Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUSTAVO S. TAMBUNTING 
AN ACT RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC SERVICE 
DELIVERY 
EXPLANATORY NOTE 
Public service delivery is a vital measure of institutional efficiency. It is essential in ensuring 
progress toward sustainable development. The current setup of the bureaucracy in the Philippines 
is riddled with redundant and overlapping functions and irrelevant bodies which have long served 
their purpose. As the state must ensure efficient delivery of services to the public, the state must 
streamline the operation of government agencies and bodies. In light of improving public service 
delivery, this proposed bill aims to improve the quality and efficiency of government service by 
minimizing redundancies, overlaps, and duplication in its operations and simplifying rules, 
regulations, systems, and processes.  
This bill shall cover all agencies of the executive branch, including departments, bureaus, offices, 
commissions, boards, councils, and all other entities attached to or under their administrative 
supervision, government-owned or-controlled corporations (GOCCs). The Legislature, the 
Judiciary, the Constitutional Commissions, and the Office of the Ombudsman, and local 
government units may also rightsize their respective offices. 
This bill is based upon House Bill No. 5707 which was approved on the third and final reading 
during the 17th Congress. 
On behalf of the people of Parañaque City’s Second District, and for the common good of the 
Filipino people, the approval of the said measure is earnestly sought. 
REP. GUSTAVO S. TAMBUNTING 
2nd District, Parañaque City 
August 24, 2022
1:15 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUSTAVO S. TAMBUNTING 
AN ACT RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC SERVICE 
DELIVERY 
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 "Rightsizing the National Government 
Act".  
SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State to promote and 
maintain effectiveness, efficiency, and economy in the government and enhance institutional 
capacity to improve public service delivery and ensure the attainment of the country's societal 
and economic development goals and objectives. Consistent with this, the government shall focus 
its functions and resources on the essential role, scope, and level of governance, minimize, if not 
eliminate, redundancies, overlaps, and duplication in its operations and simplify its rules and 
regulations, systems and processes.  
SEC. 3. Coverage. – This Act shall cover all agencies of the executive branch, including 
departments, bureaus, offices, commissions, boards, councils, and all other entities attached to 
or under their administrative supervision, government-owned or-controlled corporations (GOCCs) 
not covered by Republic Act No. 10149 or the "GOCC Governance Act of 2011".  
The Legislature, the Judiciary, the Constitutional Commissions, and the 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.  
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 Republic Act No. 
7160 or the "Local Government Code of 1991", and subject to their financial capability.  
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The Governance Commission for GOCCs (GCG) shall continue to exercise its authority under 
Republic Act No. 10149 to reorganize, merge, streamline, abolish, or privatize any GOCC, in 
consultation with the department or agency to which the GOCC is attached. 
 
SEC. 4. Principles and Guidelines. – The National Government shall implement a Rightsizing 
Program by the following principles and guidelines:  
 
(a) The role of government and the scope, level, and prioritization of government activities 
shall be determined by the constitutional mandate, political and socioeconomic objectives 
of the government, and available resources; 
(b) The 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 responsibilities between the National Government and the LGUs in the 
provision, production, and delivery of goods and services shall be clearly defined;  
(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 departments/agencies can 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;  
(f) Government systems and processes shall be simplified and modernized to facilitate the 
delivery and upgrade the quality of frontline services, as well as to improve policy 
formulation, planning, and performance evaluation, and to 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 an agency shall be designed to facilitate the effective, 
efficient, and economical implementation of programs and projects, and the attainment 
of organizational outputs and outcomes; rightsized and the appropriate staffing mix shall 
be determined based on the skills and competencies required to effectively and efficiently 
carry out the agency's mandate and functions.  
 
SEC. 5. Authority of the President of the Philippines to Rightsize the Operations of the 
Executive Branch. – Under the governing rules, policies, standards, and guidelines stipulated 
in this Act, the President of the Philippines 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: 
 
(1) Strengthen functions of the agency which directly contribute to the targeted ultimate 
societal outcomes of the National Government and/or the targeted sector/subsector 
outcomes of the agency;  
(2) Scale down, phase out, eliminate or discontinue functions, programs, and projects that 
can better be 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  


(3) Transfer/integrate functions from one agency to another which can better perform the 
same. 
 
