SEVENTEENTH CONGRESS OF THE]

REPUBLIC OF THE PHILIPPINES ]

tarp

Third Regular Session ]
18 AUG 15 AIO :42

SENATE
s.B. No. 1938 “as —

Introduced by SEN. WIN GATCHALIAN

AN ACT
INSTITUTIONALIZING THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY AS THE INDEPENDENT ECONOMIC AND
PLANNING AGENCY OF THE PHILIPPINE GOVERNMENT, DEFINING
ITS FUNCTIONS AND AMENDING EXECUTIVE ORDER NO. 230 SERIES
OF 1987, AS AMENDED, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES

The vision of this landmark legislation is to instill a culture of planning
in the formulation and implementation of the country’s economic and
development policies - and emphasizes the importance of participatory

planning by expanding stakeholder participation through various stages.

The Act institutionalizes the National Economic and Development
Authority (NEDA) as a lead integrator of economic development programs and
policies to achieve the following objectives: (1) facilitate the planning,
collaboration, and coordination among the relevant government agencies; (2)
improve access to national program information, data, and funding
opportunities, support research of leading edge, world class economic
development practices and information dissemination efforts; (3) ensure that
economic resources are aligned and invested in support of identified and well-
defined timely strategies and projects in non-duplicative activities; (4)

encourage strategic investments that strengthen competitiveness and foster



job creation; (5) promote energy independence, help fight poverty and build
prosperity for the greatest number of Filipinos; and, (6) produce
transformational economic diversification and workforce development

outcomes for our country’s long-term sustainable economic future.

It seeks to institutionalize a new and truly independent department that
will implement long-term, continuing, integrated, and coordinated programs
and policies for national development. It will also enhance decentralization
and strengthen the autonomy of units within the various regions of the
country to accelerate their economic and social growth and development.
Distressed communities will thus be empowered to revitalize, expand, and
upgrade their physical infrastructures to attract new industries, encourage
business expansion in the countryside, diversify local economics, and
generate or retain long-term private sector jobs and investments.

The passage of this legislation is earnestly sough|



SEVENTEENTH CONGRESS OF THE ]

‘

REPUBLIC OF THE PHILIPPINES ] Vers Other ot i

Third Regular Session ]
"18 AUG 15 AIO 42

SENATE
8.B. No. 1938 nee &

Introduced by SEN. WIN GATCHALIAN

AN ACT
INSTITUTIONALIZING THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY AS THE INDEPENDENT ECONOMIC AND
PLANNING AGENCY OF THE PHILIPPINE GOVERNMENT, DEFINING
ITS FUNCTIONS AND AMENDING EXECUTIVE ORDER NO. 230 SERIES
OF 1987, AS AMENDED, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES

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

1 CHAPTER I
INSTITUTIONALIZATION AND ORGANIZATION OF THE NATIONAL
ECONOMIC AND DEVELOPMENT AUTHORITY
AND DEVELOPMENT AUTHORITY

2
3
4
5
6 ARTICLE I. POWERS AND FUNCTIONS OF THE NATIONAL ECONOMIC
7
8
9 SECTION 1. Short Title. - This Act shall be known as “The National
)

Economic and Development Act of 2018.”



SEC. 2. Declaration of Policy. - The State shall adopt and
implement continuing integrated and coordinated long, medium, and short
term development plans and policies to achieve full employment towards
sustainable and inclusive economic growth, equitable distribution of
opportunities, income, and wealth; and increase productivity, as a key to
raising the quality of life for all. To this end, it is recognized that the
formulation of socioeconomic policies and plans is a vital process that calls
for the participation of the public and private sectors at the national and
sub-national levels. The formulation and adoption of these policies and
plans need to be coordinated and implemented by an independent
economic and planning agency, to be headed by the President, to ensure
the consistency of policies, plans and programs for national development

and the sustainable use of the nation’s resources.

SEC 3. The National Economic and Development Authority. -
There is hereby established an independent economic and planning agency,
which shall be known as the National Economic and Development
Authority, hereafter referred to as NEDA.

The NEDA shall consist of two (2) distinct but functionally related
entities, namely, National Economic and Development Board and the
NEDA, hereafter referred to as the NEDB and the NEDA, respectively. The
NEDB and the NEDA shall be structured organizationally and functionally,
in accordance with the provisions of this Act, and shall be drawn from the
existing NEDA Board and NEDA Secretariat, which was reorganized
pursuant to Executive Order No. 230, s. 1987.

SEC. 4. Powers and Functions. - The NEDA shall have the following
powers and functions:

(1) Formulate, in consultation with appropriate public agencies,

civil society organizations, non-government organizations,

people’s organizations, the academe, the private sector, and local

government units, continuing integrated and coordinated



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(2)

(3)

(4)

(5)

(6)

policies, plans and programs for national development, such as,

but not limited to:

(a) Long-term national development plans;

(b) Medium-term and short-term national and_ regional
development plans;

(c) Medium-term national and regional public investment
programs; and

(d) Sectoral and spatial plans and programs.

