Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE 
PUBLIC SERVICE DELIVERY 
EXPLANATORY NOTE 
Public service is a public trust. To delay or make complicated the 
delivery of services needed by the people is to deny them of opportunities that 
would better their lives as Filipino citizens. 
The bureaucracy, as the so-called “fourth branch of government”1, is 
the administrative heart and soul of government. It has the capacity to make 
public service delivery accessible or inaccessible, depending on the 
effectiveness and efficiency of its existing rules and regulations, systems and 
processes. 
Consistent with this, it is 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. Hence, it is imperative for the government to focus its 
functions and resources on the essential role, scope, and level of governance, 
and minimize, if not eliminate, redundancies, overlaps, and duplication in its 
operations and simplify its rules and regulations, systems and processes. 
1 Bowles, Nigel. (1998) Bureaucracy: The Fourth Branch of Government. In: Government and 
Politics of the United States. Comparative Government and Politics. Palgrave, London 
August 1, 2022
8:10 am
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This bill seeks to ensure seamless operations of agencies within and 
across sectors and to be more responsive to public needs by creating the 
Committee on Rightsizing the Executive Branch. The Committee shall oversee 
the implementation of the Rightsizing Program, aimed at simplifying and 
modernizing government systems and processes to facilitate the delivery and 
upgrade the quality of frontline services, as well as to improve policy 
formulation, planning and performance evaluation, and raise overall 
productivity of the public sector 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought.  
REP. PM VARGAS   
Fifth District, Quezon City 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE 
PUBLIC SERVICE DELIVERY 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as “Rightsizing the 
National Government Act”. 
SECTION 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 role, scope, and level of 
governance, and minimize, if not eliminate, redundancies, overlaps and 
duplication in its operations and simplify its rules and regulations, systems 
and processes. 
SECTION 3. Coverage. – This Act shall cover all agencies of the executive 
branch, including departments, bureaus, offices, commissions, boards, 
councils, and all other entities attached to or under their administrative 
supervision, government-owned or controlled corporation (GOCCs) not 
covered by Republic Act No. 10149 or the GOCC Governance Act of 2011”  
The Legislature, the Judiciary, the Constitutional Commissions, and 
the Office of the Ombudsman may, within their respective authorized 
appropriations, likewise rightsize their respective offices, consistent with the 
principles and guidelines contained in this Act. 
Local government units (LGUs) may also rightsize their respective 
offices, consistent with the governing principles and guidelines contained in 
2787


this Act and the provisions of Republic Act No. 7160 or the “Local Government 
Code of 1991,” and subject to their financial capability. 
 
 
The government Commission for GOCCs (GCG) shall continue to 
exercise it authority under Republic Act No. 10149 to recognize, merge, 
streamline, abolish, or privatize any GOCC, in consultation with the 
department or agency to which the GOCC is attached.  
 
SECTION 4. Principles and Guidelines. – The National Government shall 
implement a Rightsizing Program in accordance the following principles and 
guidelines: 
 
 
(a) The role of government and the scope, level, and prioritization of 
government activities shall be determined in accordance with the 
constitutional mandate, political and socioeconomic objectives of the 
government, and available resources; 
 
 
(b) The government shall establish a conductive policy environment to 
encourage active private sector engagement in the production and delivery of 
goods and services. 
 
 
(c) The delineation of responsibilities between the National Government 
and the LGUs in the provision, production, and delivery of goods and services 
shall be clearly defined; 
 
 
(d) A whole-of-government approach shall be adopted to ensure 
seamless operations of agencies within and across sectors and to be more 
responsive to public needs; 
 
 
(e) 
Government 
operations 
shall 
be 
simplified 
so 
that 
the 
departments/agencies can focus on the performance of their core functions 
and implementation of programs and projects that will lead to the attainment 
of the desired sectoral and national goals and outcomes; 
 
(f) Government systems and processes shall be simplified and 
modernized to facilitate the delivery and upgrade the quality of frontline 
services, as well as to improve policy formulation, planning and performance 
evaluation, and raise overall productivity of the public sector; 
 
 
(g) Government rules, procedures and requirements shall be 
rationalized to reduce the regulatory burden on citizens, businesses, and 
other stakeholders, as well as reduce the administrative burden on the part 
of the government; and 
 
 
(h) The organizational structure of an agency shall be designed to 
facilitate the effective, efficient, and economical implementation of programs 
and projects, and the attainment of organizational outputs and outcomes; 
rightsized and the appropriate staffing mix shall be determined based on the 
skills and competencies required to effectively and efficiently carry out the 
agency’s mandate and functions. 


