Malacañang has ordered a review of big ticket and high impact projects that can or cannot be devolved to local government units (LGUs), saying around 450 fourth and fifth class municipalities, are “unprepared” for the full devolution of functions of the national government to the LGUs.
Presidential briefer Daphne Oseña-Paez said President Ferdinand Marcos Jr. at the sectoral meeting in Malacanang attended by members of the Cabinet and some local government officials, has formed a committee on devolution and for other purposes to help prepare for the implementation of Executive Order (EO) 138 or the full devolution of the functions of the national government to the LGUs.
Secretary Amenah Pangandaman of the Department of Budget and Management, in a briefing after the meeting, said the agency chairs the committee with the representatives of the Departments of Finance (DOF) and Interior and Local Government along with the National Economic Development authority as members.
The committee shall coordinate and consult with the LGUs through the different local government organizations such as the leagues of municipalities, governors, city mayors and barangays.
Pangandaman said under EO 138, they have until 2024 to prepare for the full implementation of the devolution which stemmed from a Supreme Court decision on the Garcia-Mandanas case.
Pangandaman said when the Marcos administration took office last year, LGUs have admitted they are not fully prepared for the devolution.
She said there are, however, some projects and programs that only the national government can implement or undertake.
Pangandaman said amendments to EO 138 may be introduced soon as the President ordered a thorough review of the current functions, along with the projects and programs, that would be retained and implemented by the national government and what would and can be transferred to the LGUs.
She said under the Mandanas-Garcia ruling, all programs identified and provided under the Local Government Code should be transferred to the LGUs. An example is the national irrigation program which some LGUs are unable to undertake due to manpower and expertise requirements.
She said the review may take two months.
Pangandaman said the national government would also devote special attention to the training and capacitating of the less prepared LGUs such as some 450 fourth and fifth class municipalities.
“The capacity level of the LGUs differ. Those in the cities are more advanced and developed because they have enough funding, they have enough manpower to implement the projects. But there are LGUs that we know that are really lagging. They cannot implement the projects because they lack the technical expertise and capacity to implement those projects,” she said.
Pangandaman said this will be on top of the Equity Fund that is being provided to LGUs to help them learn and prepare their own projects from proposals and planning to implementation, among others.
Pangandaman said with the implementation of the Mandanas-Garcia ruling, LGUs’ budget also stands to increase by P185 billion which would be sourced from tax shares, among others. That is also the amount of budget the national government would lose.
Pangandaman, however, said the national government would not be at a disadvantage despite the budget loss as “the DOF has been incurring a lot of revenues right now. It will not be affected.”
The Mandanas-Garcia Ruling gives LGUs a just share on all national taxes and not only internal revenue collections but also customs collections.
