ABOUT NEDA - Legal Mandate

WHEREAS, under Article 11, Section No. 1, of the Provisional Constitution, as adopted in Proclamation No. 3, dated March 25, 1986, the President shall give priority measures to achieve the mandate of the people to completely reorganize the government;

WHEREAS, Article XVIII, Section 16, of the 1987 Constitution, recognizes that the reorganization of the government shall be continued even after the ratification of the Constitution;

WHEREAS, under Article XVIII, Section 6, of the 1987 Constitution, the President shall continue to exercise legislative powers until the first Congress is convened;

WHEREAS, it is necessary to reorganize the National Economic and Development Authority to enhance its ability to coordinate the development planning and policy formulation process, in order to achieve the objectives of sustainable economic growth coupled with an equitable distribution of income and wealth;

NOW, THEREFORE, 1, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the sovereign will of the Filipino people and the Constitution, do hereby order:

Section 1. Title. This Executive Order shall be known as the Reorganization Act of the National Economic and Development Authority

Section 2. Reorganization. The National Economic and Development Authority, hereinafter referredtoastheAuthorityisherebyreorganized, structurally and functionally, in accordance with the provisions of this Executive Order.

Section 3. Composition of the Authority. The Authority shall be composed of two separate and distinct entities: the Board and the Secretariat.

Section 4. Composition of the NEDA Board. The NEDA Board shall be composed of the following:

The President - Chairman
Director-General of the NEDA Secretariat - Vice-Chairman
Executive Secretary - member
Secretary of Finance - member
Secretary of Trade and Industry - member
Secretary of Agriculture - member
Secretary of Environment and Natural Resources - member
Secretary of Public Works and Highways - member
Secretary of Budget and Management - member
Secretary of Labor and Employment - member
Secretary of Local Government - member
The President may, however, revise the membership of the NEDA Board whenever the same is deemed necessary for the effective performance of the Board's functions through an administrative or memorandum order.

The NEDA Board shall meet at least once a month or as frequently as necessary to discharge its responsibilities as called for by the President. In cases where the President is unable to attend a meeting, the Director-Ceneral of the Secretariat may preside as Chairman, in the absence of any Presidential preference.The President, however, continues to have the power to designate from among the members of the NEDA Board the Chairman that can appropriately represent the President, to preside over specific meetings.

Section 5. Powers and Functions of theAuthority. The powers and functions of the Authority reside in the NEDA Board.

The Authority shall primarily be responsible for formulating continuing, coordinated and fully integrated social and economic policies, plans and programs, on the basis of the following:

The State aims to achieve objectives of growth coupled with equity;

Development leading to the attainment of the above mentioned goals is a multi-faceted process that calls for the coordination and integration of policies, plans, programs and projects of all sectors of society;

In the formulation of basic policies,plans, programs and projects, there shall be maximum participation by and consultation with concerned private sector groups, community organizations and beneficiaries and local government units in order'to ensure that priority needs are incorporated into such policies, plans, programs and projects;

National plans shall be in fact the sum of nationally and regionally identified targets and strategies and locally fori-nulated approaches to perceived local needs and priorities, carried out within the framework of national strategies;

Majorsocioccoiioniicpolicies,plans,programs and projects of different government ageiicies must be properly coordinated with the Authority at both the national and regional levels prior to their adoption, in order to ensure their consistency with established national priorities and coordination with other policies, plans, programs and projects of the government; and

The linkage between development planning, programming and budgeting shall be of the highest priority in planning and budgeting activities.

The Authority, after direct consultation with the 16 private sector, community organizations and beneficiaries, local government units and appropriate public agencies, shall be responsible for coordinating the formulation of continuing and integrated socioeconomic development plans, policies and programs, including the formulation of 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, and the monitoring and evaluation of plan implementation.

