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The Philippine Local Fiscal Administration in a Decentralized Setup

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The Philippine Local Fiscal Administration in a Decentralized Setup
The Philippine Local Fiscal Administration in a Decentralized Setup

Decentralization in the Philippines took three forms- devolution, deconcentration and delegation. As Carino affirms, the framers of the 1987 Constitution institutionalized decentralization with the end-view of realizing democracy and development especially at the grassroots level.
Devolution paved way for the transfer of political power from the central government to the local government units. This transfer of power and functions was accompanied by the provision of a higher Internal Revenue Allotment (IRA), broader tax base and a just share in the national wealth to finance devolved responsibilities and provision of various goods and services. This was accompanied by deconcentration which is the transfer of administrative powers and functions from central offices of government agencies to the field offices at the regional, provincial, and municipal/city level.
In consonance with the concept that local government units are more responsive to the needs of their communities, deconcentration was institutionalized vis-a- vis devolution as a means for national government agencies (NGAs) to provide assistance to LGUs by setting standards in the implementation of various programs and monitor the operation and services of the LGUs along the different socio-economic and political dimensions. Contrary to the past practices wherein the central government through the national government agencies (NGAs) exercises a degree of control in the implementation of programs at the LGU level, deconcentration aims to lessen, if not remove, the control from the national government and replace it with supervisory functions. Ideally, through deconcentration, NGAs set standards and supervise LGU’s provision of various services to the community (i.e. DOH and LGU health services).
Decentralization in the Philippines also took the form of delegation, or what other author calls as “debureaucratization”. This was the



References: Katorobo, J. (2005). “Decentralization and Local Autonomy for Participatory Democracy”, 6th Global Forum on Reinventing Government Towards Llanto, G. (2012). “The Assignment of Functions and Intergovernmental Fiscal Relations in the Philippines Twenty Years after Decentralization”, UP School of Economics Discussion Paper No. 2012- 05, February. Celestino, et.al. (1998). Handbook of Local Fiscal Administration in the Philippines

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