NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. t 77H
' ''ii&ffirf of t!ic ^ - ; i ctiU’2’
23 JAN 25 P6:33
Introduced by Senator Raffy T. Tulfo
AN ACT RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC 
SERVICE DELIVERY AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The rightsizing in government bill aims to improve the efficiency and 
effectiveness of government operations. The Philippines has a large number of 
government agencies and departments, many of which have overlapping or redundant 
functions. This can lead to inefficiencies, such as duplication of efforts and wasted 
resources. Additionally, the large number of agencies can make it difficult for citizens 
to navigate the government and access the services they need.
The rightsizing bill aims to address these issues by consolidating or abolishing 
certain government agencies and transferring their functions to other agencies. This 
will streamline government operations and make it easier for citizens to access public 
services. Additionally, it will reduce redundancies and save resources, which could be 
redirected towards other important government programs.
Another reason why rightsizing is important is to align with the current 
economic situation. The Philippines has recently experienced a decline in its economic 
growth, which has led to budget constraints and a need to prioritize spending.
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Rightsizing the government can help to address this by identifying and eliminating 
unnecessary expenses and redirecting resources to more critical areas.
Furthermore, the rightsizing bill also includes provisions for the selection and 
appointment of government officials and measures to ensure accountability and 
transparency in government operations. These provisions will help to improve the 
overall governance of the country, making it more efficient, effective and responsive 
to the needs of the citizens.
Overall, the rightsizing bill in the Philippines is needed to improve the efficiency 
and effectiveness of government operations, align the government with the current 
economic situation and make the governance more responsive to the needs of citizens.
The immediate passing of this bill is earnestly sougbfe-
Raffy T. Tulfo




NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
'(©fficr of tl’C €^^'retnrv
23 JAN 25 P 6 -33
SENATE 
S. B. No.
Introduced by Senator Raffy T. Tulfo
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 "The National Government
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Rightsizing Act of 2023."
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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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enhance institutional capacity to improve public service delivery; and ensure the
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attainment of the country's societal and economic development goals and objectives.
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Consistent with this, the government shall focus its functions and resources on the
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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, while protecting the welfare of civil servants
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and other government workers.
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Section 3. Definition of Terms.
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Abolition refers to the elimination of an obsolete/unnecessary organizational unit.
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Affected Personnel refers to any government employee, whether regular or non-
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permanent, that may be affected by the organizational actions arising from the results
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of strategic review and study under the National Government Rightsizing Program
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(NGRP).


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Consolidation refers to the dissolution of two (2) or more organizational units to
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form a new unit.
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Deactivation refers to the act of making dormant or non-operational an
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organizational unit by phasing out its functions or transferring them to other units,
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and/or discontinuing the provision of resources. An organizational unit is rendered
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dormant or non-operational if it is defunded and/or its operation is terminated but its
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formal existence continues. A deactivated organizational unit is devoid of any activity,
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personnel, financial, and physical resources.
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Detailed Rightsized Organizational Structure refers to the output of a
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government agency that provides information on the systematic arrangement and
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functions of the divisions and units within the organization. This shall be based on the
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rightsized organizational structure that shall be developed by the Committee on
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Rightsizing the Executive Branch.
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Merger refers to the combination of two (2) or more organizational units, whereby
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the identity of one is retained and the other is abolished or deactivated.
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Placement refers to the process of matching the jobs and the individual, and
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placement occurs when the individual is assigned with the particular job.
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Rightsized Organizational Structure refers to the output of the Committee on
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Rightsizing the Executive Branch, which shall contain the appropriate structure of
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government agencies (i.e.. Departments, Bureaus, Services and Offices) and their
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corresponding mandates and functions, resulting from the conduct of strategic review
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and study.
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Rightsizing refers to the process of analyzing and designing the appropriate role,
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mandate, structure, functions, size, systems, and processes of government agencies
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in order to ensure effective, responsive, and efficient service delivery.
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Staffing Pattern refers to a document that provides information on the positions
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and Personnel Services requirements, including the staffing ratio for the organization.
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Transfer refers to the movement of an employee from one organizational unit to
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another in the same department or agency, or from one department or agency to
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another, whichever is of equivalent rank, level, or salary.


