Preparations for the Implementation of

the Supreme Court Ruling on

Mandanas-Garcia Cases
ARNEL M. AGABE, CESO III
Regional Director
Department of the Interior and Local Government – Region X
 IMPACT OF THE
SUPREME COURT RULING
 IRA Levels
Fiscal Impact of FY 2016-2020 (Actual), FY 2021-2022 (Projected)
SC Ruling 1,200,000.00

1,000,000.00
• Positive impact to 55.7% 27.62%

(IN MILLION PESOS)

LGUs: projected FY 800,000.00
2022 IRA amounting to
P234.30 B (an

IRA
600,000.00

increase of 27.62%)
400,000.00

200,000.00
• Negative fiscal
impact on the national -
2016 2017 2018 2019 2020 2021 2022
government’s (Projected) (Projected)
disposable cash for FY
2022 Projected IRA in 2022 (before SC decision) Php 848.44 B
Projected IRA in 2022 (after SC decision) Php 1.083 T
*Based on the 24 November 2020 computation of DOF
IRA Allocation per LGU Level
% 2020 2022
LGU No. of LGUs % increase
Allocation IRA (GAA 2020) with SC
Provinces 82 23% 149,251,886,580.00 249,090,000,000.00 40%
Cities 146 23% 149,251,886,580.00 249,090,000,000.00 40%
Municipalities 1,488 34% 220,633,223,640.00 368,220,000,000.00 40%
Barangays 41,931 20% 129,784,249,200.00 216,600,000,000.00 40%
648,921,246,000.00 1,083,000,000,000.00 40%

FY 2022 PROJECT IRA

Barangays Provinces
FY 2020 IRA 20% 23%
Barangays Provinces
20% 23%

Municipaliti Cities
es 23% Cities
34% Municipalities 23%
34%
Implications of the Supreme Court Ruling
1. More resources for LGU service delivery
• Increase of IRA will help fund devolved basic services such as health, agriculture, education, disaster
management, peace and order and safety
• Expectation for better performance-responsive to needs, to standard, and continuing

2. Fewer resource for PPAs for NGAs

• PPAs of NGAs that encompass the roles and service delivery functions of LGUs will be unfunded and devolved to
LGUs
• Fewer PPAs for NGAs, expected to perform less implementation and more oversight functions – concentrate on
setting standards and developing capacity of local governments

3. Greater demand for capacity building and supervision of LGUs

• Need for more and sustained capacity building
• Expanded oversight role of DILG and other NGAs
• Exercise of oversight responsibilities of provinces; cities and municipalities over their respective component LGUs
Devolved Services and Facilities (LGC Sec 17)

Functions, basic
services, and
facilities which have
already been
devolved based on
Section 17 of the LGC
and other pertinent
laws
 Devolved Services and Facilities (LGC Sec 17)
Functions/Services Provinces Municipalities Cities Barangays
Agriculture extension and on-site research services ✓ ✓ ✓ ✓
Local infrastructure services ✓ ✓ ✓ ✓
Natural resource management services ✓ ✓ ✓
Environmental services ✓ ✓ ✓ ✓
Tax information and collection services ✓ ✓ ✓
Health services ✓ ✓ ✓ ✓
Investment and job placement information
✓ ✓
systems
Social welfare services ✓ ✓ ✓ ✓
Transportation services ✓ ✓
Tourism services ✓ ✓ ✓
Housing services ✓ ✓
Other services ✓ ✓ ✓
Shift of NGA Function

NGAs shall largely be performing

oversight functions, shifting from
National Government “rowing” to “steering” and focusing
primarily on the development of
policy and service delivery
standards, capacity-building,
provision of technical assistance,
and LGU compliance monitoring.

