Manila – BLGF Acting Deputy Executive Director Ma. Pamela P. Quizon delivered a comprehensive presentation during the third session of the Development Academy of the Philippines (DAP) Local Governance and Development Office webinar entitled “AGILE: Adaptive Governance and Innovation for Local Executives Program.” The webinar, held on 31 May 2023, via Zoom, focused on devolution updates and strategic approaches to address the impact of the reduced national tax allotment (NTA).

During the webinar, Director Quizon provided an in-depth analysis of the Supreme Court (SC) ruling on the Mandanas-Garcia case and its implications for the increased fund allocation to local government units (LGUs) from the national budget, which has risen from 12% to 15%.

Director Quizon started off her discussions on the positive effects of fiscal decentralization on the financial performance of LGUs, enabling them to enhance their revenue sources over the past four decades. The revenue generated locally has exhibited remarkable growth, increasing from Php0.66 billion in FY1972 to Php278.64 billion in FY2022. This translates to an average annual growth rate of 11% between FY1992 and FY2022. Prior to the pandemic, the three-year average growth rate was recorded at 13%. In 2022, despite the pandemic challenges, the growth rate reached a commendable 8.75%.

The BLGF, in line with Executive Order No. 138, s. 2021 and its implementing rules and regulations, is mandated to provide capacity development interventions on revenue generation and fiscal management. It aims to strengthen the planning, investment programming, and budgeting linkage of LGUs through the Devolution Transition Plan (DTP). The BLGF has actively assisted LGUs in completing Annex J of the DTP, which focuses on Local Revenue Forecast and Resource Mobilization Strategy.

Director Quizon also updated participants on legislative priority measures, including the Real Property Valuation and Assessment Reform (Package 3 of the Comprehensive Tax Reform Program) and the LGU Income Reclassification. These measures were approved at the House of Representatives’ Third and Final Reading on 12 December 2022, and by the 19th Congress on 14 March 2023, respectively.

The DAP’s online seminar is part of the Senator Francis Tolentino’s AGILE Training Program, which aims to enhance the capacity and agility of local governments in delivering improved public services.