Work has started on President Rodrigo Duterte’s final budget, an outlay he would turn over to his successor in the middle of next year. It is also one that would continue bankrolling this year’s various coronavirus pandemic response programs.
But a bigger change looms as the Department of Budget and Management instructs national government agencies to devolve crucial functions to cities, municipalities and provinces in 2022, and therefore “refrain from including in their proposals funding” for these projects, the agency said in the 2022 budget call.
The instruction is consistent with the programmed implementation of the so-called “Mandanas ruling” next year. That 2018 Supreme Court ruling, named after petitioner and Batangas Governor Hermilando Mandanas, changed the formula of how the state should compute the national revenue share of local government units to include not only internal taxes, but also Customs duties.