Oversee the implementation and ensure the harmonization of

national and regional plans and programs by prescribing

standards, guidelines, and compliance and accountability

mechanisms to ensure continuing integrated and coordinated

programs and policies for national development;

Ensure and coordinate the integration of national, sub-national

and spatial plans and programs for consistency and alignment

with the overall development objectives of the country;

Prioritize policies and strategies, with corresponding programs,

activities and projects, and funding from the national

government, official development assistance (ODA), public-

private partnerships, and other viable sources of funding, as

basis for budget expenditure policies and budget formulation, in

coordination with implementing agencies, and for reporting to

the NEDB and its committees;

Monitor and evaluate national and regional programs and

projects of government, funded by the national government,

official development assistance (ODA), _ public-private

partnerships, and other viable sources of funding;

Review, monitor and assess the impact of policies, regulations,

and programs of the government, and recommend to concerned

government agencies and instrumentalities strategies and

measures, including proposed legislation, to achieve sectoral

development goals;



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(7)

(8)

(9)

Recommend policies that would encourage investments to
ensure that the economic and business environments and
regulatory frameworks are consistent with the development
agenda and plans of the country;

Report to Congress on the economic performance of the country,
including the status and directions of the fiscal and monetary
policies of the government - in coordination with the Bangko
Sentral ng Pilipinas and the Department of Finance - and
prospects in the macroeconomy and labor market, and other
relevant information that may be requested, for purposes of
transparency and accountability; and

Provide technical, advisory and secretariat support services to
the NEDB and its committees, the Regional Development

Councils, and other stakeholders.

ARTICLE II. THE NATIONAL ECONOMIC AND DEVELOPMENT BOARD

SEC. 5. Composition of the National Economic and Development
Board (NEDB). - The powers and functions of the NEDA shall reside in the

NEDB, composed of six (6) members.

The members are as follows:

qQ)

(2)
(3)
(4)
(5)
(6)
(7)
(8)

The President of the Philippines, who shall be the Chairperson
of the NEDB. Whenever the President is unable to attend a
meeting of the Board, the Vice-Chairperson shall act as
Chairperson;

The Secretary of NEDA, who shall be the Vice-Chairperson;

The Secretary of Finance;

The Secretary of Budget and Management;

The Secretary of Interior and Local Government;

The Secretary of Trade and Industry;

The Secretary of Public Works and Highways; and

The Governor of the Bangko Sentral ng Pilipinas (BSP), as a
resource institution.



All members of the NEDB, except the Governor of the BSP, are voting
members.
The presence of at least four voting members shall constitute a

quorum.

SEC. 6. Meetings. - The NEDB shall meet at least once every quarter.
The presence of three (3) voting members shall constitute a quorum,
provided that in all cases the Secretary of NEDA shall be present.

A special meeting of the NEDB may be convened by the President to
address urgent concerns, or emergencies, such as natural disasters,
calamities, or other extraordinary circumstances which would affect the
economy and national development.

All decisions of the NEDB shall require the concurrence of at least a
majority of the voting members present at a meeting at which there is a
quorum.

The NEDA shall maintain and preserve a complete record of the
proceedings and deliberations of the NEDB, including the recordings and

transcripts, either in their original form, or in any secured digital format.

SEC. 7. Withdrawal of Persons Having a Personal Interest. - In
addition to the requirements of Republic Act No. 6713, any member of the
NEDB with personal or pecuniary interest in any matter in the agenda of
the NEDB shall disclose his interest to the Board 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 recusal of the member concerned from the meeting.

SEC. 8. Exercise of Authority. - In the exercise of authority, the
NEDB shall:

(1) Direct the formulation and implementation of policies and
strategies that would promote economic development and

address development concerns of national importance;



(2) Issue rules and regulations necessary for the effective discharge
of the powers and functions vested upon the NEDA;

(3) Ensure, together with the Department of Budget and
Management and other relevant government oversight agencies,
that the annual and multi-year appropriations for programs and
projects are aligned with the development strategies in the
MTPDP and MTRDPs;

(4) Approve and endorse to Congress the integrated development
plans and programs which will serve as bases for the annual
budget review and deliberation;

(5) Determine 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;

(6) Approve or confirm projects, programs, and plans as required
under existing laws, orders, rules and regulations, and other
issuances; and

(7) Direct the reorganization, or establishment of inter-agency
committees under the NEDB, including the modification of its
membership, structures, powers and functions.

SEC. 9. Inter-Agency Committees. - Inter-agency committees shall
be created to be the primary advisory bodies to the NEDB. It shall submit
recommendations on matters involving their concerns to the NEDB for
approval.

