Photo: Official Gazette of the Philippines

Rightsizing the
National
Government
Act of 2017

1
President’s Statement on Rightsizing Government

“Even so, we cannot

deny that there is fat
in government that we
must trim. The
government
bureaucracy must be
lean, clean, and
nimble to address the
people’s urgent
needs.”

2
President’s Statement on Rightsizing Government

Philippine Association for Government Budget Administration (PAGBA) Inc.

“I would ask authority from Congress to

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
eliminate redundant, duplicative and
overlapping functions and
organizations in the Executive Branch…
[the] proposed Streamlining the
Government Act… empowers the
Executive to conduct a comprehensive
review of the Executive’s function and
organizational structures, to merge or
abolish agencies, and to implement
other measures to improve the
efficiency of operations and enhance
the delivery of services.”
- President Rodrigo R. Duterte
(FY 2017 The President’s Budget
Message)
3
 Why Rightsize the National
Government?

Philippine Association for Government Budget Administration (PAGBA) Inc.

Agencies with redundant,

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
duplicating or overlapping
functions

To address Agencies that have

government outlived their purpose
dysfunctions

Agency functions that could be

better undertaken by the private
sector or devolved to LGUs

4
 Why Rightsize the National
Government?

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
EFFECTIVENESS
Strengthening core functions EFFICIENCY
of government and Giving more value to
refocusing resources to the taxpayers’ money
President’s 0+10 Point Socio-
Economic Agenda
Rightsizing
will ensure…

RESPONSIVENESS PROGRESSIVENESS
Keeping pace with changing Adopting technological
public demands advancements and
developments

5
 and

service
Improve

efficiency in
government
effectiveness

based
approach
Function-
What is the Program about?

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Philippine Association for Government Budget Administration (PAGBA) Inc.
  No

 Not
Program
What the Program is not about?

forced retirement/

7
separation of personnel

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
an Early Retirement

Philippine Association for Government Budget Administration (PAGBA) Inc.

Principles and Guidelines

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Determine the role and activities of government in
accordance with the Constitutional mandate,
objectives of government and available resources

Establish a conducive policy environment to

encourage active private sector engagement

Delineate responsibilities between NG and LGUs in

the production and delivery of goods and services

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Principles and Guidelines

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Adopt a whole-of-government approach for seamless
government operations

Simplify government operations, systems and

processes to facilitate the delivery of quality
services

Rationalize rules and operations to reduce regulatory

burden on citizens, businesses and other
stakeholders

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 Mandatory Excluded in the Optional
Coverage of Rightsizing Adoption of the

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
the Program Program Program
Teaching and
teaching-related Legislature (Senate
positions in of the Philippines
schools and House of
Representatives)
Medical and
All allied-medical
Judiciary
departments/ items in hospitals/
agencies of medical facilities
Constitutional
the Military and
Offices
Executive uniformed
personnel
Branch Positions in
Office of the
Ombudsman
GOCCs/GFIs
covered by GCG
(pursuant to RA Local Government
Units
10149, s. 2010)
10
President’s Authority to Rightsize

Philippine Association for Government Budget Administration (PAGBA) Inc.

the National Government

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
To undertake organizational actions
(e.g., transfer, merger, consolidation, abolition)

To formulate and provide safety nets,

including implementation strategies, for
affected employees

To formulate an Organizational
Development Program

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 Committee on Rightsizing
the National Government

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Executive Secretary - DBM Secretary -
Chairman Co-Chairman

Secretary of Socio-Economic Planning – CSC Chairperson – PMS Head -

Member Member Member

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 Functions of Rightsizing Committee

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Develop
Organize Sub-
implementation
Issue IRR Committees/ policies and
TWGs mechanisms

Prepare
Conduct studies
rightsized Recommend
on functions of
organizational reforms
agencies
structure

Monitor
implementation

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 Timeline for Program Implementation

Philippine Association for Government Budget Administration (PAGBA) Inc.

