QuestionsQuestions (EXECUTIVE ORDER NO. 230)
The Executive Order cites (1) Article II, Section 1 of the Provisional Constitution (Proclamation No. 3, March 25, 1986) requiring the President to prioritize measures to reorganize the government, (2) Article XVIII, Section 16 of the 1987 Constitution recognizing continued government reorganization even after ratification, and (3) Article XVIII, Section 6 of the 1987 Constitution allowing the President to continue exercising legislative powers until the first Congress is convened.
It states that the Executive Order shall be known as the “Reorganization Act of the National Economic and Development Authority.”
It provides that NEDA is reorganized structurally and functionally and is composed of two separate and distinct entities: (1) the NEDA Board and (2) the NEDA Secretariat.
The NEDA Board is composed of: the President (Chairman), the Director-General of the NEDA Secretariat (Member), the Executive Secretary, and the Secretaries of Finance, Trade & Industry, Agriculture, Environment & Natural Resources, Public Works and Highways, Budget and Management, Labor & Employment, and Local Government (all Members).
The NEDA Board shall meet at least once a month or more frequently as necessary. If the President is unable to attend, the Director-General may preside as Chairman in the absence of any Presidential preference. The President may also designate a Board member to represent the President in specific meetings.
The Executive Order emphasizes that NEDA’s powers and functions reside in the NEDA Board and that it is primarily responsible for formulating continuing, coordinated, and fully integrated social and economic policies, plans, and programs—anchored on growth with equity, coordination/integration across sectors, and strong linkage between development planning, programming, and budgeting.
It requires “maximum participation” through consultation with concerned private sector groups, community organizations and beneficiaries, and local government units, to ensure priority needs are incorporated into basic policies, plans, programs, and projects.
It requires that such major policies and projects must be properly coordinated with NEDA at both national and regional levels prior to their adoption, to ensure consistency with national priorities and coordination with other policies, plans, programs, and projects.
DBCC assists the NEDA Board. It is composed of the Director-General of the NEDA Secretariat, the Executive Secretary, and the Secretaries of Finance and Budget and Management.
DBCC must recommend for Presidential approval: (i) the level of the annual government expenditure program and the ceiling of spending for specified categories (economic/social development, national defense, general government, debt service); (ii) the proper allocation of expenditures between current operating expenditures and capital outlay; and (iii) the amount allocated for capital outlay under each development activity for various capital/infrastructure projects.
ICC evaluates fiscal, monetary, and balance of payments implications of major national projects and recommends to the President a regular timetable for implementation; it also recommends a domestic and foreign borrowing program updated each year and submits to the President a status of the fiscal, monetary, and balance of payments implications of major national projects.
The Committee on Tariff and Related Matters (TRM) addresses tariff and related matters. Its functions are: (i) advise the President and NEDA Board on tariff and related matters and effects of international developments; (ii) coordinate agency positions and recommend national positions for international economic negotiations; and (iii) recommend a continuous rationalization program for the country’s tariff structure.
The NEDA Secretariat is the technical support and implementing arm serving as research/technical support for the NEDA Board and as its Secretariat. It provides technical staff support through studies and policy recommendations, and performs coordination, evaluation, and monitoring of plan implementation, plus other functions assigned by the NEDA Board.
The Director-General is appointed by the President, is the Vice Chairman of the NEDA Board, carries the rank and title of Secretary of Socio-Economic Planning, and is a member of the Cabinet.
They are: (1) one responsible for National Development, (2) one responsible for the Regional Development Office, and (3) one responsible for the Central Support Office.
Transfer includes functions, appropriations, funds, records, equipment, facilities, choses in action, rights, other assets and liabilities, and the necessary personnel. Transferred personnel continue in a hold-over capacity. Personnel whose positions are not included in the new structure and staffing pattern approved by the Director-General or who are not reappointed are deemed separated and are entitled to benefits under the second paragraph of Section 17.
They continue in a hold-over capacity and receive their salaries and benefits. The Director-General must prepare the new position structure and staffing pattern within 120 days, and authorized positions are filled by regular appointments. Those whose positions are not included or are not reappointed are deemed separated from service and receive retirement benefits under existing laws or, otherwise, receive an amount equivalent to one-month basic salary for every year of service (or nearest fraction), not exceeding 12 months’ salary.
No change in the reorganization prescribed by the Executive Order is valid unless there is prior approval of the President, specifically for the purpose of promoting efficiency and effectiveness in the delivery of public services.
The retained agencies are: (i) Philippine Institute for Development Studies, (ii) Philippine National Volunteer Service Coordinating Agency, and (iii) Tariff Commission. The Executive Order also states that, as to certain agencies, NEDA shall arrange transfer of their functions to the Regional Development Councils concerned or other appropriate agencies—listing the same agencies again—indicating that attachment/supervision continues while functions may be transferred as arranged.