Section 6. National Economic and Development Authority Inter-Agency Committees. To assist the NEDA Board in the performance of its functions, there are hereby created the following committees which shall hereafter be under the direct control of the NEDA Board and shall submit all their recommendations to the President for approval on matters involving their respective concerns. The Chairman of these committees shall be designated by the President. The NEDA Board shall likewise determine where the technical staff of the said committees shall be based.

Development Budget Coordination Committee (DBCC) - The DBCC to be composed of the Director-General of the National Economic and Development Authority Secretariat, the Executive Secretary and the Secretaries of Finance and of Budget and Management shall have the following functions:

(i)Recommend for Presidential approval the level of the annual government expenditure program and the ceiling of government spending for economic and social development, national defense, general government and debt service;

(ii)Recommend to the President the proper allocation of expenditures for each development activity between current operating expenditures and capital outlay; and

(iii)Recommend to the President the amount set to be allocated for capital outlay under each development activity for the various capital or infrastructure projects.

Investment Coordination Committee (ICC) -The ICC to be composed of the Director-General of the National Economic and Development Authority Secretariat, the Executive Secretary, the Secretaries of Finance, Agriculture, Trade and Industry and of Budget and Management and the Governor of the Central Bank shall have the following functions:

(i)Evaluate the fiscal, rnonetary and balance of payments implications of major national projects and recommend to the President the timetable of the implementation of these projects on a regular basis; and

(ii)Recommend to the President a domestic and foreign borrowing program updated each year, and subsequently submit to the President a status of the fiscal, monetary and balance of payments implications of major national projects.

Committee on Sociail Development (SDC) - The SDC to be composed of the Director-General of the National Economic and Development Authority Secretariat, theexecu tive Secretary, and the Secretaries of Education, Culture and Sports, of Labor and Employment, Health, Local Government, Agrarian Reform, Agriculture and Social Welfare and Development shall have the following functions:

(i)Advise the President and the NEDA Board on matters concerning social development, including education, manpower, health and nutrition, population and family planning, housing, human settlements and the delivery of other social services.

(ii)Coordinate the activities of government agenciesconcerned with social development; and

(iii)Recommend to the President government policies, programs and projects on social development consistent with national development objectives and priorities.

Committee on Infrastructure (INFRACOM) - The INFRACOM, to be composed of the Director-General of the National Economic and Development Authority Secretariat, the Executive Secretary, and the Secretaries of Public Works and Highways, Transportation and Communications, Finance, and Budget and Management, shall have the following functions:

(i)Advise the President and the NEDA Board on matters concerning infrastructure development including highways, airports, seaports and shore protection; railways; power generation, transmission and distribution; telecommunications; irrigation, flood control and drainage water st-.ppiy; national buildings for government offices; hospitals, sanitation and related buildings; state colleges and universities, elementary and secondary school buildings; and other public works;

(ii)Coordinate the activities of agencies i;-.cluding govemment-owiied or controlled corporations concerned with infrastructure development; and

(iii)Recommend to the President government policies, programs and projects concerning infrastructure development consistent with national development objectives and priorities.

Committee on Tariff and Related Matters (TRM) - The TRM to be composed of the Director-Geiieral of the National Economic and Development Authority Secretariat, the Executive Secretary, the Secretaries of Trade and Industry, Foreign Affairs, Agriculture, Environment and Natural !Zesources and of Budget and Management, the Governor of the Central Bank and the Chairman of the Tariff Commission shall have the following functions:

(i) Advise the President and the NEDA Board on Tariff and related matters and on the, effects on the country of various international developments;

(ii) Coordinate agency positions and recommend national positions for international economic negotiations;

(iii) Recommend to the President a continuous rationalization program for the country's Tariff structure;

Section 7. The NEDA Secretariat. There is hereby created a Technical Secretariat which shall have the following powers and functions:

Serve as the research and technical support of the NEDA Board;

Provide through its various organizational units, technical staff support and assistance, including the conduct of studies and development of policy measures and other recommendations, on the various aspects of the substantive functions of development planning and policy formulation, and coordination, evaluation and monitoring of plan implementation;

Serve as the Secretariat of the NEDA Board;

Perform such other functions as may be assigned to it by the NEDA Board to achieve its goals and objectives.

