On April 10, 2025, the Philippines initiated a significant restructuring of its economic governance framework as President Ferdinand R. Marcos Jr. signed the Economy, Planning, and Development Act (Republic Act [RA] No. 12145), transforming the National Economic and Development Authority (NEDA) into the Department of Economy, Planning, and Development (DEPDev).

This landmark legislation establishes DEPDev as the principal agency responsible for policy formulation, planning, coordination, and monitoring of the national economy.

The newly created DEPDev is designed to enhance the agency’s institutional independence and operational capacity, aiming to bridge historical development strategies with future goals.

NEDA Secretary Arsenio M. Balisacan emphasized that this transformation is essential for ensuring continuous and resilient economic growth that benefits all Filipinos.

The establishment of DEPDev responds to the mandates outlined in the Philippine Constitution, specifically Section 9 of Article XII, which allows Congress to create an independent economic and planning agency led by the President for implementing integrated national development programs.

This legislative evolution traces its lineage to the National Economic Council, established in 1935.

Prior to this reorganization, NEDA functioned under Executive Order No. 230, s. 1987, which limited its role to advisory and research capacities for national economic policy.

Over decades, NEDA expanded its responsibilities, becoming integral to over 100 interagency bodies dealing with socioeconomic issues and national development.

Its functions included policy formulation, investment programming, policy coordination, and monitoring and evaluation of development initiatives.

With its new status as a full executive department, DEPDev aims to enhance its strategic planning capabilities, ensuring alignment between national and regional plans and integrating long-term strategies into the budget process.

The agency is expected to proactively tackle emerging challenges in the economic landscape.

A significant aspect of RA No. 12145 is the institutionalization of the _Planning Call_, which aims to create stronger connections between planning, budgeting, and monitoring and evaluation processes.

This initiative is designed to foster transparency and accountability in government operations while ensuring that public funding is directed towards projects that effectively address the nation’s developmental priorities.

The new law emphasizes futures thinking and scenario planning, preparing the government to respond adeptly to technological changes, economic disruptions, and global uncertainties.

The DEPDev is tasked with creating a framework for long-term economic policies to accommodate the evolving needs of the country while remaining resilient against challenges and transitions in political leadership.

In addition to its foundational governance changes, RA No. 12145 delineates the DEPDev’s role in producing a variety of key outputs, including national and regional development plans, public investment programs, evaluation reports, and an Inter-Generational Report that provides insights into long-term developmental impacts.

The law will come into force fifteen days following its publication in the Official Gazette or in a general circulation newspaper, paving the way for a new era in economic governance in the Philippines.