Republic Act No. 12145: Economy, Planning and Development Act

[ REPUBLIC ACT NO. 12145, April 10, 2025 ]

AN ACT REORGANIZING THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY (NEDA) INTO THE DEPARTMENT OF ECONOMY, PLANNING AND DEVELOPMENT (DEPDEV), AND RECONSTITUTING THE NEDA BOARD INTO THE ECONOMY AND DEVELOPMENT COUNCIL, REPEALING FOR THE PURPOSE EXECUTIVE ORDER NO. 230, SERIES OF 1987, AND AMENDING EXECUTIVE ORDER NO. 292, SERIES OF 1987, AND APPROPRIATING FUNDS THEREFOR

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

ARTICLE I PRELIMINARY PROVISIONS

Section 1. Short Title

This Act shall be known as the "Economy, Planning and Development Act".

Section 2. Declaration of Policy

The State shall adopt and implement continuing, integrated, and coordinated policies, plans, and programs towards equitable distribution of opportunities, income and wealth; ensure a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and expand productivity to raise the quality of life for all.

It is, therefore, vital that major programs and projects of different govenrment agencies are properly reviewed and coordinated by a national government agency to ensure their consistency with established national and subnational priorities; that the linkage between development planning, programming, and budgeting is given the highest priority in identifying programs, activities, and projects; and that the public and private sectors at the national and subnational levels participate in the process of formulating, implementing, monitoring, and evaluating policies, plans, and programs.

For this purpose, all socio-economic programs and activities of the government shall be programmed within the context of well-formulated and consistent long-, medium-, and short-term development plans and policies to promote both the growth of the economy and the equitable distribution of its benefits to the members of society.

The State further recognizes that an independent economic and planning agency headed by the President of the Philippines shall, after consultation with the appropriate public agencies, private sector groups, and local government units (LGUs), recommend priority legislative measures to Congress.

ARTICLE II DEPARTMENT OF ECONOMY, PLANNING AND DEVELOPMENT

Section 3. Reorganization of the National Economic and Development Authority

The National Economic and Development Authority (NEDA) is hereby reorganized as the government's primary economic and planning agency, hereafter referred to as the Department of Economy, Planning, and Development (DEPDev).

Section 4. Mandate

The DEPDev shall be the primary policy, planning, coordinating, and monitoring arm of the Executive Branch of government on the national economy.

It shall formulate the country's continuing, integrated, and coordinated policies, plans, and programs for national development for approval by the Economy and Development (ED) Council; ensure the vertical and horizontal alignment and coherence of national and subnational policies, plans, and programs towards optimal use of financial and economic resources; and oversee the country's public investment program.

The DEPDev shall generate and provide impartial, objective, and evidence-based analyses and recommendations for the socio-economic betterment of the nation, particularly the Philippine government, and Filipinos in general.

Section 5. Powers and Functions of the DEPDev

The DEPDev shall have the following powers and functions:

(a)Policy and planning (1) Provide objective, evidence-based policy advice and alternatives; propose or review policies, plans, and programs through critical analyses of development issues; and report findings and recommendations to the President, the Congress, or the relevant Committee of the ED Council, as appropriate, especially to:

(i)Foster sustainable and equitable distribution of economic opportunities and benefits to Filipinos;

(ii)Support the development of agriculture, industry, and services, to achieve economic development goals, and foster innovation vital to equitable and sustainable growth;

(iii)Advance national productivity, competition, and competitiveness;

(iv)Promote transparency, accountability, participatory governance, and strengthening of national and subnational public institutions;

(v)Improve the policy and regulatory environment to reduce the cost and improve the ease of doing business; and (vi) Ensure that master plans are coordinated, synergistic, responsive to emerging issues, and consistent with priority development strategies;

(2)Formulate a long-term vision and development framework as the basis for the overall direction of govenrment policies, programs, and projects with emphasis on sustainability;

(3)Formulate a national and regional framework for physical and spatial planning to ensure the sustainable use of land and other physical resources which support the development of agriculture, environment, and natural resources, industry, and services;

(4)Formulate national and subnational development plans that set forth measurable goals, strategies, proposed policies, programs, and projects;

(5)Ensure consistency and monitor the implementation of policies, national, subnational, sectoral, and spatial plans and programs;

(6)Together with the Department of Budget and Management (DBM), ensure that the annual and multi-year appropriations for programs and projects are aligned with the long-term development framework and national and subnational development plans towards optimal use of financial resources. The DEPDev shall use available, modification, or scaling up of government programs, projects, and activities. The President may request th DEPDev for its recommendation on budget appropriations that are aligned with the long-term development framework and national and subnational development plans which may be vetoed or subject to conditional implementation;

(7)Conduct, research, surveys, and related studies to inform the formulation of policies and plans, and the design of programs and projects; and (8) Coordinate with autonomous and administrative regions in the conduct of planning activities affecting their respective regions;

(b)Investment programming (1) Ensure that development plans are translated into programs, activities, and projects;

(2)Formulate and review the national and regional public investment program that identifies priority programs, activities, and projects;

(3)Adopt and implement appropriate evaluation measures and criteria to determine the viability of programs and projects;

(4)Appraise programs and projects, and recommend those found to be socio-economically viable to the ED to Council; and (5) Ensure that projects which no longer serve their purpose or are not aligned with the medium- and long-term plans are retrenched or modified;

(c)Monitoring and evaluation (1) Formulate annual reports that monitor the implementation of national and subnational development plans including recommendations to address identified gaps and challenges;