Section 8. Director-General. The NEDA Secretariat shall be headed by the Director-Cencral who shall be the Vice-Chairman of the NEDA Board, hereinafter referred to as the Director-Ceneral, and shall be appointed by the President. The Director-General shall carry the rank and title of Secretary of Socio-Economic Planning and shall be a member of the Cabinet.

As chief executive officer of the NEDA Secretariat, the Director-General shall exercise general supervision and control over its technical and administrative personnel.

Section 9. Deputy Directors-General. The Director-General shall be assisted by three (3) Deputy Directors-General to be appointed by the President, one to be responsible for the National Development Office, one to be responsible for the Regional Development Office and one to be responsible for the Central Support Office.

Section 10. Assistant Directors-General. The Director-General shall also be assisted by five Assistant Directors-General to be appointed by the President, who shall be assigned to assist the Deputy Directors-General in their tasks of coordinating and supervising their respective Offices.

Section 11. Structural Organization. The NEDA Secretariat, in addition to the Offices of the Director-General, Deputy Directors-General and Assistant Directors-General, shall be composed of the National Development Office, Regional Development Office, Central Support Office, and the Regional Offices.

Section 12. National Development Office. The National Development Office shall provide technical staff support as may be required by the NEDA Board in coordinating the formulation of national and sectoral policies, plans and programs; monitor macroeconomic and sectoral performances; prepare the necessary economic reports; conduct economic and development studies on macro-level plans and policies, and perform such other appropriate planning tasks as may be assigned by the Director-General. It shall be composed of the following: National Planning and Policy Staff; Agriculture Staff; Trade, Industry and Utilities Staff; Infrastructure Staff; Social Development Staff; and Public Investment Staff.

Section 13. Regional Development Office. The Regional Development Office shall provide technical staff support as may be required by the implementing agencies in the regions; monitor regional and interregional development policies, plans and programs; prepare integrated reports on regional planning, conduct studies on regional development policies; and perform such other planning tasks as may be assigned by the Director-General. It shall be composed of the following: Regional Development Coordination Staff; Project Monitoring Staff; and the Regional offices.

In each of the administrative regions, there shall be a re ional office which shall be headed by . 9 a Regional Director who shall report to the Deputy Director-General for Regional Development Office. The Regional Director shall be appointed by the President.

Section 14. Central Support Office. The Central Support Office shall be responsible for providing technical assistance and support services to the Secretariat's organizational units in the areas of development administration, internal management improvement, legal services, development information, administrative services, and perform such other support service tasks as may be assigned by the Director-General. It shall be composed of the following: Management Staff; Legal Staff; Administrative Staff; Management Information Systems Staff; and Development Information Staff.

Section 15. Retained Agencies. The following agencies currently attached to the Authority shall continue to be attached to the Authority for purposes of supervision:

Philippine Institute for Development Studies;
Philippine National Volunteer Service CoordinatingAgency;
Tariff Commission.

With reference to the following agencies, the Authority shall arrange for the transfer of their functions to the Regional Development Councils concerned or other agencies as may be appropriate:

Katinga Special Development Region;
Laguna Lake Development Authority;
Leyte Sub~a Basin Development Authority.
The National Council for Integrated Area Development (NACIAD) and the Central Visayas Regional Projects Office (CVRPO) are hereby transferred to the Authority which shall, within one year from the date of effectivity of this Executive Order, recommend their transfer to the appropriate Department in conjunction with the Department of Budget and Management. The Authority shall further review the functions and activities of all other Integrated Area Development programs and projects and any other programs requiring multisectoral and /or multidisciplinary approaches in order to recommend the appropriate disposition and supervision of the same.

The Authority shall furthermore review the mandate, objectives and functions of all development authorities in order to recommend such dispositions or revisions of their charters as organic laws, as may be deemed advisable.