(b) To undertake the following organizational actions: 
 
(1) Regularize ad hoc offices whose functions are vital and significant, thus must be 
continually undertaken by the government;  
(2) Merge or consolidate agencies whose functions are necessarily overlapping or 
duplicating and can be undertaken by a single entity, or clients are similar or related 
to rationalize the use of government resources;  
(3) Split agencies with multifarious functions which are deemed distinct and equally serve 
important aspects of governance;  
(4) Transfer offices to other agencies wherein their functions are more aligned; and  
(5) Abolish agencies: (i) which functions are already redundant or no longer relevant or 
necessary, or better undertaken by another entity; (ii) which are no longer achieving 
the objectives and purposes for which these were created; (iii) which are not cost-
effective since these do not generate the desired levels of outputs and outcomes vis-
d-vis the resource inputs; and/or (iv) which have already become nonoperational, 
dormant and/or outlived their purposes. 
 
(c) To undertake other functional/organizational actions, as necessary, consistent with the 
policies, principles, framework, and standards of this Act;  
 
(d) To develop and provide safety nets, including their implementation strategies, for 
employees of departments/agencies who may be affected by the government's rightsizing 
efforts; and  
 
(e) To formulate an organizational development program to strengthen the institutional 
capacity of the agencies and improve the productivity of employees.  
 
SEC. 6. Creation of a Committee on Rightsizing the Executive Branch. – A Committee on 
Rightsizing the Executive Branch is hereby created to oversee the implementation of the 
Rightsizing Program by the provisions of this Act.  
 
The Committee shall be composed of the Executive Secretary as Chairperson, and the Secretary 
of the Department of Budget and Management (DBM) as Co-chairperson, with the Secretary of 
Socio-Economic Planning, Chairperson of the Civil Service Commission (CSC), and the Head of 
the Presidential Management Staff, as members.  
 
The Committee shall be organized within fifteen (15) days from the effectivity of this Act. 
 
The Committee shall also organize Subcommittees composed of experts on government 
operations, organizational development, and human resource management to assist in the 
performance of its functions.  
 


The DBM shall provide the necessary secretariat services to the Committee and its 
Subcommittees.  
 
In the spirit of transparency and participatory governance, the Committee shall consult the 
departments/agencies concerned and accredited public sector unions, and other stakeholders, 
relative to the implementation of the Executive Branch Rightsizing Program.  
 
SEC. 7. Powers and Functions of the Committee on Rightsizing the Executive Branch. 
– The Committee shall have the following powers and functions: 
 
(a) To develop the policies, framework, strategies, and mechanisms to be adopted in the 
implementation of the Executive Branch Rightsizing Program;  
(b) To conduct studies on the functions, program, projects, operations, structure, and 
manpower complement of the different departments/agencies;  
(c) To develop and prepare the rightsized organizational structure of departments/agencies 
concerned and the corresponding executive issuances for approval by the President;  
(d) To develop and prepare the overall change management program. including 
communication plans, to effectively manage the transition and ensure the smooth 
implementation of the Rightsizing Program;  
(e) To formulate the mechanisms to safeguard the welfare of employees who may be affected 
by the rightsizing efforts, as well as the appropriate organizational development program, 
for approval of the President;  
(f) To monitor the implementation by the different agencies of their respective approved 
Rightsizing Plans, and report to the President any issue that must be addressed;  
(g) To engage the services of experts/consultants, through the DBM, to assist the Committee 
and its Subcommittees in the performance of their functions; and  
(h) To formulate the implementing rules and regulations (IRR) of this Act. 
 
SEC. 8. Submission of the Rightsized Organizational Structure and Proposed 
Executive Issuances to the President. – The Committee on Rightsizing the Executive Branch 
shall submit to the President the rightsized organizational structure of agencies concerned and 
the corresponding executive issuances within two hundred fifty (250) days from the effectivity of 
the implementing rules and regulations (IRR) of this Act. 
 
SEC. 9. Submission of the Detailed Organizational Structure and Staffing to the DBM. 
– The heads of agencies 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 Provided, That assistance in the preparation of 
organizational structure and staffing pattern has been extended to the agency by the DBM and 
the CSC. 
 
SEC. 10. Retirement Benefits and Separation Incentives for Personnel Who May be 
Affected by the Executive Branch Rightsizing Program. – The affected personnel hired 
permanently and with appointments attested by the CSC, shall be entitled to retirement benefits 
and separation incentives.  


 
(a) The affected person shall be given the option to avail themselves of any of the following 
retirement benefits under existing laws if qualified:  
 
(1) Retirement gratuity provided under Republic Act 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  
(2) Retirement benefit under Republic Act 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 
 
(3) Retirement, separation or unemployment benefit provided under Republic Act 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 shall avail 
of Republic Act No. 1616 shall be paid by the Government Service Insurance System 
(GSIS). The GSIS shall no longer pay the refund of retirement premiums (both 
personnel and government shares) of the affected person who shall avail of Republic 
Act No. 1616 benefits.  
 
