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The role of government and the scope, level and prioritization of government activities
shall be determined in accordance with the Constitutional mandate, political and
socio-economic objectives of the government, and available resources. Such
determination shall be guided by the following policy statements:
Government shall give priority to the strengthening of its fundamental functions.
These include:
Effective macro-economic management, including the formulation and
implementation of socio-economic, fiscal, and monetary policies;
Maintenance of peace and order, and national and political security;
Conservation of natural resources and ensuring their productive
utilization and development for the national welfare;
Maintenance of an effective and reliable system of administering justice,
lawmaking, and law enforcement;
Provision of quality basic and secondary education, especially to the
poor and disadvantaged population;
Provision of adequate and appropriate infrastructure;
Promotion of economic and political diplomacy to achieve sound and
mutually productive economic and political relations with other
nations and international communities;
Promotion of total human development; and
Disaster mitigation and effective management of state emergencies and
calamities.
The role of government in the various sectors shall be to steer and mobilize the
instruments that contribute to achieving sectoral objectives. To this end, the
government shall focus its sectoral functions on:
Policy setting, monitoring and assessment;
Promotion and advocacy;
Provision of information and linkages or access to markets, services and
production inputs and outputs;
Provision of assistance and incentives to equalize and level the playing
field;
Enforcement of appropriate rules and regulations; and,
Provision of safety nets of adversely-affected sectors of the population.
To the extent possible, government shall limit direct provision, production and
delivery of goods and services and encourage more private sector
participation. The criteria for the determination of direct provision,
production and delivery of goods and services by government shall be
established.
The national government shall assist, supervise and monitor local government units to
complement the greater autonomy granted to them. The delineation of
responsibilities between the national government and local government units in the
provision, production and delivery of goods and services shall be clearly defined and
agreed upon. The criteria of such delineation shall be established.
The national government shall adopt a structural framework that will define the vertical
and horizontal compartmentalization of the Executive Branch, including the basic
structural and functional configuration of departments and agencies.
It shall likewise adopt a typology of government organizations, which will guide the
determination of the organizational configuration and proper grouping of agencies.
The Executive Branch shall streamline its systems and procedures to facilitate and
improve the relevance and quality of frontline services, and improve policy
formulation, planning and performance evaluation. These systems and procedures
shall be designed within the context of decentralized decision-making and authority
within the Executive Branch and its Departments, agencies, bureaus, offices and other
instrumentalities.
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To adopt structural, sectoral and operating systems frameworks, and the corresponding
implementing guidelines, rules and criteria which define the overall and specific
objectives and hierarchical and functional structures of the Executive Branch, the
delineation of national-local responsibilities, the focus of the mandates and functions
of sectoral departments and all other agencies of the Executive Branch, and the
strategy to streamline and upgrade the operating systems of government;
To create, abolish, merge, integrate, restructure or establish departments, bureaus, offices,
agencies and government-owned and/or controlled corporations; eliminate
overlapping, duplication, proliferation and diffusion of functions, programs, projects,
appropriations, equipment, properties, records, personnel, and transactions from one
agency to another;
To adopt a government staffing and compensation policy and a human resource
development strategy, including the creation, classification and abolition of positions,
hiring of personnel and upgrading of compensation structures, as well as
rationalization of incentives and rewards systems; and
To adopt and enforce the necessary guidelines, rules and regulations to promote
efficiency, achieve effectiveness and effect economy in government.
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Redundant personnel who are qualified for re-training/re-tooling, as determined by the
agency based on the criteria as developed/prescribed by the ELCSB, has the option to be
retained. If they chose to be retained, they shall be deployed in a government manpower
pool to undergo re-tooling/re-training for subsequent appointment to the new staffing
pattern of the reengineered agencies.
Personnel in the manpower pool shall be covered by the following guidelines:
They shall continue to receive the basic salaries and other compensation common to
all, except for Representation and Transportation Allowances, miscellaneous and
extraordinary expenses, and other special allowances given to specific groups, for
one year from the day their positions are officially declared redundant.
An employee may be allowed to leave the government service before the expiration
of one year, and be paid the corresponding retirement benefits under applicable
laws or separation benefits under Republic Act No. 6656: Provided, That the
corresponding remuneration paid to him and the expenses incurred by the
government while he was in the manpower pool shall be deducted from whatever
benefits he will receive. The computation of retirement or separation benefits
shall be based on a new salary schedule that will be adopted by the National
Government.
Personnel who have been trained and accordingly placed in any position in the
government may be allowed to be separated from the service only after he has
rendered at least three years of government service under the new setup.
Otherwise, provision under Section 7b2) shall be proportionately applied.
Redundant employees who may be retired or separated from the service shall be granted
corresponding benefits. If they are already eligible for retirement under existing laws,
they shall be granted retirement benefits. If not, they shall be entitled to separation
benefits equivalent to one month basic salary for every year of government service,
pursuant to the provisions of Republic Act No. 6656. For this purpose, the computation
of retirement or separation benefits, as the case may be, shall be based on a new salary
schedule that will be adopted by the National Government.
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the Chairman of the Civil Service Commission, as Chairman;
an Undersecretary of the Department of Budget and Management, as permanent
member;
a Commissioner of the Civil Service Commission, as permanent member;
an Undersecretary representing the management of the department/agency being
heard, as non-permanent member; and
a duly-elected representative of the employees in the department/agency being
heard, as non-permanent member.
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The proper scope, level and focus of government intervention, distribution of functions
among levels of government, design of the administrative structure and level of
manpower complement of the Executive Branch shall be established and fixed after the
implementation of the reengineering authorized under this Act.
An agency may be created provided an existing equivalent organizational unit is abolished.
Increases in the personnel/staffing complement of any department or agency of the Executive
Branch shall be allowed only for population sensitive positions such as teaching and
related teaching, uniformed and medical and allied medical positions.
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