Reorganization of National Economic and Development Authority

Policy, purpose, and constitutional basis

Executive Order No. 230 directs the reorganization of the National Economic and Development Authority (NEDA) to enhance its capacity to coordinate development planning and policy formulation.
The reorganization is intended to achieve sustainable economic growth together with an equitable distribution of income and wealth.
Executive Order No. 230 frames continuing government reorganization as consistent with Article XVIII of the 1987 Constitution.
The stated constitutional premise includes the President’s continued exercise of legislative powers until the first Congress is convened under Article XVIII, Section 6 of the 1987 Constitution.

Core structure: Board and Secretariat

Section 2 reorganizes NEDA structurally and functionally.
Section 3 splits the NEDA organization into two separate and distinct entities: the Board and the Secretariat.
Section 5 provides that the powers and functions of the Authority reside in the NEDA Board.
The Secretariat serves as the technical and administrative arm and the secretariat to the NEDA Board under Sections 7 and 8.

NEDA Board composition and meetings

Section 4 establishes that the NEDA Board is composed of a Chairman and Members.
The President is the Chairman of the NEDA Board under Section 4.
The Director-General of the NEDA Secretariat is a Member under Section 4.
The Executive Secretary is a Member under Section 4.
The Secretaries of the following departments are Members under Section 4:
- Secretary of Finance
- Secretary of Trade & Industry
- Secretary of Agriculture
- Secretary of Environment & Natural Resources
- Secretary of Public Works and Highways
- Secretary of Budget and Management
- Secretary of Labor & Employment
- Secretary of Local Government
The President may revise Board membership whenever necessary for effective performance through an administrative or memorandum order under Section 4.
The NEDA Board must meet at least once a month or more frequently as necessary under Section 4.
If the President is unable to attend, the Director-General may preside as Chairman in the absence of any presidential preference under Section 4.
The President retains power to designate, from among Board members, a Chairman to represent the President and preside over specific meetings under Section 4.

Powers and planning responsibilities

Section 5 declares that the Authority’s substantive responsibility is to formulate continuing, coordinated and fully integrated social and economic policies, plans and programs.
Under Section 5, the Authority’s policy formulation is based on these framework commitments:
- The state aims to achieve growth coupled with equity.
- Development toward these goals is multi-faceted and requires coordination and integration of policies, plans, programs, and projects across all sectors.
- Policy and plan formulation must include maximum participation through consultation with private sector groups, community organizations and beneficiaries, and local government units to incorporate priority needs.
- National plans must be the sum of nationality and regionally identified targets and strategies, with locally formulated approaches to local needs within the framework of national strategies.
- Major socio-economic policies, plans, programs, and projects of government agencies must be coordinated with the Authority at both national and regional levels prior to adoption to ensure consistency with national priorities and coordination with other government policies and programs.
- The linkage between development planning, programming and budgeting is a highest priority in planning and budgeting activities.
Under Section 5, after due consultation, the Authority must coordinate the formulation of:
- continuing, integrated socio-economic development plans, policies and programs
- annual and medium-term public investment programs
- programming of official development assistance in the form of grants and concessional loans from foreign governments and multilateral agencies and organizations
- monitoring and evaluation of plan implementation.
Section 5 requires coordination of socio-economic policies, plans, programs, and projects to ensure their consistency with national priorities before adoption.

