REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No._ 8461

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

This bill shall provide for an effective mechanism to facilitate the coordination among and
between the Congress, the Bangko Sentral ng Pilipinas, and the National Economic Development
Authority in terms of economic goal-setting. It seeks to promote rapid growth and equitability in the
sharing of economic benefits through a balanced budget, increased productivity, better trade
balance, international competitiveness, and price stability.

Under this Act, a feedback loop mechanism by requiring the BSP to report on monetary
policy and NEDA on the general state of the economy before congressional economic committees.
This will ensure that the economic goals of the country is fully coordinated and is geared towards
the betterment of the entire nation.

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

S

p. Gary. Alejano


@eIdAMeYnH

REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
‘Third Regular Session

House Bill No. 8461

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
ENHANCING ECONOMIC COORDINATION, ADOPTING THE APPROPRIATE
MECHANISM THEREFOR AND FOR OTHER PURPOSES

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

SECTION 1. Short Title—This Act shall be known as the “Economic Coordination Act
of 2018.”

SEC. 2. Declaration of Policy.—The State finds that an effective strategy to promote
sustainable economic benefits for the greater majority through real productivity growth, balanced
budget, improved trade balance, and prudent monetary policy should be based on the development
of explicit economic goals and policies involving the President as head of the National Economic
Development Authority, the BSP Govemor as the head of the Monetary Board of the Bangko
Sentral ng Pilipinas as well as Congress through its various economic committees.

SEC. 3. Compliance Mechanism.—tn furtherance of the purposes of this Act, the Governor
and the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) and the Director-General of the
National Economic Development Authority (NEDA) shall submit and present to Congress,
quarterly each year, written reports, which shall mean the BSP’s report on Economic and Financial
Developments and the NEDA/National Statistics Coordination Board (NSCB) Report on the
National Income Accounts, setting forth (1) a review and analysis of recent developments affecting
trends in the economy specifically actual and growth targets pf the Gross National Product (GNP)
and the Gross Domestic Product (GDP); (2) the objectives and plans of the BSP Governor and
Monetary Board; and the Director-General of NEDA with respect to the ranges in the monetary and
credit aggregates during quarter, taking account of past and prospective developments in
employment, unemployment, production, investment, real income, productivity, international trade
and payments, and prices; and (3) the relationship of the aforesaid objectives and plans to the goals
set forth; in the current General Appropriations Act or the proposed budget, the most recent BSP’s
Report on Economic and Financial Developments and NEDA/NSCB Report on the National
Income Accounts. As part of its quarterly report each year, the BSP shall include among others a
statement of its objectives and plans with respect to the ranges of growth or diminution of the
monetary and credit aggregates while NEDA shall include a report on the fiscal position of the
public sector including the national government, real and nominal aggregate output, employment as


well as the consumer price index for the current calendar year or the following year in the case of
the report for the fourth quarter of each year.

SEC. 4. Reportorial Requirements.—The reports required under Section 3 of this Act shall
be transmitted to Congress within three (3) calendar days after their release or publication and shall
be jointly referred in the Senate to the Committees on Economic Affairs, Trade and Industry, and
Banks, Financial Institutions and Ways and Means; and in the House of Representatives to the
Committees on Economic Affairs, Banks, and Financial Intermediaries, Ways and Means, and
Trade and Industry; Provided, That the National Income Accounts quarterly report shall be
accomplished by the NSCB headed by the NEDA Director-General within one month after the end
of the quarter and in the case of the BSP, the BSP report on Economic and Financial Developments
within two weeks after the release of the National Income Accounts.

SEC. 5. Congressional Testimony.—After the receipt of such reports as provided for in
Section 4 of this Act, the Congressional Committees shall hear the testimony and presentation of
the Director-General of the NEDA and the Governor together with the entire Monetary Board of the
BSP on the merits of their individual and separate quarterly reports. Provided, That the joint
hearing of the economic committees of the House of Representatives shall be scheduled on the
Monday immediately following the submission of the report on the first and third quarters and on a
‘Tuesday for the first and third quarter and on a Monday on the second and fourth quarters of each
calendar year. Provided, That in the event Congress is in recess or has adjourned upon the release
and submission of the reports, the scheduled of the Congressional Testimony for such reports shall
be made on the First Monday immediately upon the resumption of session.

SEC. 6. Qualified Revisions.—Nothing in this Act shall be interpreted to require that the
objectives and plans with respect to the ranges of growth of diminution of the monetary and credit
aggregates disclosed in the reports submitted under this Act be achieved if the BSP and NEDA.

SEC. 8. Repealing Clause.—All laws, executive orders, executive issuances, or letters of
instructions, or any part thereof, inconsistent with or contrary to the provisions of this Act, are
hereby repealed, amended, or modified accordingly.

SEC. 9. Separability Clause.—If for any reason, any section or provision of this Act shall
be declared unconstitutional or invalid, the other parts thereof not affected shall remain valid.

SEC. 10. Effectivity—This Act shall take effect fifteen (15) days after its publication in at
least two (2) newspapers of general circulation.

Approved,