The document discusses local autonomy in the Philippines as established by the 1987 Constitution. It outlines how the Constitution established a system of territorial and political subdivisions with autonomous local governments. It also discusses how a Supreme Court ruling, known as the Mandanas-Garcia case, impacted the allocation of national taxes to local governments by expanding the definition of taxes that are included in local governments' just share. To mitigate the fiscal impact, the national government issued an executive order to fully devolve certain functions to local governments.

1. Local Autonomy in the
Philippines
Empowering Communities for
Progress
Camille Ann Transfiguracion and Thrystan Rel Mabutol
Discussants

2. OUTLINE OF PRESENTATION:
• 1987 Constitution – Structure Of Government
• Territorial And Political Subdivisions Of
Government
• Decentralization

3. THE 1987 CONSTITUTION
“SUPREME LAW OF THE LAND.”
The Philippines is a democratic and
republican state. Sovereignty resides in
the PEOPLE and all government authority
emanates from them.

4. The prime duty of the government is to
SERVE and PROTECT the people.
THE 1987 CONSTITUTION
“SUPREME LAW OF THE LAND.”

5. The State shall ensure the
autonomy of local governments.
Section 25, Article II
THE 1987 CONSTITUTION
“SUPREME LAW OF THE LAND.”

6. The Philippines is a republic with a
presidential form of government wherein
power is equally divided among its three
branches:
The EXECUTIVE, LEGISLATIVE, and JUDICIAL.
THE 1987 CONSTITUTION
“SUPREME LAW OF THE LAND.”

8. THE 1987 CONSTITUTION
- - National Government
- - Local Government

9. LOCAL GOVERNMENT
TERRITORIAL AND POLITICAL
SUBDIVISIONS

10. LOCAL GOVERNMENT
TERRITORIAL AND POLITICAL SUBDIVISIONS

11. LOCAL GOVERNMENT
TERRITORIAL AND POLITICAL SUBDIVISIONS

12. LOCAL GOVERNMENT
TERRITORIAL AND POLITICAL SUBDIVISIONS

14. LOCAL GOVERNMENT
TERRITORIAL AND POLITICAL SUBDIVISIONS

15. LOCAL GOVERNMENT
TERRITORIAL AND POLITICAL SUBDIVISIONS

16. LOCAL GOVERNMENT
TERRITORIAL AND POLITICAL SUBDIVISIONS

17. MANDANAS VS. OCHOA

18. IRA AND THE SC RULING ON THE MANDANAS-
GARCIA CASE
INTERNAL REVENUE ALLOTMENT
• LGUs shall have a just share, as determined
by law, in the national taxes which shall be
automatically released to them.
• Forty percent (40%) of the share in the
national internal revenue taxes (NIRT)
based on the collection of the third fiscal
year preceding the current fiscal year will
be given to LGUs
National
Government
60%
Local
Govern
ment
Unit
40%
NATIONAL INTERNAL REVENUE
TAXES

19. SUPREME COURT RULING ON THE MANDANAS CASE
• The Supreme Court 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 but includes
collections (customs duties) by the Bureau of
Customs and other collecting agencies.
IRA AND THE SC RULING ON THE MANDANAS-GARCIA
CASE

20. It is to be emphasized that cognizant of the autonomy of LGUs pursuant
to the 1987 Constitution and RA No. 7160, there will be no new or
additional functions in the set of devolved functions and services that
the LGUs are expected to assume, nor transferring of personnel from the
NGAs to LGUs.
Thus, Mandanas-Garcia ruling is about the Computation of the “Just
Share” of LGUs in the National Taxes.
IRA AND THE SC RULING ON THE MANDANAS-GARCIA
CASE

21. FULL DEVOLUTION AS A MEASURE
TO MITIGATE THE FISCAL IMPACT
OF THE MANDANAS-GARCIA
RULING

22. FULL DEVOLUTION AS A MEASURE TO MITIGATE
THE FISCAL IMPACT OF THE MANDANAS-GARCIA
RULING
• Considering, that many national
agencies continue to provide
those basic services/facilities
devolved to the LGUs under
Section 17 of the Local
Government Code of 1991.
NG fiscal
resources
IRA/
NTA
shares
₱194 Billion

23. EXECUTIVE ORDER NO. 138
DATED JUNE 1, 2021
FULL DEVOLUTION OF
CERTAIN FUNCTIONS OF THE
EXECUTIVE BRANCH TO
LOCAL GOVERNMENTS
FULL DEVOLUTION AS A MEASURE TO MITIGATE
THE FISCAL IMPACT OF THE MANDANAS-GARCIA
RULING

25. Thank you for
listening!