(2)Establish and implement a centralized data system to monitor and assess the progress of implementation of priority programs and projects;

(3)Monitor and assess the implementation progress of priority programs and projects using measurable indicators and adaptable reporting frameworks suited to their specific nature;

(4)Evaluate and report the impacts and outcomes of priority programs and projects to inform policy adjustments and decision-making; and (5) Formulate a medium-term national evaluation agenda and oversee the government's conduct of evaluation studies consistent with the agenda, ensuring alignment with national development priorities and transparency of findings; and issue planning instructions as part of the periodic planning calls so that the agencies will align their programs, activities, and projects (PAPs) with the evaluation findings;

(d)Establish and implement a capacity-building program on development policy and planning for national and regional government agencies, including administrative agencies, such as metropolitan authorities and LGUs;

(e)Establish a dedicated office within the DEPDev that shall undertake scenario planning and futures thinking exercises, anticipating future trends or discontinuities, and recommend responsive measures to the President and the Congress, as may be appropriate. As used in this Act, futures thinking refers to a set of approaches and tools designed to help their users identify emerging signals and trends, determine drivers, navigates uncertainties, identify and articulate alternative scenarios, introduce innovation, design robust policiesa dn strategies, and develop a common vision of a desired future through wide participation;

(f)Provide technical and secretariat support to the ED Council and its committees, as may be provided in this Act;

(g)Serve as Secretariat to the Regional Development Councils (RDCs) pursuant to Executive Order No. 325, series of 1996; the national Innovation Council pursuant to Republic Act No. 11293, otherwise known as the "Philippine Innovation Act"; the Legislative-Executive Development Advisory Council pursuant to Republic Act No. 7640, or "An Act Constituting the Legislative-Executive Development Advisory Council", and such other inter-agency committees, boards or councils, as may be provided by law; and (h) Establish, manage, and maintain a repository of data, and make available such data, publications, research, analyses, and other information generated by the DEPDev in accordance with existing laws and regulations for the purpose of knowledge sharing, subject to Executive Order No. 2, series of 2016, on Freedom of Information (FOI), the NEDA FOI Guidelines and other related issuances.

Section 6. Stakeholder Engagement

In the discharge of these powers and functions, the DEPDev shall undertake consultations with appropriate government agencies, civil society organizations (CS)s), non-government organizations (NGOs), people's organization (POs), the academe, private sector, and LGUs to incorporate their priority needs in the formulation of policies, plans, programs, and projects.

Section 7. Composition of the DEPDev

The DEPDev shall be composed of the Office of the Secretary, the Offices of the Undersecretaries and Assistant Secretaries, technical and sectoral staff, operations support staff, and Regional Offices.

Section 8. Secretary

The DEPDev shall be headed by a Secretary who shall be appointed by the President of the Philippines, subject to the confirmation by the Commission on Appointments.

The Secretary shall have the following minimum qualifications: a citizen and resident of the Philippines; of good moral character; of recognized probity, competence, and independence; professionally distinguished in public, civic, or academic service and preferably with a doctorate degree in Economics; has been in the active practice of his or her profession for at least ten (10) years; and does not come within the prohibition on the appointment of defeated candidates within one (1( year after election.

Section 9. Functions of the Secretary

The Secretary, who shall serve as the country's Chief Economist, shall have the following functions:

(a)Advise the President and the Members of Cabinet on matters of national and subnational economic and social development;

(b)Provide regular reports to the President and the Members of Cabinet on the state of the economy and challenges ahead;

(c)Lead public discourse on the latest trends, strategic issues, futures thinking, and key developments and their relevant implications for the country;

(d)Provide executive direction and supervision over and establish policies and standards for the efficient and effective operations of the DEPDev;

(e)Exercise disciplinary powers over officers and employees of the DEPDev in accordance with law, including their investigation and the designation of a committee or officer to conduct such investigation;

(f)Promulgate such rules and regulations as may be required to implement the objectives of this Act and the DEPDev's mandate, objectives, and policies; and (g) Perform other functions as may be provided by law or assigned by the President.

Section 10. Undersecretaries and Assistant Secretaries

The Secretary shall be assisted by at least five (5) Undersecretaries and at least five (5) Assistant Secretaries, who shall be appointed by the President of the Philippines upon the recommendation of the Secretary and subject to the rules and regulations formulated by the Career Executive Service Board.

The Secretary shall have the flexibility to determine the assignments of the Undersecretaries and Assistant Secretaries depending on the DEPDev's strategic directions on emerging development trends affecting the country's economy.

Section 11. Organizational Structure and Staffing

The Secretary of the DEPDev shall determine the organizational structure and staffing pattern of the DEPDev in accordance with the revised compensation and position classification system, subject to the evaluation and approval of the DBM, in compliance with the civil service laws, rules and regulations, and other relevant laws. Until the new organizational structure and staffing pattern are submitted to and approved by the DBM, the DEPDev shall retain the existing organizational structure of the NEDA.

Section 12. DEPDev Regional Offices

The DEPDev shall establish, operate, and maintain an office in each region of the country, except in Metro Manila and the Bangsamoro Autonomous Region in Muslim Mindanao. Each regional office shall be headed by a Regional Director, who shall be assisted by an Assistant Regional Director. The DEPDev Regional Offices shall discharge the functions of the DEPDev, as applicable, at the regional level.

