Question & AnswerQ&A (EXECUTIVE ORDER NO. 138)
The main policy goal is to fully support decentralization to empower local government units (LGUs) to deliver basic services and critical facilities, promote local economic growth, and ensure accountability, professionalism, and transparency of local leaders.
Section 6, Article X of the 1987 Philippine Constitution provides that LGUs shall have a just share, as determined by law, in the national taxes which shall be automatically released to them.
The Mandanas et al. v. Executive Secretary et al. ruling, which held that all collections of national taxes, except those accruing to special purpose funds, should be included in the computation of the LGUs' just share.
Full devolution shall be completed no later than the end of Fiscal Year 2024.
Guiding principles include that the national government sets policy and standards and assists LGUs; services with little or no benefit spillover should be administered by lower governments; economies of scale functions by higher governments; redistributive roles remain with national government; and any ambiguity favors devolution.
ComDev oversees and monitors the implementation of decentralization, evaluates transition plans, resolves issues, ensures elimination of controls on LGU tax shares, adopts mechanisms for service delivery continuity, develops communication strategies, issues rules, and submits annual implementation reports.
A Growth Equity Fund (GEF) is proposed to Congress to provide equitable, performance-based, time-bound funding to poor, disadvantaged, and lagging LGUs.
Affected personnel may avail of existing retirement benefits and additionally receive separation incentives based on length of service, with specific multiplier rates applied to their monthly basic salary. A minimum of five years government service is required for separation incentives.
They may apply for transfer within or to other agencies without pay reduction, avail retirement/separation benefits, or apply for vacancies in LGUs subject to local compensation and new civil service entry status.
Local chief executives must first allocate available funds for provision of devolved basic services and facilities before applying funds for other purposes, in accordance with relevant laws and budgeting rules.