Executive Order 138 and

Devolution Transition Planning:

A Workshop in Preparation for
Full Devolution for the Cities,
Municipalities and Barangays of
the Province of Osaka
Mandanas-Garcia Ruling
•the Supreme Court ruled that the just share of LGUs from the
national taxes is not limited to national internal taxes collected
by the Bureau of Internal Revenue (BIR) but includes
collections (customs duties) by the Bureau of Customs.
EO 138
• EO 138, also known as Full Devolution of Certain Functions
of the Executive Branch to Local Governments, Creation of
a Committee on Devolution, and for Other Purposes, serves
as the guide to LGUs and NGAs in the transition to full
devolution through the prescribed policies mentioned in the EO,
such as devolution transition planning and growth equity
fund.
Impacts on LGUs
• there is positive impact to the increase of IRA of LGUs worth 234 billion pesos or
27.61% increase from its current amount. All levels of local governments shall
enjoy this increase. Conversely, this ruling posed negative fiscal impact on the
national government’s disposable cash for 2022.

• However, let us not forget that the current fiscal year’s IRA is computed based on
the previous three years fiscal performance. With the COVID-19 pandemic hitting
us hard since 2020, the IRA for 2023 onwards will be greatly affected as well.

• Hence, the national tax allocation, formerly the IRA, of the LGUs, is
expected to substantially increase in FY 2022.
Impacts on LGUs
• The significant increase will enable LGUs to offer essential services and
amenities to their citizens, as well as assist them in performing their
duties and powers as delegated to them under Section 17 of the Local
Government Code of 1991.With the large rise in their NTA and other
sources of local revenue, LGUs are anticipated to achieve full devolution
of basic services and amenities to their citizens.Services and facilities
currently provided by national government agencies should be entirely
devolved to local governments by the end of FY 2024.
Devolution Transition Committee Composition
• 1.1 City/Municipality Devolution Transition Commitee

• 1.2 Barangay  Devolution Transition Committee 

Preparing through Devolution Transition
Planning
• To assist LGUs in this important change, they must establish a Devolution
Transition Plan (DTP), which specifies and clarifies the functions and
services devolved to LGUs, by level of LGU, based on the LGC and other
applicable laws, as well as the plan for phasing devolution to LGUs.

• The DTP must also include a proposal to strengthen the

department/agency in assuming "steering functions" as part of the
devolution efforts, as well as a strategy for LGU capacity development,
framework monitoring and performance assessment, and an
organizational effectiveness proposal to strengthen the department/agency
in assuming "steering functions" as part of the devolution efforts.
DTP Committee Responsibilities
All LGUs of the Province of Osaka shall do these in the transition to full
devolution:
• Prepare their Devolution Transition Plans in close coordination with the
NGAs concerned, especially with regard to devolved functions and services
critical to them.
• Formulate their respective Capacity Development Agenda based on the
assessment framework and guidelines to be issued by the DILG-LGA.
• Formulate communication plans and strategies which are aligned and
complementary to the communications plan formulated and approved by the
ComDev.
• Ensure that local programs and policies shall be integrated and
coordinated towards a common national goal and shall abide by the
policies, standards, and strategies which the national government may establish
DTP Committee Responsibilities
All LGUs of the Province of Osaka shall do these in the transition to full
devolution:
• Prepare their Devolution Transition Plans in close coordination with the
NGAs concerned, especially with regard to devolved functions and services
critical to them.
• Formulate their respective Capacity Development Agenda based on the
assessment framework and guidelines to be issued by the DILG-LGA.
• Formulate communication plans and strategies which are aligned and
complementary to the communications plan formulated and approved by the
ComDev.
• Ensure that local programs and policies shall be integrated and
coordinated towards a common national goal and shall abide by the
policies, standards, and strategies which the national government may establish