Section 16. Transitory Provisions. In accomplishiiig the acts of reorganization herein prescribed, the following transitory provisions shallbecomplied with, uiilcssotherwise provided elsewhere in this Executive Order:

The transfer of a government unit shall include the functions, appropriations, funds, records, equipment, facilities, choses in action, rights, other assets, and liabilities, if any, of the transferred unit as well as the personnel thereof, as may be necessary, who shall, in a hold-over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and benefits; Provided that those personnel of the transferred unit whose positions are not included in the Authority's new position structure and staffing pattern approved and prescribed by the Director-General or who are not reappointed shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of Section 17 hereof.
The transfer of functions which does not result in the abolition of the government unit that has exercised them shall include the appropriations, funds, records, equipment, facilities, choses in action rights, other assets and personnel as may be necessary to the proper discharge of the transferred functions. The abolished unit's remaining appropriations and funds, if any, shall revert to the General Fund, and its remaining assets, if any, shall be allocated to such appropriate units as the Director-General shall determine or shall otherwise be disposed of in accordance with the Covernment Auditing Code and other pertinent laws, rules and regulations. Its personnel shall, in a holdover capacity, continue to perform their respectivedutiesaiid respoiisibilitiesaiid receivethe corresponding salaries and benefits; Provided, that its personnel, whose positions are not included in the Authority's new position structure and staffing pattern approved and prescribed by the Director-General under Section 17 hereof or who have not been reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 17.

Section 17. New Structure and Pattern. Upon approval of this Executive Order, the Officers and employees of the Secretariat shall, in a hold-over capacity, continue to perform their respective du ties and responsibilities and receive the corresponding salaries and benefits.

The new position structure and staffing pattern shall be prepared by the Director-General within one hundred twenty (120) days from the approval of this Executive Order and the authorized positions created thereunder shall be filled with regular appontments byhimorby the President as the case may be. Those incumbents whose positions are not included therein or who are not reappointed shall be deemed separated from the service. Those separated from the service shall receive the retirement benefits to which they may be entitled under existing laws, rules and regulations. Otherwise, they shall be paid the equivalent one-month basic salary for every year of service or the equivalent nearest fraction thereof favorable to them on the basis of the highest salary received, but in no case shall such payment exceed the equivalent of 12 months of salary.

Section 18. Prohibition Against Change. No change in the reorganization herein prescribed shall be valid except upon prior approval of the President for the purpose of promoting efficiency and effectiveness in the delivery of public services.

Section 19. Funding. Funds needed to carry out the provisions of this Executive Order shall be taken from the funds available in the Authority.

Section 20. Implementing Authority of the Director-General. The Director-Geiieral shall issue such rules, regulations and other issuances as may be necessary to ensure the efficient and effective implementation of the provisions of this Executive Order.

Section 21. Separability. Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying other portions or provisions bercon as long as such remaining portions or provisions hercoii as long as such remaining positions or provisions can still subsist and be given effect in their entirety.

Section 22. Repealing Clause. All laws, ordinances, rules and regulations, other issuances or parts thereof, which are inconsistent with this Executive Order, are hereby repealed or modified accordingly.

Section 23. Effectivity. This Executive Order shall take effect immediately upon its approval.

APPROVED, in the City of Manila, Philippines, this 22nd day of July, in theyearof Our Lord, Nineteen Hundred and Eighty-Seven.