The NEDB shall designate the Chairperson of these Committees,
including the Secretariat, unless otherwise specifically provided herein.

The NEDB may create other inter-agency committees, or modify
existing ones in respect to their structures, compositions, powers, and

functions.



The inter-agency committees may create sub-committees, whenever

appropriate, for the purpose of dispensing with any of its respective

functions.

The following shall be the NEDB Inter-Agency Committees:

qa)

(2)

Development Budget Coordination Committee (DBCC) - The DBCC,

to be composed of the Secretaries of Budget and Management,

National Economic and Development Authority, Finance, and

Trade and Industry, the Executive Secretary, and the Governor

of the Bangko Sentral ng Pilipinas, shall have the following

functions:

(a) Recommend for Presidential approval the level of annual
government expenditures and the ceiling of government
spending for economic and social development, national
defense, and government debt service;

(b) Recommend to the NEDB the budget to be allocated for
current operating expenditures and capital outlays of
government programs and projects;

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

(d) Conduct periodic review of macroeconomic targets, and the
revenue and expenditure projections of the government;
and

(c) Prepare a strategic multi-year fiscal program which
supports the long-term and medium-term development

objectives of the country.

Investment Coordination Committee (ICC) - The ICC, to be
composed of the Secretaries of Finance, National Economic and
Development Authority, Budget and Management, Interior and

Local Government, and Trade and Industry, the Executive



(3)

Secretary, and the Governor of the Bangko Sentral ng Pilipinas

as members, shall have the following functions:

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

(b) Recommend to the NEDB the timetable of the
implementation of major capital programs and projects on
a regular basis;

(c) Review and evaluate specific major capital programs and
projects with respect to technical, financial, economic,
social, environmental, legal, institutional, feasibility,
viability as well as from the context of sectoral plans and
geographical strategies, as may be required by law, orders,
and other legal issuances;

(d) Review and approve, for final approval of the NEDB, major
capital projects based on a cost threshold as may be set by
the NEDB; and

(ce) Recommend to the NEDB a domestic and foreign borrowing

program.

Infrastructure Committee (INFRACOM) - The INFRACOM, to be
composed of the Secretaries of National Economic and
Development Authority, Public Works and Highways, Budget and
Management, Finance, Information and Communications
Technology, Transportation, Trade and Industry, Energy,
Agriculture, and Tourism, and the Executive Secretary, shall

have the following functions:

(a) Formulate a national infrastructure development strategy
that will coordinate, integrate and accelerate the
development initiatives across all infrastructure subsectors

in the country;
(b) Advise the President and the NEDB, on all matters
concerning infrastructure development, _ including

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(4)

(5)

(c)

highways, airports, seaports, offshore infrastructure and
shore protection; railways and subways; power generation,
transmission and _ distribution; telecommunications;
irrigation, flood control and drainage; water supply 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
partnership (PPP), or any other method; and

Coordinate the activities of agencies, including
government-owned and/ or controlled corporations

involved in infrastructure development.

Social Development Committee (SDC) - The SDC, to be composed
of the Secretaries of Social Welfare and Development, National

Economic and Development Authority, Budget and Management,

Education, Agrarian Reform, Agriculture, Education, Health,

Interior and Local Government, and Labor and Employment, and

the Executive Secretary shall have the following functions:

(a)

(b)

(ce)

Formulate and recommend government policies, programs
and projects on social development that are appropriate
and consistent with national development and priorities;
Advise the NEDB on matters concerning social
development, including education, manpower, health and
nutrition, population and family planning, housing,
human settlements, and the delivery of other social
services; and

Coordinate the activities of government agencies

concerned with social development.

Tariff and Related Matters Committee (TRMC) - The TRMC, to be

composed of the Secretaries of Trade and Industry, National

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(6)

Economic and Development Authority, Agriculture, Budget and
Management, Environment and Natural Resources, Finance,
Foreign Affairs, Information and Communications Technology,
Transportation, the Executive Secretary, the Governor of the
Bangko Sentral ng Pilipinas, the Commissioner of Internal
Revenue, and the Chairman of the Tariff Commission, shall have
the following functions:

(a) Recommend to the NEDB a continuous rationalization
policy and program for the country’s tariff structure;

(b) Advise the NEDB on tariff and related matters, as well as
the effects of various international developments on the
country; and

(c) Coordinate government agency positions and recommend

national positions for international economic negotiations.

