Starting in 2022, the Supreme Court’s Mandanas ruling will require local government units to receive 40 percent of most national taxes . In exchange, however, local governments will also shoulder the responsibility over public services to be devolved under Executive Order No. 138 issued on June 1, 2021.
According to UP Economics Professor Joseph Capuno, as the incomes of local governments from the national tax allotment increase next year, their responsibilities and expenditures will also increase. On the other hand, Dr. Alex Brillantes professor at the UP National College of Public Administration and Governance, noted that the problem of scarcity of resources will continue to plague LGUs due to the fragmentation of districts, rendering many of the barangays unsustainable.
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