Department of Economy, Planning, and Development
The Department of Economy, Planning, and Development (Filipino: Kagawaran ng Ekonomiya, Pagpaplano, at Pagpapaunlad; abbreviated DEPDev) is the executive department of the Philippine government serving as the primary policy, planning, coordinating, and monitoring body for the national economy.[1][2] It functions as the country's premier socioeconomic planning authority, formulating macroeconomic policies, advising the President and Cabinet on economic development, and overseeing the execution of national development strategies.[3] Formed on April 11, 2025, through the reorganization and elevation of the National Economic and Development Authority (NEDA)—previously an independent planning agency—into a full Cabinet-level department under Republic Act No. 12100 signed by President Ferdinand Marcos Jr., DEPDev inherited NEDA's mandate while gaining enhanced authority for direct implementation and inter-agency coordination.[4][5] Headed by Secretary Arsenio M. Balisacan, who serves as the nation's Chief Economist, the department plays a pivotal role in crafting and monitoring the Philippine Development Plan, evaluating public investments, and promoting evidence-based economic reforms amid challenges like post-pandemic recovery and fiscal constraints.[6][7] Notable aspects include its leadership in devolution studies and impact evaluations for government programs, emphasizing accountability and data-driven decision-making to sustain growth projected at the lower end of the 6-6.5% GDP target for 2025.[2][8]History
Precursor Institutions
The National Economic Council (NEC) was established on December 23, 1935, through Commonwealth Act No. 2 during the Commonwealth of the Philippines era, marking the inception of centralized macroeconomic coordination.[9] Chaired by the Secretary of Finance, the NEC advised the government on economic and fiscal matters, formulated broad economic programs, and coordinated development initiatives to promote self-sufficiency amid post-colonial reconstruction efforts.[9] [10] In 1972, following the declaration of martial law, President Ferdinand Marcos Sr. reorganized economic planning through the Integrated Reorganization Plan and Presidential Decree No. 9 (issued January 7, 1973), creating the National Economic Development Authority (NEDA)—initially without the conjunction "and"—as the successor to the NEC and integrating functions from the Presidential Economic Staff.[5] [11] NEDA served as the central socioeconomic planning body, responsible for crafting coordinated policies, medium- and long-term strategies, and five-year development plans, such as the 1978–1982 Philippine Development Plan, which prioritized self-reliance, agrarian reform, industrial expansion, and infrastructure to drive export-led growth.[12] It also provided fiscal policy advice, project evaluation, and inter-agency coordination, evolving from the NEC's advisory role into a more operational entity with director-generals overseeing implementation.[11] NEDA's frameworks supported robust expansion in the 1970s, with the Philippine economy achieving an average annual GDP growth of 6.4 percent, fueled by export-oriented industrialization and infrastructure investments, though heavily reliant on external borrowing that reached $15.8 billion in official debt by 1981.[13] [14] During the 1980s debt crisis, however, external liabilities nearly doubled from 1979 to 1982, precipitating a recession with GDP contracting over 20 percent by mid-decade; NEDA contributed to austerity and adjustment recommendations but grappled with ineffective execution amid political instability and overextended public spending.[15] [16] Precursor agencies faced persistent issues, including bureaucratic proliferation that swelled administrative layers and constrained adaptability, alongside insufficient private sector engagement, which limited market-driven inputs and exacerbated rigid, state-centric planning vulnerable to fiscal imbalances.[17] [18] These structural limitations underscored the need for enhanced coordination mechanisms beyond traditional planning silos.Establishment and Reorganization in 2025