Milestone Period

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
• Effectivity of Act 15 days from publication of Act
• Organization of Committee Within 15 days from effectivity of Act
• Issuance of IRR Within 30 days from organization of
Committee
• Effectivity of IRR 15 days from publication of IRR
• Submission by the Committee to the Within 250 days from effectivity of IRR
President of rightsized organizational
structure and proposed executive issuances
• Submission of detailed organizational Within 90 days from approval by
structure and staffing by agencies to DBM President of proposed executive issuances
• Availability of retirement/separation Within 60 days from approval by DBM of
benefits and incentives detailed rightsized organizational
structure and staffing of agencies
• Report to Congress by the President After completion of Program
implementation

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Submission of Rightsizing EOs to OP and

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Detailed Organizational Structure/Staffing Pattern

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
to DBM

EO on Rightsized Detailed Availability of the

Organizational Organizational Benefits
Structure of Agency Structure and • Within 60 days after DBM
• Within 250 days from the Staffing Pattern approval of the
effectivity of the IRR organizational and
• Within 90 days after the
staffing pattern
approval of the EO

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Benefits of Affected Personnel

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Retirement
benefits
under
Separation
existing laws
Incentives

Unused VL,
SL credits
commuted
Pag-IBIG
contributions
refunded

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 Philippine Association for Government Budget Administration (PAGBA) Inc.
Separation Incentives of Affected Personnel

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Years of Service in Separation Incentives
Government per year of service
5 to < 11 years ½ of actual monthly basic
salary
11 to < 21 years ¾ of actual monthly basic
salary
21 to < 31 years Actual monthly basic salary
31 years and above 1 ¼ of actual monthly basic
salary

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Sample Computation of Separation Incentives

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Administrative Assistant III position/
SG-09
• Monthly Salary – PhP 17,473
(SSL 4, 3rd Tranche, 1st Step)

Monthly Years in
Incentive Factor Amount of
Basic Salary Government Service
(MBS/YGS) Incentive
(MBS) (YGS)
(A) (B) (C) A x B x C=(D)
PhP 17,473 10 ½ Php 87,365
15 ¾ 196,571
25 1 436,825
31 1¼ 677,079

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Sample Computation of Separation Incentives

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Administrative Officer IV position/
SG-15
• Monthly Salary – PhP 29,101
(SSL 4, 3rd Tranche, 1st Step)

Monthly Years in
Incentive Factor Amount of
Basic Salary Government Service
(MBS/YGS) Incentive
(MBS) (YGS)
(A) (B) (C) A x B x C=(D)
PhP 29,101 10 ½ Php 145,505
15 ¾ 327,386
25 1 727,525
31 1¼ 1,127,664

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Sample Computation of Separation Incentives

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Division Chief position/SG-24
• Monthly Salary – PhP 73,299
(SSL 4, 3rd Tranche, 1st Step)

Monthly Years in
Incentive Factor Amount of
Basic Salary Government Service
(MBS/YGS) Incentive
(MBS) (YGS)
(A) (B) (C) A x B x C=(D)
PhP 73,299 10 ½ PhP 366,495
15 ¾ 824,614
25 1 1,832,475
31 1¼ 2,840,336

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Prohibition on Rehiring of Retired/Separated
Personnel

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
 Retirees are prohibited from being reemployed in any
agency of National Gov’t, including in GOCCs, for a
period of five (5) years, except as teaching or medical
staff in educational institutions and hospitals, respectively

Other Provisions
 Number of agency personnel to avail of Program
incentives not to exceed number of positions declared
by agency for abolition

 Affected personnel, if with permanent appointment, who

will not opt to retire will be placed in CSC manpower
pool; CSC to retool them and deploy to agencies which
need their qualifications, skills and competencies
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 Philippine Association for Government Budget Administration (PAGBA) Inc.
2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Funding Requirements

 Amount necessary for initial implementation

to be sourced from the General
Appropriations Act (GAA)

 Subsequent amount needed to be included

in succeeding annual GAAs

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 Comparison Between Rationalization Program

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
and Rightsizing Program
Subject Rationalization Rightsizing Program
Program
Legal  EO No. 366,  Rightsizing Bill under
Basis s. 2004 consideration of
Congress
Coverage All Departments/  All Departments/Agencies
of the Agencies of the of the Executive Branch,
Program Executive Branch, including GOCCs/GFIs
including GOCCs/ not covered by
GFIs RA No. 10149 (GOCC
Governance Act of 2011)

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 Comparison Between Rationalization Program
and Rightsizing Program

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Subject Rationalization Program Rightsizing Program
Mechanics  Strategic review of the  Strategic review of functions,
of the operations and programs and projects of
Program organization of the agencies to cut across
Department/Agency was various agencies
limited to its internal  Government will implement
structure, and did not transformational initiatives
cut across other in agencies concerned such as
agencies merger, consolidation, splitting,
transfer and abolition of offices
 Strategic review  Strategic review to be
conducted by Change conducted by the Committee
Management Team on Rightsizing the
that was created in each Executive Branch
agency

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 Comparison Between Rationalization Program and

Philippine Association for Government Budget Administration (PAGBA) Inc.

