DAVAO CITY, Oct. 1 (PIA) - Local Government Units will start getting a national budget share of 37 percent more in an average than their 2021 Internal Revenue Allotment (IRA) or 27.61 percent more than what they expected to receive for 2022 without the Mandanas Doctrine.
The main point conveyed by Department of Budget and Management XI Regional Director Gary Martel in a virtual forum organized by the Regional Development Council XI is the major change on the fiscal situation to LGUs as President Rodrigo Roa-Duterte signed the Executive Order 138 or the Full Devolution of certain functions of the Executive Branch to Local Governments last June 2021 which emanated from the Supreme Court Ruling on the Mandanas case.
WHAT IS THE MANDANAS CASE?
Director Martel explained that the Mandanas case whose petitioners were Congressman Hermilando Mandanas and Congressman Enrique Garcia Jr. won the case as ruled by the SC for a just share of LGUs from the national taxes not just limited to national internal revenue taxes collected by the Bureau of Internal Revenue (BIR) but also including other national collections.
“Instead of calling the LGU’s budget from the national as IRA, it will now be called National Tax Allotment or NTA,” Director Martel said. “The implementation of the NTA will start next year, 2022.”
A CHALLENGE AND OPPORTUNITY FOR LGUs
Davao de Oro Governor Tyrone Uy takes this major change as an opportunity for any LGU. “ With more resources, we can respond better through programs and projects for the people in the locality.”
However, he takes it as a challenge as well.
Governor Uy said this is a challenge to every local chief executive as LGUs will not just receive additional resources but also ensure that these resources are allocated properly according to the LGU’s needs, and priorities.
One major task given to LGUs along with these fiscal impacts is the devolution of certain functions of the executive branch.
Through devolution, the central government of a state transfers authority and functions to local government. It creates an arrangement where social services such as healthcare, education, public works, and agriculture assistance are provided to the people mainly by LGUs than the central government.
“ One challenge for the local government is coming up and sustaining the implementation of our Devolution Transition Plan (DTP) and balancing our priorities on governance.”
He is also planning to work on a major re-organization to amend and expand a more than a decade-old organizational set-up.
“ Definitely we will allocate these resources on programs based on the problems and issues of the local government,” Governor Uy said.
HOW THE EO 138 CAN HELP FOR THE FULL DEVOLUTION?
The EO 138 lays out mechanisms by which NGAs and LGUs shall prepare their Devolution Transition Plan that will serve as a guide in identifying the functions and services to be devolved from NGAs to LGUs.
The Department of Interior and Local Government (DILG) is tasked to assist the LGUs assume the devolution.
“ What we are discussing now is how LGUs can assume full responsibility. The DILG is around to help them. We also make sure that the NGA will coordinate with the LGU. It will take us three years, slowly we can transition well,” DILG XI Regional Director Alex Roldan said.
For Davao Region, 18 agencies are expected to be affected by the devolution transition. Some of these agencies are the Department of Agriculture (DA), Department of Education (DepEd), Department of Agrarian Reform (DAR), Department of Health (DOH), Commission on Population (PopCom), Department of Information Communication Technology (DICT), Department of Justice (DOJ), Department of Public Works and Highways (DPWH), Department of Social Welfare and Development (DSWD) and more.
EFFECTS ON THE NGAs
The fiscal implications do not just affect the local government but equally impacts the national government. Agencies affected by the devolution are expected to have a significant cut on their budget starting next year.
Director Lim bared that the NEDA made a study on the fiscal implication and that it showed that most of the agencies affected will have a significant reduction of budget because programs and activities covered by the EO 138 will already be transferred to the LGUs. The LGUs will then assume and absorb the responsibility on implementing those programs, projects, and activities.
Personnel of NGAs affected by the devolution are also given options on what to take if their job item will be abolished.
The EO 138 cites that affected personnel may transfer to other units within the agency, or transfer to other agencies within the Executive Branch, or retire or separate from the service, and may be given preference to vacant positions in LGUs. (PIA XI/Frances Mae Macapagat)
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