Understanding The Implications Of The Mandanas-Garcia Ruling On Philippine Local Governance: Issues, Challenges And Prospects

Abstract

The 2018 Mandanas-Garcia ruling by the Philippine Supreme Court marks a crucial development in local governance, notably broadening the fiscal foundation for calculating the National Tax Allotment (NTA) for local government units (LGUs). This decision enhances decentralization by redistributing significant financial resources and delegated functions from national government agencies to local government units, thereby furthering the aims of the Local Government Code of 1991. This study analyzes significant implications of the ruling, focusing on its effects on decentralization, the policy-making process, the redefined roles of national government agencies and local government units, fiscal equity, and the wider socio-political and governance context. The ruling provides a framework for improving local government unit autonomy and service delivery, while also underscoring persistent challenges, including deficiencies in capacity building, inequities in resource allocation, and cultural obstacles to governance reform. The implementation of instruments such as the Growth Equity Fund seeks to mitigate disparities; however, their effectiveness is contingent upon the alignment of implementation strategies and intergovernmental cooperation. This paper contextualizes the ruling within public administration, highlighting its implications for governance paradigms, the shift towards potential federalism, and the dynamics of public policy processes. This study emphasizes the importance of a comprehensive societal approach to attain sustainable and inclusive decentralization by integrating both theoretical and practical perspectives. The Mandanas-Garcia ruling exemplifies a significant case study, providing insights into the complexities of fiscal decentralization and the transformative potential of governance reforms in developing economies.