Rightsizing Program

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Subject Rationalization Rightsizing Program
Program
Sunset - Authority given to the
Provision President under the
Rightsizing Bill, as well as the
existence of the Committee
on Rightsizing the Executive
Branch, will end three (3)
years after the effectivity of
this proposed legislative
measure

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 Rightsizing Bill Updates (as of 7/25/2017)
 Draft Rightsizing Bill presented to and approved by the President in August

Philippine Association for Government Budget Administration (PAGBA) Inc.

2016

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
 Rightsizing Bill endorsed by DBM to Senate President, House Speaker and
20 legislators (10 Senators and 10 Representatives) in September 2016
and requested them to sponsor the same
 Salient features of Bill presented to following:
 Chairperson and members of House Committee on Government
Reorganization in September 2016
 Rep. Lord Allan Jay Q. Velasco of the Lone District of Marinduque in
September 2016
 Sen. Loren Legarda, Chairperson of the Senate Committee on Finance, in
February 2017
 Chairperson, Vice-Chairperson and members of the House Committee on
Appropriations, and Vice Chairperson of the House Committee on
Government Reorganization in March 2017
 Sen. Ralph Recto in May 2017
 Rep. Karlo Alexie B. Nograles, Chairperson of the House Committee on
Appropriations in May 2017
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 Rightsizing Bill Updates (as of 7/25/2017)
 Four (4) Senate Bills and four (4) House Bills have been filed

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
for the purpose, as follows:
Bill Number Date Filled Author/s Remarks/Status

SB No. 1162 Sept. 19, 2016 Senator Loren Legarda Consolidated into
SB No. 1167 Sept. 21, 2016 Senator Vicente Sotto III SB No. 1395 which
SB No. 1337 Feb. 17, 2017 Senator Juan Miguel F. Zubiri is the enhanced
SB No. 1339 Feb. 21, 2017 Senator Gregorio B. Honasan II version of the
Administration Bill
HB No. 3781 Sept. 27, 2016 Representatives Karlo and Jericho Consolidated into
Nograles HB No. 5707 which
HB No. 3838 Sept. 29, 2016 Representative Lord Allan Jay contained the
Velasco amendments
HB No. 3871 Sept. 30, 2016 Representative Joel Mayo Almario proposed by the
various
HB No. 3913 Oct. 3, 2016 Representative Ferdinand
representatives and
Hernandez
other stakeholders
present during the
public hearing

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 Rightsizing Bill Updates (as of 7/25/2017)
Senate Bills Updates:

Philippine Association for Government Budget Administration (PAGBA) Inc.

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
 Sub-Committee on SBN 1162 and 1167 of the Senate Committee on
Civil Service, Government Reorganization and Professional Regulation
conducted a public hearing on the proposed Rightsizing Bill in
February 2017
 SB No. 1395, which is authored by Senators Legarda, Sotto, Zubiri,
Honasan and Antonio F. Trillanes IV, is currently under second
reading in the Senate
 Senators Legarda and Sotto delivered their sponsorship and co-
sponsorship speeches, respectively, on March 15, 2017
 Plenary deliberation of the Rightsizing Bill in the Senate was
conducted on May 23, 2017 and will resume in August 2017
 The President has certified the necessity of the immediate
enactment of SB No. 1395 on June 1, 2017 to address the urgent
need for reforms to enhance the institutional capacity of government
to deliver public services

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 Rightsizing Bill Updates (as of 7/25/2017)

Philippine Association for Government Budget Administration (PAGBA) Inc.

House Bills Updates:

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
 House Committees on Government Reorganization and
Appropriations jointly conducted a public hearing of the
four (4) House Bills on Rightsizing on March 14, 2017
 Rep. Virgilio S. Lacson delivered his sponsorship speech
on March 30, 2017
 Plenary deliberation of the Rightsizing Bill in the HOR
was conducted and HB No. 5707 was approved on
second reading on May 30, 2017
 HB No. 5707 is now scheduled for third reading

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 YOU
THANK

30

2nd Quarterly Seminar, July 26-29, 2017, L' Fisher Hotel, Bacolod City
Philippine Association for Government Budget Administration (PAGBA) Inc.