Inter-agency committees under NEDA Board

Section 6 creates inter-agency committees to assist the NEDA Board in performing its functions.
Under Section 6, these committees are under the direct control of the NEDA Board and must submit recommendations to the President for approval on matters within their concerns.
The Chairman of each committee is designated by the President under Section 6.
The NEDA Board determines where the technical staff of the committees are based under Section 6.
Development Budget Coordination Committee (DBCC) under Section 6(a):
- Is composed of the Director-General of the NEDA Secretariat, the Executive Secretary, and the Secretaries of Finance and Budget Management.
- Recommends to the President for approval the level of the annual government expenditure program and the ceiling of government spending for:
  - economic and social development
  - national defense
  - general government
  - debt service
- Recommends proper allocation of expenditures between current operating expenditures and capital outlay for each development activity.
- Recommends the amount allocated for capital outlay under each development activity for various capital or infrastructure projects.
Investment Coordination Committee (ICC) under Section 6(b):
- Is composed of the Director-General, the Executive Secretary, the Secretaries of Finance, Agriculture, Trade and Industry, and Budget Management, and the Governor of the Central Bank.
- Evaluates fiscal, monetary, and balance of payments implications of major national projects and recommends to the President the timetable of implementation on a regular basis.
- Recommends to the President a domestic and foreign borrowing program updated each year, and later submits a status update on fiscal, monetary, and balance of payments implications of major national projects.
Committee on Social Development (SDC) under Section 6(c):
- Is composed of the Director-General, the Executive Secretary, and the Secretaries of Education, Culture and Sports, Labor and Employment, Health, Local Government, Agrarian Reform, Agriculture, and Social Welfare and Development.
- Advises the President and the NEDA Board on social development matters including education, manpower, health and nutrition, population and family planning, housing, human settlements, and other social services.
- Coordinates activities of government agencies concerned with social development.
- Recommends to the President policies, programs, and projects on social development consistent with national development objectives and priorities.
Committee on Infrastructure (INFRACOM) under Section 6(d):
- Is composed of the Director-General, the Executive Secretary, and the Secretaries of Public Works and Highways, Transportation and Communications, Finance, and Budget and Management.
- Advises the President and the NEDA Board on infrastructure development including highways, airports, seaports and shore protection; railway; power generation, transmission and distribution; telecommunications; irrigation; flood control and drainage; water supply; national buildings for government offices; hospitals, sanitation and related buildings; state colleges and universities; elementary and secondary school buildings; and other public works.
- Coordinates activities of agencies including government-owned or controlled corporations concerned with infrastructure development.
- Recommends to the President policies, programs, and projects concerning infrastructure development consistent with national development objectives and priorities.
Committee on Tariff and Related Matters (TRM) under Section 6(e):
- Is composed of the Director-General, the Executive Secretary, the Secretaries of Trade and Industry, Foreign Affairs, Agriculture, Environment and Natural Resources, and Budget and Management, the Governor of the Central Bank, and the Chairman of the Tariff Commission.
- Advises the President and the NEDA Board on tariff and related matters and on effects on the country of various international developments.
- Coordinates agency positions and recommends national positions for international economic negotiations.
- Recommends to the President a continuous rationalization program for the country’s tariff structure.

NEDA Secretariat creation and functions

Section 7 creates a Technical Staff as part of the NEDA Secretariat.
Under Section 7(a), the Technical Staff serves as the research and technical support arm of the NEDA Board.
Under Section 7(b), it provides technical support for studies and development of policy measures and recommendations related to development planning and policy formulation, including coordination, evaluation, and monitoring of plan implementation.
Under Section 7(c), it serves as the Secretariat of the NEDA Board.
Under Section 7(d), it performs other functions assigned by the NEDA Board to achieve its goals and objectives.

Director-General and management hierarchy

Section 8 provides that the NEDA Secretariat is headed by a Director-General who is the Vice Chairman of the NEDA Board.
The Director-General is the technical and administrative head of the Secretariat and is appointed by the President under Section 8.
The Director-General carries the rank and title of Secretary of Socio-Economic Planning and is a member of the Cabinet under Section 8.
As chief executive officer, the Director-General exercises general supervision and control over technical and administrative personnel under Section 8.
Section 9 provides for three (3) Deputy Directors-General, each appointed by the President:
- one responsible for National Development
- one responsible for Regional Development Office
- one responsible for Central Support Office
Section 10 provides for five (5) Assistant Directors-General, appointed by the President, to assist the Deputy Directors-General in coordinating and supervising their offices.

Secretariat offices and internal units

Section 11 provides that the NEDA Secretariat consists of the Office of the Director-General, Deputy Directors-General, Assistant Directors-General, plus:
- National Development Office
- Regional Development Office
- Central Support Office
- Regional Offices
Section 12 defines the National Development Office functions as:
- providing technical staff support for coordinating formulation of national and sectoral policies, plans and programs
- monitoring macroeconomic and sectoral performance
- preparing economic reports
- conducting economic and development studies on macro-level plans and policies
- performing other planning tasks assigned by the Director-General
Section 12 creates specific National Development Office staffing groups:
- National Planning and Policy Staff
  - Agriculture Staff
  - Trade, Industry and Utilities Staff
  - Infrastructure Staff
  - Social Development Staff
  - Public Investment Staff
Section 13 defines the Regional Development Office functions as:
- providing technical staff support required by implementing agencies in regions
- monitoring regional and inter-regional development policies, plans and programs
- preparing integrated reports on regional development policies
- performing other planning tasks assigned by the Director-General
Section 13 establishes staffing groups within the Regional Development Office:
- Regional Development Coordination Staff
- Project Monitoring Staff
- and a Director appointed by the President
Section 14 defines the Central Support Office functions as providing technical assistance and support services on:
- development administration
- internal management improvement
- legal services
- development information
- administrative services
- and other support service tasks assigned by the Director-General
Section 14 establishes staffing groups within the Central Support Office:
- Management Staff
- Legal Staff
- Administrative Staff
- Management Information Systems Staff
- Development Information Staff

