NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 2126
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of ti)C
23 MAY-3 P2 32
Introduced by SENATOR IMEE R. MARCOS
AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE THE DELIVERY 
OF PUBLIC SERVICES AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Structural reviews of the Philippine bureaucracy demonstrate that one major 
source of inefficiency is the wanton creation of government agencies and offices, which 
result in redundancy and unclear delineation in the functions of the government 
workforce. In the proposed budgets submitted by various government agencies to 
Congress for the recent 2023 budget deliberations, at least 30-40% of each agency's 
budget goes to Personnel Services which consist of personnel salaries and benefits. 
Excesses in some parts of the bureaucracy - in terms of compensation and positions - 
have long been manifest. Thus, since past administrations, it has been declared as 
priority of the government to make Philippine bureaucracy leaner, more efficient, and 
effective. This is hoped to be achieved through the elimination of redundancies, 
overlaps, and duplication in existing agencies, rules and regulations, systems, and 
processes.
During the first State of the Nation Address of President Ferdinand R. 
Marcos Jr., the President reiterated the need for Congress to pass a law 
institutionalizing the "rightsizing" of the government. In response to the repeated calls 
for streamlining government agencies and processes, this bill seeks to rightsize the 
organizational structures of the government, covering all national government 
agencies, including departments, bureaus, offices, commissions, boards, councils, and 
all other entities attached to or under their administrative supervision, to simplify 
systems and processes, and to attain expediency in government services.
In view of the foregoing considerations, the passage of this bill is sought.
e
iee^Tmarcos


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s.B. No. 212B
oftiKSvc Ptaip
23 MAY-3 P2 32
RtCEIV
Introduced by SENATOR IMEE R. MARCOS
AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE THE DELIVERY 
OF PUBLIC SERVICES 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. 
National Government Act'.
This Act shall be known as the "Rightsizing the
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
promote and maintain effectiveness, efficiency and economy in the government, and 
enhance institutional capacity to improve public service delivery, and to ensure the 
attainment of the country's societal and economic development goals and objectives. 
Consistent with this, the government shall focus its functions and resources on the 
essential roles, scope, and level of governance, and minimize, if not eliminate, 
redundancies, overlaps, and duplications in its operations and simplify its rules and 
regulations, systems, and processes.
SEC. 3. Coverage. - This Act shall cover all agencies of the Executive Branch, 
including departments, bureaus, offices, commissions, boards, councils, and all other 
entities attached to or under their administrative supervision, and Government-Owned- 
Or-Controlled Corporations (GOCCs) not covered by Republic Act (RA) No. 10149 or 
the "GOCC Governance Act of 2011".
State Universities and Colleges (SUCs), consistent with the laws that created 
them and within their respective authorized appropriations, may also rightsize their 
offices and administration. In accordance with the principles and guidelines set out in 
this Act.


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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 agency to which the GOCC is attached.
SEC. 4. 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 by 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 private sector engagement in the production and delivery of goods and 
services;
(c) The delineation of functional assignments and responsibilities between the 
National Government and the LGUs in the provision of public goods and services 
shall be clearly defined, consistent with the provisions of Republic Act No. 7160 
or the "Local Government Code of 1991", and other pertinent laws and 
issuances, for purposes of providing a more seamless, accessible, and 
responsive government services to the people;
(d) A whole-of-government approach shall be adopted to ensure seamless 
operations of agencies within and across sectors and to be more responsive to 
public needs;
(e) Government operations shall be simplified so that the agencies could focus on 
the performance of their core functions and the implementation of programs