In relation to the functions specified in Section 5 of this Act, the DEPDev Regional Offices shall have the following functions:

(a)Ensure that regional and local development priorities are aligned with national plans, without prejudice to other means identified by the DEPDev Secretary to address delays in the achievement of Philippine Development Plan (PDP) goals. The Regional Development Committee (RDCom) and the Investment Coordination Committee (ICC), after obtaining inputs from the RDCs, shall recommend national government (NG) and LGU cost-sharing arrangements to induce the LGUs to voluntarily commit resources for projects that will help address delays. The resulting recommendation of the RDCom and the ICC shall be vetted by the Development Budget Coordination Committee (DBCC) and shall be recommended for inclusion in the President's budget message and the National Expenditure Program;

(b)Ensure that the national and regional plans and programs are coherent. For this purpose, the DEPDev Secretary and the Executive Secretary shall regularly convene regional national investment programming dialogues between RDC chairs and Cabinet Secretaries to formulate, update, and prioritize the roster of the DEPDev-DBM priority public investment projects;

(c)Oversee the integration of plans and programs of regional agencies, state universities and colleges (SUCs), special development bodies, and LGUs into the regional and national plans. The DEPDev Regional Offices shall provide assistance to regional line agencies, LGUs, SUCs, and special development bodies in identifying and developing programs and projects;

(d)Evaluate and review proposed policies, land use plans, programs and projects in the region (e) Monitor and evaluate the implementation of plans, policies, programs, and projects;

(f)Provide technical and secretariat support to their respective RDCs;

(g)Undertake research and ensure knowledge utilization for regional development and productivity; and (h) Provide technical assistance to development partners in the region in accordance with the DEPDev's functions.

Section 13. Attached Agencies

The agencies currently attached to the NEDA shall hereafter be attached to the DEPDev and shall continue to operate and function in accordance with their respective charters, laws, rules, and regulations, or orders on their creation, except as otherwise provided in this Act, the Administrative Code of 1987, and subsequent laws.

(a)The following agencies shall be attached to the DEPDev for purposes of administrative supervision:

(1)Philippine National Volunteer Service Coordinating Agency (PNVSCA) created pursuant to Executive Order No. 635, series of 1980; and (2) Tariff Commission (TC) created pursuant to Republic Act No. 10863, otherwise known as the "Customs Modernization and Tariff Act (CMTA)", as amended.

(b)The following agencies shall be attached to the DEPDev for purposes of policy coordination:

(1)Philippine Statistics Authority; and (2) Philippine Statistical Research and Training Institute (PSTRI), both created pursuant to Republic Act No. 10625, otherwise known as the "Philippine Statistical Act of 2013".

(c)The following agencies shall be attached to the DEPDev for purposes of policy and program coordination:

(1)Philippine Institute for Development Studies (PIDS) created pursuant to Presidential Decree No. 1201 fated September 26, 1977;

(2)Commission on Population and Development (CPD) created pursuant to Republic Act No. 6365, otherwise known as the "Population Act of the Philippines";

(3)Development Academy of the Philippines (DAP) created pursuant to Presidential Decree No. 205, series of 1973, as amended; and (4) Public-Private Partnership Center of the Philippines (PPPC) created pursuant to Executive Order No. 8, series of 2010, as amended by Republic Act No. 11966, otherwise known as the "Public-Private Partnership (PPC) Code of the Philippines". ARTICLE III THE VISION, DEVELOPMENT FRAMEWORK, AND OTHER PLANS, PROGRAMS, AND REPORTS

Section 14. Visioning

The DEPDev shall formulate a long-term vision, hereinafter referred to as the Vision, which embodies the long-term aspirations of all Filipinos. It shall be data-driven and evidence-based, encompassing all dimensions of economic, social, and environmental development. The Vision shall undergo periodic review in consideration of changing aspirations and preferences.

Section 15. Long-term Development Framework

The DEPDev shall formulate the country's long-term development framework, hereinafter referred to as the Framework.

The Framework is a high-level and broad strategy spanning twenty-five (25) years that shall guide the country toward sustainable growth and development and the attainment of the Vision. It shall serve as a tool to coordinate, guide, and inform the preparation and consideration of future, more detailed national and subnational development plans, national and subnational public investment programs, and sectoral and inter-sectoral plans and programs. It shall embody the development goals and milestones to serve as the basis for the overall direction of government policies, programs, and projects across political administrations. The initial long-term development framework shall cover the period ending in the year 2050.

The Framework shall further include the country's long-term vision, goals, and strategy for infrastructure development. In line with this, all agencies are required to formulate and submit to the DEPDev their sectoral infrastructure master plan which are responsive to the long-term development framework. The plan shall be consolidated and vetted by the Infrastructure Development Committee (InfraCom) into the Comprehensive Infrastructure Development Master Plan (CIDMP). The CIDMP shall serve as the foundation for forward planning, prioritization and development of infrastructure investment and programs. It shall serve as the integrated framework of the infrastructure programs and projects of government enterprise architecture.

The CIDMP shall be reviewed and updated as needed, to anticipate disruptions, emergencies, crises, and new or emerging technologies and trends.

Section 16. Planning Call

Within three (3) months from the President's assumption of office, the DEPDev shall issue a Planning Call to officially commence the planning and consultative process for the formulation of the PDP. The Planning Call shall:

(a)mandate all government agencies to prioritize and facilitate the submission of inputs and carry out actions pertinent to plan formulation, including, but not limited to, the organization of the plan steering committee and other planning committees; and (b) provide the standards, guidelines, and accountability mechanisms to ensure linkage of planning with budgeting, and the harmonization of national, subnational, sectoral, and spatial plans and programs.

