Marcos extends full LGU devolution until 2028

President Ferdinand “Bongbong” Marcos Jr. has extended the transition period for the full devolution of certain executive branch functions to local government units (LGUs) until the end of his term.

This was directed by Marcos through the issuance of Executive Order (EO) No. 103, signed by Executive Secretary Lucas by authority of the President.

The EO gave LGUs more time to strengthen their financial, technical, and administrative capacities for delivering devolved services under the Mandanas-Garcia ruling and Republic Act No. 7160 or the Local Government Code of 1991.

The latest presidential directive amended EO No. 138 (series of 2021), issued by former President Rodrigo Duterte, which was released to implement the July 2018 Supreme Court ruling widening the base of the LGUs’ share in taxes or the so-called “Mandanas Ruling.”

The Supreme Court ruling favoring increased share of taxes for LGUs stemmed from the petition filed by former Batangas Representative Hermilando Mandanas.

The latest EO also introduced additional policies to ensure a smoother, phased transfer of responsibilities and prioritizes support for poorer and less developed LGUs.

“In light of the varying financial, technical, and administrative capacities of LGUs, along with their unique circumstances, needs, and priorities, the functions, services, and facilities to be devolved from the national government may not be fully absorbed or implemented uniformly across all LGUs within the transition period mandated under EO No. 138,” the EO read.

The LGUs, moreover, should be primarily responsible for providing direct service delivery to their constituencies and shall assume greater responsibility and accountability in ensuring the quality of devolved services in accordance with the standards set by the national government.

Phased implementation

To fully assume the devolved functions, the latest EO directed that LGUs shall continually strengthen their capacity to exercise stewardship over their increased fiscal resources; enhance their organizational capability for service delivery; institutionalize transparent, accountable, and participatory mechanisms to achieve national and local development objectives better; and optimize their local revenue generation and resource mobilization mandates.

It is essential to provide sufficient time for a smooth transition towards full devolution, thereby ensuring the effective and efficient delivery of these functions, services, and facilities by LGUs.

"All LGUs shall follow a phased implementation of the full devolution within the prescribed transition period as they continually improve their fiscal and institutional capacities," the EO added.

Provinces and municipalities shall gradually shift to full devolution by no later than Fiscal Year 2028, while cities shall fully implement the devolved functions and services by no later than Fiscal 2027.

In the implementation of devolution across the different levels of LGUs, the EO mandated that the priority shall be given to providing assistance to 4th to 5th income classes and other poor, lagging, and disadvantaged LGUs, particularly those in geographically isolated and disadvantaged areas, as well as those with high poverty incidence. —VAL, GMA Integrated News