PCO Press Briefing with DBM Secretary Amenah Pangandaman

Summary

In a press briefing on March 21st, President Ferdinand R Marcos Jr discussed the roadmap for the transition to full devolution of certain national government functions to local governments by 2024, as per the Supreme Court's Mandanas decision. The Department of Budget and Management (DBM), along with other agencies, is tasked to study and identify projects for devolution. Concerns about the capacity of local government units (LGUs) to implement large-scale projects were raised, and measures to support LGUs in capacity building and budget utilization were outlined. The briefing also addressed fiscal implications and the need for a balanced approach to devolution.

Takeaways

• 🗓️ The press briefing took place on March 21st, with President Ferdinand R Marcos Jr presiding over a sectoral meeting discussing full devolution of certain national government functions to local governments.
• 📜 Executive Order 138 was highlighted, which outlines the roadmap for transitioning to full devolution by 2024 as a result of the Supreme Court's decision in the Dr. Garcia Mandanas case.
• 🏛️ The creation of a committee on devolution was discussed, with the Department of Budget and Management (DBM) chairing the committee, which includes members from various government sectors.
• 📊 The DBM Secretary mentioned that the previous administration had prepared for devolution, and the current administration is continuing to work on it, with a focus on helping local government units (LGUs) that are lagging.
• 💼 The Secretary of DBM explained that the national government will continue to implement projects until the LGUs are fully capable of taking over, with a transition period until 2024.
• 🤝 There is collaboration between the national government and LGUs, including consultations with leagues of municipalities, governors, and city mayors.
• 💡 The President instructed further study of the responsibilities, projects, and programs between the national government and local government units to ensure a smooth transition.
• 💼 The issue of manpower and capacity was raised as a challenge for some LGUs to implement projects, particularly larger ones like national irrigation systems.
• 💰 The LGUs are expected to receive an increase of 185 billion pesos in 2022 as part of the devolution process, which will significantly impact the fiscal situation of the national government.
• 🏢 The higher-income status cities and municipalities, around 450 of them, are more capable of implementing projects and are expected to take on a larger role in the devolution process.
• 🕵️‍♂️ Safeguards against corruption are in place, including the use of GPR IMO to ensure competitive and quality services, providing motivation for LGUs to perform well.

Q & A

What was the main topic of the press briefing on March 21st?

The main topic was the full devolution of certain functions of the national government to local governments, as discussed in the context of Executive Order 138 and the roadmap extending the transition to full devolution.

What is the significance of Executive Order 138?

Executive Order 138 outlines the transition period until 2024 for the full devolution of projects and programs to local government units, following the Supreme Court decision in the Dr. Garcia Mandanas case.

What is the role of the Committee on Devolution?

The Committee on Devolution, chaired by the Department of Budget and Management (DBM) and including members from various government agencies, is tasked with overseeing the devolution process and ensuring its smooth implementation.

Why is there a need for further study on the responsibilities, projects, and programs between the national and local government units?

Further study is needed to assess the capacity of local government units (LGUs) to implement certain projects and programs, as some may lack the necessary manpower, capacity, and expertise.

How does the national government plan to support LGUs that are lagging in capacity to implement projects?

The national government plans to provide support through seminars, workshops, and capacity-building initiatives to help these LGUs improve their income-generating capacity, budget utilization, and procurement processes.

What is the expected fiscal impact of the devolution on the national government?

The LGUs are expected to receive an increase of 185 billion pesos in 2022 as a result of the devolution, which will be a significant shift in the fiscal landscape and revenue distribution.

How will the devolution affect the implementation of programs by the national government?

The national government will continue to implement projects that the LGUs are not yet capable of handling, ensuring that there is no disruption in the delivery of services and infrastructure.

What measures are in place to prevent corruption during the devolution process?

Safeguards such as the use of the Government Procurement Reform IMO, which promotes competitive bidding and transparency, are in place to minimize the risk of corruption.

How will the devolution ruling affect the fiscal situation of higher-income status cities and municipalities?

Higher-income status cities and municipalities, which are estimated to be around 450, are expected to have the capacity to implement larger projects and will receive a significant portion of the increased funds as part of the devolution.

What is the timeframe for completing the study on devolution?

The study on devolution is expected to be completed within two months, with the aim of presenting the findings to the president for further action.

Will the devolution process be a one-size-fits-all approach, or will it be tailored to different LGUs?

The devolution process is not expected to be one-size-fits-all. It will likely involve a matrix approach that takes into account the varying capacities and needs of different LGUs.