Section 17. Philippine Development Plan and Regional Development Plans

Within six (6) months from the President's assumption of office, the DEPDev shall formulate, in consultation with public agencies, CSOs, NGOs, POs, the academe, the private sector, and LGUs, a national economic and development blueprint, known as the PDP, which shall be anchored on the Framework.

The PDP shall establish a set of measurable goals and objectives with corresponding strategies, in terms of policies, programs, and projects, which shall be the basis for each political administration's pursuit of its economic and development agenda.

Within a reasonable period after the formulation of the PDP, the DEPDev Regional Offices shall formulate, in consultation with public agencies, CSOs, NGOs, POs, the academe, the private sector, and LGUs, an economic and development plan at the subnational level, known as the Regional Development Plan, hereinafter referred to as the RDP. The RDP shall be aligned with the PDP, defining the region's development direction. The PDP and the RDPs shall be subject to a midterm review and updating in consideration of accomplishments, emerging trends, and developments.

Section 18. Public Investment Program and Regional Development Investment Program

The DEPDev, in consultation with public agencies, shall formulate the Public Investment Program (PIP). The PIP shall identify the priority PAPs that are responsive to the sectoral goals and outcomes of the PDP, for implementation through national government funds or the General Appropriations Act (GAA), Official Development Assistance (ODA), Public-Private Partnership (PPP), joint ventures (JV), and other viable implementation and financing options. At the subnational level, the DEPDev Regional Offices, in consultation with their respective RDCs, shall formulate the Regional Development Investment Program (RDIP).

Together with the DEPDev Secretary, the Executive Secretary and the DEPDev Regional Offices, the RDC shall also collectively conduct RDC national investment programming dialogues to aid the coherence and periodic updating of the overall PIP as provided for under Section 12 of this Act.

Section 19. Philippine Development Report and Regional Development Reports

The DEPDev and its Regional Offices shall annually formulate the Philippine Development Report (PDR) and Regional Development Reports (RDRs), respectively, which shall serve as monitoring reports on the implementation of the PDP and RDPs. The results from such monitoring activities shall serve as inputs to policy and decision-makers in the formulation of policies, budgeting, and implementation of programs and projects. To this end, the PDRs and RDRs shall contain the latest data and information pertaining to the goals, policies, and strategies specified in the PDP.

Section 20. Transparency and Accountability Reports

Within the first quarter of every year, the DEPDev shall submit a report on the economic performance of the country to the President of the Philippines, the Members of Cabinet, the Congress, and the Filipino people through the mass media. The report shall include the status and the directions of the fiscal and monetary policies of the government in coordination with the Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DOF), and the DBM; macroeconomic outlook and labor market prospects; and other relevant information in the interest of transparency and accountability.

Section 21. Inter-Generational Report

The DEPDev shall submit an Inter-Generational Report (IGR) to the President of the Philippines and the Congress upon the approval of this Act and every six (6) years thereafter. The IGR shall be an assessment of the long-term sustainability of existing government policies over the next twenty-five (25) years, taking into account projected demographic, environmental, and other changes.

ARTICLE IV ECONOMY AND DEVELOPMENT COUNCIL

Section 22. Economy and Development Council

The NEDA Board shall be reconstituted as the Economy and Development Council, hereafter referred to as the ED council. The ED Council, headed by the President of the Philippines, shall serve as the executive collegial body responsible for directing and providing overall policy direction on economic matters to achieve inclusive and sustainable economic growth and development.

Section 23. Composition of the ED Council

The ED Council shall be composed of the following:

(a)The President of the Philippines as Chairperson;

(b)Secretary of the DEPDev as Vice Chairperson; and the following as Members:

(c)Executive Secretary;

(d)Secretary, Department of Agriculture (DA);

(e)Secretary, Department of Budget and Management;

(f)Secretary, Department of Education (DepEd);

(g)Secretary, Department of Energy (DOE);

(h)Secretary, Department of Finance;

(i)Secretary, Department of Health (DOH);

(j)Secretary, Department of Human Settlements and Urban Development (DHSUD);

(k)Secretary, Department of the Interior and Local Government (DILG);

(l)Secretary, Department of Labor and Employment (DOLE);

(m)Secretary, Department of Public Works and Highways (DPWH);

(n)Secretary, Department of Trade and Industry (DTI);

(o)Secretary, Department of Transportation (DOTr); and (p) Chairperson, Mindanao Development Authority (MinDA); The Chief Minister of the Bangsamoro Autonomous Region in Muslim Mindanao shall serve as an ex officio member of the ED Council on matters concerning the Bangsamoro Autonomous Region.

The Governor of the BSP or a duly authorized representative shall sit in the meetings of the ED Council as a resource person.

The President of the Philippines or the ED Council and its Committees may invite the participation of other heads of departments and agencies as resource persons, as necessary.

The President of the Philippine may revise the membership of the ED Council whenever necessary for the effective performance of the Council's functions.

Section 24. Powers and Functions of the ED Council

The ED council shall have the following powers and functions:

(a)Direct the formulation and implementation of policies, plans, and programs that promote economic development and address development concerns of national importance;

(b)Approve policies, development plans, programs, and projects consistent with the policies set by the President of the Philippines, as may be endorsed by the Committees of the ED Council (c) Approved proposed cost threshold and other criteria for priority programs and projects, except those provided by laws, rules, and regulations;

(d)Approve the level of annual government expenditures, as well as projections, forecast, resource requirements, and the ceiling of government spending; and (e) Issue rules and regulations necessary for the effective discharge of its powers and functions.

