Marcos extends full LGUS devolution deadline to 2028

President Ferdinand R. Marcos Jr. has signed Executive Order 103, extending until 2028 the transition period for the full devolution of certain executive branch functions to local government units (LGUs), Malacañang said Saturday.

The new order amends Executive Order No. 138 (s. 2021), which initially set the deadline for full devolution by 2024, in line with the Mandanas-Garcia ruling and Republic Act (RA) 7160 or the Local Government Code of 1991.

Executive Secretary Lucas Bersamin signed EO 103 by authority of the President, citing the need to give LGUs more time to strengthen their financial, technical, and administrative capacities to deliver devolved services effectively.

Malacañang said the extension aims to ensure a smoother and more equitable devolution process, especially for poorer and less developed localities.

“In light of the varying financial, technical, and administrative capacities of LGUs, along with their unique circumstances, needs, and priorities, the functions, services, and facilities to be devolved from the national government may not be fully absorbed or implemented uniformly across all LGUs within the transition period mandated under EO No. 138,” the order stated.

Under the new timeline, provinces and municipalities are expected to complete the shift to full devolution no later than Fiscal Year 2028, while cities must do so by Fiscal Year 2027.

“All LGUs shall follow a phased implementation of the full devolution within the prescribed transition period as they continually improve their fiscal and institutional capacities,” the EO added.

The Palace emphasized that LGUs shall be primarily responsible for delivering direct services to their constituencies and will be held accountable for ensuring the quality of devolved services.

To support this transition, LGUs are encouraged to strengthen their capacity to manage fiscal resources, enhance organizational capability for service delivery, institutionalize transparency and accountability mechanisms, and improve local revenue generation and resource mobilization.

Priority assistance will be extended to 4th- to 5th-income class LGUs, as well as geographically isolated and disadvantaged areas and communities with high poverty incidence, according to the order.

EO 103 also mandates that both the national government and LGUs align their efforts with broader national development frameworks, including the Philippine Development Plan 2023–2028, AmBisyon Natin 2040, the 2030 Agenda for Sustainable Development, the Administration’s 8-Point Socioeconomic Agenda, and the Medium-Term Fiscal Framework 2022–2028.

With devolution, the national government will assume a more strategic and supervisory role, focusing on policy direction and addressing persistent development challenges.

Malacañang said the extended transition period “recognizes the scale and capacity requirements associated with devolved functions” and ensures “the effective and efficient delivery of services and facilities by LGUs.”