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    Mandanas-Garcia Ruling final, executory, says DBM

    CAGAYAN DE ORO CITY (PIA)–The implementation of Mandanas-Garcia Ruling of the Supreme Court is final and executory, said an official of the Department of Budget and Management (DBM).

    Under Executive Order 138, the government created a Devolution Committee with Department of Budget and Management (DBM) as chair and members the Department of the Interior and Local Government (DILG), National Economic Development Authority (NEDA) and Finance Department and all representatives of presidents of the Liga ng provinces, cities, municipalities and barangays.

    In Talakayan sa PIA, media forum at SM City Cagayan de Oro, Achilles Gerald C. Bravo, assistant secretary and functional group head of the Local Government and Regional Operations Group, DBM said the devolution plan will be implemented in three years starting this year up to 2023, and 2024.

    The national government agencies have to prepare their national devolution transition plan. It should always be in coordination with the local government. On the other hand, the LGUs, who are preparing their transition plan, are also in coordination with the national government agencies with DBM and DILG.

    “Hindi minamadali. Dapat may transition. Kung ano ang makaya ng LGUs na matanggap, ‘yun muna. Next year, another up to the following year sa 2024,” he said.

    (It should not be a hurry. There should be a transition. It depends on what an LGU can handle, that will be devolved first. Next year, another up to the following year in 2024)

    This is really important because the Mandanas Garcia case gives additional funds to the local government unit, Bravo said.

    For 2021, before the Supreme Court ruling, the Internal Revenue Allotment (IRA) of the local government unit was P695 billion, after the supreme court ruling which was implemented early part of January this year, from P695 it has become P773 billion or an average of 37.89% increase IRA/National Tax Allotment (NTA) to the local government, meaning to the provinces, municipalities including the barangay.

    It used to be that the IRA was based on the just share of the local government unit, however the Mandanas Garcia initiative requested that it be changed to computation based on the total revenue collected by the national government collected by the BIR and Bureau of Customs.

    In April 10, 2019, the Supreme Court ruled that the computation of the IRA be recomputed wherein there will be a huge increase of IRA in local government units. It used to be called Internal Revenue Allotment, but after the Mandanas Garcia Ruling, it is now called the National Tax Allotment or NTA.

    There will be some personnel affected by the devolution as part of the national government but are given with options. One, they can be retained in their mother office and may be transferred to other units in other departments. Second, devolved personnel can also request transfer to other government agencies in the executive branch. And third option is that they can also file an optional retirement with additional incentives.

    “I would like to emphasize that under this setup, no devolved personnel will be mandatorily displaced. It’s wrong to say that there will be layoff on the part of the national government agencies. There is no layoff,” Bravo said. (JMOR/PIA-10)

    Photo release:

    Asst. Secretary Achilles Gerald C. Bravo (left) of the Department of Budget and Management (left) discusses in Talakayan sa PIA, media forum, May 5, the Mandanas-Garcia Ruling of the Supreme Court as final and executory that would devolve functions of the national government agencies and provide additional funds to the local government units. (JAKA/PIA-10)



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