Title
EO directing DILG review of LGU decentralization
Law
Executive Order No. 444
Decision Date
Jul 5, 2005
Executive Order No. 444 aims to streamline government functions and empower local government units in delivering basic services, while the Department of the Interior and Local Government conducts a strategic review to identify areas of duplication and promote fiscal autonomy for local governments.

Legal basis and related presidential program

  • The President’s rationalization program for all functions and agencies of the Executive Branch is grounded on Executive Order No. 366 dated 04 October 2004, which is cited to support the reforms contemplated.
  • Section 3 (h) of the Local Government Code of 1991 is cited as providing a continuing mechanism to enhance local autonomy through administrative and organizational reforms.

Policy purpose of continuing decentralization review

  • Section 1 directs a strategic review of continuing decentralization and devolution to support the National Government’s rationalization policy under Executive Order No. 366.
  • The review aims to improve government performance by transforming the bureaucracy into an efficient and results-oriented structure.
  • The review is designed to strengthen LGUs as frontline agencies and as the National Government’s main partner and implementing arm for productivity and development programs.

Coverage: what DILG must review

  • Section 1 covers the continuing decentralization and devolution of services and functions of all departments, agencies, and bureaus of the Executive Branch.
  • The review extends to including corporations, boards, task forces, councils, and commissions of the Executive Branch.
  • The review focuses on functions exercised by LGUs and on areas where national functions may duplicate or overlap with LGU responsibilities.

Functions and outcomes of the strategic review

  • Section 1(a) requires the strategic review to support the objectives of the National Government’s rationalization policy under EO 366.
  • Section 1(b) requires identification of national agency functions, services, programs, projects, and activities that duplicate or unnecessarily overlap with those exercised by LGUs.
  • Section 1(b) requires determining which overlapping functions could be devolved or decentralized without undermining vital/core services and mandates and consistent with the Local Government Code.
  • Section 1(c) requires determining the extent of devolution of powers and the transfer of assets, resources, and personnel to local governments for real fiscal autonomy, limited to functions identified to be devolved under the Local Government Code.
  • Section 1(d) requires submitting recommendations and courses of action, including policy and administrative proposals, to implement the findings of the strategic review.

DILG duties and responsibilities

  • Section 2(1) requires DILG to call upon all national and local agencies for technical, policy, documentary, information, and resource assistance and support for the review.
  • Section 2(2) requires DILG to initiate and conduct national and regional public forums, round-table discussions, and consultations on issues, objectives, and purposes of the review.
  • Section 2(3) requires DILG to identify and sponsor broad, extensive, and deliberate policy and institutional studies, researches, surveys, and polls on key issues and concerns related to the review.
  • Section 2(4) requires DILG to initiate partnership and coordinating activities with the private sector, donor agencies and projects, and other relevant external bodies.
  • Section 2(5) requires DILG to initiate public information, education, and communication activities to generate awareness, understanding, feedback, and support for the outputs and recommendations.
  • Section 2(6) requires DILG to submit its recommendation, outputs, regular reports, and updates to the Office of the President and relevant national agencies.
  • Section 2(7) authorizes DILG to perform other functions directed by the President.

Consultants and expert support

  • Section 3 authorizes DILG to engage individuals and institutional experts and specialists from both national and local agencies and bodies as resource persons for the strategic review.

Funding and allowed sources

  • Section 4 provides that the budget needed for the provisions of the Executive Order shall be taken from available funds of the DILG.
  • Section 4 allows DILG to tap other sources of funds such as grants, donations, and other forms of technical and resources assistance from donor agencies, projects, and other public or private entities.
  • Section 4 requires that tapped external resources be facilitated subject to regular auditing guidelines and procedures.

Repealing clause and effect on inconsistent issuances

  • Section 5 repeals or modifies accordingly all orders, rules, regulations and issuances (or parts thereof) that are inconsistent with Executive Order No. 444.

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