Regional Development Committee (RDCOM) - The RDCOM, to be

composed of the Secretaries of National Economic and

Development Authority, Interior and Local Government, Budget

and Management, and Trade and Industry, three (3) Regional

Development Council Chairpersons representing Luzon,

Visayas and Mindanao, and one (1) representative from the

Union of Local Authorities of the Philippines, shall have the

following functions:

(a) Formulate and monitor the implementation of policies that
reduce regional growth disparities, and promote equitable
allocation of resources among regions;

(b) Serve as a clearinghouse for key regional development
policy proposals that have impacts on at least two (2)
regions;

(c) Formulate and monitor the implementation of the
framework for regional development of the Medium-Term

Development Plan;



(7)

(4) Direct the formulation of and review the guidelines for the
regional allocation of agency budgetary resources; and

(c) Periodically review the viability of the regional
configuration of the country, and recommend to the NEDB

the re-delineation of regions, as may be necessary.

The composition of the Committee shall be without
prejudice to the participation of representatives of other
government agencies or bodies, or of authorized representatives
of major organizations of local government officials, civil society
organizations, non-government organizations, _people’s
organizations, the academe, or other private organizations as
may be considered desirable by the Committee in its

deliberations.

National Land Use Committee (NLUC) - The NLUC, to be composed
of the Secretaries of National Economic and Development
Authority, Agrarian Reform, Agriculture, Energy, Environment
and Natural Resources, Information and Communications
Technology, Interior and Local Government, Justice, Public
Works and Highways, Science and Technology, Trade and
Industry, Transportation, and Tourism, the Chairperson of the
Housing and Urban Development Coordinating Council or the
Housing and Land Use Regulatory Board, the Chairperson of the
National Commission on Indigenous Peoples, and the presidents
of Leagues of provinces, municipalities and cities:

(a) Advise the NEDB on matters concerning land use and
physical planning;

(b) Formulate a national physical framework plan and other
inter-sectoral policies and programs that guide the rational
utilization and management of the country’s land and
other physical resources, and the preparation of sub-
national physical framework plans;



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(8)

{c) Ensure the integration of land use and physical planning
policies, plans, and programs, including disaster risk
management, into national socioeconomic plans and
programs;

(d) Recommend resolutions concerning land use policy
conflicts among agencies of the national government;

(e) Oversee the establishment and maintenance, in
conjunction with appropriate government agencies, a
database system that will identify and classify the present
and possible uses of specific land areas, public and
private, comprising the total land resource of the country;
and

() Provide policy directions to the Regional Land Use
Committees in the performance of their respective physical

planning functions.

‘The NLUC may call on any Department, Bureau, Office, or
Agency for support or assistance in the performance of its
function.

The composition of the Committee shall be without
prejudice to the participation of representatives of other
government agencies or bodies, or of authorized representatives
of major organizations of local government officials, civil society
organizations, non-government organizations, __ people’s
organizations, the academe, or other private organizations as
may be considered desirable by the Committee in its

deliberations.

Economic Development Committee (EDC) - The EDC shall be
composed of the Secretaries of Finance, National Economic and
Development Authority, Trade and Industry, Budget and
Management, Public Works and Highways, Transportation,

Information and Communications Technology, Energy, Science

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(9)

and Technology, Tourism, Agriculture, and Interior and Local

Government, the Governor of the Bangko Sentral, and the

Executive Secretary. It shall be the main coordinating

mechanism that ensures that the policy environment is

conducive to the promotion of rapid, inclusive, and sustained
economic growth. In particular, the EDC shall:

(a) Formulate policies that promote sustainable economic
development and inclusive growth;

(b) Promote an environment conducive to growth and
competitiveness of private enterprises and human capital
resources, and the creation of jobs that will empower
people and provide them with opportunities to rise above
poverty;

(c) Recommend to the President and NEDB policies that would
ensure equitable distribution of economic opportunities
and benefits to Filipinos;

(a) | Recommend policy directions towards the development of
farms and rural enterprises which are vital to achieving
food security and more equitable growth; and

(e) Monitor and evaluate continuous improvements in
national productivity and competitiveness of domestic
products and services.

Science, Technology and Innovation Committee (STIC) - The STIC,
to be composed of the Secretaries of Science and Technology,
National Economic and Development Authority, Information and
Communications Technology, Trade and Industry, Finance,
Budget and Management, Interior and Local Government, and
Education, the Chairperson of the Commission on Higher
Education, and the Executive Secretary, shall have the following
functions:

(a) Recommend to the President and NEDB policies and

programs that will promote a culture of research, planning

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and innovation, and encourage knowledge creation,
dissemination and utilization to support the country’s
sustainable economic development and competitiveness;
and

(b) Oversee and coordinate the preparation of a national
agenda that would provide the framework and strategies
for research and development, and innovation in the
country.

