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    BRIEFER On MANDANAS CASE

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    Red Tuazon
    The Supreme Court ruled that the just share of LGUs from national taxes includes collections from the Bureau of Customs, not just the Bureau of Internal Revenue. This will increase LGUs' Internal Revenue Allotment (IRA) by about a fourth compared to without this ruling. While devolving more functions and services to LGUs could help mitigate the fiscal impact on the national government, full devolution would require studying historical experiences and ensuring LGUs' ability to handle increased budgets and responsibilities, especially for public health during the ongoing pandemic.

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    BRIEFER On MANDANAS CASE

    Uploaded by

    Red Tuazon
    142 views3 pages
    The Supreme Court ruled that the just share of LGUs from national taxes includes collections from the Bureau of Customs, not just the Bureau of Internal Revenue. This will increase LGUs' Internal Revenue Allotment (IRA) by about a fourth compared to without this ruling. While devolving more functions and services to LGUs could help mitigate the fiscal impact on the national government, full devolution would require studying historical experiences and ensuring LGUs' ability to handle increased budgets and responsibilities, especially for public health during the ongoing pandemic.

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    BRIEFER on MANDANAS CASE

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    The Supreme Court ruled that the just share of LGUs from national taxes includes collections from the Bureau of Customs, not just the Bureau of Internal Revenue. This will increase LGUs' Internal Revenue Allotment (IRA) by about a fourth compared to without this ruling. While devolving more functions and services to LGUs could help mitigate the fiscal impact on the national government, full devolution would require studying historical experiences and ensuring LGUs' ability to handle increased budgets and responsibilities, especially for public health during the ongoing pandemic.

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    142 views3 pages

    BRIEFER On MANDANAS CASE

    Uploaded by

    Red Tuazon
    The Supreme Court ruled that the just share of LGUs from national taxes includes collections from the Bureau of Customs, not just the Bureau of Internal Revenue. This will increase LGUs' Internal Revenue Allotment (IRA) by about a fourth compared to without this ruling. While devolving more functions and services to LGUs could help mitigate the fiscal impact on the national government, full devolution would require studying historical experiences and ensuring LGUs' ability to handle increased budgets and responsibilities, especially for public health during the ongoing pandemic.

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    of 3

    BRIEFER

    MANDANAS DOCTRINE

    The Supreme Court (SC) ruled that the just share of LGUs from the national taxes is not limited to
    “national internal revenue taxes” collected by the Bureau of Internal Revenue (BIR) but includes
    collections (customs duties) by the Bureau of Customs (BOC).  

    Projected 2022 Effect of Implementation

    *Based on the 07 March 2020 computation of DOF


    **Based on DBCC Ad Ref meeting on July 28, 2020

    Program Allocation for IRA, 2019 to 2022

    1,082
    1200 .73
    1000 575.5 648.9
    B illio n s

    800 2 2 702.66
    600
    400
    200
    0
    2019 2020 2021 2022

    SAMPLE LGUs

    From the above figures, DOF/DBCC Estimates show that IRA allotment of LGUs will have a
    nominal increase of about a Fourth (1/4) of their IRA compare to without the Mandanas
    Doctrine Application.

    MANDANAS DOCTRINE as a concept of DEVOLUTION under the Local Government Code:


    The subject is still in line with the principal concept of local autonomy as envisioned by the
    Republic act No. 7160, otherwise known as the Local Government Code of 1991. The Law
    transferred control and responsibility of delivering basic services to the hands of local
    government units (LGU). It aimed to enhance provision of services in the grass roots level as
    well as improve the efficiency in resource allocation. Further, it sought to widen the decision-
    making space by encouraging the participation of stake holders, especially in the local level.

    As a result of the SC Decision the DBM and the Executive Branch has proposed an Executive
    Order for the FULL DEVOLUTION to LGUs the following functions and services from NG to
    LGUs (to mitigate the impact Mandanas Doctrine to the Fiscal Position of the National
    Government):

    (a) AGRICULTURAL EXTENSION AND ON-SITE RESEARCH


    (b) FIELD HEALTH AND HOSPITAL SERVICES
    (c) SCHOOL BUILDING PROGRAM
    (d) COMMUNITY BASED FORESTRY PROGRAM
    (e) PUBLIC WORKS AND INFRASTRUCTURE
    (f) SOCIAL WELFARE SERVICES
    (g) TOURISM FACILITIES, PROMOTION AND DEVELOPMENT
    (h) HOUSING PROJECTS FOR PROVINCES AND CITIES
    (i) TELECOMMUNICATION SERVICES
    (j) INVESTMENT SUPPORT, INDUSTRIAL RESEARCH AND DEVELOPMENT

    PROS AND CONS


    The success or failure of the devolution will require some study of historical data and
    experience as some of the aforementioned services have been transferred or devolved with the
    local government since the implementation of the LGC in 1991.

    As an Example in 2008 a Senate Bill No 2575 introduced by Sen Loren Legarda was filed
    proposing for the Reversion to the NG of the discharging of Public Health Functions devolved
    with the LGU: In the Explanatory Note it cited the ff:

    “More than budgetary constraint, politics colors the health delivery arena. It was observed that
    in reality, devolution constricted the decision-making as the political priorities of local
    authorities often conflict with those of health managers and advocates. The same political
    motivation hinders the efficient and effective allocation of available resources (Grundy, Healy,
    Gorgolon & Sandig, 2003). With the aforementioned failures, this bill seeks to re-nationalize
    devolved health functions and responsibilities towards the development of a quality and
    affordable health care service to the Filipino people.”

    Full Devolution will certainly be impacted with the preparation of the LGUs to absorb increase
    in budgetary allocations and the increase in their responsibilities to deliver basic government
    services. Special mention is how this will impact in the handling of the on-going pandemic as
    public health services function are transferred to the Local Government Units.

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