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Section 4. 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, and 
government-owned or -controlled corporations (GOCCs) not covered by Republic Act 
No. 10149 or the GOCC Governance Act of 2011.
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 or the 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 department to which the GOCC is attached.
Section 5. 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 in 
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) 
The government shall establish a conducive policy environment to 
encourage active engagement of the private sector and civil society organizations in 
the production and delivery of goods and services;
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c) 
The delineation of functions and responsibilities between the National
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Government and the LGUs in the provision of public goods and services shall be clearly
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defined, consistent with the provisions of RA No. 7160 or the Local Government Code
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of 1991, and other pertinent laws and issuances, for purposes of providing a more
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seamless, accessible, and responsive government services to the people;
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d) 
A whole-of-nation approach shall be adopted to ensure seamless
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operations of agencies within and across sectors and to be more anticipatory and
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responsive to public needs;
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e) 
Government operations shall be simplified so that the agencies could focus
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on the performance of their core functions and implementation of programs and
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projects that will lead to the attainment of the desired sectoral and national goals and
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outcomes;
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f) 
Government systems and processes shall be streamlined and modernized
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to facilitate the delivery and upgrade the quality of frontline services, as well as to
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improve policy formulation, planning and performance evaluation, and raise overall
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productivity of the public sector;
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g) 
Digitalization and e-Governance shall be utilized as means to efficiently
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optimize government roles and provide prompt and effective services to the people;
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h) 
Government rules, procedures and requirements shall be rationalized to
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reduce the regulatory burden on citizens, businesses and other stakeholders, as well
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as reduce the administrative burden on the part of the government; and
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The organizational structure of an agency shall be designed and rightsized
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to facilitate the effective, efficient, and economical implementation of programs and
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projects, and the attainment of organizational outputs and outcomes; and the
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appropriate staffing mix shall be determined based on the skills and competencies
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required to effectively and efficiently carry out the agency mandate and functions.
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Section 6. Authority of the President of the Philippines to Rightsize the
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Operations of the Executive Branch. - Pursuant to the governing principles,
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policies, standards, and guidelines stipulated in this Act, the President is hereby


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granted the following authority in the rightsizing of the operations of the different
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agencies of the Executive Branch:
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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
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ultimate societal outcomes of the National Government and/or the targeted
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sector/sub-sector outcomes of the agency;
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a.2 Scale down, phase out, eliminate or discontinue functions, programs, projects
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or activities that could be better carried out or undertaken by the private sector, or
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have already been devolved to LGUs consistent with the governing principles provided
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in this Act; and
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a.3 Transfer/integrate functions from one agency to another which could better
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perform the same.
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b) 
To implement the following organizational actions, upon determination of
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the Committee on Rightsizing the Executive Branch created under this Act that it is to
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the best interest of the State to create, reorganize, merge, streamline or abolish
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agencies and offices:
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b.l Create new agencies, offices, positions, as needed, in order to strengthen the
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capacity of government agencies to perform their mandate;
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b.2 Regularize ad hoc offices whose functions are vital and significant, thus must
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be continually undertaken by the government;
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b.3 Merge or consolidate agencies whose functions are unnecessarily overlapping
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or duplicating and could be undertaken by a single entity, or clients are similar or
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related, to rationalize the use of government resources;
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b.4 Split agencies with multifarious functions which are deemed distinct but equally
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important aspects of governance;
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b.5 Transfer offices to other agencies where their functions are more aligned; and
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b.6 Subject to evaluation and favorable recommendation of the Committee on
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Rightsizing the Executive Branch, abolish agencies, when any of the following
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standards are present: (i) the functions are already redundant or no longer relevant
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or necessary, or could be better undertaken by another entity; (ii) agency is no longer
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achieving the objectives and purposes for which they were originally created; (ill)
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continued operation is not cost-effective since they do not generate the desired level
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of outputs and outcomes vis-a-vis the resource inputs; and/or (iv) agency has already
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become non-operational or dormant and/or outlived its purpose.
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c) 
To undertake other functional/organizational actions, such as conducting
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regulatory reviews, streamlining or reengineering processes, capability-building
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interventions, among others, as necessary, consistent with the policies, principles,
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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 government's
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rightsizing efforts.
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To formulate an Organizational Development Program to strengthen the
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institutional capacity of the agencies and improve productivity of employees.