The Department of Economy, Planning, and Development (DEPDev) was established on April 10, 2025, when President Ferdinand Marcos Jr. signed Republic Act No. 12145, known as the Economy, Planning, and Development Act, reorganizing the National Economic and Development Authority (NEDA) into a full-fledged executive department.[19][20] The legislation, which originated from Senate Bill No. 2878 and House Bill No. 11199 and was approved by both chambers of Congress on January 27, 2025, aimed to elevate economic planning to cabinet-level authority to address longstanding critiques of fragmented policy coordination across fiscal, monetary, and trade domains.[21] This restructuring responded to post-pandemic economic challenges by enhancing the agency's capacity for streamlined decision-making and integrated development strategies, positioning DEPDev as the primary coordinator for national socioeconomic plans.[5] Arsenio M. Balisacan, previously the NEDA Director-General since June 30, 2022, was appointed as the inaugural Secretary of DEPDev, ensuring continuity in the implementation of the Philippine Development Plan (PDP) 2023-2028.[7] His leadership leveraged prior experience in socioeconomic planning to drive the department's initial transition, including the introduction of a new logo and organizational branding by late April 2025.[23] Balisacan commended the reorganization for strengthening DEPDev's mandate to lead economic policy formulation and monitoring, emphasizing improved coherence in pursuing sustained growth amid global uncertainties.[24] The establishment prioritized objectives such as coordinating efforts to achieve PDP growth targets averaging 6-7% annually, with early actions focusing on policy integration to mitigate risks from inflation and external shocks.[25] This reform addressed empirical gaps in prior institutional setups, where NEDA's advisory role limited enforcement of inter-agency alignment, by granting DEPDev direct oversight and budgetary authority for development initiatives.[26] Initial operations underscored a commitment to data-driven planning, including updates to macroeconomic forecasts to support recovery and resilience-building post-COVID disruptions.[27]Mandate and Legal Framework
Core Mandate and Functions
The Department of Economy, Planning, and Development (DEPDev) serves as the primary policy, planning, coordinating, and monitoring arm of the Philippine executive branch for matters concerning the national economy.[19] Established through the reorganization of the National Economic and Development Authority, it focuses on generating impartial, objective, and evidence-based analyses to support socioeconomic improvements, including the formulation of medium- and long-term development plans such as the Philippine Development Plan 2023-2028, which targets accelerated poverty reduction from 18.1% in 2021 to 8.8-9.3% by 2028 and job creation amid structural economic shifts.[28][29] Core functions encompass macroeconomic forecasting, including projections for GDP growth (aiming for 6.5-7.5% annually under the PDP), inflation stabilization within the Bangko Sentral ng Pilipinas' 2-4% target band, and employment metrics tied to verifiable outcomes like reducing underemployment from 13.5% in 2023.[29] DEPDev conducts project appraisals for major infrastructure initiatives, such as those under the "Build Better More" program, evaluating economic viability through cost-benefit analyses and risk assessments to ensure alignment with national priorities like enhanced competitiveness and regional connectivity.[30] It also harmonizes inter-agency efforts by providing technical oversight and data-driven recommendations, without engaging in direct implementation to prevent overlap with line departments.[19] In its advisory capacity, DEPDev monitors progress against empirical benchmarks, such as tracking causal factors in growth trajectories—including export performance and investment inflows—that contributed to the Philippines achieving a 5.6% GDP expansion in the first half of 2025, meeting the lower end of PDP projections amid global uncertainties.[29] This role emphasizes resource allocation efficiency, prioritizing initiatives with demonstrated impacts on poverty alleviation and productivity, while distinguishing its oversight from operational execution by other agencies.[28]Governing Legislation
