Introduction to Economics with Land Reform and TaxationCollege of Arts and SciencesSan Beda College Manila

In Partial Fulfillment of the requirements inFiscal Studies

BUDGET PAPER OF THE DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT (DILG)

Submitted by:Bernal, Alyssa Mae B.4DLM

Submitted to:Prof. Ricardo B. DeriFebruary 20, 2015

TABLE OF CONTENTS

PageCHAPTER 1-BACKGROUND AND HISTORICAL ACCOUNT OF THE DEPARTMENT

Introduction3Historical Account4Significant Events and Major Breakthroughs5Persons Involved5Objectives6Organizational Structure of The Department of The Interior and Local Government7Scope and Delimitation7Significance of The Research8

CHAPTER 2-DEPARTMENT STATUS, PROBLEMS AND POLICY IMPLICATIONS

Current Programs of DILG9Problems of The Department of Interior and Local Government12Discussion on The Strength and Limitation13

CHAPTER 3- PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

Fig. 2 Percentage Share & Change to DILGs Budget (1998-2015)14Fig. 3 Department of Interior and Local Government Budget15Fig. 4 National Budget15

CHAPTER 4-AREAS FOR FUTURE POLICY PRECRIPTIONS

Discussion of Policy16Prospect of The Department16Bibliography and Appendices17

CHAPTER 1BACKGROUND AND HISTORICAL ACCOUNT OF THE DEPARTMENT

Introduction

The Department of Interior and Local Government was formed in March 22, 1897 and it is one of the Executive Departments of the Philippines. The current department secretary of the DILG is Manuel Roxas II. The DILG is the one responsible for the Philippine National Police (PNP) and it is the one in-charge in enforcing all laws and ordinance in the country.

The DILG assists the President in the exercise of general supervision over local governments, in the promulgation of policies, rules, regulations and other issuances on the general supervision over local governments and on public order and safety. Establishes and prescribes rules, regulations and other issuances implementing laws on public order and safety, the general supervision over local governments and the promotion of local autonomy and community empowerment and monitor compliance thereof and Provides assistance towards legislation regarding local governments, law enforcement and public safety and Establishes and prescribe plans, policies, programs and projects to promote peace and order, ensure public safety and further strengthen the administrative, technical and fiscal capabilities of local government offices and personnel. It also formulates the plans, policies and programs that will meet local emergencies arising from natural and man-made disasters. Establishes a system of coordination and cooperation among the citizenry, local executives and the Department, to ensure effective and efficient delivery of basic services to the public, Organizes, trains and equips primarily for the performance of police functions, a police force that is national in scope and civilian in character.

Given all of this information, it can really be said that the Department of Interior and Local Government is in fact a major priority for the country. Sustaining peace and order and ensuring public safety would not be successful without the help of the DILG.

Historical Account of The Department

The roots of the present Department of the Interior and Local Government (DILG) may be traced to the old Department of Interior (DI) during the Philippine Revolution of 1897. On March 22, 1897, leaders of the Katipunan led by Andres Bonifacio met at Tejeros, Cavite in what is known in the Philippine history as the Acla de Tejeros of the Tejeros Convention.

A revolutionary government was established at that time and the new government elected Gen. Emilio Aguinaldo as President and Andres Bonifacio as Secretary of Interior. However, Bonifacio did not assume the post. President Aguinaldo then appointed Pascual Alvarez as the Interior Director.

As the years of struggle for independence and self-government continued, the interior department became the premier office of the government tasked with various functions raging from supervision over local units, forest conservation, public instructions, control and supervision over the police, counter-insurgency, rehabilitation, community development and cooperatives development programs.

In 1950, the department was abolished and its functions were transferred to the Civil Affairs Office under the Office of the President. On January 6, 1956, the Presidential Assistant on Community Development (PACD) WAS CREATED. The Department was restored on November 7, 1972 with the creation of the Department of Local Government and Community Development (DLGCD). Few years later, the DLGCD was reorganized and renamed Ministry of Local Government (MLG) and later as the Department of Local Government (DLG).

On December 13, 1990, Republic Act 6975 was signed into Law creating the Philippine National Police, Bureau of Fire Protection, Bureau of Jail and Penology and the Philippine Public Safety College under the reorganized Department of the Interior and Local Government (DILG). The new DILG merged the National Police Commission (NAPOLCOM), and all the bureaus, offices, and operating units of the former DILG under Executive Order No.262. The passage of RA6975 paved the way for the union of the local governments and the police force after more than 40 years of separation.

