Marcos extends devolution transition for LGUs by 2 years – BusinessWorld Online
PRESIDENT Ferdinand R. Marcos, Jr. has signed Executive Order (EO) No. 103, extending by two years the deadline for the full transfer of certain executive branch functions to local government units (LGUs), citing the need to give them more time to strengthen their financial and administrative capacity.
The order, signed on behalf of the President by Executive Secretary Lucas P. Bersamin, moves the full devolution timeline to 2028.
It amended Executive Order No. 138 issued in 2021, which sought to implement the Supreme Court’s Mandanas-Garcia ruling expanding LGUs’ share in national tax revenues under the Local Government Code of 1991.
The new measure introduces additional policies to ensure a “phased and equitable” transfer of functions and prioritizes assistance to poorer and less developed localities, particularly those in remote or high-poverty areas.
Under the new EO, provinces and municipalities must achieve full devolution by 2028, while cities are expected to complete the process by 2027.
The government will also prioritize capacity-building programs and fiscal support for fourth- and fifth-class LGUs to ensure they can deliver devolved services effectively.
The Marcos administration said the extension aligns with the Philippine Development Plan 2023-2028, the Medium-Term Fiscal Framework, and the AmBisyon Natin 2040 roadmap.
It aims to strengthen local governance, promote transparency, and encourage LGUs to generate their own revenues to sustain devolved services.
Once the transition is complete, the national government will shift its role toward more strategic and supervisory functions to address long-term development challenges and improve coordination between national and local plans. — Chloe Mari A. Hufana
