National government devolving functions but retaining the budget

The problem with the so-called Imperialistic Manila is that, in its mindless attempt to give a semblance of local autonomy to local government units, a lot of government functions had been devolved to provinces, cities and municipalities. But the budgetary allocations are retained by the national agencies in Manila. The government is not serious in implementing the full import of the Mandanas-Garcia rulings by the Supreme Court.

We all know that the Mandanas-Garcia ruling promulgated by the highest court of the land resulted from the petition made by Batangas Governor Hermilando Mandanas and former Bataan Governor Enrique Garcia Jr. before the Supreme Court on local government shares on internal revenue allotment (IRA). According to the petitioners, LGU shares should include all national taxes. The Mandanas-Garcia Supreme Court (SC) ruling refers to the SC’s final decision on the two (2) separate (consolidated on October 22, 2013) petitions filed before the SC: (1) the petition filed by Congressman Hermilando I. Mandanas and other local officials vs. Executive Secretary Paquito N. Ochoa, Jr., et al. (G.R. No. 199802); and (2) Congressman Enrique T. Garcia, Jr. vs. Executive Secretary Paquito N. Ochoa, Jr., et al. (G.R. No. 208488). Mandanas and Garcia led the crusade of local governments against the imperialistic Central government.

The Mandanas-Garcia rulings were landmark victories for the local governments against the central and national government. Both petitions challenged the manner in which the National Government (NG) computed the Internal Revenue Allotment (IRA) shares of local government units (LGUs). In particular, the petitioners pleaded with the SC to mandate the NG to compute the IRA based on the “just shares” of the LGUs. In its July 3, 2018 Decision, the SC granted the Mandanas-Garcia petition, declaring as unconstitutional the phrase “internal revenue” appearing in Section 284 of the Local Government Code (LGC) of 1991. As such, the SC ordered the deletion of the said phrase. The SC Ruling became final and executory on April 10, 2019, affirming its earlier decision promulgated in July 3, 2018. By this time, the national government should have already complied fully with the import of the Supreme Court decision. But it has not done so.

Our understanding is that the Supreme Court ruled that the determination of the just share of the LGUs should not be based solely on national internal revenue taxes but on all national taxes. The SC also ruled that any mention of “internal revenue allotment” in the LGC of 1991 shall be understood as pertaining to the allotment of the LGUs derived from the national taxes. It further ordered the Secretaries of Finance and Budget and Management, Commissioners of Internal Revenue and Customs, as well as the National Treasurer to include all collections of national taxes in the computation of the base of the just share of the LGUs, based on the ratio provided in the now-modified Section 284 of the Local Government Code.    These rulings are a victory of local autonomy and are tributes to the late Senate President Nene Pimentel, the author of the Local Government Code.

Republic Act No. 7160 or the Local Government Code of 1991 has devolved to all LGUs the administration of basic services, including agriculture, environmental protection, health, maintenance of public works and highways, social welfare and tourism. But the problem confronting governors and mayors today are that the national agencies are not downloading the budget to the local government units. What is devolution? A devolution is defined as the transfer or delegation of power to a lower level, made by the national government to a local or regional administration. This means that some projects, programs, and activities previously done by a centralized, national agency will now be delegated to the local governments for planning and implementation. It goes without saying that the budget for implementation should also be devolved.

Two weeks ago, Mayor Mike Rama, as National President of the League of Cities of the Philippines, asked me to help manage the National Assembly of City mayors held in Mabalacat City, Pampanga at the height of Supertyohoon Egay. There, I met Governor Dodo Mandanas and he explained to the assembly the present predicament of the provinces and cities as well as municipalities given the continuing hesitancy of the national government to download the money to the LGUs. There seems to be an impasse on this and the president should call all national agencies to give him a report on devolution and the status of compliance with the historic and landmark Supreme Court ruling in the Mandanas and Garcia cases.

If we cannot even follow the Local Government Code that Congress passed and the president approved, and if we cannot comply with the final and executory ruling by the highest court of the land, then what kind of country is this and what kind of people are we?