Senate Pushes for New Economy Department to Boost Development

A bill to reorganize the National Economic and Development Authority (NEDA) into the Department of Economy, Planning and Development (DEPD) is gaining momentum in the Senate, with lawmakers emphasizing its importance in streamlining the country’s economic policies and ensuring inclusive growth.

Senate Bill No. 2878, authored by Senators Sherwin T. Gatchalian, Juan Miguel F. Zubiri, and Joseph Victor G. Ejercito, proposes transforming NEDA into the DEPD to enhance its authority as the government’s primary economic planning body. The bill was filed on Nov. 14.

Under the proposed measure, the DEPD will be tasked with formulating integrated and coordinated policies for national development. The new Economic Development Council (ED Council), to be chaired by the President, will replace the existing NEDA Board and convene quarterly to address critical economic concerns.

“This measure is not creating a new agency. It simply reorganizes the NEDA and institutionalizes its expanded powers and functions,” said Senate Economic Affairs Committee Chair Juan Miguel “Migz” Zubiri, during his sponsorship speech. “Economic growth cannot be the work of one agency alone. We need a whole-of-government follow-through on our economic plans.”

The reorganization will involve creating 170 new positions with an estimated cost of PHP 116 million, a relatively minimal expense, according to Zubiri. He also assured stakeholders that the DEPD’s expanded regional presence will address local concerns more effectively.

Boosting Regional Development

Zubiri underscored the importance of strengthening regional offices to ensure economic strategies are grounded in local realities.

“Development has to sprout from the ground up. It’s not wise, effective nor sustainable to draw up a big-picture plan without first considering what is happening on the ground,” he said.

The DEPD’s regional offices will be empowered to evaluate project proposals and land use plans, ensuring alignment with national priorities.

Supporting Growth Amid Global Competition

The transformation is also seen as vital for maintaining the Philippines’ competitiveness in Southeast Asia. Zubiri pointed out that Southeast Asia is becoming a hub for global investments, making the DEPD’s role crucial.

“This is an opportune time for Southeast Asia, but we still have to fight for our seat at the table,” he said. “The DEPD will lead the way for our economic growth.”

Senator Joel Villanueva, a co-sponsor, echoed Zubiri’s sentiments, highlighting the need for stronger coordination among stakeholders.

“This reorganization ensures that NEDA’s expanded mandates will be effectively executed,” Villanueva said in Filipino. “It will also strengthen coordination with stakeholders, including local governments and the private sector.”

A Framework for Long-Term Growth

The DEPD will be tasked with creating a long-term development framework extending to 2050, addressing public investment programs and fostering collaboration across sectors.

“This reorganization puts us on a stronger footing, enabling the Philippines to be a dynamic force in Southeast Asia,” Zubiri said, emphasizing the bill’s long-term benefits.

The measure now awaits further deliberation, with lawmakers optimistic about its passage as a means to institutionalize continuity in economic planning and development.