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DOF chief challenges LCEs to strengthen local fiscal responsibility, sustainability

QUEZON CITY (PIA) -- Finance Secretary Benjamin Diokno called on local public officials to strengthen their role in nation building.

During the 2023 League of Municipalities of the Philippines (LMP) General Assembly at the Manila Hotel on February 22, Diokno said, "As frontline service providers, the performance of local chief executives (LCEs) and legislators spells the difference between regional development and regional decay."

In pursuit of increased local autonomy and resiliency among municipalities, he appealed for greater synergy between the local and national governments in key areas of cooperation.

For one, local governments must make use of the additional intergovernmental grant as a result of the Supreme Court ruling on the Mandanas-Garcia case to lead their municipalities towards fiscal responsibility and sustainability. According to Sec. Diokno, this can be done through improved resource mobilization, better allocation of public resources, and good governance.

Operationalizing this Supreme Court ruling is a welcome opportunity to optimize the shared responsibility between local and national governments,” Diokno added.

Public-private partnership (PPP) projects may also be explored to support bigger projects.

In support of local government units (LGUs)’ autonomy in entering and implementing local PPP projects, Sec. Diokno mentioned that the proposed Public-Private Partnership Act, which has been approved by the House of Representatives on third reading on December 12, 2022, will enable local governments to develop fully as self-reliant communities.

Sec. Diokno also urged local authorities to improve real property tax (RPT) collection, which he claimed is one of the most progressive sources of revenues.

In order to improve RPT collection, local authorities should periodically update land valuations,” Sec. Diokno said.

He expressed support for the passage of the Real Property Valuation and Assessment Reform Bill that will promote the development of a just, equitable, and efficient real property valuation and assessment system.

Local governments must also actively undertake reforms that enhance the ease of doing business at the local level to bring in more investments in their respective communities.

Furthermore, Sec. Diokno challenged local government units (LGUs) to pursue digitalization for better local public service delivery and transparency in transactions.

He urged LGUs to take up sustainability and climate adaptation projects to address climate change, which disproportionately affects the most marginalized groups. Sec. Diokno said that doing so will also reduce inequality in the country.


RDCs play greater role 

Pres. Bongbong Marcos Jr. presents the PDP 2023-2028 book with NEDA Sec. Arsenio Balisacan during it's launched at the PICC in Pasay City on Jan. 30, 2023. (PIA-NCR File photo)

Like LCEs, the function of regional development councils (RDCs) is projected to be more extensive under the newly-launched Philippine Development Plan (PDP) 2023-2028 of the current administration.

During President Ferdinand R. Marcos Jr’s speech at the said forum held in Pasay City on January 30, he noted the expanded role of RDCs in the promotion and sustainability of the socio-economic development of the regions.

Moreover, he said that the role of RDC in all of the economic planning of the National Economic and Development Authority (NEDA) and the country’s economy will give proper voice to the local governments.

The RDC serves as a forum where local initiatives can be integrated with regional and national development efforts.

The PDP is seen to set the country’s towards becoming an upper-middle income country by the year 2025.

The President also added that the government, cannot do all the efforts alone and will need to strengthen partnerships from different sector.


A call for local gov’t code review

File Photo from Dax Cua FB Page

Citing the necessity to make it more responsive to the present, Union of Local Authorities of the Philippines (ULAP) has called for a review of the Republic Act No. 7160 or otherwise known as the Local Government Code (LGC) of 1991.

Speaking at the PDP 2023-2028 Forum last month on social transformation agenda, ULAP President Dakila “Dax” Cua acknowledged the role that the LGC played in ushering LGUs toward progress.

We, here in the local government have witnessed how the local government code was instrumental for LGUs to progress, however it is probably time already -time has elapse- it’s about time that we took a look at this piece of legislation and try to improve it even better to become responsive to the needs of this age and generation,” the Quirino governor said.

He mentioned that the greater participation on the LGU ranks is seen in budgeting, in identification, in data generation, in planning and in the execution of the PDP.

He believes that there is so much technology to be infused in order to fulfill the plan but he said these things can all be implemented better if there will be a comprehensive review of the LGC instead of just improving tiny bits and pieces of the code.

File photo from Sec. Rex Gatchalian FB page

Moreover, former Valenzuela City First District Representative and now the Department of Social Welfare and Development chief, Rex Gatchalian, who is also an LGC champion, believes that all the laws enacted in the land have their own purposes and beneficial to the community but situation changes and laws cannot be left at a standstill.

Lahat ng batas nasyunal maganda yan, maganda ang layunin, maganda ang puso, maganda ang intensyon pero alam naman natin ang mundo umiikot -patuloy na umiikot- and some of these laws became static, and one of these is the local government code,” the nine-year local chief executive said in one of his interviews.

He thinks that the more than two years of pandemic has already taught the people a lot, especially the LCEs. And it is very important that as problems arise, laws should be ready and could keep up with the changing times.

Alam natin na may mga provision siya (LGC) na maaring noon ay angkop na angkop pero ngayon medyo outdated na. In fact, ang isa nga sa mga nais nating isulong would be making the local government code, i-contextualize sa e-commerce for instance. Ngayon, lahat tayo bumibili online pero ang problema the very basic principles of created offices hindi mandatory ang information technology officers sa LGC. So, ‘yung mga ganong bagay na naranasan ko noong local chief executive ako, gusto ko sana to scale up, kailangan through legislation,” DSWD Sec. Gatchalian added.

The secretary, while in the 19th Congress, have authored/co-authored numerous bills amending particular sections of the LGC. (DOF / G na G Show /  PIA-NCR)

About the Author

Alice Sicat

Information Officer IV

NCR

Assistant Regional Director of PIA-NCR

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