Department of the Interior and Local Government (DILG) Region III

region3.dilg.gov.ph

FULL DEVOLUTION ₱
ROLE OF THE DEPARTMENT OF
THE INTERIOR AND LOCAL
GOVERNMENT
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Related Legal Provisions

1987 Constitution, Article X, Section 6
“Local government units shall have a just share, as determined by
law, in the national taxes which shall be automatically released to
them.”

Local Government Code of 1991, Section 284

“Local government units shall have a share in the national internal
revenue taxes based on the collection of the third fiscal year
preceding the current fiscal year.”
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Supreme Court Ruling on the

Mandanas and Garcia Petitions
40% share of LGUs will NOW be
based on “all national taxes” and
NOT be limited to “national internal
revenue taxes”.
From IRA (Internal Revenue
Allotment) to NTA (National Tax
Allotment)
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Impacts of the Supreme Court

Ruling on Intergovernmental
Relations
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Fiscal Impact of SC Ruling

Positive impact to
LGUs: increase in NTA
shares

Negative fiscal impact on

the national government’s
disposable cash for FY
2022

*Based on DBM Local Budget Memorandum No. 82 and 82-A

Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Impact of COVID-19 to National Tax Collection

While FY 2022 NTA

level increased, DBM
informed of a
projected downtrend
in FYs 2023 and 2024
NTA due to lower
national taxes
collection in FY 2020
and possibly FY 2021.
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

NTA Allocation per LGU level

Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Implications of SC Ruling on Institutional

Arrangements and NG-LGU Dynamics
1. More resources for LGU service delivery
• Increase of IRA will help fund devolved basic services
• Expectation for better performance – responsive to needs, to standard, and continuing

2. Fewer resource for PPAs for NGAs but more oversight

• NG is expected to perform less implementation and more oversight functions
• PPAs of NGAs that encompass the roles and service delivery functions of LGUs will be scaled-down
and devolved to LGUs

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
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Salient Features of Executive

Order No. 138, s. 2021
Full Devolution of Certain Functions of the Executive
Branch to Local Government, Creation of a Committee
on Devolution, and for other purposes
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Salient Features of EO 138

Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Delineation of NG and LGU Roles

National Government Local Government Units
NGAs shall largely be performing LGU to be mainly responsible for
oversight functions devolved functions under LGC of
✓ development of policy guidelines 1991 and subsequent laws
✓ formulation of service delivery devolving functions to LGUs
standards
✓ capacity-building and provision of
technical assistance
✓ monitoring of LGU compliance
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph
Preparation of Devolution Transition Plans
NGA DTP
It shall identify and clarify the
functions and services
devolved to the LGUs, by
level of LGU, based on RA No.
7160 and other relevant laws,
and the strategy for phasing of
devolution to the LGUs.
LGU DTP
It shall serve as the LGU’s
roadmap to ensure strategic
perspective, systematic, and
coherent actions towards their
full assumption of devolved
functions and services starting
in FY 2022.
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Creation of Committee on Devolution

ComDev shall oversee the overall implementation of the EO
✓ Monitor and evaluate status of implementation of NGA and LGU DTPs
✓ Compel compliance and impose sanctions under relevant laws
✓ Come with recommendations based on assessment of implementation

To be composed of the following members:

✓ Secretary of DBM as Chairperson;
✓ Secretary of DILG as Co-Chairperson;
✓ Secretaries of DOF and NEDA;
✓ Executive Secretary; and
✓ Presidents of the LPP, LCP, LMP, LnB, ULAP
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Growth Equity Fund

• GEF intends to address issues on marginalization, unequal
development, high poverty incidence, and disparities in
the net fiscal capacities of LGUs
• GEF transfer in on top of the additional NTA to be received
following the SC ruling
• LGUs may use GEF to implement priority projects to gradually
enable the full and efficient implementation of devolved
₱ functions and services
• Per RA No. 11639 or the FY 2022 GAA, the amount of Php
1,250,000,000.00 is appropriated as financial assistance to the
identified poor, disadvantaged, and lagging LGUs
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Capacity Development Agenda

NGAs capacity development strategy
• Enable NGAs to perform steering as
well as monitoring and evaluation
functions
• Enable LGUs to absorb and manage
the devolved functions and services

LGUs Capacity Development Agenda

• Formulated based on the DILG-LGA
assessment framework
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

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
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Communications Plan and Strategy

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

LGUs are encouraged to formulate their respective communications

plans and strategies to effectively carry out the devolution efforts.
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Options for Affected NG 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