Significant Events and Major Breakthroughs

The revolutionary government that was established and headed by General Emilio Aguinaldo and Bonifacio in March 22, 1987 however Bonifacio was replaced by Pascual Alvarez as the Interior Director. The interior department became the premier office of the government tasked with various functions raging from supervision over local units, forest conservation, public instructions, control and supervision over the police, counter-insurgency, rehabilitation, community development and cooperatives development programs.

Republic Act 6975 was signed into Law creating the Philippine National Police, Bureau of Fire Protection, Bureau of Jail and Penology and the Philippine Public Safety College under the reorganized Department of the Interior and Local Government (DILG) on December 13, 1990.

Persons Involved

Fidel V. Ramos AdministrationEpimaco Velasco (February 4, 1998-May 30, 1998)Nelson Collantes (June 1, 1998-June 30, 1998)

Joseph E. Estrada AdministrationJoseph E. Estrafa (June 30, 1998-April 12, 1999)Ronaldo V. Puno (April 12, 1999-January 12, 2000)Alfredo S. Lim (January 10, 2000-January 20, 2001)Gloria Macapagal-Arroyo AdministrationAnselmo Avelino Jr. (January 20, 2001-January 28, 2001)Jose Lina Jr. (January 29, 2001-July 4, 2004)Angelo Reyes (July 12, 2004-February 16, 2006)Ronaldo V. Puno (April 4, 2006-June 30, 2010)

Benigno Simeon Noynoy C. Aquino III Administration Jesse Robredo (July 9, 2010-Augusst 18, 2012)Pacuito Ochoa Jr. (August 19, 2012-September 19, 2012)Manuel Roxas II (September 20, 2012-Present)

Objectives

The Department shall promote peace and order, ensure public safety, and strengthen capability of local government units through active people participation and a professionalized corps of civil servants. The Departments vision is to be the primary catalyst for excellence in local governance that nurtures self-reliant, progressive, orderly, safe and globally competitive communities sustained by God-centered and empowered citizenry. The Departments objectives are to reduce crime incidents and improve crime solution efficiency, improve jail management and penology services, improve fire protection services, continue professionalization of PNP, BFP and BJMP personnel and services, Enhance LGU capacities to improve their performance and enable them to effectively and efficiently deliver services to their constituents and continue to initiate policy reforms in support of local autonomy.

Organizational Structure of The Department of Interior and Local Government (DILG)

Figure 1. Organizational Structure

Local Government BureausBureau of Fire ProtectionBureau of Jail Management and PenologyPhilippine National Police

Scope and Delimitation

Scope of the study

The coverage of this study is The Background and Historical Account of the Department of Interior and Local Government, The Department Status, Policy and Implications and Areas for future policy prescriptions for the Department of Interior and Local Government (DILG). This study shows the percentage change and percentage share in the Departments budget from the year of 1998 up to the present year.

Delimitation of the study

This study covers the budget and the Department secretaries of The Department of the Interior and Local Government from the year 1998 up to present. It covers a brief introduction about the history of the department but it does not show all the personalities involved.

Significance of The Research

Students- To serve as a guide in conducting their future works related to this study. Citizens of the Philippines- To serve as an additional medium of information upon the delegation of our National budget and to recognize where our money goes.

Department of Interior and Local Government-

CHAPTER 2DEPARTMENT STATUS, PROBLEMS AND POLICY IMPLICATIONS

Current Programs of DILGLocal Governance Performance Management System (LGPMS)- This is a self-assessment and web-based development management tool for provinces, cities and municipalities capable of providinginformation on the capacities and limitations of LGUs in the delivery of essential public services. It aims to provide results-oriented information concerning levels of LGU management capacity, service delivery and state of development from which may evolve decisions or actions to optimize investments or resources, establish LGU performance benchmarks and generate strategic data for local and national policy development. Its major output called the Annual State of Local Governance Report or SLGR, in downloadable electronic format, provides strategicinformation concerning LGU performance in governance along the areas of Administration, Social Services, Economic Development, and Environmental Management and valuing the fundamentals of governance.Full Disclosure Policy Portal (FDP Portal) - The FDP Portal enables the public to view, download, and print LGU financial documents to allow their constituents to understand how their local goverments budget and spend for public services. The FDP Portal supports the implementation of DILG Memorandum Circular No. 2010-83 (as amended) and was developed in partnership with the development partners of the Philippine Development Forum, Working Group on Decentralization and Local Government.Recovery Assistance on Yolanda Recovery assistance on Yolanda or also known as RAY. It is the Governments strategic plan to guide the recovery and reconstruction of the economy, lives, and livelihoods of people and communities in the areas affected by Typhoon Yolanda.