CREATING THE NEDA BOARD EXECUTIVE COMMITTEE AND FACILITATING ACTION ON MATTERS REQUIRING THE DECISION OF THE NEDA BOARD

WHEREAS, the Philippine Constitution mandates the National Economic and Development Authority (NEDA) to formulate continuing, coordinated and integrated social and economic policies, plans and programs;

WHEREAS, it is necessary to reorganize the structure and operations of the NEDA Board to coordinate the formulation and implementation of the Philippine Development Plan, and thereby achieve sustainable econoi-nic growth and equitable distribution of income and wealth;

WHEREAS, NEDA Board Resolution No. 17 (s. 1973) as amended by NEDA Board Resolution No.1 (s.1982),copiesofwhichareattached, empowers the NEDA Director-Ccneral to constitute an Executive Committee from among the concerned members of the NEDA to act on policy matter(s) affecting only a sector of the economy and/or one or a few departments/agencies of the government;

WHEREAS, said NEDA Board EXCOM had been delegated to act for and in behalf of the NEDA Board and submit its recommendation through the NEDA Director-General to the President'of the Philippines in the name of the Board.

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the Philippines, do hereby order:

Section 1. Reactivation of the NEDA Board Executive Committee. In order to facilitate action on matters requiring the decision of the NEDA Board, the NEDA Board Executive Committee is hereby reactivated, with the following composition:

Section 2. Responsibilities of the NEDA Board Executive Committee. The NEDA Board Executive Committee will resolve policy issues involving few agencies or a specific sector without the necessity of convening the entire NEDA Board. For matters falling within the policies set forth in the Constitution of the Philippines, and in existing laws, decrees, executive orders, letters of instruction, approved development plans and programs, and/or policies previously set by the President of the Philippines or the NEDA, the NEDA Board Executive Committee is hereby delegated to act for the NEDA Board. The NEDA Board Executive Committee shall likewise have the power to approve ICC projects.

Section 3. Frequency of meetings. The NEDA Board Executive Committee shall meet as often as may be necessiryitid decide thercon for and in behalf of the NEDA Board. In case of unavailability of the Chairman, he may authorize the Vice-Chairmati to convene the NEDA Board Executive Committee and chair the meeting in his behalf.

Section 4. Decisions of the NEDA Board Executive Committee. Decisions of the NEDA Board Executive Committee shall be final, executory and binding upon the Board.

Section 5. Technical and Secretariat Support. The NEDA Secretariat shall provide technical and secretariat suport to the NEDA Board Executive Committee.

Section 6. Effectivity. This Memorandum Order shall take effect immediately.

Section 7. Repealing Clause. All executive issuances or parts thereof inconsistent with this Memorandum Order are hereby amended or modified accordingly.

Done in the City of Manila, this 26th of July in the year of our Lord Nineteen Hundred and Ninety-Four.

lst Regular Session
Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, Nineteen Hundred and Ninety-Two.

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

SECTION 1. Declaration of Policy. - It is the policy of the State to formulate after consultations with appropriate public agencies, the private sector, and local government units socioeconomic development programs taking into account the requirements of conservation and ecology and in accordance with its constitutional mandate to promote a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.

The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets. However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices.

The Legislative-Executive Development Advisory Council shall constitute an effective advisory and consul ta tive mechanism to ensure consistency in coordinating executive development planning and congressional budgeting.

SECTION 2. Legislative-ExecutiveDevelopment Advisory Council. - Pursuant to the foregoing policy, there is hereby constituted a consultative and advisory body to be known as the Legislative-Executive Development Advisory Council, hereinafter referred to as the Council. It shall be composed of twenty (20) members, with the President as Chairman and the following as members: the Vice President, the President of the Senate, the Speaker of the House of Representatives, seven (7) members of the Cabinet to be designated by the President of the Senate, three (3) members of the House of Representatives to be designated by the Speaker of the House of Representatives at least one (1) of whom shall come from the dominant minority party, and the following to be appointed by the President: a representative of the local government units, a representative of the youth, and a representative of the private sector from any or a combination of the following: business, cooperatives, agriculture, and labor.

Membership in the Council of the members of the legislature shall be an extension of their legislative functions. Membership in the Council of the members of the Cabinet shall be in an ex officio capacity.

The Chairman and members of the Council who are government officials shall serve in the Council without any additional emoluments, allowances, or pay, by virtue of and in connection with the positions they have been elected to or appointed to, as the case may be.

