By: Ray G. Talimio Jr.
The signing of Republic Act No. 12145—formally establishing the Department of Economy, Planning, and Development (DEPDev)—is a landmark achievement in the Philippines’ economic governance. While the law transforms the National Economic and Development Authority (NEDA) into a full-fledged department, it also signals something greater: the institutionalization of long-term, future-ready, and more resilient development planning in a country long beset by short-termism and fragmented policy execution. This reform will shape how the government prioritizes projects, allocates resources, and ensures that growth becomes inclusive and equitable across all regions.
The timing could not be more critical. In the face of global volatility, climate challenges, technological disruptions, and persistent regional disparities, the Philippines needs a strong, central planning institution with enough authority and independence to steer the country’s development in the right direction. The passage of the Economy, Planning, and Development Act is not just a bureaucratic move—it’s a strategic, long overdue response to decades of institutional drift.
As DEPDev assumes its role as the government’s primary policy, planning, coordinating, and monitoring body for national development, it is now empowered with department-level status, bringing with it greater budgetary control, stronger convening authority, and elevated executive influence. This means better policy alignment across sectors, more coherent investment programming, and the capacity to enforce national development priorities. It also formalizes what was already a pressing need: protecting our long-term development goals from political transitions and populist detours.
In his official statement, Secretary Arsenio M. Balisacan expressed appreciation to President Ferdinand Marcos Jr. and the 19th Congress, stating that “by institutionalizing the DEPDev, we are committing to a future-ready, well-coordinated, and institutionally robust system for economic governance.” This echoes the broader intent of the reform—to drive sustained and inclusive growth by equipping the Philippine government with a planning apparatus that works across presidential terms, across agencies, and across regions.
But one major question that continues to echo across the regions is this: what happens now to the Regional Development Councils (RDCs)?
For decades, RDCs have served as the highest policy-making bodies in the regions, bringing together local governments, regional line agencies, business leaders, and civil society to set development priorities and recommend projects for national funding. With the creation of DEPDev, some fear that these councils might become irrelevant. That concern, while understandable, is largely misplaced.
In fact, the opposite is more likely to happen: RDCs are poised to become even more relevant under DEPDev.
By clarifying DEPDev’s central role in synchronizing national and regional development, RA 12145 also reaffirms the value of place-based planning—where local realities and regional strengths are fully recognized in shaping the national agenda. RDCs are now in a better position to influence policy through tighter coordination with DEPDev and through greater technical and institutional support that will flow from the national level. We can expect the implementing rules and regulations (IRR) of RA 12145 to outline upgraded capacities for RDCs, including enhanced access to planning data, analytics, digital tools, and perhaps more formal mechanisms for evaluating and prioritizing local infrastructure, social programs, and innovation clusters.
Furthermore, as the country intensifies the implementation of the Philippine Development Plan (PDP) 2023–2028 and looks ahead to Vision 2040, RDCs can serve as the critical bridges between national ambitions and local realities. With climate resilience, digital transformation, food security, and regional equity now forming the core of national strategy, RDCs are not just sub-national participants—they are strategic actors in development transformation.
This new setup also offers the opportunity to revisit and expand the mandate of the RDCs—potentially establishing regional investment boards, innovation ecosystems, or decentralized public-private partnerships under the DEPDev framework. It is also high time to reimagine the interface between RDCs and local development councils (LDCs), which are often under-resourced and politically sidelined, so that the planning process becomes more inclusive and transparent from the grassroots to the top.
This transformation also offers a rare window to strengthen regional leadership. As someone who has long been involved in MSME development, investment promotion, and regional economic planning, I’ve seen how local ingenuity often lacks national support, and how opportunities are lost because of unclear mandates or siloed funding structures. DEPDev must change that—not just through better planning, but through meaningful decentralization and fiscal empowerment.
Of course, no structural reform is without risks. The transition period may cause confusion or bottlenecks in implementation. Some agencies may resist the loss of turf. Others may struggle to align their programs with DEPDev’s strategic oversight. But if managed well—with strong IRRs, clear transitional guidelines, and adequate funding—the shift can lead to more stable, resilient, and impactful economic governance.
Ultimately, DEPDev represents a bet on the future. It’s a bet that the Philippines can plan better, think longer-term, and build institutions that outlast political cycles. It’s a bet that inclusive growth is not just a slogan, but a deliverable—and that with the right tools, systems, and political will, we can get there.
But that bet will only pay off if we remain engaged. Regional leaders, local governments, civil society, and the private sector must continue to assert their voice in development conversations. The transformation to DEPDev is not just the Executive’s project—it is a national project that must be co-owned by every Filipino who believes in the promise of shared prosperity.
Let us not waste this moment. Let us use it to reimagine and rebuild an economic governance framework that truly serves the Filipino people—from the nation’s capital down to the smallest barangay, and from the highest levels of planning to the grassroots of implementation.
Sources: Republic Act No. 12145 (Economy, Planning, and Development Act); https://neda.gov.ph/fromnedatodepdev; Official statements from Secretary Arsenio M. Balisacan; Presidential Communications Office.
Photo Credits: Department of Economy, Planning, and Development (DEPDev); National Economic and Development Authority; NEDA Facebook Page; Office of the President.
Disclaimer: The views expressed in this column are those of the author and do not necessarily reflect the official position of the RDC-X, the MSMED Council, or any other agency.
About the Author:
Ray G. Talimio Jr. is the Co-Chairman of the Economic Development Committee of the Regional Development Council-X (RDC-X), and Chairman of the MSMED Council of Misamis Oriental and Cagayan de Oro City. He also chairs the BIMP-EAGA Northern Mindanao Region. He writes this regular column “From the Sidelines” to share analysis, reforms, and reflections on public policy, governance, and economic development.
