Marcos orders identification of services that can be devolved to LGUs

MANILA, Philippines — President Ferdinand Marcos Jr. has ordered national government agencies to list the functions and services under its mandate that should be devolved to local government units.

As part of the government’s devolution transition plan, Marcos cited the need to define the primary services and functions that should be turned over to LGUs before coming up with the schedule of implementation, which will also be based on each LGU’s capacity.

“Should the LGUs lack the funds to implement the functions and services, the National Government should have a program to assist them,” Marcos said, according to the Presidential Communications Office release.

PCO reported that Marcos also ordered the Department of Interior and Local Government (DILG) to come up with a list of basic functions and services that the LGUs should be performing based on their Devolution Transition Plans.

The National Economic and Development Authority (NEDA) has also been ordered to conduct a “sensitivity analysis” to determine the economic benefits that can be gained from the government’s investments, “which include the functions and services to be performed by the LGUs.”

Marcos’ economic managers have also been tasked to “recommend ways to better implement a phased-in devolution, including its timeline based on LGU capacity.”

The DILG is set to submit the list by January, while NEDA will submit its report in February.

In 2021, Former President Rodrigo Duterte issued Executive Order 138, which implemented the Supreme Court’s 2018 ruling on the Mandanas-Garcia case and affirmed that LGUs should have greater fiscal autonomy. This formed the basis of the LGU devolution plan, which passes on certain functions of the executive branch to LGUs. 

In the Mandanas-Garcia case, the Supreme Court ruled in favor of local government units, stating that they are entitled to a "just share" of the national taxes collected. The decision specifically clarified that the base for computing the just share of LGUs should include not only the internal revenue taxes but also all other national taxes.

Budget Secretary Amenah Pangandaman said in August that EO 138 may remain suspended until 2024 due to an ongoing review of the order, according to a BusinessMirror report. — Cristina Chi