For the country to start an immediate economic turn-around, our economic planners should not look beyond our shores and wait for benevolent foreign investors to come.
The best option for a quick economic recovery is to engage local government units in implementing projects which would create jobs and produce sufficient food supply for the country.
The country’s local government units, from the barangay, town, city and province, will be awash with cash starting next year as the Department of Budget Management (DBM) will implement the Supreme Court ruling on the petition filed by Batangas Governor Hermilando Mandanas, now known as the Mandanas ruling.
What in essence is the Mandanas Ruling?
Here is a portion of an article which appeared in the Philippine Daily Inquirer which explains it:
“At present, LGU’s IRA only came from two-fifths of national internal revenue taxes collected by the BIR.
“As the high court ruling would be implemented next year, the Development Budget Coordination Committee estimates had shown LGUs’ 2022 IRA sourced from 2019 BIR and BOC collections would climb by 27.61 percent to P1.083 trillion or 4.75 percent of gross domestic product, instead of only P848.44 billion or 3.72 percent of GDP under the current computation.
“With the Mandanas ruling in full swing, the DBM estimates showed that first-class income provinces would have an increase of about P814 million in their IRA to P4.4 billion next year; highly urbanized cities, up by P394 million to P2.13 billion, and first-class municipalities, up by P187.62 million to P1.01 billion.
“As the bigger IRA would carve a bigger chunk from the record P5.02-trillion national budget proposal for 2022, the DBM said the functions to be devolved “must permanently be taken out from national agencies to empower LGUs to assume them.”
With the COVID 19 Pandemic shrinking the world economic growth, we cannot pin our hopes on foreign investments which may not come within the next five to 10 years.
The national leadership through the Department of the Interior and Local Government (DILG) should guide the LGUs on how to spend their money.
LGUs should be convinced to exercise their corporate powers as stated in the Local Government Code and initiate Economic Enterprise Activities, especially in the area of food production, to create jobs and income opportunities.
The Mindanao Development Authority (MinDA) has started this advocacy in Mindanao and the LGUs are responding positively.
But since MinDA has no supervisory powers over the LGUs, the best that we can do is to wage an advocacy.
I am glad that several towns and provinces have embraced the Economic Enterprise Advocacy of MinDA starting with Taraka, Lanao del Sur which availed of a P215-M loan from the Development Bank of the Philippines to establish Solar-Powered irrigation Systems for 600 hectares of rice farms and a Solar-Powered Water Supply System which are all income-generating.
Soon, the town will set up its own rice processing complex to add value to the production of their farmers.
The town of Baungon, Bukidnon is establishing its own Corn Grains Silo Storage Systems to provide its farmers with dryers and storage facilities and also ensure stable supply for the feed millers.
At least four provinces have enrolled in the Cattle Fattening and Breeding Program while my hometown, M’lang, North Cotabato, could be the site of a modern hog breeding facility to boost hog production.
President Rody Duterte could use his persuasive powers to convince LGUs to spend their added IRA shares wisely and invest these in food production and job generation.
Otherwise, some of them would stray and use the precious funds for waiting sheds, gymnasiums, tarpaulins and other non-essential projects.
#GovernanceIsCommonSense!
#KungGustoMaramingParaan!
(Photos were downloaded from public websites.)
More Stories
Trump Presidency Boon To Philippine Agriculture
Mindanao Fruit Fest Scheduled Sept. 2025
DA, MinDA, LGU! MinDA Targets Tribal Areas For Highland Rice Farming