In observance of the Holy Week, the Philippine News Agency’s online news service will be off on March 29, Good Friday, and March 30, Black Saturday. Normal operations will resume on March 31, Easter Sunday.

— The Editors

LGUs to enjoy more autonomy once devolution starts

By Azer Parrocha

February 15, 2023, 4:46 pm

<p>Department of Budget and Management Secretary Amenah Pangandaman<em> (File photo) </em></p>

Department of Budget and Management Secretary Amenah Pangandaman (File photo) 

MANILA – Local government units (LGUs) will enjoy more autonomy in managing resources when the full devolution of basic services and facilities from the national government is implemented.

In a recent radio interview, Department of Budget and Management (DBM) Secretary Amenah Pangandaman said facilitating the devolution of functions to the localities would be an advantage as they will be given increased autonomy due to the increase of their national tax allotment (NTA) shares.

The NTA shares of LGUs are based on the tax collections of the government.

“Ang advantage po ay 'yung proper identification ng mga proyekto because sila [LGUs] po 'yung nakakaalam kung ano talaga ang kailangan nung kanilang mga nasasakupan (The advantage is the proper identification of projects because they [LGUs] know what their constituents really need), so I think this will be beneficial for them,” she said.

“Nako-compute 'yung total IRA [internal revenue allotment] po nila based po sa kinita ng Customs at saka po ng BIR. Basically tax collections po ng national government… doon po nakikita 'yung makukuha po nila (They can calculate the total IRA based on the income of the Customs and then the BIR. Basically tax collections by the national government... that's where you can see what they can get),” she added.

Consistent with Section 284 of Republic Act 7160, or the Local Government Code of 1991, the amount of LGU shares in the national taxes for a given fiscal year is based on the collection of the third fiscal year preceding the current fiscal year.

Consequently, Section 2.2.1 of Local Budget Memorandum (LBM) No. 85 reiterates that the total fiscal year 2023 NTA shares of LGUs shall be based on the actual collections of national taxes in FY 2020, as certified by the Bureau of Internal Revenue, Bureau of Customs, and Bureau of the Treasury.

Pangandaman likewise reassured LGUs that the DBM would provide technical assistance and will perform oversight functions to ensure proper budgeting and expenditure management practices.

Earlier, Pangandaman said that DBM, together with other concerned agencies, are formulating measures to enable LGUs to assume their devolved functions by 2027.

She said capacity building, training, and seminar for LGUs will help guarantee that they will be able to stand on their own two feet.

Moreover, she said programs for procurement, proper planning, identification of projects, and implementation are also expected to help capacitate LGUs.

Executive Order (EO) No. 138, signed by former President Rodrigo Duterte on June 1, 2021, orders the full devolution of the provision of basic services and facilities to LGUs in line with the Supreme Court’s Mandanas-Garcia ruling.

Late last year, the DBM submitted to President Ferdinand R. Marcos Jr. a draft executive order to amend EO 138 and extend the transfer of some national government functions to LGUs from the previous 2024 to 2027.

The Supreme Court Mandanas-Garcia ruling resulted from the petition made by Batangas Governor Hermilando Mandanas and former Bataan Governor Enrique Garcia Jr. before the Supreme Court on local government shares on internal revenue allotment.

With the increased budget share, the LGUs are expected to be responsible for the funding and delivery of the activities, which have been devolved to them under Republic Act 7160, the Local Government Code of 1991, and other subsequent laws. (PNA)

 

Comments