Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS:
First Regular Session

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE :

This bill seeks to establish an effective mechanism for coordination among various policy
making agencies of the government in the development of explicit economic goals and policies
‘on important national requirements for increased growth and a more equitable sharing of the
benefits of economic growth through a balanced national budget, higher productivity, an
improved trade balance through improvement in the international competitiveness and
reasonable price stability.

This bill anchored on a dictum that economic goal setting should properly involve the
congress, the governor and Monetary Board of the Bangko Sentral ng Pilipinas (BSP) as well as
the National Economic Development Authority (NEDA) headed by the President, In the
process, we may achieve better synchronization of monetary and fiscal policy or at least
minimize the negative implications of their divergence. Moreover, it should similarly provide
flesh to the mandate of accountability and transparency of the BSP.

The bill specifically sets a feedback loop mechanism on the state of the economy as well
as the status of our economic strategy through a timely and periodic reporting by the BSP on
monetary policy and NEDA on the general state of the economy before congressional economic
committees. The BSP Governor and the NEDA Director-General shall make individual quarterly
reports and testimonies to these committees convened in a joint meeting. This is scheduled at
least one week after the release of such reports.

This mechanism, patterned after the Humphrey-Hawkins testimony of the US Federal
Reserve Governor, is a small yet important step towards a coordinated goa-setting process
while giving flesh to the constitutional primacy of Congress in economic policy making

From the foregoing reasons, approval of this bill is earnestly sought.

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—ZUAN EDGARDO “SONNY” M. ANGARA

Representative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

H.B.No.

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

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

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

sino SECTION 1. Title. This Act shall be known as the “Economic Coordination Act of

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

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


government, real and nominal aggregate output, employment as well as the consumer price
index for the current calendar year or the following year in the case of the report for the fourth

quarter of each year,

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

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

SEC. 6. Qualified Revisions. Nothing in this Act shall be interpreted to require that the
objectives and plans with respect to the ranges of frowth of diminution of the monetary and

credit aggregates disclosed in the reports sub mitted under this Act be achieved if the BSP and
NEDA :

SEC. 7. Separability Clause. If any of the provisions of this Act is declared invalid by
a competent court, the remainder of this Act or any provisions not affected by such declaration
of invalidity shall remain in full force and effect.

SEC. 8. Repealing Clause. All laws, decrees, ordinances, rules and regulations,
executive or administrative orders, and such other presidential issuances inconsistent with any

of the provisions of this Act are hereby repealed, amended or otherwise modified accordingly.

SEC. 9. Effectivity Clause. This Act shall take effect after fifteen (15) days following its
Publication in at least two(2) newspapers of national or general circulation.

Approved,