Section 25. Committees of the ED Council

The ED Council shall have committees that shall act as its primary advisory bodies. These Committees shall be the main coordinating mechanism for ensuring that the policy environment is conducive to the promotion of inclusive and sustainable economic growth.

The following Committees shall assist the ED Council in the performance of its functions:

(a)Development Budget Coordination Committee;

(b)Economic Development Committee;

(c)Investment Coordination Committee;

(d)Social Development Committee;

(e)Infrastructure Committee;

(f)Tariff and Related Matters Committee;

(g)National Land Use Committee; and (h) Regional Development Committee. The DEPDev shall serve as the Secretariat to all Committees unless otherwise provided in this Act.

The President of the Philippines may revise the membership and reorganize the structures and functions of the Committees, and establish new committees, as necessary.

The Committees may invite the participation of other heads of departments and agencies, or other resource persons as necessary.

The Committees may create their respective sub-committees, to provide technical support on matter within their mandate, and which require their appropriate action. The technical sub-committees shall be composed of duly designated representatives of the same member agencies, with a rank of Undersecretary or its equivalent. Unless the Committees resolve otherwise, the existing technical committees under the NEDA Board Inter-Agency Committees shall be retained.

Each Committee shall formulate its respective rules and regulations, which shall govern procedures before its respective bodies, in accordance with applicable laws.

Section 26. Meetings

The ED Council shall regularly meet, at least on a quarterly basis or as frequently as necessary. A special meeting of the ED Council may be convened by the President to address urgent concerns, emergencies, and other extraordinary circumstances. In cases where the President is unable to attend, the Secretary of the DEPDev shall preside unless the President designates another ED Council member to preside over such meeting. All decisions reached by the ED Council in a meeting presided by an official other than the President shall require the latter's concurrence.

The DEPDev shall maintain and preserve a complete record of the proceedings and deliberations of the ED Council, including the recordings and transcripts, either in their original form or in any secure format made available by existing technology.

Section 27. Development Budget Coordination Committee (DBCC)

The DBCC shall be composed of the the Secretaries of the DBM, DEPDev, DOF, and the Executive Secretary. The Governor of the BSP or a duly authorized representative shall sit in the meetings of the DBCC as a resource person.

The Secretaries of the DBM and the DEPDev shall serve as the chairperson and vice chairperson of the DBCC, respectively.

The DBCC shall have the following functions:

(a)Recommend for final approval of the President of the Philippines:

(1)The level of annual government expenditures and the ceiling of government spending for economic, social and general public services, national defense, and debt service;

(2)The budget to be allocated for current operating expenditures and capital outlays of government programs and projects;

(3)Level of the NG counterpart budget in the NG-LGU cost sharing initiatives to augment resources for DEPDev goals and as described in Section 12 of this Act;

(4)A strategic multi-year fiscal program which supports the long-term and medium-term development objectives of the country; and (5) A domestic and foreign borrowing program for general financing and development purposes; and (b) Conduct periodic reviews of fiscal and macroeconomic targets, as well and the revenue and expenditure projections of the government, including general examination of costs, accomplishments, and performance standards applied in undertaking development projects. The DBM shall serve as the Secretariat to the DBCC.

Section 28. Economic Development Committee (EDCom)

The EDCom shall be composed of the Secretaries of the DA, DBM, DEPDev, Department of Information and Communications Technology (DICT), DILG, DOE, DOF, DOLE, DOST, Department of Tourism (DOT), DOTr, DPWH, and DTI, and a representative designated by the Office of the President. The Governor of the BSP or a duly authorized representative shall sit in the meetings of the EDCom as a resource person.

The Secretaries of the DEPDev and the DOF shall serve as chairperson and vice chairperson of the EDCom, respectively.

The EDCom shall be responsible for harmonizing, coordinating, complementing, and synergizing efforts to ensure the country's rapid, inclusive, and sustained growth. For this purpose, the EDCom shall perform the following functions:

(a)Promote an environment conducive to the growth and competitiveness of private enterprises and the creation of jobs that will empower and provide people with opportunities to rise above poverty;

(b)Improve farms and rural enterprises, as well as trade policies vital to achieving food security and more equitable economic growth;

(c)Mitigate inflation and ensure food and energy security while balancing the interest of producers, consumers, and the economy;

(d)Undertake research and development that are relevant to and supportive of the requirements of micro,-, small-, and medium-enterprises (MSMEs) and for national industries;

(e)Improve national productivity and competitiveness of domestic products and services; and (f) Ensure deep and wide distribution of economic opportunities and benefits to the Filipino people. The EDCom may, as necessary, call upon any government institution or invite LGUs and representatives from the private sector to provide assistance in attaining its objectives.

To avoid duplication of efforts and forum shopping, the EDCom shall defer to the ED Council on matters within the primary purpose of the latter and its other inter-agency committees pursuant to this Act.

The DEPDEv shall serve as the Secretariat to the EDCom.

A sub-Committee on Inflation Monitoring and Market Outlook shall be established under the EDCom. The Sub-Committee shall serve as an advisory body to the EDCom on measures that will keep inflation within the government's inflation targets.