(b) In addition to said retirement benefits, the affected person who would opt to retire or be 
separated shall be entitled to the following applicable separation incentives:  
 
(1) One-half half(%) of the actual monthly basic salary for every year of government 
service, for those who have rendered Jess than eleven ( 11) years of service; 
(2) Three fourth (3/4) of the actual monthly basic salary for every year of government 
service, computed starting from the first (1st) year, for those who have rendered 
eleven (11) to less than twenty-one (21) years of service;  
(3) The actual monthly basic salary for every year of government service, computed 
starting from the first (1st) year, for those who have rendered twenty-one (21) to less 
than thirty-one (31) years of service; and 
(4) One and one-fourth (1 1/4) of the actual monthly basic salary for every year of 
government service, computed starting from the first (15) year, for those who have 
rendered thirty-one (31) years of service and above.  
 
The actual monthly basic salary shall refer to the salary of the affected person as of 
the date of approval of the agency's detailed organizational structure and staffing by 
the DBM. 
 


A minimum of five (5) years of government service is required for the affected person to be 
entitled to avail of the Program's separation incentives under Section 1 (b) of this Act: Provided, 
That to compute the total amount of separation incentives that affected personnel shall receive, 
only the government service up to age fifty-nine (59) and a fraction thereof shall be counted. 
Government service starting at the age of sixty (60) shall 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: Provided, further, That to comply 
with the required number of years of service under Republic Act No. 8291, the portability scheme 
under Republic Act 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 personnel and deploy them to agencies that require their 
qualifications, skills, and competencies.  
 
The number of personnel who will avail of the separation incentives under Section 10 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  
 
SEC. 11. Other Benefits of Retired/Separated Personnel. – The affected personnel who 
retire or are separated shall, in addition to the applicable benefits above, be entitled to the 
following: 
 
(a) Refund of Pag-IBIG contributions, both personal and government of all affected members, 
under existing rules and regulations of the Home Development Mutual Fund; and  
(b) Commutation of unused vacation and sick leave credits of the affected person by existing 
rules and regulations.  
 
SEC. 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 departments/agencies concerned.  
 
SEC. 13. Prohibition on Reemployment of Personnel Retired/Separated from the 
Service. – Personnel who retire or are separated from the service as a result of the 
implementation of the Rightsizing Program shall not be reemployed in any agency of the Executive 
Branch, including in GOCCs, for five (5) years, except as teaching or medical staff in educational 
institutions and hospitals, respectively.  
 


The retired/separated personnel under the program, who are reemployed within the prohibited 
period shall refund the separation incentives received under Section 10(b) of this Act on a 
prorated basis.  
 
The retired/separated personnel under the program who undertake consultancy services for the 
government shall be governed by Section 7 of Republic Act No. 6713 (Code of Conduct and Ethical 
Standards for Public Officials and Employees).  
 
SEC. 14. Join Congressional Oversight Committee on the Rightsizing Program. – There 
is hereby created an oversight committee to oversee, monitor, and evaluate the implementation 
of this Act.  
 
(a) The oversight committee shall be composed of five (5) members each from the Senate 
and the House of Representatives which shall include members of the Senate Committee 
on Civil Service, Government Reorganization and Professional Regulation, the Senate 
Committee on Finance, the House Committee on Government Reorganization and the 
House Committee on Appropriations.  
 
SEC. 15. Conduct of an Impact Assessment. – The DBM shall commission the conduct of an 
independent impact assessment on the Executive Branch Rightsizing Program three (3) years 
from its completion too, among others, to determine the effects of, and gains from, the 
implementation of the Program.  
 
SEC. 16. Report to Congress. – The President shall submit a report to Congress on the results 
of the Program after the completion of its implementation.  
 
SEC. 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.  
 
SEC. 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. The IRR shall take effect fifteen (15) days after its publication in a newspaper 
of general circulation.  
 
SEC. 19. Provisions Applicable to Other Branches of Government, Constitutional 
Commissions, 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, Office of the Ombudsman, and the LGUs.  
 
The beads of offices shall issue their respective IRR and furnish a copy thereof to the Joint 
Congressional Oversight Committee on the Rightsizing Program and the DBM. 
 


SEC. 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. The subsequent amounts needed to continue the implementation of the 
Executive Branch Rightsizing Program in the Executive Branch shall be included in the succeeding 
appropriations.  
 
If the Legislature, Judiciary, Constitutional Commissions, and the Office of the Ombudsman 
implement the rightsizing under this Act, the funding requirements shall be included in the 
succeeding appropriations.  
 
SEC. 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.  
 
SEC. 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.  
 
SEC. 23. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or any newspaper of general circulation. 
 
Approved,