(10) Environment and Sustainable Development Committee (ESDC) -

The ESDC, to be composed of the Secretaries of Environment and

Natural Resources, National Economic and Development

Authority, Agrarian Reform, Agriculture, Energy, Interior and

Local Government, and Science and Technology, and the

Chairperson of the Climate Change Commission, shall have the

following functions:

(a) Recommend to the President and NEDB policies that will
promote the conservation of the environment and the
sustainable utilization of the country’s natural resources;

(b) Oversee the preparation of policies, strategies and other
measures to adapt to and mitigate the effects of climate
change;

(c) Monitor and evaluate the impact of environmental
programs and projects to the Philippine economy in
general, and the utilization of the nation’s resources; and

(a) Recommend measures to resolve conflicting policies and
programs concerning the environment and natural

resources sector.

(11) Governance Committee (GC) - The GC, to be composed of the
Secretaries of Interior and Local Government, National Economic and
Development Authority, Budget and Management, Finance, Trade and
Industry, and Justice, the Chairperson of the Commission on Audit, and

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the Chairman of the Governance Commission for Government Owned or
Controlled Corporations, shall:

(a) Formulate and recommend policies that promote
transparency, accountability, | and _ participatory
governance, and strengthen public institutions to
effectively and efficiently implement their respective
mandates;

(b) Recommend policies that would capacitate national
government agencies in linking its respective budget with
performance outcomes;

(c) Recommend policies, plans and programs that would
ensure an improved policy and regulatory environment to
reduce cost of doing business in the country and improve
market competition; and

(d) Facilitate the resolution of governance issue in development
planning, the participation of various sectors in the
governance processes, and the development of capacities in
the identification, development, implementation and

evaluation of critical governance reforms.

SEC. 10. Meetings and Reports of the Inter-Agency Committees.
- The inter-agency committees shall meet regularly, but may be convened
to such special meetings as may be necessary. The members of the inter-
agency committees shall be duly notified of any meeting in advance

The inter-agency committees shall furnish the NEDB their respective

reports and outputs during such meetings.

ARTICLE III. THE SECRETARY AND OFFICES OF THE NATIONAL
ECONOMIC AND DEVELOPMENT AUTHORITY

SEC. 11. Organization, Composition, Staffing, and
Compensation. - The NEDA shall determine its organizational structure,

composition and staffing, as well as the responsibilities and functions of

15



each office therein as provided for in SEC. 11, SEC. 12, SEC. 13, SEC. 14,
SEC. 15, and SEC. 16, according to applicable laws. It shall establish a
human resource management system, in accordance with Civil Service
rules, which shall govern the selection, hiring, appointment, transfer,
promotion, or dismissal of all personnel with the aim of establishing
integrity, professionalism and excellence at all levels. It shall adopt a
position classification and compensation structure based on job evaluation
studies, talent retention strategies, and wage surveys, that shall thereafter
be subjected to the approval of the NEDB. The salaries and other
remuneration of officials and permanent employees of NEDA shall at least
be one salary grade higher than the standard provided under Republic Act
No. 6758.

SEC. 12. Organization of NEDA. - The NEDA shall consist of the
Office of the Secretary, the Offices of the Undersecretaries and Assistant
Secretaries, technical and sectoral staffs, operations support staffs, and

regional offices.

SEC. 13. Office of the Secretary of NEDA. - The Office of the
Secretary of NEDA shall consist of the Secretary, four (4) Undersecretaries,
eight (8) Assistant Secretaries, the Internal Audit Service, and the

Legislative Liaison Office.

SEC. 14. Functions of the Secretary of NEDA. - The Secretary of
the National Economic and Development Authority shall have the following
functions:

(1) Provide executive direction and supervision over the entire

operations of the NEDA and its attached agencies;

(2) Establish policies and standards for the effective, efficient, and

economical operations of the NEDA, in accordance with the
programs of the government;



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(3) Promulgate rules, regulations, and other issuances as necessary
in carrying out the NEDA’s mandate, objectives, policies, plans,
programs and projects;

(4) Establish effective linkages with regional and provincial planning
and development offices;

(5) Advise the President on the promulgation of executive or
administrative orders, and the formulation of regulatory and
legislative proposals, pertaining to matters of national economic
development;

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

(7) Perform such other tasks as may be provided by law or assigned
by the President.

SEC. 15. Term of Office of the Secretary. - The Secretary of
National Economic and Development Authority shall be appointed by the
President who shall serve until the expiration of the President’s term unless
sooner terminated.

The Secretary may be re-appointed or extended beyond his or her

term, upon the discretion of the newly elected President.

SEC. 16. Undersecretaries and Assistant Secretaries. - The
Secretary shall be assisted by four (4) Undersecretaries and eight (8)
Assistant Secretaries, who are appointed by the President, upon
recommendation by the Secretary.

The Secretary shall have the flexibility to determine the respective
assignments of the Undersecretaries and Assistant Secretaries, depending
on the Secretary’s strategic directions and/or on emerging development

trends affecting the country’s economy.