Section 29. Infrastructure Development Committee (InfraCom)

The InfraCom shall be composed of the Secretaries of the DA, DBM, Department of Environment and Natural Resources (DENR), DEPDev, DHSUD, DICT, DILG, DOE, DOF, DOT, DOTr, DPWH, and DTi, and the Executive Secretary.

The Secretaries of the DPWH and the DEPDev shall serve as co-chairpersons of the InfraCom.

The InfraCom shall have the following functions:

(a)Recommend to the President an efficient, enduring, and resilient national infrastructure development strategy, and necessary government policies, programs, and projects concerning infrastructure development, consistent with national development objectives and priorities;

(b)Review and approve infrastructure master plans of national significance for subsequent endorsement to and confirmation by the ED Council;

(c)Advise the President of the Philippines and the ED Council on all matters concerning infrastructure development; and (d) Coordinate the activities of agencies, including government-owned and -controlled corporations (GOCCs) involved in infrastructure development.

Section 30. Investment Coordination Committee (ICC)

The ICC shall be composed of the Secretaries of the DBM, DEPDev, DOE, DOF, DTI, and the Executive Secretary. The Governor of the BSP or a duly authorized representative shall sit in the meetings of the ICC as a resource person.

The Secretaries of the DOF and the DEPDev shall serve as co-chairpersons of the ICC.

The ICC shall have the following functions:

(a)Ensure the efficient and effective evaluation of the country's major capital programs and projects by determining levels of acceptability and viability relative to overall economic and fiscal conditions of the country;

(b)Recommend for the approval by the President or the ED Council as the case may be:

(1)The timetable of the implementation of major capital programs and projects on a regular basis;

(2)PPPs and other modalities of development financing in support of long-term programs and projects for the national and local government, and GOCCs, in accordance with relevant laws; and (3) Specific major programs and projects found viable in terms of economic and social benefits;

(c)Submit to the President a status of the fiscal, monetary, and balance of payment implications of major capital and infrastructure programs and projects; and (d) Advise the President on matter related to the domestic and foreign borrowings program in relation to major capital and infrastructure projects requiring approval by the ICC.

Section 31. Social Development Committee (SDC)

The SDC shall be composed of the Secretaries of the DA, DBM, DEPDev, DepEd, DICT, DOLE, DHSUD, DILG, DSWD, DOH, and Department of Migrant Workers (DMW), the Chairperson of the Commission on Higher Education (CHED), and the Executive Secretary.

The Secretaries of the DOLE and the DEPDev shall serve as co-chairpersons of the SDC.

The SCD shall have the following functions:

(a)Recommend for final approval of the ED Council, appropriate policies, programs, and projects on social development, including education, human resources, health and nutrition, population and family planning, social protection, housing human settlements, Overseas Filipino Workers, and other vulnerable sectors;

(b)Coordinate the activities of government agencies concerned with social development; and (c) Advise the President and the ED Council on matters concerning social development and the delivery of social services.

Section 32. Tariff and Related Matters Committee (TRMC)

The TRMC shall be composed of the Secretaries of the DA, DBM, DEPDev, DFA, DICT, DOF, DOLE, and DTI, the Executive Secretary, the Chairpersons of the TC and the Philippine Competition Commission, and the Governor of the BSP.

The Secretaries of the DTI and the DEPDev shall serve as co-chairpersons of the TRMC.

The TRMC shall have the following functions:

(a)Recommend to the President a traded and tariff rationalization policy that supports the attainment of the country's socio-economic objectives;

(b)Advise the President and the ED Council on tariff and non-tariff matters, including possible effects of international developments on trade to ensure that trade policy is consistent with the country's development goals and utilized as a tool towards efficiency, streamlining, and competitiveness; and (c) Recommend the implementation of national positions for bilateral, regional, and multilateral economic negotiations on trade in goods and services.

Section 33. National Land Use Committee (NLUC)

The NLUC shall be composed of the Secretaries of the DA, DAR, DEPDev, DENR, DHSUD, DILG, and DPWH, the Executive Secretary, and one (1) representative of the Union of Local Authorities of the Philippines.

The Secretary of the DEPDev shall serve as the chairperson of the NLUC.

The NLUC shall have the following functions:

(a)Advise the President and the ED Council on matters concerning land use and physical planning;

(b)Integrate and harmonize guidelines and policies relevant to land use and spatial planning;

(c)Recommend for final approval of the ED Council the national and subnational framework for physical planning;

(d)Endorse and provide technical support to the Department of Justice for the resolution of region-specific land use and spatial planning policy disputes and controversies among government agencies;

(e)Formulate the National Framework for Physical Planning (NFPP), shepherd the preparation of subnational spatial development and physical frameworks, and come up with other inter-sectoral policies and programs that guide the rational use and management of the country's land and other physical resources. The NFPP shall have a timeframe of thirty (30) years with regular review and updating every ten (10) years;

(f)Promote and ensure the integration of land use and spatial planning policies, plans, and programs, including disaster risk management and climate change adaptation and mitigation, into national and subnational socio-economic plans and programs;

(g)Coordinate the establishment of an up-to-date, interoperable, and accessible national database system which shall identify and classify the present and possible uses of specific land resources; and (h) Periodically assess the impacts or effects of land use policies which have been adopted and implemented.

Section 34. Regional Development Committee (RDCom)

The RDCom shall shall be composed of the Secretaries of the DBM, DEPDev, and DILG, the Executive Secretary, three (3) RDC Area Committee chairpersons representing Luzon, Visayas, and Mindanao, and three (3) regional development experts from the private sector or academe representing Luzon, Visayas, and Mindanao.

