Title
Reorganization of National Economic and Development Authority
Law
Executive Order No. 230
Decision Date
Jul 22, 1987
Corazon C. Aquino's Executive Order No. 230 reorganizes the National Economic and Development Authority to enhance its capacity for coordinated development planning and policy formulation aimed at achieving sustainable economic growth and equitable income distribution.
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Purpose and Necessity of Reorganization

  • Enhance NEDA's ability to coordinate development planning and policy formulation.
  • Achieve sustainable economic growth with equitable income and wealth distribution.
  • Reorganization mandated under the Provisional and 1987 Constitution provisions.

Structural and Functional Reorganization

  • NEDA reorganized structurally and functionally as per the Executive Order.

Composition of NEDA

  • Composed of two separate entities: the NEDA Board and the Secretariat.

Composition of the NEDA Board

  • Chaired by the President of the Philippines.
  • Members include Director-General of NEDA Secretariat, Executive Secretary, and Secretaries of key government departments (Finance, Trade & Industry, Agriculture, Environment & Natural Resources, Public Works and Highways, Budget and Management, Labor & Employment, Local Government).
  • President may revise membership through administrative or memorandum orders.
  • Board meets at least monthly or as needed.
  • In President's absence, the Director-General may preside or another designated member.

Powers and Functions of the NEDA Board

  • Authority to formulate coordinated, integrated social and economic policies, plans, and programs.
  • Based on principles of growth with equity, multisectoral coordination, and participatory consultation.
  • National plans must reflect regional/local targets and priorities.
  • All government socio-economic policies/plans must be coordinated with NEDA before adoption.
  • Strong linkage between development planning, programming, and budgeting.
  • Responsible for formulating medium and annual public investment programs, programming foreign aid, and monitoring plan implementation.

Inter-agency Committees under NEDA Board

  • Created to assist in board functions; submit recommendations to the President.
  • Chairpersons designated by the President.

Development Budget Coordination Committee (DBCC)

  • Members: NEDA Director-General, Executive Secretary, Secretaries of Finance, Budget and Management.
  • Functions: Recommend levels and allocation of annual government expenditures including economic/social development and debt service.

Investment Coordination Committee (ICC)

  • Members: NEDA Director-General, Executive Secretary, Secretaries of Finance, Agriculture, Trade & Industry, Budget and Management, and Central Bank Governor.
  • Functions: Evaluate fiscal, monetary, balance of payments impact of projects; recommend project implementation timetables; annual domestic and foreign borrowing programs.

Committee on Social Development (SDC)

  • Members: NEDA Director-General, Executive Secretary, Secretaries of Education, Labor, Health, Local Government, Agrarian Reform, Agriculture, Social Welfare.
  • Functions: Advise on social development policies; coordinate concerned agencies; recommend policies consistent with national objectives.

Committee on Infrastructure (INFRACOM)

  • Members: NEDA Director-General, Executive Secretary, Secretaries of Public Works, Transportation, Finance, Budget and Management.
  • Functions: Advise on infrastructure development matters; coordinate agencies; recommend related policies.

Committee on Tariff and Related Matters (TRM)

  • Members: NEDA Director-General, Executive Secretary, Secretaries of Trade, Foreign Affairs, Agriculture, Environment, Budget and Management, Central Bank Governor, Tariff Commission Chairman.
  • Functions: Advise on tariff issues; coordinate national positions for international negotiations; recommend tariff rationalization.

NEDA Secretariat

  • Technical staff arm of NEDA Board.
  • Conduct studies, policy formulation, plan monitoring, and evaluation.
  • Acts as Secretariat of the NEDA Board.
  • Performs other functions assigned by the Board.

Director-General

  • Head of the NEDA Secretariat and Vice Chairman of NEDA Board.
  • Appointed by the President; holds rank of Secretary of Socio-Economic Planning and Cabinet member.
  • Exercises supervision/control over Secretariat personnel.

Deputy Directors-General

  • Three deputies appointed by the President.
  • Responsible respectively for National Development, Regional Development Office, and Central Support Office.

Assistant Directors-General

  • Five appointed by the President to assist deputy directors in supervising respective offices.

Structural Organization of Secretariat

  • Comprises Office of Director-General, Deputy Directors-General, Assistant Directors-General, National Development Office, Regional Development Office, Central Support Office, and Regional Offices.

National Development Office

  • Supports NEDA Board in national/sectoral policy coordination.
  • Monitors macroeconomic and sectoral performance.
  • Conducts economic reports and studies.
  • Composed of staff units focused on Agriculture, Trade/Industry/Utilities, Infrastructure, Social Development, Public Investment.

Regional Development Office

  • Supports regional implementing agencies.
  • Monitors regional and inter-regional development policies.
  • Prepares integrated reports on regional development.
  • Composed of Regional Development Coordination Staff and Project Monitoring Staff; director appointed by President.

Central Support Office

  • Provides technical assistance and support services (development administration, management improvement, legal services, information, and administrative services).
  • Composed of Management, Legal, Administrative, Management Information Systems, and Development Information Staff.

Attached and Retained Agencies

  • Philippine Institute for Development Studies, Philippine National Volunteer Service Coordinating Agency, Tariff Commission remain attached for supervision.
  • Functions of these agencies to be transferred to Regional Development Councils or appropriate agencies.
  • National Council for Integrated Area Development and Central Visayas Regional Projects Office transferred to NEDA, with plans for reassignment within one year.
  • NEDA to review and recommend disposition of other integrated area development programs and development authorities including possible charter revisions.

Transitory Provisions

  • Transfer of government units includes functions, personnel, assets, funds, and liabilities.
  • Personnel continue in hold-over capacity receiving salaries/benefits pending new structure.
  • Personnel positions not included in new structure are separated with benefits.
  • Transfer of functions without unit abolition entails transfer of related assets, personnel, and funds; residual assets/funds revert to General Fund according to law.

New Position Structure and Staffing Pattern

  • Officers and employees continue in hold-over capacity until new structure is approved.
  • Director-General to prepare new structure within 120 days.
  • Positions created to be filled by regular appointments.
  • Incumbents not included or not reappointed deemed separated with retirement or separation benefits.

Prohibition on Unauthorized Changes

  • Any change in reorganization requires prior approval of the President to ensure efficiency and effectiveness.

Funding

  • Funds for implementation drawn from existing Authority funds.

Implementing Authority

  • Director-General empowered to issue rules and regulations for implementation.

Separability Clause

  • Unconstitutional provisions do not invalidate other provisions if they remain effective.

Repealing Clause

  • Conflicting laws, rules, ordinances or issuances are repealed or modified accordingly.

Effectivity

  • Executive Order takes effect immediately upon approval.

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