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SEC. 17. Staffs and Offices. - The NEDA shall be composed of the
following technical and sectoral staffs, administrative and support staffs,

and regional offices:

QQ)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
qq)
(12)
(13)
(14)
(15)
(16)
(17)
(18)

The

National Policy and Planning Staff;
Public Investment Staff;
Monitoring and Evaluation Staff;
Regional Development Staff;
Agriculture, Natural Resources, and Environment Staff;
Governance Staff;
Social Infrastructure Staff;
Connectivity Infrastructure Staff;
Social Development Staff;
Trade, Services, and Industry Staff;
Administrative Staff;
Development Information Staff;
Financial Planning and Management Staff;
Information and Communications Technology Staff;
Legal Staff;
Internal Audit Service;
Legislative and Liaison Office; and
Regional Offices in all the administrative regions of the country,
except those with planning offices created by law.
Secretary may recommend for NEDB approval, the creation of

additional staffs or modification of existing staffs relative to their

structures, compositions, powers, and functions.

SEC. 18. NEDA Regional Offices (NROs). - The NROs shall have the

following functions:

Q)

Oversee the integration of plans and programs of regional
agencies, state universities and colleges (SUCs), government
owned and controlled corporations (GOCCs), and local government
units (LGUs) into the regional and national plans. The NROs



(2)

(3)

(4)

(5)

(6)

shall provide assistance to regional line agencies, LGUs, SUCs and
GOCCs in identifying and developing programs and projects;
Evaluate and review proposed policies, land use plans, programs
and projects in the region;

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

Provide technical and secretariat services to their respective
Regional Development Councils;

Undertake research and ensure knowledge utilization for regional
development and productivity; and

Provide technical assistance to development partners in the region
in accordance with NEDA’s functions.

SEC. 19. Attached Agencies. - The agencies attached to the NEDA
as of the effectiveness of this Act shall continue to be attached in the

performance of their respective functions, pursuant to the pertinent

provisions of their respective charters or enabling laws, unless otherwise

provided.

The following agencies are attached to the NEDA for purposes of

policy and program coordination:

QQ)
(2)

(3)
(4)

(5)

Philippine Institute for Development Studies (PIDS);
Philippine National Volunteer Service Coordinating Agency
(PNVSCA);

Philippine Statistics Authority (PSA);

Philippine Statistical Research and Training Institute (PSRTI);
and

Commission on Population and Development (POPDEVCOM).

Other agencies, which are attached to the NEDA for budgetary

purposes and administrative supervision, include:

Q)
(2)

Public-Private Partnership Center (PPPC); and

Tariff Commission (TC).



SEC. 20. Functions of the Attached Agencies. - The agencies
attached to the NEDA shall continue to operate and function in accordance
with the respective charters, laws, or order creating them, except as
otherwise provided in this Act, the Administrative Code of 1987, and
subsequent laws. The NEDA shall review the mandate, objectives and
functions of the attached agencies in order to recommend dispositions or
revisions in its respective charters, whenever appropriate and deemed

advisable.

SEC. 21. Legislative-Executive Development Advisory Council
(LEDAC). - The NEDA shall continue to serve as the principal secretariat of
the LEDAC, consistent with Republic Act No. 7640. It shall perform the
following functions under Sec. 3 thereof, including the preparation of the
budget and administration of the funds of the Council:

(1) Determine and recommend socioeconomic development goals in
pursuance of established policies which shall guide the
formulation and implementation of the national development plan;

(2) Provide policy advice to the President on vital issues affecting the
socioeconomic development of the country;

(3) Direct the study of measures to ensure that regional development
plans and programs are integrated into the national development
plan;

(4) Receive, and in appropriate cases, require reports on, and study
measures to improve, the implementation of official development
assistance from multilateral and bilateral entities;

(5) Assess effectiveness of implementation of the national development
plan;

(6) Integrate environmental concepts, principles and practices into the
national development plan for a balanced and cohesive approach
to national development;

(7) Review the relationship of the legislative agenda to the national

development plan to ensure the integration of both; and

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(8) Study and recommend to the President and to Congress sources of
revenue as well as measures to reduce unnecessary expenditures
to the end that the resources of the Government will be used to the

optimum.

ARTICLE IV. DEVELOPMENT PLANS AND PROGRAMS, REPORTS AND
PUBLICATIONS

SEC. 22. Long-Term Development Plan. - The NEDA shall formulate
a twenty-five-year development plan which will provide the overall direction
to the medium-term and short-term development plans of the country, to
ensure consistency of government strategies, policies, programs, and
projects across political administrations. The long-term development plan
shall contain the development goals and milestones each administration

should attain to realize the long-term vision of the Filipino people.

SEC. 23. Medium-Term Philippine Development Plan (MTPDP)
and Medium-Term Regional Development Plans (MTRDPs). - The NEDA,
in consultation with appropriate public agencies, various private sector and
local government units, shall prepare an economic development blueprint
for the next six years, which shall be known as the Medium-Term
Development Plan. The MTPDP shall embody the government’s socio-
economic policies, strategies and programs in support to and consistent
with the development agenda of the President, and geared towards the
attainment of the development goals and objectives in the long-term
development plan.

