MANILA, Philippines — President Marcos has extended the transition period for the full devolution of certain roles of the executive branch to local governments, citing the latter’s differing capabilities, circumstances and priorities.
Under Executive Order 103 issued last Nov. 6, provinces and municipalities shall gradually shift to full devolution by 2028, while cities shall fully implement the devolved functions and services by 2027.
It amended EO 138 issued in 2021, which stated that the full devolution of functions, services and facilities from the national government to the local government units shall be held not later than the end of fiscal year 2024.
The earlier order was signed by then president Rodrigo Duterte to support the efficient implementation of the Supreme Court’s decision on the Mandanas-Garcia case and strengthen the autonomy of LGUs.
In its ruling on the Mandanas-Garcia case, the Supreme Court said all collections of national taxes, except those accruing to special purpose funds and special allotments for the use and development of national wealth, should be included in the computation of the base of the just share of local governments.
The new EO gives local governments more time to enhance their financial, technical and administrative capacities to deliver the devolved services under the Mandanas-Garcia ruling and the Local Government Code of 1991.
It acknowledged that 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 138 because of “varying financial, technical and administrative capacities of LGUs, along with their unique circumstances, needs and priorities.”
“Recognizing the scale and capacity requirements associated with the devolved functions, services and facilities vis-a-vis the differing capabilities of LGUs, 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,” EO 103 signed by Executive Secretary Lucas Bersamin read.
With the full devolution of certain functions to LGUs, the national government can assume more strategic and steering functions to address persistent development issues, the order added.
Priority to poor LGUs
In the implementation of the devolution, priority would be given to providing assistance to fourth to fifth income classes and other poor, lagging and disadvantaged LGUs, particularly those in geographically isolated and disadvantaged areas and those with high poverty incidence.
All LGUs are covered by the order except those belonging to the Bangsamoro Autonomous Region in Muslim Mindanao.
The amended EO states that the national government is fully committed to the policy of decentralization enshrined in the Constitution and relevant laws aimed at providing sound service delivery standards to guide LGUs in fully assuming devolved functions and services, among other objectives.
Devolution committees
All concerned national government agencies were tasked to organize their respective devolution transition committees within 15 days from effectivity of the EO.
National and local governments shall simultaneously prepare their respective devolution transition plans. National agencies were told to ensure that LGUs are consulted in the crafting of their respective plans to harmonize the devolution strategies.
All national agencies concerned were directed to submit their plans to the budget department within 90 days from the effectivity of the implementing rules or any supplementing guidelines of the EO. They shall also craft a long-term capacity development strategy and program for LGUs to enable them to continuously undertake and effectively perform the devolved functions and services.
Marcos’ order also provided for the creation of a fiscal equalization grant scheme after the transition period to help the LGUs provide standardized quality of basic services.