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and projects that will lead to the attainment of the desired sectoral and national 
goals and outcomes;
(f) Government systems and processes shall be streamlined and digitalized to 
improve government interoperability, ensure shared and secured access of 
information in government, and enable remote government operations to 
provide transparent, timely, convenient, undisrupted, and efficient delivery of 
public goods and services to the Filipino people and raise the overall productivity 
of the public sector;
(g) Government rules, procedures, and requirements shall be rationalized to reduce 
the regulatory burden on citizens, businesses and other stakeholders, as well 
as reduce the administrative burden on the part of the government; and
(h) The organizational structure of agencies shall be designed so as to facilitate the 
effective, efficient and economical implementation of programs and projects, 
and attainment of organizational outputs and outcomes, and the appropriate 
staffing mix shall be determined based on the skills and competencies required.
SEC. 5. Authority of the President of the Phiiippines to Rightsize the Operations of 
the Executive Branch. - Pursuant to the governing principles, policies, standards, and 
guidelines stipulated in this Act, the President is hereby granted the following authority 
in the rightsizing of the operations of different agencies of the Executive Branch:
(a) To pursue the following functional shifts or modifications:
(1) Strengthen the functions of the agency which directly contribute to the 
targeted ultimate societal outcomes of the National Government and/or 
the targeted sector/sub-sector outcomes of the agency;
(2) Scale down, phase out, eliminate or discontinue functions, programs, 
projects or activities that could be better carried out or undertaken by 
the private sector, consistent with the governing principles provided in 
this Act; and
(3) Transfer/integrate functions from one agency to another which could 
better perform the same.
(b) To implement the following organizational actions, upon determination of the 
Committee on Rightsizing created under this Act that it is to the best interest of 
the State to reorganize, merge, streamline, or abolish agencies and offices:


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(1) Regularize ad hoc offices whose functions are vital and significant, thus 
must be continually undertaken by the government;
(2) Merge or consolidate agencies whose functions are unnecessarily 
overlapping or duplicating and could be undertaken by a single entity, or 
whose clients are similar or related, to rationalize the use of government 
resources;
(3) Split agencies with multifarious functions which are deemed distinct but 
equally important aspects of governance;
(4) Transfer offices to other agencies where their functions are more 
aligned; and
(5) Subject to the evaluation and favorable recommendation of the 
Committee on Rightsizing, abolish agencies when any of the following 
standards are present:
i. the functions are already redundant or no longer relevant or 
necessary, or could be better undertaken by another existing 
entity;
ii. the agency is no longer achieving the objectives and purposes for 
which they were originally created;
iii. the continued operation of the agency is not cost-effective since 
they do not generate the desired level of outputs and outcomes 
vis-a-vis the resource inputs; and/or
iv. the agency has already become non-operational or dormant 
and/or outlived its purpose.
(c) To undertake other functional/organizational actions, as necessary, consistent 
with the policies, principles, framework and standards of this Act.
(d) To develop and provide safety nets, including their implementation strategies, 
for employees of agencies who may be affected by the government's rightsizing 
efforts.
(e) To formulate an Organizational Development Program to strengthen the 
institutional capacity of the agencies and improve the productivity of employees.


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SEC. 6. Creation of a Committee on Rightsizing the Executive Branch. - A 
Committee on Rightsizing the Executive Branch is hereby created to oversee the 
implementation of the Rightsizing Program, in accordance with the provisions of this 
Act.
The Committee shall be composed of the following officials or their duly-authorized 
representatives: the Executive Secretary as the Chairperson and the Secretary of the 
Department of Budget and Management (DBM) as Co-Chairperson; the Secretary of 
the National Economic and Development Authority (NEDA), the Chairperson of the Civil 
Service Commission (CSC), and the Director-General of the Anti-Red Tape Authority 
(ARTA), as members.
The duly-authorized permanent representative(s) shall be at least a third (3rd) 
ranking official of the agency. The Committee shall be organized within fifteen (15) 
days from the effectivity of this Act.
The Committee shall organize Sub-Committees, as may be necessary, composed 
of experts on government operations, organizational development, and human 
resource management to assist in the performance of its functions.
The DBM shall provide the necessary secretariat services to the Committee and its 
Sub-Committees.
In the spirit of transparency and participatory governance, the Committee shall 
consult the agencies concerned, accredited public sector unions and other stakeholders 
relative to the implementation of the Rightsizing Program provided under this Act.
SEC 7. Powers and Functions of the Committee on Rightsizing the Executive 
Branch. - The Committee on Rightsizing the Executive Branch shall have the following 
powers and functions:
(a) Develop the policies, framework, strategies, and mechanisms to be adopted 
in the implementation of the Executive Branch's Rightsizing Program;
(b) Conduct studies on the functions, programs, projects, operations, structure, 
and manpower complement of the different agencies;
(c) Develop and prepare the rightsized organizational structure of the agencies 
concerned and the corresponding executive issuances for approval by the 
President, in accordance with the provisions of Section 5 of this Act;


