MANILA, Philippines — The House of Representatives approved on the third and final reading on Tuesday, January 14, the bill to reorganize the National Economic and Development Authority (NEDA) into a departmental agency.
With a unanimous vote for House Bill 11199, the lower chamber passed the Economy, Planning and Development Act. This came after the Senate approved its counterpart, Senate Bill 2878, on Dec. 16, 2024.
If signed into law, NEDA will be renamed the Department of Economy, Planning and Development (DEPDEV).
The DEPDEV will inherit and expand NEDA’s current responsibilities, which include policy-making, planning and monitoring the national economy.
On top of this mandate, the new department will take on stakeholder engagement, long-term planning and the formulation of development frameworks for national and regional programs.
As part of stakeholder engagement, the department will be required to consult with various entities, such as government agencies, civil society organizations, non-governmental organizations, the academe, private sector and local government units.
The DEPDEV secretary, who will be appointed by the president, must meet the following qualifications:
- Filipino citizen and resident of the Philippines
- Good moral character and recognized probity
- Competence and independence
- Professionally distinguished in public, civic or academic service
- At least 10 years of experience in the field
- No election loss within the last year
- Preference will be given to a candidate with a doctorate in economics.
DEPDEV will also have regional offices across the country, except in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
These offices will oversee the implementation of plans and programs, evaluate proposed policies and projects, and provide technical assistance to development partners.
Agencies currently attached to NEDA, such as the Philippine Institute for Development Studies (PIDS) and the Philippine Statistics Authority (PSA), will be transferred to DEPDEV.
Reconstitute NEDA Board
The proposed legislation also seeks to reconstitute the NEDA Board as the Economy and Development Council (ED Council), which will be chaired by the president.
This council will be responsible for directing and setting overall policy for economic matters, including the formulation and approval of plans, programs and projects.
Currently, the NEDA Board is chaired by the president, with its vice-chair being NEDA Secretary Arsenio Balisacan. Board members include the secretaries or heads of various agencies, such as:
- Office of the President (OP)
- Department of Agriculture (DA)
- Department of Education (DepEd)
- Department of Budget and Management (DBM)
- Department of Energy (DOE)
- Department of Finance (DOF)
- Department of Human Settlements and Urban Development (DHSUD)
- Department of Public Works and Highways (DPWH)
- Department of Trade and Industry (DTI)
- Department of Transportation (DOT)
- Mindanao Development Authority (MinDA)
- Bangko Sentral ng Pilipinas (BSP)
This structure was established under Administrative Order 25, issued by President Ferdinand “Bongbong” Marcos Jr. on Sept. 5, 2024.
Under the new setup, the ED Council will add the Department of Health (DOH), Department of Labor and Employment (DOLE) and Department of the Interior and Local Government (DILG) as members, while removing the Special Assistant to the President for Investment and Economic Affairs (SAPIEA).
The chief minister of BARMM will also serve as an ex officio member, even though the region won’t be having a regional DEPDEV office.
The council will consist of committees similar to those in the NEDA Board, with the addition of the Economic Development Committee, tasked with ensuring equitable economic opportunities, promoting private sector competitiveness and other related functions.
The president will have the authority to revise the ED Council’s membership and committee structure, including the creation of new committees.
What happens to NEDA employees?
The bill also stipulates that DEPDEV will absorb all current NEDA officials and employees.
Those separated due to the reorganization will receive severance packages, based on years of service.
Employees who worked at NEDA for less than 11 years will receive half of their monthly basic salary for each year of service.
Those with 11 to 20 years of service will receive three-fourths of their monthly salary, while those with 21 to 30 years will be compensated with their full monthly salary.
Employees with at least 31 years of service will receive one and one-fourth of their monthly salary.