds necessary for 
the purpose shall likewise be sourced from any applicable appropriations under the 
GAA.
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For GOCCs not covered by RA No. 10149, the amount needed for the 
implementation of their Rightsizing Program shall be outsourced from their respective 
corporate funds. In case of funding deficiency, the National Government may provide 
assistance in the payment of separation incentives of personnel who may be affected 
by the rightsizing efforts of these GOCCs, provided that their salaries and other 
compensation are covered by RA No. 6758 (Compensation and Position Classification 
Act of 1989), as amended.
In case the LGUs pursue rightsizing efforts consistent with the provisions of this 
Act and RA No. 7160, the amount needed for the purpose shall be drawn from their 
respective local government funds.
Section 21. Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in 
full force and effect.
Section 22. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations, and other issuances or parts thereof which are inconsistent with this Act 
are hereby repealed, amended or modified accordingly.
Section 23. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation.
Approved,
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