More powers for LGUs in 2022
The Home and Local Government Ministry said on Saturday that full devolution of basic national government services and facilities to local government units would begin in 2022, including increasing LGUs’ share of all taxes and revenues. national. This, after President Rodrigo Duterte signed Decree 138, according to DILG secretary Eduardo Año in a weekend press release. “With EO 138, the LGU’s long cherished objective of finally implementing the full devolution of powers and resources mandated by the 1991 Local Authorities Code will be achieved under this administration. With full decentralization, a lot of good things are happening to our LGUs and the general public from next year onwards, ”Año said. He stated that the OE would ensure that the decentralization policy enshrined in the Constitution and the Local Government Code, as well as the increase in the fair share of national taxes for LGUs, as provided for in the Mandanas ruling. Garcia of the Supreme Court, be carried out consistently and smoothly. “We thank President Duterte for remaining faithful to his commitment to local autonomy and full decentralization through the signing of this OE. This will get the ball rolling and ensure LGUs are ready for greater responsibilities that come with more financial resources. Due to full devolution, LGUs would be endowed with more funds, which would result in better service to the population, ”he said. In Mandanas et al. v. Executive Secretary et al. in the case, the Supreme Court ruled that all national tax collections, except those accruing to special funds and special allowances for the use and development of national wealth, should be included in the calculation of the base for the fair share of LGUs. In 1991, the Local Authorities Code made the devolution of basic services to LGUs compulsory. This was based on the assumption that LGUs are better placed to meet the needs of their constituents and therefore can provide better services. However, full decentralization was never achieved as the funds needed to implement full decentralization were never fully transferred to LGUs. The head of DILG said that E0 138 is a step towards establishing a more responsive and accountable local government structure instituted through a system of decentralization in which local government units will be given more powers. , authority, responsibilities and the corresponding financial resources. “The provinces, cities and municipalities of 1st to 3rd class which have more capacity will benefit from greater autonomy in the management of their resources. The DILG will then focus and assist 4th to 6th class municipalities so that they are better equipped to perform the additional functions and services devolved upon them, ”he said. Año said that a Committee on Decentralization (ComDev) will also be created to oversee and monitor the implementation of the administrative and fiscal decentralization objectives of the OE; resolve issues and concerns that may arise in the implementation of the EO; ensure the abolition of any regulatory or fiscal control on the automatic payment of LGU shares; and adopt mechanisms to ensure the continued delivery of public services by national government agencies and LGUs, among others. The secretary of DILG will act as co-chair of ComDev with the secretary of the Department of Budget and Management. Committee members include the Secretary of Socio-Economic Planning, Secretary of Finance, Executive Secretary and Presidents of the Leagues of Provinces, Cities and Municipalities of the Philippines, La Liga ng mga Barangay ng Pilipinas and the Union of Authorities localities of The Philippines. Within the framework of the OE, an Equity Fund for Growth will also be proposed to Congress which will cover the financing needs of the projects of poor, disadvantaged and backward LGUs to enable them to implement the functions and services that they require. are vested. In preparation for these fundamental governance changes, Año urged provincial governors, city and municipal mayors and punong barangays to formulate their capacity development agenda and devolution transition plans. Año said that the Department’s Academy of Local Governments will oversee the provision of capacity development interventions for local governments and develop the appropriate mechanisms to ensure efficient use of government resources in this effort. He added that LGA will harmonize all capacity building interventions of DBM, National Economy and Development Authority, Ministry of Finance, other agencies, Philippine Development Academy and third-party service providers for LGUs. The AGL will maximize the potential of National and Regional Local Governance Resource Centers as a convergence platform for capacity development. The DILG, DBM and the DOF Local Government Finance Office, on the other hand, should include public finance management processes, such as local planning, investment programming, resource mobilization and budgeting, in the development of LGU capacities to ensure that the allocation of revenue allocated to basic services and equipment complies with the Local Government Code or Republic Law No. 7160 and other relevant laws.
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