The RDCom Area Committees for Luzon, Visayas, and Mindanao shall be created to assist the RDCom in the performance of its functions. The RDCom Area Committees shall serve as the clearing house for interregional concerns to be elevated to the RDCom.

The RDCom Area Committees shall be composed of the RDC chairpersons and co-chairpersons of their respective island groups: Provided, That the Chairperson of the Metro Manila Council shall be part of the Luzon RDC Area Committee, and the Chairperson of the Bangsamoro Economic Development Council of the Bangsamoro Autonomous Region in Muslim Mindanao shall be part of the Mindanao RDC Area Committee.

The RDCom Area Committee members shall select from among themselves their chairperson and co-chairperson. The three (3) RDCom Area Committees shall represent their respective island groups in the RDCom.

The Secretary of the DEPDev shall serve as the chairperson of the RDCom.

The RDCom shall have the following functions:

(a)Formulate and monitor the implementation of policies that reduce regional development disparities;

(b)Serve as the clearing house for key regional development policy and program proposals which impact on two (2) or more regions;

(c)Formulate and monitor the implementation of the framework for regional development of the PDP;

(d)Promote equitable allocation of resources among regions by providing recommendations to the DBCC on the guidelines for the regional allocation of budgetary resources;

(e)Periodically review the viability of the regional configuration of the country, and recommend to the ED Council the re-delineation of regions, as necessary; and (f) Periodically review the composition, structure, and operating mechanism of the RDCs and recommend necessary changes to the President.

Section 35. Full Disclosure Rule

In addition to the requirements of Republic Act No. 6713, otherwise known as the "Code of Conduct and Ethical Standards for Public Officials and Employees", any member of the ED Council or its Committees, with a personal and pecuniary interest in any matter in the agenda of any meeting, shall disclose such interest to the ED Council and shall inhibit from such meeting when the matter is taken up. The minutes of the meeting shall reflect the disclosure made and the inhibition of the member concerned from the meeting. The decision taken on the matter shall be made public.

Section 36. Regional Development Council (RDC)

Without prejudice to the powers vested in the President by Article X, Section 14 of the 1987 Philippine Constitution, the RDCs, established pursuant to Executive Order No. 325, series of1996, shall continue to operate and shall be the regional counterparts of the ED Council. To strengthen the linkage between national and subnational planning, budgeting, and investment programming, and to accelerate the economic and social development of the regions, the RDCs shall be vested with the following powers and functions:

(a)Coordinate and lead the preparation, implementation, monitoring, and evaluation of the RDPs, regional physical plans or regional spatial development frameworks, RDIPs and special development plans, including the formulation of policy recommendations;

(b)Review and integrate into the RDP the relevant features of approved development plans of provinces and highly urbanized and independent component cities, line agencies, SUCs, GOCCs, and special development authorities in the region;

(c)Implement an action agenda to operationalize the RDPs at the local level;

(d)Review and prioritize PAPs that support the RDP, as contained in the RDIP, and endorse to the national government those requiring funding support;

(e)Review and endorse to the national government the annual budgets of government agencies or instrumentalities in the region, such as, but not limited to, agency regional offices, SUCs, and special development authorities;

(f)Promote and direct the inflow and allocation of private investments in the region to support regional development objectives, policies, and strategies;

(g)Review and endorse national plans, programs, and projects proposed for implementation in the regions;

(h)As may be required by the ICC or by existing laws, rules, and regulations, review and endorse projects of national government agencies and those of LGUs requiring national government financial exposure which may come in the form of guarantee, or national government budget appropriations or subsidies, among others;

(i)Initiate and coordinate the identification and formulation of priority inter-LGU and special development projects, and oversee their implementation in coordination with the concerned agencies and LGUs;

(j)Coordinate and lead the monitoring and evaluation of major projects undertaken by national government agencies, GOCCs, and special development authorities, as well as LGU projects funded by the national government;

(k)Review and approve masterplans, such as those for metropolitan areas and river basins;

(l)Pursue capacity building of LGUs on socio-economic planning, investment programming, project development, and monitoring and evaluation; and (m) Perform other related functions and activities necessary to promote and sustain the socio-economic development of the regions. Each RDC shall be composed of:

(1)Provincial Governors;

(2)City Mayors;

(3)Mayors of municipalities designated as provincial capital;

(4)Provincial chapter presidents of the league of municipalities;

(5)Regional heads of DEPDev, BSP, CHED, DAR, DA, DBM, DepEd, DOE, DENR, DFA, DOF-Bureau of Local Government Finance, DOH, DHSUD, DICT, DILG, DMW, DOLE, DPWH, DOST, DSWD, DOT, DOTr, DTI, Cooperative Development Authority (CDA), National Commission on Indigenous Peoples (NCIP), Office of the Civil Defense (OCD), and Technical Education and Skills Development Authority (TESDA);

(6)Other agencies that the RDCs deem critical to their respective regions; and (7) Private sector representatives who shall comprise one-fourth (1/4) of the regular membership of the RDC. The President shall appoint the chairperson and co-chairperson of each RDC. The RDC, through a majority of its members, shall nominate at least two (2) local chief executives who are ex officio members and two (2) private sector representatives from whom the President shall select and appoint the RDC chairperson and co-chairperson: Provided, That if the chairperson is from the government sector, the co-chairperson shall be selected from the private sector; and if the chairperson is from the private sector, the co-chairperson shall be selected from the government sector.

