Rightsizing billâs OK in 19th Congress spells big savings
A SENIOR lawmaker said âtrimming the fatâ through the passage of the government rightsizing bill before the end of the 19th Congress will eliminate overlapping functions, enhance government efficiency, and generate billions in annual savings that can be redirected to essential programs, activities, and projects.
Saying reducing redundancies within the bureaucracy is a necessary reform, Camarines Sur LRay Villafuerte called on the Senate to pass the proposed The National Government Rightsizing Act.
âI believe the chances are on the side of champions of the long-sought government rightsizing for the outgoing Congress to pass this proposal in the nick of time, following Senate President [SP] Chiz [Escudero]âs commitment for the Senate to pass its version of this measure before we adjourn sine die in June,â said Villafuerte, an author of the House Bill (HB) 7240, or the National Government Rightsizing Act.
âOnce the Senate finalizes its version, both chambers will only need to reconcile their bills through the bicameral conference committee, given that the House already approved HB 7240 on third and final reading in March 2023,â he explained.
âTrimming the fat off our outsized bureaucracy, which should have already happened years back, is excellent policy as it is the only means to eliminate redundancies in functions and the workforce, lead to a more efficient or dynamic administration, and mean multibillion-peso worth of annual savings that the government can otherwise spend on essential PAPs [Programs, Activities, and Projects],â Villafuerte said.
The 19th Congress is set to adjourn this week for the May 12 polls, with sessions resuming on June 2 until the sine die adjournment on June 14.
Villafuerte gave assurances that separation and retirement benefits will be available to affected government workers. However, teachers, healthcare providers, soldiers, and other uniformed personnel will be exempted from the streamlining process.
President Ferdinand Marcos Jr. endorsed the National Government Rightsizing Program (NGRP) in his first State of the Nation Address (SONA) in July 2022. The program aims to enhance government efficiency while optimizing resource allocation.
Villafuerte said the rightsizing process will be implemented over three years and will provide retirement and separation incentives for affected employees. HB 7240 allows Congress, the Judiciary, state universities and colleges (SUCs), the Office of the Ombudsman, Constitutional Commissions, and local government units (LGUs) to adopt their own rightsizing plans. The measure also makes rightsizing optional for government-owned and -controlled corporations (GOCCs) under the Governance Commission for GOCCs (GCG).
The House-approved HB 7240 consolidates 16 measures, including HB 4015, co-authored by Villafuerte, CamSur Representatives Miguel Luis Villafuerte and Tsuyoshi Anthony Horibata, and the Bicol Saro party list.
Citing 2022 data from the Civil Service Commission (CSC), Villafuerte reported that 1.7 million government employees are spread across 187 agencies and GOCCs, many with overlapping or redundant functions. With personnel services accounting for nearly 30 percent of the national budget, he argued that rightsizing will improve resource allocation.
A study by the Congressional Policy and Budget Research Department (CPBRD) noted that the growing number of government employees has doubled personnel service expenditures, increasing from P295 billion in 2005 to P682 billion in 2015.
Villafuerte said the rightsizing initiative aligns with the 1987 Constitutionâs mandate for integrity in public service and efforts to combat graft and corruption. The bill grants the President authority to abolish, create, and transfer offices within the national government to streamline operations.
Both the House and Senate versions propose establishing a Committee on Rightsizing the National Government to oversee implementation. The Department of Budget and Management (DBM) supports HB 7240, with Budget Secretary Amenah Pangandaman stating that reducing the government workforce by 5 percent could save P14.8 billion, which could be redirected to infrastructure, healthcare, and agricultural programs.
HB 7240 exempts certain government positions from the rightsizing plan, including teaching and related positions in public schools, SUCs, and non-chartered tertiary institutions; medical and allied medical personnel in hospitals and other healthcare facilities; and military and uniformed personnel in the Departments of National Defense (DND), Interior and Local Government (DILG), Transportation (DOTr), Environment and Natural Resources (DENR), and Justice (DOJ).
The bill allows the Legislature, Judiciary, Office of the Ombudsman, and Constitutional Commissions to rightsize their respective offices within their approved budgets. LGUs may also implement rightsizing, subject to financial capability and the provisions of the Local Government Code.
Under the proposal, the GCG retains the authority to reorganize, merge, streamline, abolish, or privatized GOCCs in consultation with their supervising departments.
Affected personnel with permanent appointments attested by the CSC will receive retirement benefits and separation incentives. They may opt for retirement under existing laws such as RA 1616, RA 660, or RA 8291. However, the bill specifies that the GSIS will no longer refund retirement premiums for personnel retiring under RA 1616.
Additional benefits include a refund of Home Development Mutual Fund (Pag-I
BIG) contributions and the commutation of unused leave credits.
Source: https://businessmirror.com.ph/2025/02/03/rightsizing-bills-ok-in-19th-congress-spells-big-savings/