The national government is pursuing the full devolution of the provision of basic services and facilities to local government units before the end of 2024.
President Duterte has signed Executive Order No. 138 directing that certain functions of the Executive branch must be fully devolved to local government units.
The same order created a "Committee on Devolution" (ComDev) to be led by the Secretary of the Department of Budget and Management (DBM) to implement its administrative and fiscal decentralization goals.
"With the full devolution of the provision of basic services and facilities to the LGUs, national government agencies can assume more strategic and steering functions to address persistent development issues," the order read.
Under EO 138, the President stated the national government's commitment to the "policy of decentralization" enshrined in the Constitution and relevant laws that aim to develop LGU capability to deliver social services and critical facilities to their constituents, boost productivity, employment and economic growth as well as enhance LGU competence, accountability and transparency.
"The functions, services, and facilities which shall be fully devolved from NG to the LGUs no later than end of FY 2024, shall include those indicate under Section 17 of RA No. 7160 and other existing laws which subsequently devolved functions of the NG to LGUs," the order read.
The basic services and facilities fully devolved shall be funded from the LGU share in the proceeds of national taxes and other local revenues.
EO 138 noted that LGU share from national taxes is expected to increase starting 2022 with the implementation of the Supreme Court ruling on the Mandanas case. Such increase will empower the LGUs in providing basic services and facilities to their constituents.
To implement the latest order, the President said the national government agencies and local governments must prepare their "devolution transition plans" to conform to the guidelines to be issued by the DBM and the Department of Interior and Local Government (DILG).
The order also directed the ComDev to propose a "growth equity fund" to Congress to address issues on marginalization, unequal development, high property incidence and disparities in the net fiscal capacities of LGUs.
The DILG is also directed to oversee the provision of capacity development interventions for local governments and development mechanisms to ensure effect use of government resources.
EO 138 also included provisions on options for government personnel who may be affected by the devolution, including transfer to other government offices without reduction in pay, and retirement or separation benefits.
RA 7160 or the Local Government Code of 1991 allows LGUs to exercise powers and discharge functions and responsibilities on the provision of services such as health and social welfare services, agricultural support, solid waste system, local infrastructure facilities, forest management, pollution control, transportation, tourist development and promotion, and education support.
Under the LGU code, the devolution is defined as the act by which the national government confers power and authority upon the various local government units to perform specific functions and responsibilities.
EO 138 has invoked the constitutional provisions that allow the President to have control over all executive departments as well as exercise general supervision over local governments. The order, signed by the President on June 1, takes effect upon publication in the Official Gazette or newspaper.