 
SECTION 5. Authority of the President of the Philippines to Rightsize 
the Operations of the Execute Branch. – Pursuant to the governing rules, 
policies, standards and guidelines stipulated in this Act, the President of the 
Philippines is hereby granted the following authority in the rightsizing of the 
operations of the different agencies of the Executive Branch: 
 
a. To pursue the following functional shifts/modifications: 
 
 
(1) Strengthen functions of the agency which directly contribute to 
the targeted ultimate societal outcomes of the National 
Government and/or the targeted sector/subsector outcomes of 
the agency; 
 
(2) Scale down, phase out, eliminate or discontinue functions, 
programs, and projects that can better be carried out or 
undertaken by the private sector, or have already been devolved 
to LGUs consistent with the governing principles provided in this 
Act; and  
 
(3) Transfer/integrate functions from one agency to another which 
can better perform the same. 
 
b. To undertake the following organizational actions: 
 
(1) Regularize ad hoc offices whole functions are vital and 
significant, thus must be continually undertake by the 
government; 
 
(2) Merge or consolidate agencies whose functions are necessarily 
overlapping or duplicating and can be undertaken by a single 
entity; or clients are similar or related to rationalize the use of 
government resources; 
 
(3) Split agencies with multifarious functions which are deemed 
distinct and equally serve important aspects of governance; 
 
(4) Transfer offices to other agencies wherein their functions are 
more aligned; and  
 
(5) Abolish agencies: (i) which functions are already redundant or no 
longer relevant or necessary, or better undertaken by another 
entity; (ii) which are no longer achieving the objectives and 
purposes for which these were originally created; (iii) which are 
not cost-effective since these do not generate the desired levels 
or outputs and outcomes vis-à-vis the resource inputs; and/or 
(iv) which have already become non-operational, dormant and/or 
outlived their purposes. 
 


c. To undertake other functional/organizational actions, as necessary, 
consistent with the policies, principles, framework, and standards of 
this Act; 
 
d. To develop and provide safety nets, including their implementation 
strategies, for employees of departments/ agencies who may be 
affected by the government’s rightsizing efforts; and 
 
e. To formulate an organizational development program to strengthen 
the institutional capacity of the agencies and improve productivity 
of employees. 
 
SECTION 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 Executive Secretary as 
Chairperson, and the Secretary of the Department of Budget and Management 
(DBM) as Co-chairperson, with the Secretary of Socio-Economic Planning, 
Chairperson of the Civil Service Commission (CSC), and the Head of the 
Presidential Management Staff, as members. 
 
 
The Committee shall be organized within fifteen (15) days from the 
effectivity of this Act. 
 
 
The Committee shall also organize Subcommittees composed of experts 
on government operations, organizational development, and human resource 
management to assist in the performance of its functions.  
 
 
The DBM shall provide the necessary secretarial services to the 
Committee and its Subcommittees. 
 
 
In the spirit of transparency and participatory governance, the 
Committee shall consult the department/agencies concerned and accredited 
public sector unions, and other stakeholders, relative to the implementation 
of the Executive Branch Rightsizing Program. 
 
SECTION 7. Powers and Functions of the Committee on Rightsizing the 
Executive Branch. – The Committee shall have the following powers and 
functions: 
 
a. To develop the policies, framework, strategies, and mechanism to be 
adopted in the implementation of the Executive Branch Rightsizing 
Program; 
 
b. To conduct studies on the functions, programs, projects, operations, 
structure, 
and 
manpower 
complement 
of 
the 
different 
departments/agencies; 


 
c. To develop and prepare the rightsized organizational structure of 
department/agencies concerned and the corresponding executive 
issuances for approval by the President; 
 
d. To develop and prepare the overall change management program 
including communication plans, to effectively manage the transition 
and ensure the smooth implementation of the Rightsizing Program; 
 
e. To formulate the mechanisms to safeguard the welfare of employees 
who may be affected by the rightsizing efforts, as well as the 
appropriate organizational development program, for approval of the 
President; 
 
f. To monitor the implementation by the different agencies of their 
respective approved rightsizing Plans, and report to the President 
any issue that must be addressed;  
 
g. To engage the services of expert/consultants, trough the DBM, to 
assist the Committee and its Subcommittees in the performance of 
their functions; and  
 
h. To formulate the implementing rules and regulations (IRR) of this 
Act. 
 