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Section 7. Creation of a Committee on Rightsizing the Executive
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Branch. A Committee on Rightsizing the Executive Branch (CREB) is hereby created
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to oversee the implementation of the Rightsizing Program, in accordance with the
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provisions of this 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 Socioeconomic Planning of the National Economic and Development
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Authority, Chairperson of the Civil Service Commission (CSC), and the Director-General
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of the Anti-Red Tape Authority, as members. The duly authorized representative shall
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be at least a third (3rd) ranking official of the agency.
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The Committee shall be organized within fifteen (15) days from the effectivity
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of this Act.
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The CREB shall also organize Sub-Committees composed of experts on
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government operations, organizational development, and human resource
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management, including a secretariat for each Sub-Committee, to assist in the
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performance of its functions.
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The DBM shall provide the necessary secretariat services to the CREB and
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designate focal persons for each Sub-Committee to ensure effective coordination.
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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 NGRP.
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Section 8. 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, frameworks, indicators, strategies and
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mechanisms, in consideration of the lessons learned from previous efforts on
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reorganization, to be adopted in the implementation of the NGRP;
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b) 
To develop a Program Management Plan containing the activities,
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responsibilities, and resource requirements, among others, that shall be adopted to
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ensure effective implementation of the NGRP and submit the same to the President
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within sixty (60) days upon effectivity of the implementing rules and regulations (IRR);
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c) 
To conduct studies on the mandates, functions, programs, projects,
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operations, structure and manpower complement of the different government
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agencies and instrumentalities;
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d) 
To develop and prepare the rightsized organizational structure of agencies
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concerned and the corresponding executive issuances for approval by the President,
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in accordance with the provisions of Section 6 of this Act;
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e) 
To develop and prepare the overall change management program, that
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shall include communication plans, the appropriate Organizational Development
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Program, and other mechanisms to effectively manage the transition, ensure the
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smooth implementation of the NGRP, and safeguard the welfare of employees who
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may be affected by the rightsizing efforts;
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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 be
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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 functions; and
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h)
To formulate the IRR of this Act.
Section 9. Conduct of Strategic Review and Study on the Mandates, 
Functions, Systems, Operations, and Processes of the NG. The CREB shall 
conduct strategic review and study on the role, mandates, functions, programs, 
projects, operations, structure and manpower complement of the different agencies 
under the Executive Branch for purposes of:
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Determining the role of the government, as well as the suitable extent of 
government intervention on the sectoral areas covered;
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Identifying areas of dysfunctions, bureaucratic inefficiencies, among 
others, in the sectoral areas covered and government agencies therein;
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Assessing the relevance of an agency's mandates, functions, programs, 
and projects in pursuit of the country's socio-economic and developmental goals and 
outcomes; and
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Providing recommendations on the appropriate roles, mandates and 
functions of government agencies; organizational actions that shall improve efficiency 
and interoperability of government agencies; and necessary transformational and 
organizational changes that could be implemented in the sectoral areas and/or 
agencies concerned.
The conduct of the strategic review and study shall be consistent with the 
governing principles set forth under Section 5 of this Act. Furthermore, the 
recommendations of the study may contain any, but not limited to the recommended 
actions provided in Section 6 of this Act.
Section 10. Submission of the Rightsized Organizational Structure and 
Proposed Executive Issuances to the President. - The CREB shall submit to the 
President the rightsized organizational structure of agencies concerned and the 
corresponding executive issuances, with due consideration of the results and findings
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of the Strategic review and study that will be conducted, within sixty (60) days from 
approval by the Committee of the results of the strategic review and study.
Section 11. Submission of the Detailed Rightsized Organizational 
Structure and Staffing Pattern to the DBM. Agency Heads shall prepare and 
submit to the DBM the detailed organizational structure and staffing pattern (OSSP) 
of their respective agencies, including an estimated cost to implement the detailed 
rightsized OSSP, 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.
Section 12. Non-interruption of Government Service and Transitory 
Provisions. This Act, or any guidelines, rules or regulations issued in pursuance 
thereof, or any initiative related to the implementation of the recommendations under 
the strategic review and study conducted through the NGRP, shall not operate to 
suspend or exempt any government office or personnel from compliance with the 
provisions of RA No. 11032 or the Ease of Doing Business and Efficient Government 
Service Delivery Act of 2018.