Local Government Units

 SALIENT FEATURES OF
EXECUTIVE ORDER NO. 138
ON FULL DEVOLUTION
EXECUTIVE ORDER ON FULL DEVOLUTION OF CERTAIN FUNCTIONS OF THE
EXECUTIVE BRANK TO LOCAL GOVERNMENTS, CREATION OF A COMMITTEE
ON DEVOLUTION, AND FOR OTHER PURPOSES

SALIENT FEATURES

Delineation Preparation of Creation of

Establishment of
of NGAand Devolution Committee on
Growth Equity Fund
LGU Roles Transition Plans Devolution
EXECUTIVE ORDER ON FULL DEVOLUTION OF CERTAIN FUNCTIONS OF THE
EXECUTIVE BRANK TO LOCAL GOVERNMENTS, CREATION OF A COMMITTEE
ON DEVOLUTION, AND FOR OTHER PURPOSES
SALIENT FEATURES

Capacity Strengthening of Planning, Development of Options for

Investment Programming,
Building and Budgeting Linkage and Communications Affected NGA
for LGUs M&E Systems Plan and Strategy Personnel
FUNCTIONS, SERVICES, AND FACILITIES FOR FULL DEVOLUTION

• Covers all LGUs and all departments, agencies, and instrumentalities of

the Executive Branch with devolved functions to LGUs

• Functions, basic services and facilities based on Section 17 of the Local

Government Code and other pertinent laws
PREPARATION OF FULL DEVOLUTION TRANSITION PLANS
NGA Devolution Transition Plan LGU Devolution Transition Plan
❑ Identification of devolved functions and
services and phasing of or strategy for ❑ LGUs to prepare their DTPs in close
devolution coordination with pertinent NGAs
❑ Definition of service delivery standards ❑ The DTP shall not be approved by the
❑ Capacity development strategy for NGAs
LGUs
 ESTABLISHMENT OF GROWTH EQUITY FUND

A Growth Equity Fund shall

be established starting FY
2022 to address problem of
marginalization, unequal
development, and high
poverty incidence across
different LGUs.
 CREATION OF COMMITTEE ON
DEVOLUTION
• To be composed of the following members:
• Secretary of Budget and Management, as Chairperson;
• Secretary of the Interior and Local Government as Co-Chairperson;
• Secretaries of Finance and Socioeconomic Planning;
• Executive Secretary; and
• Presidents of the Leagues of Provinces/Cities/Municipalities of the Philippines, Liga ng mga Barangay sa
Pilipinas, and Union of Local Authorities of the Philippines, as members
• To monitor and evaluate the status of the implementation of devolution transition plans,
compel compliance and impose sanctions against non-performing NGAs and LGUs, and
provide recommendations based on annual assessments
 CAPACITY DEVELOPMENT FOR LGUs
• Capacity Development Agenda of
LGUs shall be formulated based on
the DILG-LGA assessment
framework and guided by the
strategies identified by the NGAs,
local development thrusts, and
performance goals and objectives
Shall harmonize and oversee
provision of needed capacity
development interventions
Shall strengthen capabilities of
local chief executives
Shall conduct programs regarding
revenue generation and fiscal
management
Strengthening of Planning, Investment Programming,
and Budgeting Linkage and M&E Systems

• Vertical and horizontal linkages across different

levels of government in development planning,
investment programming and budgeting to be
strengthened, and areas of convergence to be
identified

• Results-based monitoring and evaluation systems

shall likewise be in place and strengthened to
ensure purposive conduct of evaluations in the
performance and delivery of devolved functions
and services
DEVELOPMENT OF COMMUNICATIONS PLAN AND STRATEGY

• The NG shall lead in the development of a strong communications

plan and strategies to convey to the general public the delineation of
functions between the NGAs and LGUs.

National Government • NGAs shall designate focal officials and personnel to participate in this
communications effort.