SECTION 8. Submission of the Rightsized Organizational Structure and 
Proposed Executive Issuances to the President. – The Committee on 
Rightsizing the Executive Branch shall submit to the President the rightsized 
organizational structure of agencies concerned and the corresponding 
executive issuances within two hundred fifty (250) days from the effectivity of 
the implementing rules and regulations (IRR) of this Act. 
 
SECTION 9. Submission of the Detailed Organizational Structure and 
Staffing to the DBM. – The heads of agencies shall prepare and submit to 
the DBM the detailed organizational structure and staffing of their respective 
agencies within ninety (90) days after the approval of the proposed executive 
issuances by the President: Provided, The assistance in the preparation of 
organizational structure and staffing pattern has been extended to the agency 
by the DBM and the CSC. 
 
SECTION 10. Retirement Benefits and Separation Incentives for 
Personnel Who May be Affected by the Executive Branch Rightsizing 
Program. – The affected personnel hired on a permanent basis and with 
appointment attested by the CSC, shall be entitled to retirement benefits and 
separation incentives.  
 
a. The affected personnel shall be given the option to avail themselves 
of any of the following retirement benefits under existing laws, if 
qualified: 


 
(1) Retirement gratuity provided under Republic Act No. 1616 (An 
Act Further Amending Section Twelve of Commonwealth Act 
Numbered One Hundred Eighty-Six, as Amended, by Prescribing 
Two other Modes of Retirement and for Other Purposes), as 
amended; or  
 
(2) Retirement benefit under Republic Act No. 660 (An Act to Amend 
Commonwealth Act Numbered One Hundred and Eighty-Six 
Entitled “An Act to Create and Establish a Government Service 
Insurance System, to Provide for its Administration, and to 
Appropriate the Necessary Funds Therefor,” and to Provide 
Retirement Insurance and for Other Purposes); or  
 
(3) Retirement, separation or unemployment benefit provided under 
Republic Act No. 8291 (An Act Amending Presidential Decree No. 
1146, as Amended, Expanding and Increasing the Coverage and 
Benefits of the Government Services Insurance System, 
Instituting Reforms Therein and for Other Purposes). 
 
(1) The retirement gratuity benefit of affected personnel who are 
qualified and shall avail of Republic Act No. 1616 shall be paid 
by the Government Service Insurance System (GSIS). The GSIS 
shall no longer pay the refund of retirement premiums (both 
personnel and government shares) of the affected personnel who 
shall avail of Republic Act 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 (½) 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 fourth (3/4) of the actual monthly basic salary for every 
year of government service, computed starting from the first 
(1st year, for those who have rendered eleven (11) to less than 
twenty-one (21) years of service; 
 
(3) The actual monthly basic salary for every year of government 
service, computed starting from the first (1st) year, for those 
who have rendered twenty-one (21) to less than thirty-one (31) 
years of service; and  
 
(4) One and one fourth (1¼) of the actual monthly basic salary 
for every year of government service, computed starting from 
the first (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 the 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 10 (b) of this Act: Provided. That 
for the purpose of computing the total amount of separation 
incentives that an affected personnel shall receive, only the 
government service up to age fifty-nine (59) and a fraction thereof 
shall be counted. Government service starting at the age of sixty (60) 
shall no longer be subject to the separation incentives provided 
herein, without affecting the original incentive factor determined as 
applicable based on the actual years of service of the affected 
personnel: Provided, further, That for the purpose of complying with 
the required number of years of service under Republic Act No. 
8291, the portability scheme under Republic Act No. 7699 (An Act 
Instituting Limited Portability Scheme in the Social Security 
Insurance Systems by Totalizing the Workers’ Creditable Services or 
Contributions in Each of the Systems) may be applied, subject to 
existing policies and guidelines. 
 
The affected personnel, if with permanent appointment attested by 
the CSC, who will not opt to retire from the service shall be placed 
in a manpower pool to be organized and administered by the CSC. 
The CSC, in coordination with other government agencies and 
relevant private institutions, shall retool the subject personnel and 
deploy them to agencies which require their qualifications, skills, 
and competencies. 
 