The agencies shall implement the approved detailed rightsized organizational 
structure and staffing pattern in such a manner that government operations will not 
be delayed nor disrupted. Agencies and personnel will be able to perform their 
functions, respective duties and responsibilities in a holdover capacity until the 
transition has been completed. Furthermore, agencies shall ensure that a change 
management program will be carried out to ensure smooth and effective transition.
The placement of permanent employees to the rightsized staffing pattern, the 
order of separation of affected personnel pursuant to the rightsizing measure, as well 
as the remedies and procedures for affected personnel shall be carried out in 
accordance with RA No. 6656 (An Act to Protect the Security of Tenure of Civil Service
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Officers and Employees in the Implementation of Government Reorganization) and its
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IRR.
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Section 13. Retirement Benefits and Separation Incentives for
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Personnel Who May be Affected by the NGRP. - The affected personnel hired on
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a permanent basis and with appointments attested by the CSC shall be entitled to
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retirement benefits and separation incentives.
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13.1 The affected personnel shall be given the option to avail of any of the
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following retirement benefits under existing laws, if qualified:
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a) Retirement gratuity provided under RA No. 1616 (An Act Further Amending
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Section Twelve of Commonwealth Act Numbered 186, as Amended, By Prescribing
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Two Other Modes of Retirement and for Other Purposes), as amended; or
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b) Retirement benefit under RA No. 660 (An Act to Amend Commonwealth Act
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Numbered One Hundred and Eighty-Six Entitled, "An Act to Create and Establish a
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Government Service Insurance System, to Provide for its Administration, and to
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Appropriate the Necessary Funds Therefor," and to Provide Retirement Insurance and
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for Other Purposes); or
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c) Retirement, separation or unemployment benefit provided under RA No. 8291
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(An Act Amending Presidential Decree No. 1146, as Amended, Expanding and
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Increasing the Coverage and Benefits of the Government Service Insurance System,
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Instituting Reforms Therein and for Other Purposes).
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The retirement gratuity benefit of affected personnel who are qualified and have
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opted to avail of RA No. 1616 shall be paid by the Government Service Insurance
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System (GSIS). The GSIS shall no longer pay the refund of retirement premiums (both
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personal and government shares) of the affected personnel who will opt to avail of RA
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No. 1616 benefits.
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13.2 In addition to said retirement benefits, the affected personnel who would
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opt to retire or be separated shall be entitled to the following applicable separation
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incentives:
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a) 
Vz of the actual monthly basic salary for every year of government service, 
for those who have rendered five (5) years to eleven (11) years of service;
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3/4 of the actual monthly basic salary for every year of government service, 
computed starting from the 1st year, for those who have rendered eleven (11) to less 
than twenty-one (21) years of service;
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the actual monthly basic salary for every year of government service, 
computed starting from the 1st year, for those who have rendered twenty-one (21) to 
less than thirty-one (31) years of service; and
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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 thirty-one 
(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 13.2 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 fifty-nine (59) and a fraction thereof would be counted. Government service 
starting at the age sixty (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.
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
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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 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 13.2 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 14. 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.
Section 15. 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 issuance of the
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Notice of Organization, Staffing and Compensation Action by the DBM to the agencies 
concerned.
Section 16. Prohibition on Reempioyment 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 in the exigency of service or 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 the 
subject personnel under Section 13.2 of this Act on a pro-rated basis.
Section 17. 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 18. Conduct of an Impact Assessment. - The DBM shall 
commission the conduct of an independent impact assessment on the NGRP three (3) 
years from its completion to, among others, determine the effects of, and gains from, 
the implementation of the Program.
Section 19. 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 20. 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 21. Implementing Rules and Regulations. - The Committee on 
Rightsizing the Executive Branch shall formulate the necessary IRR within sixty (60) 
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 22. 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 the 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 23. 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 (GAA). Subsequent amounts needed to 
continue the implementation of the National Government 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
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the purpose shall likewise be sourced from any applicable appropriations under the 
GAA.
For GOCCs not covered by RA No. 10149, the amount needed for the 
implementation of their Rightsizing Program shall be sourced 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 or the 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 24. 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 25. 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 26. 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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