NextGen Day

Around 450 local government units (LGUs), notably fourth- and fifth-class towns, are not prepared to take on their devolved functions by the end of the year, according to the Department of Budget and Management (DBM) on Tuesday.

Following a sectoral meeting with President Ferdinand R. Marcos Jr. to discuss Executive Order (EO) 138 on the full devolution of certain functions of the national government to local governments as mandated by the Supreme Court in the Mandanas-Garcia case, DBM Secretary Amenah Pangandaman made this statement.

The full transfer of responsibility for providing basic services and facilities to LGUs before the end of 2024 is mandated by EO 138, which was signed by former President Rodrigo Duterte on June 1, 2021.

Prior to that, Marcos oversaw a review of the duties that ought to be transferred to local governments and those that ought to remain in the hands of the national government. He also extended the deadline for the transfer of some duties until 2027.

Pangandaman claimed that at the meeting Marcos gave the go-ahead for the concerned agencies to continue researching potential changes to the EO because many LGUs are still not equipped, either financially or technologically, to take on their devolved responsibilities.

The detailed transition plans (DTPs) of the LGUs are monitored by the Committee on Devolution (ComDev), which is presided over by the DBM chief.

The capability of appointing LGUs is at an iba-iba level. The advanced and developed status of the nasa cities is undeniable, and since they have adequate finance, they also have the necessary people to carry out the projects (LGUs have varying capacities). There are, of course, cities that have evolved and developed, and since they have sufficient funding, they also have sufficient staff to carry out the projects),” Pangandaman said.

However, certain LGus are known to be seriously behind. They are unable to implement the projects because they lack the necessary technical know-how and competence, she continued.

According to her, LGUs who are struggling to perform their devolved tasks and services would be given financial support through the Growth Equity Fund (GEF) under EO 138.

Pangandaman claimed that despite receiving a larger part of national tax receipts, there is still a question as to whether or not LGUs are aware of how to use these funds effectively.

It’s not just about the money, the LMPs (League of Municipalities in the Philippines) (told us that). They are naturally pleased to have more money now, but they are also considering how to use it, make the best use of it, and put it to use, she said.

She said that so far, capacity-building initiatives, training, and seminars have been carried out to enable LGUs to become self-sufficient.

She also expressed the hope that in two months, ComDev would propose changes to EO 138.

Many studies have already been conducted by various academic institutions, including the Philippine Institute for Development Studies (PIDS) and even our development partners. Maybe we should just give them another look. Research may already exist for us, and we may be able to present it to the President in the next two months, she speculated.

In a previous letter to Marcos, the think-tank Local Government Development Institute (LGDI) emphasized the need for a more progressive transfer of programs and encouraged him to respect LGUs’ desire to delay the implementation of full devolution until 2027 rather than 2024.

Former DILG Undersecretary Jonathan Malaya, executive director of the LGDI, stated that the LGUs must first receive the proper interventions.

Marcos stated last month that his administration is “very serious” about assessing the repercussions of fully delegating some executive branch duties to LGUs.

He stated that as they expressed their concerns, the national government would be “all ears.”

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