The Council may form its own subcommittees as may be needed and may call on any government agency or resource persons for assistance.

SECTION 3. Functions of the Council. - The Council shall serve as a consultative and advisory body to the President as the head of the national econon-tic and planning agency for further consultations and advice on certain programs and policies essential to the realization of the goals of the national economy with the following functions:

determine and recommend socioeconomic development goals in pursuance of established policies which shall guide the formulation and implementation of the national development plan; provide policy advice to the President on vital issues affecting the socioeconomic development of the country;

direct the study of measures to ensure that regional development plans and programs are integrated into the national development plan;

receive, and in appropriate cases, require reports on, and study measures to improve the implementation of official development assistance from multilateral and bilateral entities;
assesseffectivenessofimplementation of the national development plan;

integrateenvironmentalconcepts,principles and practices into the national development plan for a balanced and cohesive approach to national development;

review the relationship of the legislative agenda to the national development plan to ensure the integration of both;

study and recommend to the President and to Congress sources of revenue as well as measures to reduce unnecessary expenditures to the end that the resources of the government will be used to the optimum.

SECTION 4. Secretariat. - The Council shall have the National Econon-iic and Development Authority secretariat as the principal secretariat in providing staff support to the Council, assisted by personnel from the Presidential Management

Staff and the economic planning staff of both the Senate and the House of Representatives.

SECTION 5. Meetings of the Council. - The Council shall meet at least once every quarter, but may be convened by its Chairman to such special meetings as may be necessary. The members of the Council shall be duly notified of any meeting in advance. The first meeting of the Council shall take place within one (1) month from the effectivity of this Act, at a time and place to be designated by the Chairman.

SECTION 6. Priority Concerns. - The Council shall give special attention to measures which will:

involve concerned private sector, relevant non-govemment groups and people's organizations in the processes of economic planning by national agencies and by regional, provincial, and other local development councils, as well as in monitoring the implementation of development projects;

bring about effective integration of the priority development programs and projects proposed by regional, provincial and other local development councils into the national development plan, within the constraints of the national budget;

accelerate the study and formulation of projects and programs, which will answer priority needs of the people for livelihood and social services, and which may be funded from national revenues and/or grants and concessional loans from external sources;

hasten the utilization of grants and concessional loans for priority development projects and programs, while also improving the efficiency of project implei-neiitation; and

recommend measures that would strengthen mechanisms for monitoring the implemciita tion of development projects and programs, and for promoting efficiency of execution and timeliness of completion.

SECTION 7. The Council shall render reports after every meeting to all Senators and Congressmen who are not members of the Council, particularly the progress and action taken on priority concerns embodied in Section 6 hereof.

SECTION 8. Implementing Rules and Regulations. - Within sixty (60) days from the approval of this Act, the Council shall promulgate all the necessary rules and regulations to carry out the provisions of this Act.

SECTION 9. Appropriations. - The amount of Three million pesos (P3,000,000.00) is hereby authorized out of the funds of the National Treasury not otherwise appropriated for the operating and capital expenditures of the Council for the Fiscal Year 1993. Thereafter, the necessary appropriations shall be provided in the Annual General Appropriations Act.

SECTION 10. Separability Clause. - In case any provision hereof is declared unconstitutional, the other provisions not so declared and affected shall remain in force and effect.

SECTION 11. Repealing Clause. - All laws and executive orders which are inconsistent with the provisions of this Act are hereby repealed or amended accordingly.

SECTION 12. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official Gazette.

This bill, which is a consolidation of Senate Bill No. 704 and House Bill No. 2581, was finally passed by the Senate and the House of Representatives on December 7,1992 and November 24, 1992, respectively.

House of Representatives
(Sgd.) ANACLETO D. BADOY, JR.
Secretary of the Senate Approved: December 9,1992

(Sgd.) FIDEL V. RAMOS
President of the Philippines
Republic of the Philippines
Congress of the Philippines
Metro Manila