From NEDA To DEPDev: Strengthening PH Economic Governance

The Philippines has ushered in a new chapter in development planning with the transformation of the National Economic and Development Authority (NEDA) into the Department of Economy, Planning, and Development (DEPDev).

DEPDev’s first-year priority will be to improve coordination between local government units (LGUs) and national priorities. I Photo: Rpangeles Wikimedia Commons

Effective April 27, 2025, the new department was created under Republic Act No. 12145, signed by President Ferdinand R. Marcos Jr. on April 10, 2025. DEPDev now serves as the primary policy, planning, coordinating, and monitoring agency of the Executive branch for national economic development.

“This transformation contributes to sound economic governance by bridging past and future development strategies, ensuring that our growth remains resilient, inclusive, and sustainable,” said Socioeconomic Planning Secretary Arsenio M. Balisacan.

According to the new law, DEPDev is tasked with providing impartial, objective, and evidence-based analysis and recommendations for the country’s socioeconomic advancement.

Evolution and Expanded Mandate

Secretary Balisacan traced DEPDev’s roots to the National Economic Council, established in 1935. Prior to the DEPDev's creation, NEDA carried out its mandate through Executive Order No. 230 (1987), acting as a technical and research advisory body to the NEDA Board chaired by the President.

Over time, NEDA’s role expanded to include membership in over 100 interagency bodies and councils on socioeconomic matters. It also served as secretariat to key bodies such as the NEDA Board and subcommittees, Regional Development Councils, the Legislative-Executive Development Advisory Council, and the Economic Development Group.

Under the new law, the NEDA Board has been reconstituted into the Economy and Development Council, chaired by the President, with the DEPDev Secretary serving as vice-chair.

DEPDev's New Powers

DEPDev is expected to operate more effectively with greater authority to ensure policy continuity and coherence. Its mandate includes aligning national and regional plans, integrating long-term strategies into the budgeting process, and adopting forward-thinking approaches to address emerging challenges.

The department is also responsible for building the capacity of government agencies at all levels to improve planning and policy formulation.

A key initiative is the institutionalization of “futures thinking and scenario planning” to better prepare for technological shifts, economic disruptions, and global uncertainties.

To improve budget planning, the law formalizes the “Planning Call” process, aiming to better link planning, budgeting, and monitoring and evaluation (M&E) with clearer standards and accountability.

Prioritizing Regional Coordination

DEPDev’s first-year priority will be to improve coordination between local government units (LGUs) and national priorities. Balisacan noted that previous national budgets were often disconnected from regional needs.

“One of the things we will focus on is providing assistance to LGUs—particularly at the regional and provincial levels—in resource mobilization, planning, and M&E. This will help them allocate limited resources to more impactful programs,” he said.

DEPDev is also tasked with fostering growth in agriculture, industry, and services while encouraging innovation for equitable and sustainable development.

NEDA was allocated PHP12.35 billion under the 2025 General Appropriations Act.

Balisacan said a modest budget increase is being considered for DEPDev in 2026 to support its expanded responsibilities.

“We thank President Marcos and our partners in Congress for this historic reform. By institutionalizing DEPDev, we commit to a future-ready, well-coordinated, and robust economic governance system that will drive inclusive growth and help fulfill our long-term vision of a matatag, maginhawa, at panatag na buhay para sa lahat,” Balisacan said.