Gov’t to transfer some functions to LGUs

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Amid a protracted pandemic, President Duterte will step in to ensure that national coffers won’t bleed as much next year by transferring more public functions to LGUs while they enjoy a bigger share of tax collections starting 2022. | bendeveraINQ

As the high court ruling would be implemented next year, the Development Budget Coordination Committee estimates had shown LGUs’ 2022 IRA sourced from 2019 BIR and BOC collections would climb by 27.61 percent to P1.083 trillion or 4.75 percent of gross domestic product, instead of only P848.44 billion or 3.72 percent of GDP under the current computation.

The 2021 budget call issued by Budget Secretary Wendel Avsiado in January listed down the national government expenditures to be fully devolved to LGUs, which included health services such as public hospitals as well as communicable and noncommunicable disease control services. According to the DBM, Mr. Duterte’s upcoming EO would delineate the roles of the national and local governments; jump-start preparation of devolution transition plans; establish a growth equalization fund “to address the vertical and horizontal fiscal imbalance across LGUs” as well as create an interagency committee on devolution to be headed by the Executive Secretary to monitor and evaluate implementation by 2025.

 

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