Oplan Lambat-Sibat- The program calls for a scientific reporting of crime situation from the police community precincts (PCPs) to the stations, to the districts and finally to the NCRPO, and addressing problems based on these statistics.

A. Good Governance and Anti-Corruption Cluster

Monitoring LGU compliance to the full disclosure policy- This is part if the efforts of the Department to ensure transparency and accountability among LGUs consistent with the requirements of DILG Memorandum Circular 201-083 entitled Full Disclosure of Local Budget and Finances, and Bids and Public Offerings which was subsequently adopted as a requirement as a requirement in the General Appropriations Act.

Monitoring LGU compliance to ARTA- It is the policy of the State to promote integrity, accountability and proper management of public affairs and public property and to establish effective practices aimed at the prevention of graft and corruption in all levels of government.

Seal of good Housekeeping for LGUs- It is in line with the DILGs commitment to aggressively scale up interventions aimed at elevating the practice of governance that values desirable development outcomes into institutionalized status.

The Performance Challenge Fund for Local Government Units (PC Fund) - is an incentive fund to LGUs in the form of counterpart funding to high-impact capital investment projects in the Annual Investment Program (AIP) and funded out of the 20% Local Development Fund consistent with national goals and priorities. It shall seek to rationalize national government intergovernmental transfers to LGUs, and encourage alignment of local development initiatives with national government development agenda and priorities.

Nationwide Streamlining of Business Permits and Licensing System (BPLS)- The project aims to streamline the business permits and licensing system (BPLS) in as many LGUs as possible in an effort to attract investors that will lead to increase in local revenues.

Civil Society Organization/ Peoples participation partnership program- This program aims to strengthen DILG partnership with civil society organizations (CSOs) and the private sector.

B. Human Development and Poverty Reduction Cluster

Sagana at ligtas na tubig para sa lahat program (provision for portable water supply system)- The program in partnership wit the Department of Health (DOH) and the National Anti-Poverty Commission (NAPC), is a pro-poor initiative signed to provide water supply systems for the 455 waterless communities and enhance the capacity o the LGUs/ water service in the planning, implementation, operation and sustenance of water supply facilities.

Performance Challenge Fund for LGUs- PCF for LGUs is also considered in Human Development and Poverty Reduction Cluster as the incentive fund provided under the program is to be utilized by LGUs for projects geared towards the achievement of Millenium Development Goals (MDGs)

C. Economic Development ClusterProvincial Road Management Facility (PRMF)- This is an AusAID assisted reform program with a grant financing of AU$100M that uses provincial road management as entry point for implementing governance and institutional reforms in five (5) reform areas, namely: sustainable road maintenance, transparent and accountable budget and expenditure management system, functional internal control system, transparent procurement process, and human resource management and development plan strategies.Nationwide Streamlining of Business Permits and Licensing Systems (BPLS)- One of the objectives of the project is to simplify the business registration processes to attract more investors for our economic development.

Performance Challenge Fund for LGUs- it is considered in Economic Development cluster as the incentive fund provided under this program is to be utilized by LGUs for projects related to the maintenance of core road network to boost tourism and local economic development.

D. Climate Change Adaptation and Mitigation Cluster

Enhancing LGU capacity on Disaster Risk Reduction Management and Climate Change Adaptation Program- Pursuant to Climate Change Act (RA 9729) and Disaster Risk Reduction Management (RA 10121), The Department takes an active role in Climate Change Adaptation (CCA) and Disaster Risk Reduction Management (DRRM) by focusing its efforts towards enhancing the capacity of Local Government Units (LGUs) to adapt, mitigate and prepare for climate change and disasters.

Manila Bay clean up, Rehabilitation and Preservation Program- The Manila Bay program aims to clean up the bay and its tributary rivers in order to prevent the continuous cycle of man-made pollution.

Performance Challenge Fund for LGUs- PCF for LGUs is considered in Climate Change Adaptation and Mitigation Cluster as the incentive fund provided under this program is to be utilized by LGUs projects related to their compliance with the Ecological Solid Waste Management Act of 2000 (RA 9003) and Philippine Disaster Risk Reduction Management Act of 2000 ( RA 10121).