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(d) Develop and prepare the overall Change Management Program, including a 
Communications Plan, to effectively manage the transition and ensure the 
smooth implementation of the Rightsizing Program;
(e) Formulate the mechanisms to safeguard the welfare of employees who may 
be affected by the rightsizing efforts, as well as the appropriate 
Organizational Development Program, for the approval of the President;
(f) Monitor the implementation by the different agencies of their respective 
approved Rightsizing Plans, and report to the President any issue that must 
be addressed;
(g) Engage the services of experts/consultants, through the DBM, to assist the 
Committee and its Sub-Committees in the performance of their functions; 
and
(h) Formulate the implementing rules and regulations (IRR) of this Act.
SEC. 8. Submission of the Rightsized Organizational Structure and Proposed 
Executive Issuances to the President - The Committee on Rightsizing the Executive 
Branch shall submit to the President the rightsized organizational structure of the 
agencies concerned and the corresponding executive issuances within two-hundred 
fifty (250) days from the effectivity of the IRR of this Act.
SEC. 9. Submission of the Detailed Organizational Structure and Staffing to the 
DBM. - Agency Heads shall prepare and submit to the DBM the detailed organizational 
structure and staffing of their respective agencies within ninety (90) days after the 
approval of the proposed executive issuances by the President.
SEC. 10. Retirement Benefits and Separation Incentives for Personnel Who May 
be Affected by the Executive Branch's Rightsizing Program. - The affected personnel 
hired on a permanent basis and with appointments attested to by the CSC shall be 
entitled to retirement benefits and separation incentives.
(a) The affected personnel shall be given the option to avail of any of the following
retirement benefits under existing laws, if qualified:
(1) Retirement gratuity provided under RA No. 1616 or "An Act Further 
Amending Section Twelve of Commonwealth Act Numbered One 
Hundred Eighty-Six, as Amended, By Prescribing Two Other Modes of 
Retirement and for Other Purposes", as amended; or


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(2) Retirement benefit under RA No. 660 or "An Act to Amend 
Commonwealth Act Numbered One Hundred and Eighty-Six Entitled "An 
Act to Create and Establish a Government Service Insurance System, to 
Provide for Its Administration, and to Appropriate the Necessary Funds 
Therefor, and to Provide Retirement Insurance and for Other Purposes"; 
or
(3) Retirement, separation or unemployment benefit provided under RA No. 
8291 or "An Act Amending Presidential Decree No. 1146, as Amended, 
Expanding and Increasing the Coverage and Benefits of the Government 
Service Insurance System, Instituting Reforms Therein and for Other 
Purposes"; or
The retirement gratuity benefit of affected personnel who are qualified 
and have opted to avail of the benefits under RA No. 1616 shall be paid 
by the Government Service Insurance System (GSIS). The GSIS shall no 
longer pay the refund of retirement premiums (both personnel and 
government shares) of the affected personnel who will opt to avail of RA 
No. 1616 benefits.
(b) In addition to said retirement benefits, the affected personnel who would opt 
to retire or be separated shall be entitled to the following applicable separation 
incentives:
(1) One-half (1/2) of the actual monthly basic salary for every year of 
government service, for those who have rendered less than eleven (11) 
years of service;
(2) Three-fourths (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;
(3) the actual monthly basic saiary 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
(4) One and one-fourth (1 1A) of the actual monthly basic salary for every 
year of government service, computed starting from the first year, for 
those who have rendered thirty-one (31) years of service and above.


