Marcos: Required LGU devolution transition plans almost done

MANILA, Philippines – President Ferdinand Marcos Jr. said the plans for a smooth and efficient transfer of powers from the national government to local authorities have been almost completed. 

“Almost all the required Devolution Transition Plans of the LGUs are done. To fully prepare them for optimal devolution, the necessary technical and financial assistance is being extended to our local governments,” Marcos said during his second State of the Nation Address on Monday, July 24. 

At the 4th assembly of the League of Provinces of the Philippines in May, Marcos said he would release an executive order by the end of 2023 in relation to the Mandanas-Garcia ruling.

The Mandanas-Garcia ruling is a result of two separate petitions filed by Batangas Governor Hermilando Mandanas and former Bataan governor Enrique Garcia Jr. They requested for the basis of computation of the Internal Revenue Allotment of local governments to be adjusted to include national taxes.

Marcos said the devolution of functions was not clear in Duterte’s Executive Order No. 138, which told national government agencies to fully transfer the task of delivering basic services to local governments by the year 2024.

In March 2023, he ordered the review of Duterte’s executive order for possible amendments.

Local Government Income Classification

Marcos also cited a priority administration measure concerning local governments: LGU income classification. This measure was included among the administration’s additional priority bills in May.

The measure seeks to institutionalize an income classification system for provinces, cities, and municipalities reflective of the financial capability of LGUs.

In March. House of Representatives earlier approved on third and final reading the House Bill 7006 or the proposed Automatic Income Classification Act for LGUs. A counterpart measure was transmitted to the Senate in the same month.

The income classification of local government is crucial for governance, financial support, aid determination, and project prioritization. It also ensures fair compensation for local government officials and personnel. – Rappler.com