The Department of the Interior and Local Government (DILG) said Friday, Jan. 28, that the local government units (LGUs) can now better implement poverty alleviation and development programs with their bigger tax allotment share.
This was stressed by the DILG as the Community-Based Monitoring System (CBMS) provides assistance to LGUs for appropriately allocating their tax allocations with the implementation of the Supreme Court ruling on the Mandanas-Garcia petitions.
The High Court ruling on the Mandanas-Garcia petition concerning the Internal Revenue Allotment (IRA) follows a long and persistent effort of the LGUs and stakeholders in demanding greater autonomy and resources from the national government.
“LGUs need to utilize their resources well now that they will have bigger tax allotments because of the Mandanas-Garcia ruling. With the nationwide rollout of the CBMS, we will be able to equip LGUs with the proper system and tool to help them assess, plan, and implement development programs for their localities,” said DILG Undersecretary Marlo L. Iringan.
Iringan explained that the Mandanas-Garcia ruling implementation creates greater demand for relevant data at the local level.
By using the CBMS, Iringan noted that the “LGUs will know the true socio-economic status of their locality and will be able to channel their bigger shares from national taxes to craft more responsive, effective and targeted plans to improve the lives of their constituents.”
The CBMS, as defined under Republic Act (RA) No. 11315, otherwise known as the CBMS Act, is an organized technology-based system of collecting, processing, and validating necessary disaggregated data that may be used for planning, program implementation, and impact monitoring at the local level.
It mandates data collection using the CBMS to be synchronized, conducted regularly, and undertaken in every municipality and city every three years.
The SC ruling on the Mandanas-Garcia petitions stated that LGUs are entitled to a just share in all collections of national taxes, except those accruing to special-purpose funds and special allotments for the utilization and development of the national wealth.
Iringan, who attended the virtual forum dubbed as “Gearing Up for Nationwide Adoption: CBMS in Fiscal Year (FY) 2022”, said that the synchronized data gathering system in CBMS aims to close data gaps at the subnational level and will help LGUs make data-driven decisions.
“CBMS is very important when the Mandanas-Garcia ruling will be implemented because it will empower LGUs to make well-informed decisions as it allows for evidence-based planning and more responsive budgets. With CBMS, LGUs will be able to identify which sectors and target beneficiaries to prioritize and what to focus on," he added.
The DILG official added that the “CBMS can help ensure that the additional resources from the National Tax Allotment (NTA) will be spent on the right interventions targeting the right beneficiaries as an LGU implements devolved functions and services during the transition period.’’
CBMS field data collection was piloted in nine cities/municipalities-- San Gabriel, La Union; Santa Maria, Isabela; Samal, Bataan; Sipalay City, Negros Occidental; Dauin, Negros Oriental; Baybay City, Leyte; Bayugan City, Agusan del Sur; Baguio City; and Sual, Pangasinan in the last quarter of 2021.
The nationwide roll-out is expected to start in July of this year. All LGUs are thus encouraged to join the CBMS roll-out for synchronized implementation.
As one of the member-agencies of the CBMS Council led by the Philippine Statistics Authority (PSA), the DILG will assist in the capacity building for CBMS in the nationwide roll-out.
Iringan said that city and municipal LGU who wish to participate should signify their intention by submitting a letter of confirmation addressed to the head of the PSA on or before February 15.
A Sangguniang Resolution must also be issued authorizing the local chief executive to enter into a tripartite memorandum of agreement with the PSA and the DILG for the adoption of CBMS in their localities.
The implementation of the CBMS in 90 fifth and sixth-class LGUs will be funded by the PSA while the other LGUs shall fund their own implementation of the CBMS and may tap the LGU development fund, the local disaster risk reduction and management fund, the gender and development fund, or other external sources as a possible funding sources.
“Said municipalities and cities may also seek assistance from the provincial LGUs,’’ the DILG noted.