Manila: President Ferdinand R. Marcos Jr. has issued Executive Order (EO) 103, extending the transition period for the full devolution of certain executive branch functions to local government units (LGUs) until 2028.
According to Philippines News Agency, EO 103 signed on Nov. 6, mandates that provinces and municipalities gradually shift to full devolution by no later than 2028, while cities will fully implement the devolved functions and services by no later than 2027. The EO, made public on Saturday, requires all LGUs to follow a phased implementation of the full devolution within the prescribed transition period as they continually improve their fiscal and institutional capacities.
Marcos signed EO 103 to give LGUs more time to strengthen their financial, technical, and administrative capacities for delivering devolved services under the Mandanas-Garcia ruling and Republic Act (RA) 7160 or the Local Government Code of 1991. EO 103 amends EO 138 issued in 2021, introducing additional policies to ensure a smoother, phased transfer of responsibilities and prioritizes support for poorer and less developed LGUs.
The EO acknowledges the varying financial, technical, and administrative capacities of LGUs, along with their unique circumstances, needs, and priorities. It states that the functions, services, and facilities to be devolved from the national government may not be fully absorbed or implemented uniformly across all LGUs within the transition period mandated under EO No. 138.
To facilitate a smooth transition, EO 103 emphasizes the need to prioritize assistance for 4th to 5th income classes and other poor, lagging, and disadvantaged LGUs, particularly those in geographically isolated and disadvantaged areas and those with high poverty incidence. The new policies make LGUs primarily responsible for providing direct service delivery to their constituencies and assume greater responsibility and accountability in ensuring the quality of devolved services in accordance with the standards set by the national government.
The EO highlights collaboration between the national government and LGUs towards the localization of national development goals, consistent with the Philippine Development Plan 2023 to 2028 and other long-term agendas. To assume the devolved functions fully, LGUs are encouraged to strengthen their capabilities for optimizing local revenue generation and resource mobilization.
EO 103 applies to all LGUs, except those from the Bangsamoro Autonomous Region in Muslim Mindanao. All relevant national government agencies (NGAs) are directed to conduct a strategic review of their mandates, functions, and services to identify duplicated functions or services and determine appropriate strategies for an effective phased transition.
NGAs are required to organize their devolution transition committees within 15 days from the effectivity of EO 103 and submit their devolution transition plans (DTPs) within 90 days from the effectivity of the implementing rules and regulations or any supplemental guidelines. The EO stipulates that devolved functions and services already assumed by LGUs should be integrated into their local development plans, investment programs, and annual budgets.
In delivering public goods and services, LGUs are encouraged to develop strategies and forge partnerships with other LGUs to achieve greater economies of scale and improve service delivery to their constituents. EO 103 takes effect immediately following its publication in the Official Gazette or in a newspaper of general circulation.