• The LGUs are encouraged to formulate their respective

communications plans and strategies to effectively carry out the
devolution efforts.
Local Government Units
 OPTIONS FOR AFFECTED PERSONNEL

Retire or separate from the

Transfer to other units Transfer to other agencies service, and may be given
within the agency within the Executive Branch preference to vacant positions
in LGUs

• Issuance of EO No. 138
• Submission of transition plans of NGAs and
LGUs
• Implementation of communications plan
• Development of framework for performance
assessment of devolved functions
• Strengthening capacities of NGAs on
monitoring and coaching functions
• Capacity development activities for LGUs
through LGA, DAP, BLGF, and NGAs concerned
• Formulation of EO on full
devolution
• Inventory of sources of funds and
review of functions/services to be
devolved
• Commissioning of policy studies 2019
with development partners
• Initial consultation with NGAs with
PPAs for discontinuance
Full Devolution Road Map
2022
• Implementation of the SC
ruling and the devolution of
functions
2021 • Monitoring of the devolution
process
• Consultations with NGAs concerned
2020 ✓ Preparation of devolution transition plans
✓ Definition of service standards for devolved
functions and services
✓ Formulation of capacity development
strategies for the LGUs
• Development of strategic communications plan
✓ Stakeholders’ engagements/consultations
✓ Consultation meetings with different levels
of LGUs
✓ Conduct of regional and community
awareness campaign
• Strengthening of planning-budgeting linkage
• Refinement of EO on full devolution
 LGU PERFORMANCE – CAPACITY QUADRANTS
Q1: EVOLVE LGUs with high capacity and high
performance into sources of good practice and
QUADRANT 2 QUADRANT 1
• Low C, High P LGUs • High C, High P LGUs innovation, and exemplars of local governance under
full devolution
LGU PERFORMANCE (P)

Q2: ENABLE LGUs with low capacity to unlock

ENABLE EVOLVE capacity issues to seize in full the promises of full
devolution and reinforce performance as a result of
targeted CapDev solutions
QUADRANT 3 QUADRANT 4 Q3: ENGAGE LGUs with low capacity and Low
• Low C, Low P LGUs • High C, Low P LGUs
Performance to catch up with other LGUs, and provide
them with targeted CapDev solutions

ENGAGE ENERGIZE Q4: ENERGIZE LGUs with high capacity to translate

this into high performance in the context of full
devolution through targeted CapDev solutions
LGU CAPACITY (C)
 LGU PERFORMANCE – CAPACITY QUADRANTS
PRIORITY 2 PRIORITY 4

QUADRANT 2 QUADRANT 1 Foundational -

• Low C, High P LGUs • High C, High P LGUs
Planning, investment
F programming, budgeting,
LGU PERFORMANCE (P)

implementation, M&E
F E D F E D Enabling -resilience,
peace and security,
PRIORITY 1 PRIORITY 3 E connectivity, area-wide
concerns, international
QUADRANT 3 QUADRANT 4 commitments
• Low C, Low P LGUs • High C, Low P LGUs
Developmental-
capacities to achieve
F E D F E D D specific sectoral priorities
based on devolved
functions
LGU CAPACITY (C)
DILG POLICY GUIDANCE
TO LGUS
DILG Memo Advisory to LGUs (19 February 2021)
1. Apprised on the priorities in DBM NBM No. 138
• NGA to shift from “rowing to steering”;
prioritize cap building; limit subsidies to local
income, GIDA and poverty stricken LGUs
• LGU to be mainly responsible for devolved
function under LGC of 1991
2. Advised to:
• Coordinate and/or confer with line agencies
of government for the delineation of
expenditure assignments and service delivery
standards;
• Articulate LGU capacity building needs;
• Determine implications on its organizational
structure and staff competency;
• Proceed with caution in the availment of
loans
COMPONENTS OF THE LGU
DEVOLUTION TRANSITION PLANS

Local revenue Strategy to meet

Inventory of Organizational forecast and service delivery
existing services vs effectiveness resource standards, and
devolved functions proposal mobilization contributions to PDP
strategy outcomes
END OF PRESENTATION