Philippine Development Forum
Working Group on
Decentralization and Local Government
PDF-WORKING GROUP ON
DECENTRALIZATION AND LOCAL GOVERNMENT
Working Group
on Mindanao
Working Group
on Economic &
Fiscal Reforms
Working
Group on MDGs
and
Social Progress
Working Group
on Governance
& Anti-Corruption
Working Group
on Growth &
Investment
Climate
Working Group
on Sustainable
Rural
Development
Working Group
on Infrastructure
Working Group on
Decentralization &
Local Government
Each WG facilitates wide consultations across a broad range of stakeholders on these specific
themes; each is led by a Government agency as lead convener with a development partner as
co-lead convener.
PDF-WORKING GROUP ON
DECENTRALIZATION AND LOCAL GOVERNMENT
Development Agenda per Thematic Areas
6
CAPACITY
BUILDING
Harmonize capacity building programs for LGUs and
other key institutions to improve capacity of LGUs in core
governance functions
LOCAL GOVERNMENT
FINANCE
Accelerate revenue mobilization, improve expenditure
management and increase access to financing by LGUs
for better service delivery and growth promotion
PERFORMANCE
BENCHMARKING
Increase use of local government performance
measurement systems to benchmark performance and
create incentives for better performance
POLICY REFORMS ON
DEVOLUTION
Improve decentralization policy framework reflected in
updated legal and institutional arrangements to
strengthen local governance
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DECENTRALIZATION AND LOCAL GOVERNMENT
PDF WG-DLG
Major Accomplishments
Theme : Capacity Building
Harmonized capacity building programs for LGUs and other key
institutions to strengthen capacity in core governance
functions.
 Harmonized and integrated capacity building initiatives of the national
agencies, the leagues of LGUs, and the private sector through the Newly
Elected Officials (NEO) Orientation Program
 2 rounds of NEO Orientation Program (2007 & 2010)
 2nd round supported by DIALOG Fund
 Integrated multi-agency initiatives to harmonize core LGU operations on
planning, investment programming, revenue administration, and budgeting
through t Joint Memorandum Circular No. 1 of 2007 and its roll-out at the
local level
 Harmonized policies among oversight agencies (NEDA, DOF, DBM)
 improved coordination among oversight agencies with development partners, and
LGU Leagues
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DECENTRALIZATION AND LOCAL GOVERNMENT
Theme: Local Government Finance
Accelerated revenue mobilization, improved expenditure
management, and increased access to finance for better service
delivery and growth promotion.
Accelerated revenue mobilization
 Policy on automatic appropriation of the IRA
 Simplification of procedures for the release of LGU shares in national wealth
 Mining (DBM-DILG-DENR JMC 2009-1)
 Mineral reservations (DBM-DILG-DENR JMC 2010-1)
 Tobacco excise tax (DBM-DILG-DENR JMC 2009-1A)
 Franchise tax (DOF-DBM JMC 2008-1)
 Enabling information sharing between BIR and LGUs (Executive Order 646)
 Clarification on SITUS of tax on banks and other financial institutions(DOF FC No.
2-07)
 Issuance of Philippine Valuation Standards on RPT in conformity with the
international standards (DOF DO 37-09)
 Reminder to LGUs on Updating of Schedule of Market Value (SMV) (DILG-DOF
JMC No. 2010-001 ) and imposing of an additional ad valorem tax on Idle Lands
(DILG-DOF JMC 2010-002)
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DECENTRALIZATION AND LOCAL GOVERNMENT
Theme: Local Government Finance
Accelerated revenue mobilization, improved expenditure
management, and increased access to finance for better service
delivery and growth promotion.