At the regional level, the NEDA Regional Offices shall coordinate the
preparation of their respective regional development plans, consistent with
the MTPDP. The MTRDPs shall define the region’s development direction

and identify policies, strategies and programs.

SEC. 24, Medium-Term Public Investment Program (MTPIP) and
Regional Medium-Term Development Investment Programs (RMTDIPs).

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- The preparation of the MTPIP and RMTDIPs shall coincide with the
formulation and preparation of the MTPDP and MTRDPs, respectively. The
NEDA shall prepare a list of priority programs and projects to be
implemented by the national government, government-owned and/or
controlled corporations (GOCCs), government financial institutions (GFls),
and other national government offices and instrumentalities that will
contribute to the attainment of the sectoral goals and outcomes in the
MTPDP and MTRDPs.

The MTPIP and RMTDIPs shall be regularly updated. The NEDA, in
consultation with appropriate government agencies and stakeholders, shall
prioritize sectoral and geographic programs, projects and activities to be
funded from government appropriations, ODA, PPP, revenue sources
generated by GOCCs, GFIs, and other government bodies and

instrumentalities, and other viable sources of funding.

SEC. 25. National Physical Framework Plan (NPFP). - The NEDA
shall prepare a framework which provides analytical parameters for the
planned allocation, use and management of the country’s land and other
physical resources. The NPFP shall help plan and manage these resources
at the national and subnational levels.

The NEDA Regional Offices shall coordinate the preparation of the
sub-national physical framework or physical development plans for the
approval of their respective RDCs.

The NPFP and sub-national physical framework or physical
development plans shall serve as the main reference documents in the
preparation of the physical plans and land use plans of provinces, cities,

and municipalities in the country.

SEC. 26. Socioeconomic Report (SER) and Regional Development
Reports (RDRs). - To monitor the implementation of the MTPDP and
MTRDPs, the NEDA shall prepare periodic socioeconomic reports. The SER
and RDRs shall serve as inputs to policy and decision makers in the

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formulation of policies, budgeting and implementation of programs and

projects, based on the development plans of the country.

SEC. 27. ODA Portfolio Review. - Consistent with RA No. 8182 or
the ODA Act of 1996, as amended by RA No. 8555, the NEDA shall conduct
an annual review of the status of all projects financed by ODA and identify
causes of implementation and completion delays or reasons for bottlenecks,
cost overruns (actual and prospective), and continued program or project
viability. The NEDA is required to submit to the President and Congress a

report on the outcome of the review not later than June 30 of each year.

SEC. 28. Knowledge Management. - The NEDA shall establish a
repository of data and information, publications, research and analyses,
and other information concerning the Philippine economy and
development, in general. It shall manage, maintain, and make available
such information and documents to the public for the purpose of knowledge

sharing.

CHAPTER II

HARMONIZATION AND SYNCHRONIZATION OF DEVELOPMENT
PLANNING, INVESTMENT PROGRAMMING, BUDGETING, AND
MONITORING PROCESSES OF GOVERNMENT

ARTICLE I. LINKAGE AND ALIGNMENT OF PLANS AND PROGRAMS

SEC. 29. Planning and Program Formulation. - The NEDB shall
issue the Planning Call not later than two months after the newly elected
President has assumed office. The NEDA shall prescribe the standards and
guidelines in the preparation of the MTPDP, MTRDPs, MTPIP and RMTDIPs,
including a planning and investment programming timetable aligned with

the budget calendar.

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The NEDA, in coordination with concerned government agencies and
other government instrumentalities, shall determine a timetable for the
preparation and formulation of sectoral plans and programs, to ensure that
the policies and strategies contained in the respective sectoral plans are
considered and incorporated in the MTPDP. The timetable for the
formulation of the MTPDP and MTPIP shall coincide with the budgeting
timetable to ensure that the strategic programs and projects identified are

provided with the required funding allocation.

SEC. 30. Planning, Programming and Budgeting Linkage. - The
NEDA shall ensure that the linkage between development planning,
programming and budgeting shall be the highest priority in the planning
and budgeting activities of the government, consistent with provisions of
the Administrative Code of the Philippines.

The NEDA, together with the Department of Budget and Management
and other relevant government oversight agencies, shall ensure that the
annual and multi-year appropriations for programs and projects are
aligned with the development strategies in the MTPDP and MTRDPs.

SEC. 31. Adoption and Implementation of Plans and Investment
Programs. - The RDCs shall approve their respective MTRDPs and
RMTDIPs for consideration in the MTPDP and MTPIP. The NEDB shall
approve the MTPDP and MTPIP for adoption and implementation of

government agencies.