Attached agencies, transfers, and review

Section 15 states that the following agencies already attached to the Authority continue to be attached for purposes of supervision:
- Philippine Institute for Development Studies
- Philippine National Volunteer Service Coordinating Agency
- Tariff Commission
Section 15 provides that the Authority must arrange transfer of functions of the following agencies to Regional Development Councils or other appropriate agencies:
- Philippine Institute for Development Studies
- Philippine National Volunteer Service Coordinating Agency
- Tariff Commission
Section 15 transfers the National Council for Integrated Area Development (NACIAD) and the Central Visayas Regional Projects Office (CVRPO) to the Authority.
Under Section 15, the Authority must, within one (1) year from the date of effectivity of Executive Order No. 230, recommend transfer of NACIAD and CVRPO to the appropriate department in conjunction with the Department of Budget and Management.
Section 15 requires the Authority to review functions and activities of other Integrated Area Development programs and projects and other programs requiring multi-sectoral and/or multi-disciplinary approaches to recommend appropriate disposition and supervision.
Section 15 further requires the Authority to review the mandate, objectives, and functions of all development authorities to recommend dispositions or revisions of their charters as organic laws when advisable.

Transitory provisions and separation benefits

Section 16 applies transitory compliance rules for acts of reorganization unless otherwise provided in the Executive Order.
Under Section 16(a), transfer of a government unit includes transfer of:
- functions
- appropriations, funds, records, equipment, facilities
- choses in action
- rights and other assets
- liabilities, if any
- and personnel necessary for continued performance in a hold-over capacity, with continued receipt of corresponding salaries and benefits.
Under Section 16(a), personnel of a transferred unit whose positions are not included in the Authority’s approved new position structure and staffing pattern (approved and prescribed by the Director-General) or who are reappointed are deemed separated from the service.
Under Section 16(a), separated personnel are entitled to the benefits provided in the second paragraph of Section 17.
Under Section 16(b), transfer of functions that does not abolish the unit includes transfer of appropriations, funds, records, equipment, facilities, choses in action, rights, other assets, and personnel necessary for proper discharge of the transferred functions.
Under Section 16(b), if a unit is abolished:
- its remaining appropriations and funds revert to the General Fund
- its remaining assets revert to the General Fund
- remaining assets are allocated to appropriate units as the Director-General determines, or disposed in accordance with the Government Auditing Code and other pertinent laws, rules, and regulations
- its personnel in hold-over capacity continue receiving salaries and benefits
Under Section 16(b), personnel whose positions are not included in the new position structure and staffing pattern approved under Section 17, or who are not reappointed, are deemed separated and entitled to the benefits under the second paragraph of Section 17.

New staffing pattern; separation pay limits

Section 17 provides that, upon approval of the Executive Order, Secretariat officers and employees continue in a hold-over capacity, performing duties and receiving salaries and benefits.
Section 17 requires the Director-General to prepare the new position structure and staffing pattern within one hundred twenty (120) days from approval.
Section 17 provides that authorized positions created shall be filled with regular appointments by the Director-General or the President as the case may be.
Section 17 provides that incumbents whose positions are not included or who are not reappointed are deemed separated from the service.
Separated persons under Section 17 receive retirement benefits to which they are entitled under existing laws, rules, and regulations.
Under Section 17, otherwise separated personnel are paid an amount equal to one-month basic salary for every year of service or the equivalent nearest fraction thereof, based on the highest salary received.
Under Section 17, the payment is capped: it shall not exceed the equivalent of 12 months of salary.

Validity limits on reorganization changes

Section 18 prohibits changes in the prescribed reorganization unless made with prior approval of the President.
Section 18 restricts such approval to changes intended to promote efficiency and effectiveness in public service delivery.

Funding and implementing rules

Section 19 provides that funds needed to implement the Executive Order are taken from funds available in the Authority.
Section 20 requires the Director-General to issue rules, regulations, and other issuances necessary for efficient and effective implementation.

Separability, repeals, and effectivity

Section 21 provides separability: any unconstitutional portion does not nullify the remaining provisions if the remaining provisions can subsist and be given effect in full.
Section 22 repeals or modifies all inconsistent laws, ordinances, rules, regulations, and other issuances or parts thereof.
Section 23 states effectivity is immediate upon approval.