The number of personnel who will avail of the separation incentives 
under Section 10 of this Act shall in no case exceed the number of 
positions declared for abolition. 
 
The specific guidelines to carry out the provisions of this section 
shall be prescribed in the IRR of this Act. 
 
SECTION 11. Other Benefits of Retired/Separated Personnel. – The 
affected personnel who retire or are separated shall, in addition to the 
applicable benefits above, be entitled to the following: 
 
a. 
Refund of Pag-IBIG contributions, both personal and government 
of all affected members, pursuant to existing rules and regulations 
of the Home Development Mutual Fund; and   
 
b. Commutation of unused vacation and sick leave credits of the 
affected personnel in accordance with existing rules and 
regulations. 


 
SECTION 12. Period of Availability of the Retirement Benefits and 
Separation Incentives. – The retirement benefits and separation incentives 
provided in this Act shall be available within sixty (60) days upon approval by 
the DBM of the detailed rightsized organizational structure and staffing of 
departments/agencies concerned. 
 
SECTION 
13. 
Prohibition 
on 
Reemployment 
of 
Personnel 
Retired/Separated from the Service. – Personnel who retire or are 
separated from the service as a result of the implementation of the Rightsizing 
Program shall not be reemployed in any agency of the Executive Branch, 
including in GOCCs, for a period of five (5) years, except as teaching or 
medical staff in educational institutions and hospitals, respectively. 
 
 
The retired/separated personnel under the program, who are 
reemployed within the prohibited period shall refund the separation 
incentives received under Section 10 (b) of this Act on a prorated basis. 
 
 
The retired/separated personnel under the program who undertake in 
consultancy services for the government shall be governed by Section 7 of 
Republic Act No. 6713 (Code of Conduct and Ethical Standards for Public 
Officials and Employees). 
 
SECTION 14. 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 the House of Representatives which shall include 
members 
of the 
Senate 
Committee 
on 
Civil 
Service, 
Government 
Reorganization and Professional Regulation, the Senate Committee on 
Finance, the House Committee on Government Reorganization and the House 
Committee on Appropriations. 
 
SECTION 15. Conduct of an Impact Assessment. – The DBM shall 
commission the conduct of an independent impact assessment on the 
Executive Branch Rightsizing Program three (3) years from its completion to, 
among others, determine the effects of, and gains from, the implementation 
of the Program. 
 
SECTION 16. Report to Congress. – The President shall submit a report to 
Congress on the results of the Program after the completion of its 
implementation. 
 
SECTION 17. Sunset Provision. – The authority given to the President under 
this Act, as well as the existence of the Committee on Rightsizing the 
Executive Branch, shall end three (3) years after the effectivity of this Act. 
 


SECTION 18. Implementing Rules and Regulations. – The Committee on 
Rightsizing the Executive Branch shall formulate the necessary Implementing 
Rules and Regulations (IRR) within thirty (30) days from the organization of 
the Committee. The IRR shall take effect fifteen (15) days after its publication 
in a newspaper of general circulation. 
 
SECTION 19. Provisions Applicable to Other Branches of Government, 
Constitutional Commissions, Office of the Ombudsman, and the LGUs. – 
The governing principles, policies, standards, and guidelines, as well as the 
conditions and limitations provided in this Act, shall be followed in the 
implementation of the Rightsizing Program by other branches of government, 
Constitutional Commissions, Office of the Ombudsman, and the LGUs. 
 
The heads of offices shall issue their respective IRR and furnish a copy 
thereof to the Joint Congressional Oversight Committee on the Rightsizing. 
 
SECTION 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 amount needed to continue the implementation of the Executive 
Branch Rightsizing Program in the Executive Branch shall be included in the 
succeeding appropriations. 
 
In 
the 
event 
that 
the 
Legislature, 
Judiciary, 
Constitutional 
Commissions and the Office of the Ombudsman implement the rightsizing 
under this Act, the funding requirements shall be included in the succeeding 
appropriations. 
 
SECTION 21. Separability Clause. – If any provision of this Act is declared 
unconstitutional or invalid, the other provisions not otherwise affected shall 
remain in full force and effect. 
 
SECTION 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. 
 
SECTION 23. Effectivity. – This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or in any newspaper of general 
circulation. 
 
Approved,