President Ferdinand Marcos Jr. announced that he will sign a new policy this year to amend former President Rodrigo Duterte’s executive order (EO) on the devolution of certain functions to local government units (LGUs).
Speaking at the first Local Government Summit 2024 held at the Philippine International Convention Center in Pasay City, Marcos stated he plans to modify EO No. 138, which Duterte signed in 2021.
“This year, we also target to issue the [order] amending Executive Order No. 138, s. 2021, with clearer parameters on the functions, services, and facilities that are to be devolved,” Marcos said during his speech.
He emphasized that the new policy will establish clearer guidelines for devolving functions, allowing local governments to better implement and localize the Sustainable Development Goals.
“We have been working on this for a good long while, and I think we have found a formula wherein we divide the funding according to the way that we determine services belong to — as a responsibility to the national government, other services belong to the local government,” Marcos explained.
Marcos pointed out that EO 138, which currently mandates the full devolution of certain executive functions, including local infrastructure projects, would have led to a reduction in funds for local government units if left unchanged. The amendment aims to ensure a fair distribution of responsibilities and resources between the national and local governments, as highlighted by the Mandanas vs. Garcia Supreme Court ruling. This ruling significantly increased the tax base for LGUs by including collections from the Bureau of Customs in addition to those from the Bureau of Internal Revenue.
Marcos added, “In that way, we are able to satisfy the needs as best as we can for both the national government and most importantly for the local government as the Mandanas ruling really directs itself towards the improvement in the local government situation.”