Executive Order No. 103 (2025)

Amendments

Section 1.

Amendments. The following Sections of EO no. 138 (s. 2021) are hereby amended as follows:

(a) Section 1 (policy) shall now read as:

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Functions of the Committee on Devolution

Section 9. Functions of the Committee on Devolution. The ComDev shall perform the following functions:

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b. Evaluate the status and monitor the implementation of the DTPs of NGAs and LGUs, ensure compliance of NG officials or employees and local chief executives or personnel, and initiate appropriate actions as may be warranted and address and/or resolve any issues, inconsistencies. and/or conflicts between the NGA and LGU DTPs, when the need arises with reference to pertinent legal bases; "

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(h) Section 8 (Growth Equity Fund) shall now read as:

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Growth Equity Fund

Section 10. Growth Equity Fund. A Growth Equity Fund (GEF) shall be established to address issues on marginalization, unequal development, high poverty incidence, and disparities in the net fiscal capacities of LGUs. The amount constituting the GEF shall be included by the DBM in the National Expenditure Program, as may be necessary, subject to existing budgeting, laws, rules, and regulations, to cover the funding requirements of poor, disadvantaged, lagging, and low-income LGUs for the implementation of their priority programs and projects to address fiscal gaps arising from the devolution, or to augment provincial resources for inter-municipal programs and projects, in order to gradually enable the full and efficient implementation of the functions, services, and facilities devolved to them.

The GEF shall be released to LGUs in accordance with the implementing rules and regulations to be issued by the DBM, in coordination with the DILG, DOF, and Department of Economy, Planning, and Development (DEPDev). It shall be subject to mechanisms and guidelines for an equitable, performance-based, and time-bound allocation and distribution of the fund to concerned LGUs.

After transition period, a fiscal equalization grant scheme shall be created in lieu of the GEF to held LGUs provide standardized quality of basic services, subject to further study by the ComDev and recommendation to Congress."

(i) Section 9 (Capacity Development) shall now read as:

"Section 11. Capacity Development. The NGAs concerned shall formulate a long-term capacity development strategy and program for LGUs to enable them to continuously undertake and effectively perform the devolved functions and services, with due consideration of the need and readiness of LGUs, scope and magnitude of functions, services, and facilities to be devolved, and the phasing of devolution. ℒαwρhi৷ The provision of capacity development shall give priority to the least capable LGUs, and for the performance and/or expansion of critical functions and services, and upgrading of facilities to meet the minimum service standards prescribed by NGAs to ensure the adequacy and quality of basic services.

NGAs shall continue to provide capacity building interventions appropriate and responsive to the capacity needs of LGUs as indicated in the LGU DTPs, to efficiently and effectively carry out the devolved functions, services, and facilities.

The DILG, through the Local Government Academy (LGA), shall oversee the provision of capacity development interventions for LGUs. The LGA shall harmonize all capacity development interventions by NGAs and third-party service providers for LGUs and ensure collaboration with LGUs, through their Leagues. to facilitate engagement at the grassroots level. Moreover, the DILG shall provide enabling policies and mechanisms for higher-level LGUs to supervise and support their component LGUs.

The Development Academy of the Philippines (DAP) shall assist NGAs in their organizational review and in the development of their respective service delivery standards.

The DOF, through the Bureau of Local Government Finance (BLGF), shall intensify their capacity development interventions on revenue generation and resource mobilization for LGUs.

The DBM shall continue to capacitate LGUs on the methods, techniques, and procedures employed in local budget operations and expenditures management."

(j) Section 10 (Role of LGUs) shall now read as:

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Role of LGUs

Section 12. Role of LGUs. Consistent with Section 7 of this Order, all LGUs shall likewise prepare and/or update their DTPs, as applicable, in close coordination with NGAs concerned, especially with regard to used as a guide in the monitoring and performance assessment of LGUs to be conducted by the DBM, DILG, and NGAs concerned. xxx

LGUs shall also formulate their respective capacity development agenda based on the assessment framework and guidelines to be issued by the DILG-LGA, in view of their full assumption of devolved functions, services, and facilities. The capacity development agenda shall be guided by, among others, the strategy for capacity development of LGU as contained in the NGA DTPs, local development thrusts, and performance goals and objectives.

In the delivery of public goods and services, LGUs may develop strategies and forge partnerships with other LGUs to achieve greater economies of scale, provide better service delivery to their constituents, and for other purposes that may be mutually beneficial to them, in accordance with Section 3(f) and 33 of RA No. 7160.

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All LGUs are encouraged to formulate their respective communications plans and strategies which are aligned with and complementary to the communications plan formulated by the ComDev, in accordance with Section 9 of this Order."

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(k) Section 11 (Strengthening Planning, Investment Programming and Budgeting Linkage, and Monitoring and Evaluation [M&E] Systems) shall now read as:

"Section 13. Strengthening, Planning, Investment Programming and Budgeting Linkage, and Monitoring and Evaluation (M&E) Systems.xxx

The RDCs shall facilitate access to technical and financial support from the NGAs concerned for programs and projects supporting the devolved functions and services of LGUs. RDC structures and mechanisms shall also raise regional and local priorities for consideration in the NGA budgets. The DEPDev shall consolidate the RDC recommendations to be submitted to the NGAs concerned as basis to the preparation of the NGAs respective budget and national development plans.

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Further, results-based M&E shall be in place in the DILG, DBM, DOF and other NGAs to ensure the purposive conduct of evaluation by the agencies concerned, and to guarantee that LGUs have assumed and performed the devolved functions and services effectively in support of good governance, transparency, accountability, and evidence-based decision making.

Moreover, the DOF, through BLGF, shall regularly monitor the fiscal position and performance of LGUs, to effectively assist them in fully optimizing their revenue generation and expenditure mandates in order to continuously fund their devolved functions, and to assess any financing gaps that may arise from the full assumption of devolved functions, services, and facilities by LGUs."

(l) A new Section shall be inserted after Section 21 (Construction and Interpretation) which shall read as:

"Section 22. Implementation Review. During the last year of the transition period, or as the need arises, the ComDev shall conduct a review of the implementation of this Order. There shall be a systematic evaluation of the accomplishments, issues and challenges and impact of this Order, for purposes of reviewing its provisions and updating existing and/or creating new policies relevant to the purpose of this Order."

Unaffected Provisions

Section 2.

Unaffected Provisions. All other Sections of EO No. 138, which are not affected by the foregoing amendments shall be renumbered accordingly, and shall remain valid and subsisting.

Separability

Section 3.

Separability. If any part or provision of this Order shall be held unconstitutional or invalid, the other provisions not affected thereby shall continue to be in full force and effect.

Repeal

Section 4.

Repeal. EO No. 138 (s. 2021) and all other orders, rules and regulations, issuances, or any part thereof, inconsistent with the provisions of this Order, are hereby repealed, amended or modified accordingly.

Effectivity

Section 5.

Effectivity. This Order shall take effect immediately following its publication in the Official Gazette or in a newspaper of general circulation.

DONE, in the City of Manila, this 6th day of November, in the year of Our Lord, Two Thousand and Twenty-Five.

(Sgd.) FERDINAND R. MARCOS, JR.

By the President:

(Sgd.) LUCAS P. BERSAMIN Executive Secretary