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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 for an 
affected personnel to be entitled to avail of the Program's separation 
incentives under Section 10 (b) (1) 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 or "An Act Instituting Limited Portability Scheme in 
the Social Security Insurance Systems by Totalizing the Workers' 
Creditable Services or Contributions in Each of the Systems" may be 
applied, subject to existing policies and guidelines.
The affected personnel, if with permanent appointment attested to by 
the CSC, will not opt to retire from the service, he/she 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 10 (a) of this Act shall in no case exceed the number of 
positions declared for abolition.
Abolished or affected positions shall not be included in the new staffing 
pattern of the agency. Affected personnel, in recognition of their 
institutional knowledge and experience, shall be given priority in hiring 
for any new position/s created as an effect of the rightsizing, if they are 
qualified for the same.
The specific guidelines to carry out the provisions of this Section shall be 
prescribed in the IRR of this Act.
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SEC. 11. Other Benefits of Retired/Separated Personnel. - The affected 
personnel who shall be retired/separated shall, in addition to the applicable benefits 
provided 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 (HDMF); 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.
SEC. 12. Period of Availability of the Retirement Benefits and Separation 
Incentives. - The retirement benefits and separation incentives provided in this Act 
shall be available within sixty (60) days upon approval by the DBM of the detailed 
rightsized organizational structure and staffing of agencies concerned.
SEC. 13. Prohibition on Re-employment of Personnel Retired/Separated from 
the Service. - Affected personnel who were retired/separated from the service as a 
result of the implementation of the Rightsizing Program shall not be re-employed In 
any agency of the National Government, including In GOCCs, for a period of five (5) 
years, except as teaching or medical staff in educational institutions and hospitals, 
respectively.
The re-employment of retired/separated personnel under the Program within 
the prohibited period shall cause the refund of the separation incentives received by 
subject personnel under Section 10 (a) of this Act on a pro-rated basis.
SEC. 14. Joint Congressional Oversight Committee on the Rightsizing Program. 
- There is hereby created an Oversight Committee to oversee and monitor 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 Civil Service, Government 
Reorganization and Appropriations.
SEC. 15. Conduct of an Impact Assessment. - The DBM shall commission the 
conduct of an independent impact assessment on the Executive Branch's Rightsizing 
Program three (3) years from its completion to, among others, determine the effects 
of, and gains from, the implementation of the Program.


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SEC. 16. Report to Congress. - The President shall submit a report to Congress 
on the results of the Program after the completion of its implementation.
SEC. 17. Sunset Provision. - The authority given to the President under this 
Act, as well as the existence of the Committee on Rightsizing the Executive Branch, 
shall terminate after the completion of the Program.
SEC. 18. Implementing Rules and Regulations. - The Committee on Rightsizing 
the Executive Branch shall formulate the necessary IRR within thirty (30) days from the 
organization of the Committee. Such rules and regulations shall take effect fifteen (15) 
days after its publication in a newspaper of general circulation.
SEC. 19. Provisions Applicable to Other Branches of Government, Constitutional 
Commissions, 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 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.
SEC. 20. Funding Requirements. - The amount necessary for the initial 
implementation of this Act shall be sourced against any applicable appropriation items 
under the current General Appropriations Act. Subsequent amounts needed to continue 
the implementation of the National Government's 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 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 outsourced 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.
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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.
SEC. 21. Separability Clause. - If for any reason, any provision of this Act is 
declared invalid or unconstitutional, the remaining parts or provisions not affected shall 
remain in full force and effect.
SEC. 22. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations, and other issuances or parts thereof which are inconsistent with this Act 
are hereby repealed, amended or modified accordingly.
SEC. 23. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation.
Approved,
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