DBM-DILG JMC No. 2021-3 Guidelines on Personnel Policies and

Actions for Affected NGA Personnel signed on 13 Sep 2021
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

DILG Initiatives to Support

Implementation of Full Devolution
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Interface with the LGU DTPs

Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Convergence and Alignment

Ambisyon Natin 2040,

National Government
PDP, SDGs

Provinces PDPFP and PDIP

Cities and Municipalities CDP, LDIP, and AIP

Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Convergence and Alignment

• DILG MC No. 2017-84: Guidelines for Strengthening

Linkage of National/Regional/Provincial Development
Strategies, Programs, Projects and Activities (PPAs)
with the Comprehensive Development Plan, dated
29 June 2017

• DILG-NEDA JMC No. 2018-01: Guidelines on the

Localization of the Philippine Development Plan (PDP)
2017-2022 Results Matrices and the Sustainable
Development Goals (SDGs), dated 26 November 2018
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Convergence and Alignment

DILG-NEDA-DBM-DOF JMC No. 2016-01: Harmonization of Local Planning,
Investment Programming, Resource Mobilization, Budgeting, Expenditure
Management and Performance Management
1. Identification of interdependencies and areas of complementation of local
public financial management (PFM) processes
2. coordination in PFM policies of national oversight agencies (NEDA, DILG,
DBM and DOF)
3. NGA-LGU interface - alignment with national development priorities/thrusts
of provinces
4. strengthens province/city/municipality complementation
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Convergence and Alignment

Strengthen Provincial Oversight
1. Facilitate alignment and complementation of
local plans via review of Comprehensive
Development Plans of component cities and
municipalities; and consolidation and
preparation of a provincial Results Matrix
2. Institute mechanism for monitoring the
contribution of the Provincial Results Matrix
to the PDP Results Matrix
3. Provide tools and system for provincial
consolidation
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Digital PFM Tools

Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

CBMS as Source of Local Information

• RA No. 11315 institutionalizes the conduct of the CBMS
every three (3) years thus providing a source of baseline
information in local planning.

• RA 7160, Section 106 mandates each city and municipality to

prepare a comprehensive multi-sectoral development plan
(CDP) and land use plan (CLUP)

• One of the processes in its formulation is the preparation of

an Ecological Profile (EP) that provides the actual physical,
biological, and socio-economic profile/status of a city or
municipality.

• CBMS data is acknowledged to be an important source of

data in EP formulation, planning and budgeting processes.
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

CBMS as Source of Local Information

• CBMS since 2003 has been used by LGUs in poverty diagnosis and SDG
monitoring
• Adopted on a demand-driven and purely voluntary basis
• CBMS coverage as of 1st Quarter of FY 2021:

• DILG spearheads the training of LGUs under the CBMS Network-led CBMS
on the utilization of CBMS in development planning
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Capacity Development Strategy

Q1: EVOLVE – into sources of good practice and
innovation, and exemplars of local governance
under full devolution

Q2: ENABLE – to unlock capacity issues to seize

in full the promises of full devolution and reinforce
performance as a result of targeted CapDev
solutions

Q3: ENGAGE – to catch up with other LGUs, and

provide them with targeted CapDev solutions

Q4: ENERGIZE – to translate this into high

performance in the context of full devolution
through targeted CapDev solutions
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Capacity Development Strategy

Foundational - Planning, investment

programming, budgeting, implementation,
M&E

Enabling - resilience, peace and security,

connectivity, area-wide concerns,
international commitments

Developmental - capacities to achieve

specific sectoral priorities based on devolved
functions
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Performance Assessment of LGUs

SGLG (RA 11292) puts primacy to integrity and good

performance as pillars of meaningful local autonomy and
development. It is a progressive assessment system that
gives distinction to remarkable local government
performance across several areas.

PCF (SGLG Fund) is a financial grant/incentive fund in the

form of counterpart funding given to LGUs that are awarded
SGLG.
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Ways Forward
• Assistance to LGUs in the completion of DTPs
• Enhance communication and information campaign
• Harmonize and strengthen capacities of LGUs (service delivery), and NGAs
(monitoring and coaching)
• Update policies and mechanisms on the strengthening of planning, investment
programming, and budgeting linkage and M&E systems
• Updating of framework for performance assessment of devolved functions
• Evaluate implementation of the transition to full devolution
• Recommend legislations in support of full devolution
Department of the Interior and Local Government (DILG) Region III
region3.dilg.gov.ph

Thank you.