Central to the full devolution effort is the provision of capacity development (CapDev) interventions for the LGUs.
Pursuant to Section 9 of EO (Executive Order) No. 138, and Rule 9 of its IRR (Implementing Rules and Regulations), a CapDev (Capacity Development) agenda for LGUs shall be formulated based on the assessment framework and guidelines to be issued by the DILG-LGA to enable them to absorb, manage, and sustain their responsibilities under a fully devolved set-up. In this regard, the DILG issued Memorandum Circular No. 2021-067 last June 24, 2021 which provides the guidelines on the Adoption of a Capacity Development (CAPDEV) framework in the planning, design and implementation of CAPDEV Interventions for LGUs.
Under EO No. 138, the DILG-LGA (Department of Interior and Local Government – Local Government Academy) shall oversee and harmonize the provision of technical assistance and capacity building interventions for all LGUs to ensure the efficient utilization of government resources on this effort, and the implementation and management of the devolved functions.
Examples of CapDev interventions, per Section 31 of the IRR (Implementing Rules and Regulations), include public financial management processes, such as local planning, investment programming, budgeting, and revenue generation measures which shall be organized by the DILG, the DBM, and the DOF-BLGF. To facilitate the provision of capacity development interventions and technical assistance in the execution and management of the devolved activities, the LGUs may enter into memoranda of agreement with the NGAs, as may be necessary.
For the LGUs that are financially incapable of allocating funds and are technically weak in the implementation of devolved services (i.e., LGUs with high poverty incidences, low financial capacity), the Growth Equity Fund (GEF), is being established pursuant to Section 8 of EO 138 and Rule XIII of its IRR. The GEF shall be included in the proposed FY 2022 national budget and shall supplement NTA shares to enable LGUs to have supplementary funding for devolved functions and services pursuant to Section 17(b) of RA 7160, but subject and limited to identified priorities on the respective DTP (Devolution Transition Plan) of beneficiary LGUs. However, the GEF shall only be available for a fixed time period. Simultaneous with the establishment of the GEF is the conduct of capacity-building programs for revenue generation and fiscal management to be provided by DOF to enable them to fund the devolved services on their own.