MANILA – Implementing the Supreme Court’s Mandanas Ruling in 2022, which will increase the share of national government tax revenue of local governments, will bolster development in the countryside, Presidential Communications Secretary Martin Andanar said on Friday.
The Supreme court ruling in July 2018 affirmed that LGUs are entitled to a “just share” of all national taxes collected by the government and not just those collected by the Bureau of Internal Revenue (BIR).
This was supported by President Rodrigo Duterte when he signed Executive Order No. 138 last June 2021, which prepares LGUs and the national government on the Devolution Transition Plans (DTPs).
The DTP will serve as the roadmap to ensure strategic and systematic actions as LGUs take full assumption of devolved functions and services.
“The term ‘game changer’ has now become a cliché but really the Supreme Court’s Mandanas Ruling and President Duterte’s subsequent EO 138 are just that,” Secretary Andanar said during an episode of the Cabinet Report.
He reiterated PCOO’s commitment and support in decentralizing government by highlighting the potentials of LGUs, through their untapped and underdeveloped resources, which were featured in the Network Briefing News.
“More than seeing the potential we need to empower them to act on it and that to me is what devolution brings–the power, the authority, the responsibility, and the resources to make what our people dream for themselves happen all across our 7,641 islands,” he said.
Shift of power, authority from NG to LGUs
According to the Department of the Interior and Local Government (DILG) Secretary Eduardo Año, with much responsibility and power, LGUs are now in the position to chart the destiny of their people and their community. This will also allow the national government to shift to its oversight functions.
He said there will be a 38% increase in the allotment given to LGUs which translates to more or less P260 billion.
“The national government will be able to focus on macro and strategic priorities in addressing existing development issues. It will shift from rowing to steering, meaning focusing primarily on development policy, service delivery standards, capacity building, providing technical assistance, and LGU compliance monitoring” he said.