The national government is studying “very seriously” Executive Order No. 138, considering the existing technical capabilities of local government units (LGUs) and reduced tax allotment this year, President Ferdinand R. Marcos Jr. said on Wednesday.
“Gagamitin ngayon namin itong one year na ito para pag-aralan nang mabuti ‘yung 138. Tingnan natin na siguro may mga function kasi na binibigay sa local, hindi naman dapat sa local talaga,” the President said in a speech during the general assembly of the League of Municipalities of the Philippines (LMP) at the Manila Hotel.
“And so that’s what we are examining, asahan ninyo as I said that we are taking very seriously the issues that have come out from the Mandanas ruling and how we will implement it because hopefully by next year, by ’24 mag-i-improve na ang ating koleksiyon kasi sa 2021, medyo maganda-ganda, medyo umaahon na ‘yung ekonomiya, baka mayroon naman talaga tayong makuha,” the President explained.
EO No. 138, which directs the full devolution of certain functions of the executive branch to the LGUs, was issued to aid the efficient implementation of the Supreme Court Ruling on the Mandanas-Garcia case and strengthen the autonomy and empowerment of LGUs.
The President described the implementation of the Mandanas ruling as one of the most significant issues faced by the government.
“I’m sure everybody is aware of that and iniisip kung ano ba ang talagang nangyayari,” the President said.
“Ang nangyari dito is nagkaroon tayo ng executive order, ‘yung EO 138 that defines the different functions of government and local government. Dahil ang nasa likod niyan ay ang sinasabi lalaki ang pondo ng municipal government, ng provincial government, ng city government dahil nga nabago ‘yung interpretasyon doon sa sharing,” the chief executive pointed out.
According to the President, there are a lot of issues in local government operations that need to be looked into, and “we have to coordinate and to synchronize all that we are doing at the local level with what we are planning to do at the national level.”
“And again, the growth of our economy, the transformation of our economy will always start from the ground level. And if we do not give our local leaders the opportunity to show what it is that they feel are most important, pinakamahalagang proyekto, pinakamagandang iba’t ibang gagawin, mga initiative, programa,” the President said.
In his speech, President Marcos also assured local governments that his administration would listen to their needs and extend necessary assistance.
“We have to give them a chance na magawa nila ang kanilang mga initiative. Para mapakita nila kung ano ‘yung maganda nilang iniisip,” the President said.
The SC ruled in 2018 that the just share of LGUs from the national taxes is not limited to “national internal revenue taxes” collected by the Bureau of Internal Revenue (BIR) but also include collections (customs duties) of the Bureau of Customs (BOC) and other tax collecting agencies.
It also provides for the creation of a committee on devolution to monitor the implementation of the EO No. 138.
With the expected increase in the just shares of LGUs, they will be better equipped to assume responsibility for the delivery of devolved services as prescribed under Section 17 of the Local Government Code of 1991 (RA No. 7160) and other pertinent laws.
Since its inception in 1991, the LMP has promoted local autonomy at the municipal level, encouraged people’s participation in local government administration and supplemented efforts of the national government in creating opportunities for gainful employment, Marcos noted.
The league also assisted the national government in formulating and implementing programs for municipalities and encouraged cooperation among various sectors to achieve collective development goals. (PND)