Regional directors of national government agencies in the region shall not be included in the selection of nominees for chairperson and co-chairperson.

The President may appoint a chairperson and co-chairperson who is not among the nominees of the RDC but is a permanent member of the RDC: Provided, That if the chairperson is from the government sector, the co-chairperson shall be selected from the private sector, the co-chairperson shall be selected from the private sector; and if the chairperson is from the private sector, the co-chairperson is from the private sector, the co-chairperson shall be selected from the government sector.

The DEPDev Regional Director shall serve as the ex officio vice chairperson. The Regional Office of the DEPDev shall serve as the Secretariat of the RDC.

Subject to Article X, Section 14 of the 1987 Philippine Constitution, the President of the Philippines may revise the membership and composition of the RDCs whenever necessary for the effective performance of their functions.

ARTICLE V TRANSITORY AND OTHER MISCELLANEOUS PROVISIONS

Section 37. Transitory Provision

The DEPDev shall, by virtue of this Act, be subrogated to all the rights and assume all the liabilities, funds, records, properties, assets, equipment, necessary personnel, and unexpended appropriations or allocations of the NEDA.

All contracts and liabilities of the NEDA are hereby transferred to and assumed by the DEPDev and shall be elected upon in accordance with Presidential Decree No. 1445, otherwise known as the "Government Auditing Code of the Philippines", as amended, and other pertinent laws, rules, and regulations.

Subject to the succeeding section, all current officials and employees of the NEDA shall enjoy security of tenure and be retained under and absorbed by the DEPDev, in accordance with the staffing pattern and the selection process as prescribed under Republic Act No. 6656, or the "Government Reorganization Law". Current officials and employees of the NEDA shall continue to draw their salaries, benefits, and other emoluments from the appropriations of the NEDA until the corresponding funds shall have been appropriated and released to the DEPDEv no later than one (1) year from the effectivity of this Act.

Any reference to the NEDA, its Director-General, Secretary, or the NEDA Board in any existing law, executive order, administrative order, presidential proclamation, rules and regulations, and other issuance related to the mandate of the DEPDev, shall hereafter refer to the DEPDev, the DEPDev Secretary, and the ED Council, respectively.

All programs and projects submitted to the NEDA for appraisal or those endorsed by the current ICC for the approval of the NEDA Board prior to the effectivity of this Act shall be subject to the prevailing procedure under laws, rules and regulations, guidelines, and issuances at the time these were submitted to the NEDA, or endorsed to the ICC, as the case may be.

The President may retain the incumbent Secretary of the NEDA as the Secretary of DEPDev, without need of a new appointment, in line with the authority of the President under Article VII, Section 16 of the 1987 Philippine Constitution to nominate and appoint a new Secretary.

Section 38. Separation and Retirement from Service of Employees of NEDA

The NEDA employees who are separated from service as a result of the reorganization under the provisions of this Act shall receive separation benefits which they may be entitled to under existing laws: Provided, That those who are qualified to retire under existing retirement laws shall be allowed to retire and receive retirement benefits, which they may be entitled to under applicable laws and issuances.

Section 39

Appropriations, - The amount necessary to cover the initial implementation of this Act shall be charged against the current year's appropriations of the NEDA. Thereafter, such sums as may be necessary for the effective and continuous implementation of this Act shall be included in the annual GAA.

Section 40. Implementing Rules and Regulations

Within sixty (60) days from the effectivity of this Act, the DEPDev shall promulgate the rules and regulations necessary for the proper implementation of its provisions. The implementing rules and regulations shall take effect fifteen (15) days after the completion of its publication in two (2) newspapers of general circulation. Within three (3) days from its effectivity date, three (3) certified copies of the published implementing rules and regulations shall be furnished to the University of the Philippines Law Center pursuant to Book VII, Chapter 2, Section 3 of Executive Order No. 292, otherwise known as the "Administrative Code of 1987", as amended.

Section 41. Separability Clause

If any provision or portion of this Act is declared unconstitutional, the remainder of this Act, or any provision not thereby affected shall remain in full force and effect.

Section 42. Repealing Clause

Executive Order No. 230, series of 1987; Chapter 1, 2, 3, and 4, Subtitle C, Title II, Book V of Executive Order No. 292, series of 1987; Executive Order No. 257, series of 2003; Executive Orders No. 770 and 770-A, series of 2008; and Sections 1 and 2 of Executive Order No. 28, series of 2023, are hereby repealed. All laws, decrees, executive orders, ordinances, rules, regulations, and other issuances, or parts thereof, which are inconsistent with any provision of this Act, are hereby repealed, amended, or modified accordingly.

Section 43. Effectivity

This Act shall take effect after fifteen (15) days following the completion of its publication in the Official Gazette or in a newspaper of general circulation.

Approved,

| (SGD.) FERDINAND MARTIN G. ROMUALDEZ Speaker of the House of Representatives | (SGD.) FRANCIS "CHIZ" G. ESCUDERO President of the Senate |

This Act, which is a consolidation of Senate Bill No. 2878 and House Bill No. 11199, was passed by the Senate of the Philippines and the House of Representatives on January 27, 2025.

REGINALD S. VELASCO

Secretary General House of Representatives

RENATO N. BANTUG, JR.

Secretary of the Senate

Approved: APR 10 2025

FERDINAND ROMUALDEZ MARCOS JR.

President of the Philippines

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.

In plain language