ARE all local governments ready to take on the task of fulfilling national government duties such as health care, social welfare, livelihood, and infrastructure? 

President Marcos Jr. seems to be reconsidering this as he said Wednesday night that he would review his predecessor’s Executive Order 138 that transfers certain functions of the executive branch to the local governments. 

President Rodrigo Duterte issued EO 138 in 2021 to implement the Supreme Court Mandanas ruling that gave local governments a higher share of internal revenue allotments.

But with this higher allotments came additional responsibilities. After the ruling was final, the executive said the higher allotments would empower LGUs to provide basic services and facilities and said they should be put in charge of these instead of the national government.  

However, there have been concerns that the local governments would be unable to handle the additional responsibilities, and the public may suffer as a result. 

One year for review 

Marcos said he would use the one year before the target for full implementation of devolution to review EO 138, given the reduced tax allotments this year and the technical capabilities of the LGUs. 

“Gagamitin ngayon namin itong one year na ito para pag-aralan nang mabuti ‘yung 138. Tingnan natin na siguro may mga function kasi na binibigay sa local, hindi naman dapat sa local talaga,” Marcos said during the general assembly of the League of Municipalities of the Philippines in Manila. 

He also noted that some of the functions that were supposed to be devolved should really stay with the national government.

There may also be tasks given to the local governments that they would not be able to carry out without sufficient funds.

“So these are the things that we are looking at, that what are the functions na puwede na nga ibigay sa local government na karapat-dapat na tama naman na maibigay sa local government, eh mayroon naman sa aking palagay ay really belongs to the national government,” he said. 

He said he was taking the issues arising from the Mandanas ruling seriously and was looking into how it could be properly implemented 

Why did LGUs seek a bigger share of funds?

According to Marcos, officials led by then Batangas Rep. Hermilandon Mandanas  pursued the case that led to the Supreme Court ruling because they wanted local governments to have their fair share of revenue from the national government. This would allow local officials to implement projects that would benefit their areas.

He said he wants to give local officials the chance to pursue their own initiatives. 

But the EO might give them more responsibilities than they are ready to take on, he said. 

This was why he had decided to study the EO upon assuming office. 

“Because sa papel, it looks okay pero ang net effect sa maraming lugar — hindi lang iba, sa maraming lugar — ang net effect ay nababawasan pa ang pondo na puwedeng gamitin ng chief executive ng local constituency,” he said. 

Concerns about devolving functions 

Several parties have raised concern that local governments may not be ready for additional responsibilities.

In December, the think tank Local Government Development Institute said the President should move full devolution to 2027 instead of the 2024 target for its implementation. 

It said many local governments are not ready for the additional tasks, so the risk for failure is high. 

The local governments have to be technically and financially prepared, it said.