LGUs to Have Additional Functions

The national government will increase Local Government Unit (LGU)’s public function and they will also have a bigger tax collection share by 2022.

A draft Executive Order (EO) is now being made to turnover specific national government agencies’ functions to LGUs according to the Department of Budget and Management (DBM).

These are efforts to further the decentralization of the government in the Philippines and to strengthen LGU financing, along with having more resources to improve services to the public.

Batangas Gov. Hermilando Mandanas and former Bataan Gov. Enrique Garcia Jr.’s petitions that have been granted by the Supreme Court in 2018, states that the Internal Allotment Revenue (IRA) from LGUs will be from the 40% national collection taxes.

Meanwhile, as the implementation is imminent, the Development Budget Coordination committee is eyes that the 2022 IRA from the 209 BIR and BOC tax collections will increase up to P1.083 trillion or 4.75% of gross domestic product. (MLC)