SEC. 32. Integration of National, Regional and Local Plans and
Programs. - The NEDA shall ensure the integration of major regional and
local development priorities into the MTPDP and MTRDPs, respectively.
Furthermore, the NEDA, through the NEDA Regional Offices, shall provide
oversight in the formulation of provincial development plans so that local
development thrusts are aligned and contribute to the national and regional

level plans and programs.

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The NEDA shall likewise institute processes to enable the inclusion
of regional priorities in the programs and projects of the national
government agencies, and subsequently, in the respective budgets of
national agencies.

The NEDB, through the DBCC, shall identify and determine the level
of expenditure program of national government agencies by region, in
accordance with the approved regional medium-term development plans

and regional medium-term development investment programs.

SEC. 33. Consultations and Technical Assistance. - There shall
be maximum participation by and consultation with concerned local
government units, community organizations and beneficiaries, civil society
organizations, non-government organizations, people’s organizations, the
academe, or other private organizations in order to ensure that the priority
needs are incorporated into the formulation of policies, plans, programs
and projects.

The NEDA shall provide technical assistance to the local government
units on how to localize national development strategies, particularly in
planning and investment programming to ensure alignment of local
development plans and strategies with the MTPDP and MTRDPs. It shall
also assist local government units in identifying and developing programs
and projects, and redirecting resources into more productive activities to

achieve the intended development outcomes in their respective areas.

SEC. 34. Coordination with Autonomous and Administrative
Regions. - The NEDA shall ensure effective coordination with autonomous
and administrative regions with separate planning offices in the
formulation of the MTPDP and in other relevant planning activities affecting

said regions.

ARTICLE II. MONITORING AND EVALUATION OF PLANS AND
PROGRAMS

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SEC. 35. Monitoring and Reporting on the Implementation of
Plans and Programs. - The relevant NEDB Committees shall monitor the
implementation of the MTPDP, MTRDPs, MTPIP and RMTDIPs, including
sectoral plans and programs on an annual basis, to determine if the targets
identified in the plans and programs were achieved. The monitoring results
shall be reported to the NEDB, Congress and other concerned agencies for

purposes of adjustments in policies, programs and projects.

CHAPTER III

TRANSITORY AND OTHER MISCELLANEOUS PROVISIONS

SEC. 36. Transitory Provision. - The powers and functions,
applicable funds and appropriations, records, files, equipment, facilities,
supplies, property, and personnel of the current NEDA Secretariat are
hereby transferred to the new NEDA.

The present career officials and employees of the current NEDA
Secretariat shall enjoy security of tenure and be absorbed by the new
NEDA, in accordance with its staffing pattern and selection process as
prescribed under Republic Act No. 6656 and by the NEDB, unless they are
separated from service by virtue of the reorganization resulting from this
Act, or opt and are qualified to retire from service. The affected officials and
employees shall be entitled to a separation package to be determined by the
NEDB.

Unless absolutely required, no officer or employee shall be separated
from service as a result of any reorganization or consolidation under the
provisions of this Act. In addition, those who desire and are qualified to
retire shall be entitled to all the benefits provided under existing laws.

Current officials and employees of the NEDA Secretariat shall
continue to draw their salaries, benefits, and other emoluments until such
time, but not later than one (1) year from the effectiveness of this Act, that

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the corresponding funds from the National Government shall have been
appropriated and released to the NEDA.

SEC. 37. Transfer of Rights and Obligations. - The NEDA shall,
by virtue of this Act, be subrogated to all the rights and assume all the
obligations of the current NEDA Secretariat, 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. 38. Funding. - The amount needed to carry out the initial
implementation of this Act shall be charged against the current operative
budget sourced from the funds currently available for the NEDA
Secretariat. Thereafter, the necessary budget for the continued operation

and maintenance of the NEDA shall be included in the annual GAA.

SEC. 39. Implementing Rules and Regulations. - Within ninety
(90) days from the effectiveness of this Act, the NEDB shall promulgate the
rules and regulations, as well as the issuances, necessary to ensure the
proper implementation of the provisions of this Act. These implementing
rules and regulations shall take effect fifteen (15) days after the completion

of their publication in two (2) newspapers of general circulation.

SEC. 40. Separability Clause. - If any provision or portion of this
Act is declared unconstitutional, the remainder of this Act or any provision
not thereby affected shall remain in full force and effect.

SEC. 41. Repealing Clause. - All laws, decrees, executive orders,
ordinances, rules, regulations, and other issuances, or parts thereof, which
are inconsistent with any provision of this Act, are hereby repealed,

amended, and/ or modified accordingly.

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SEC. 42. Effectivity. - This Act shall take effect fifteen (15) days after
completion of its publication in the Official Gazette or in at least two (2)

newspapers of general circulation.

Approved,

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