Increased access to financing
 Adoption of LGU Financing Framework and NG-LGU Cost Sharing policy
(DOF DO 40-09)
 Implementation of the Financing Policy Framework for LGUs by Identifying
New Source of Funding for 1st Tier LGUs thru (EO 809 ) –which allows 1st
tier LGUs to secure loans from Multilateral Financing Institutions (WB, IFC,
ADB) without sub-sovereign guarantee
Improved expenditure management
 Harmonization/integration of reporting system for financial, fiscal and
budgetary requirements from LGUs by NG Oversight Agencies (DOF-DBM
JC No. 2, s. 2008)
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DECENTRALIZATION AND LOCAL GOVERNMENT
Theme: Local Government Finance
Accelerated revenue mobilization, improved expenditure
management, and increased access to finance for better service
delivery and growth promotion.
Increased local investments
 Joint Memorandum Circular No. 01, Series of 2010 (Guidelines in Implementing
the Standards in Processing Business Permits and Licenses in all Cities and
Municipalities)
 Joint DILG-DTI Department Administrative Order No. 10-07, Series of 2010
(Guidelines in Implementing the Nationwide Up-scaling of Reforms in Processing
Business Permits and Licenses in all Cities and Municipalities in the Philippines)

Streamlining BPLS entails
 Using Unified form (1-form)
 Reduce steps (5 steps )
 Reduce processing time (5 days for business renewals and 10 days for new
business registration)
 Reduce no of signatories (5 signatories)
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Theme: Performance Benchmarking
Increased utilization of local government performance
measurement systems to benchmark performance and create
incentives for better service delivery.
 Refinement and restructuring system software of DILG’s Local
Government Performance Management System (LGPMS)
 Integration of DOF’s Local Government Fiscal Monitoring System
(LGFPMS) with LGPMS
 Development of Performance Based Incentive Policy which was
adopted by DBCC in February 2009 – PBIP is an incentive
framework to rationalize national government fiscal transfers to LGUs
towards improving LGU performance in governance and service
delivery
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DECENTRALIZATION AND LOCAL GOVERNMENT
Theme: Policy Reforms on Devolution
Improved decentralization policy framework through updated
legal and institutional arrangements to strengthen local
governance
 Proposed amendments to the Local Government Code with respect to
IRA, taxation, and fiscal matters endorsed by LGU Leagues and DILG to
Congress
 Studies completed with policy recommendations on improving local
government financial management (under consultation with concerned
agencies):
Utilization of the Special Education Fund (SEF)
Improving financial management of local economic enterprises
Maximizing the exercise of corporate powers of LGUs
Streamlining procedures on the release of shares of national wealth
Improving LGU access to and monitoring of ODA
Dealing with surpluses and deficits in LGUs
LGU personal services expenditure policy
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DECENTRALIZATION AND LOCAL GOVERNMENT
Cross-Cutting Theme:
Strengthened alignment, coordination, and harmonization of
development partner and national government support for
decentralization.
 Creation of Sub-Working Group on Inter-Local Cooperation provides a
forum for knowledge sharing, coordination of actions, identification and
discussion of policy issues specifically relating to inter-local cooperation
mechanisms among LGUs
 Organization of the Coordinating Committee on Decentralization (CCD)
led to common positions and recommendations of NGAs and LGU
Leagues
 Establishment of Decentralization and Local Government (DIALOG)
Trust Fund synchronizes delivery of PDF WG-DLG priority agenda
 Partnerships with WG on Growth and Investment to form Sub-Working
Group on Local Investment Reform (LIR) to promote local growth and
investment
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Benefits and other Outcomes
 Strengthened coordination among development
partners
 Promoted common positions and recommendations
among NGAs and LGU Leagues
 Complementation of efforts among donors and
government
 Greater alignment of ODA to the government’s reform
agenda
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DECENTRALIZATION AND LOCAL GOVERNMENT
Thematic Areas to Development Agenda
CAPACITY
BUILDING
LOCAL GOVERNMENT
FINANCE
PERFORMANCE
BENCHMARKING
POLICY REFORMS ON
DEVOLUTION
1
6
IMPROVING FISCAL CAPACITY
FOR LOCAL DEVELOPMENT
PROMOTING GOOD
LOCAL GOVERNANCE
ACCELERATING LOCAL ECONOMIC
AND SUSTAINABLE DEVELOPMENT
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