The Department of Economy, Planning, and Development (DEPDev) derives its primary legal authority from Republic Act No. 12145, enacted on April 10, 2025, which reorganizes the former National Economic and Development Authority (NEDA) into a full executive department to enhance strategic economic planning and policy coordination.[19][20] This act elevates DEPDev to cabinet-level status, granting it expanded mandate over national development plans, project approvals, and inter-agency coordination, while reconstituting the NEDA Board as the Economy and Development Council chaired by the President.[20][4] Building on the 1987 Philippine Constitution's directive under Article XII, Section 9 for an independent socioeconomic planning body, RA 12145 adapts prior frameworks such as Executive Order No. 230 (1987), which had established NEDA's reorganization but limited it to non-departmental status lacking full departmental resources and veto enforcement.[31] Key provisions include DEPDev's authority to formulate and oversee medium-term Philippine Development Plans (PDPs), exercise veto over investment projects exceeding specified cost thresholds via the Investment Coordination Committee, and submit annual reports to Congress on economic indicators, fiscal alignments, and PDP implementation progress to promote accountability.[19][20] These mechanisms ensure democratic oversight, contrasting with pre-1987 martial law-era centralization, though some analysts note risks of executive dominance in plan approvals absent robust congressional checks.[5] Enforcement is verifiable through mandatory annual PDP updates and budget coordination submissions, aligned with the General Appropriations Act, requiring DEPDev to reconcile plans with fiscal realities and report deviations, thereby limiting overreach via legislative scrutiny.[32][33]Organizational Structure
Leadership and Secretaries
The leadership of the Department of Economy, Planning, and Development (DEPDev) is headed by the Secretary, who directs overall economic planning, policy coordination, and development monitoring efforts. This cabinet-level position requires presidential nomination and confirmation by the Commission on Appointments, ensuring alignment with executive priorities while incorporating legislative oversight. Prior to DEPDev's reorganization from the National Economic and Development Authority (NEDA) in 2025, the equivalent role was the NEDA Director-General, concurrently serving as Socioeconomic Planning Secretary, with a history of appointing economists and technocrats to prioritize data-driven decision-making over political considerations. Arsenio M. Balisacan, PhD in economics from the University of the Philippines, assumed the role of DEPDev Secretary upon the department's establishment in 2025, continuing from his prior tenure as NEDA Director-General starting July 2022. Balisacan, a former professor and director-general of the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), brings expertise in development economics, having previously led NEDA from May 2012 to January 2016 under the Aquino administration. His reappointment reflects a preference for experienced technocrats capable of sustaining long-term plans like the Philippine Development Plan 2023–2028, which he chaired during its formulation and approval by the NEDA Board on December 16, 2022. Under Balisacan, DEPDev has emphasized export-oriented growth and innovation-driven strategies, projecting GDP expansion through targeted investments in human capital and infrastructure. Historically, NEDA Director-Generals from 1973 onward included founding leader Gerardo P. Sicat, who shaped early economic liberalization policies. Subsequent appointees, such as Ernesto M. Pernia (June 30, 2016–April 2020), focused on inclusive growth amid demographic shifts, while Karl Kendrick T. Chua served as acting Director-General from April 2020 to June 2022, navigating fiscal responses to the COVID-19 downturn. These leaders, predominantly PhD-holding economists from academic and research backgrounds, underscore a technocratic tradition, though varying tenures—often 2 to 4 years—have occasionally disrupted continuity in multi-year planning cycles. The transition to DEPDev maintains this expertise-focused model, with Balisacan's dual prior stints providing institutional continuity absent in shorter predecessor terms.| Leader | Position and Tenure | Key Qualifications and Contributions |
|---|---|---|
| Arsenio M. Balisacan | DEPDev Secretary (2025–present); NEDA Director-General (2022–2025, 2012–2016) | PhD in economics; oversaw PDP 2023–2028 formulation and midterm updates emphasizing job creation and poverty reduction.[34][35] |
| Karl Kendrick T. Chua | NEDA Director-General (2020–2022) | Economist; coordinated economic recovery packages during pandemic-induced contraction.[36] |
| Ernesto M. Pernia | NEDA Director-General (2016–2020) | Demographer-economist; advanced demographic dividend strategies for labor market reforms.[37] |
| Gerardo P. Sicat | NEDA Director-General (1973–early 1980s) | Founding leader; pioneered market-oriented reforms in post-martial law planning.[38] |