E. Society, Justice and Peace Cluster

Police Operations, Intelligence, Police Relations and Investigation Services- The activities or the processes subsumed on this program are as follows: patrolling, conduct of operations against lawless elements and organized crime syndicate and campaigns against all forms of criminality; intelligence and counter intelligence activities, conduct of community work including school and church based protection program.

Problems of The Department of The Interior and Local Government

DILG is one of the most powerful departments in the Philippines even so it still faces many problems like other departments. The problems that the DILG faces are the police matters that can destroy the complacency of the nation, the monitoring of the internal control to ensure that LGU funds are properly used and within the bounds of the law. One of its ongoing problems is the Bangsamoro incident wherein 44 members of the Special Armed Forces were annihilated.

The DILG also ensures the safety of the people during natural or man-made disasters thats why during rainy season, The Department would need to skillfully handle the Department to help lessen the number of deaths when typhoon or other disasters hit the country. One of its on going problems is the Yolanda fund distribution problem, where the donations from different people and different nations was said to be put to waste for short, not distributed properly.

The DILG is in-chare in preparing the evacuation sites before any disaster can hit the country. When the rain became unabated, it could lead to towns and barrios being submerged in water. There should be proper monitoring of the DILG group that there is enough pumped boats to help save residents who may be stuck on the rooftops of their homes when rampaging waters hit their areas. The DILG would be liable if there are any lapses that would endanger the life of the people in the country.

Discussion on the Strength and LimitationThe coverage of this study is the Background and Historical Account of the Department of Interior and Local Government, The Department Status, Policy Implications and Areas for future policy prescriptions for Department of Interior and Local Government (DILG). It covers the history of the Department, who formed the department and how it changed over time. This study shows the percentage of change and percentage share in the Departments budget from the year 1998 up to the present year.

This study does not cover the budget of The Department from the start of the Philippine government. This study covers only the budget of the Department of The interior and Local Government from the year 1998 up to the present year. This study only shows the secretaries of the Department from the year 1998 up to the present year. It covers a brief introduction about the Departments history but does not show all personalities involved.

CHAPTER 3PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

Fig. 2 Percentage Share & Change to DILGs Budget (1998-2015)YearTotal BudgetPercentage ChangePercentage ShareNational Budget

199886,934,657,00015.90546,743,816,000

199989,763,813,0003.2515.34585,097,506,000

2000107,020,564,49519.2216.09665,094,141,000

200197,878,934,000-8.5414.72665,094,141,000

200299,365,875,0001.5217.28575,123,728,000

2003123,918,100,00024.7120.33609,614,730,000

2004123,918,100,0000.0020.33609,614,730,000

200595,906,268,748-22.6116.05597,663,400,000

200695,906,268,7480.0016.05597,663,400,000

2007145,205,942,00051.4022.87635,041,878,000

2008155,063,025,0006.7914.541,066,179,857,000

2009181,229,816,00016.8715.491,170,318,753,000

2010199,420,120,00010.0415.291,304,406,400,000

2011251,702,406,00026.2225.161,000,387,764,000

2012221,662,270,644-11.9317.801,245,193,270,000

2013292,928,209,04032.1521.411,368,229,156,000

2014221,422,807,472-24.4113.771,608,503,084,000

2015104,566,889,000-52.780.00

Analysis

Fig. 3 Department of Interior and Local Government Budget

Fig. 4 National Budget

CHAPTER 4AREAS FOR FUTURE POLICY PRECRIPTIONS

Discussion of Policy

R.A 6975 Section 2.Declaration of Policy. It is hereby declared to be the policy of the State to promote peace and order, ensure public safety and further strengthen local government capability aimed towards the effective delivery of the basic services to the citizenry through the establishment of a highly efficient and competent police force that is national in scope and civilian in character. Towards this end, the State shall bolster a system of coordination and cooperation among the citizenry, local executives and the integrated law enforcement and public safety agencies created under this Act.

Prospect of The Department

DILG formulates plans and programs that will meet local emergencies arising from natural and man-made disasters. It also assists and advises the President in the exercise of general supervisions in local governance. One of the goals of the department is to improve performance of local governments in governance. Without the protection and service that the DILG gives, the country would be in total anarchy.

Sustaining peace and order and ensuring public safety in the country would not be successful without the help of the DILG.

BIBLIOGRAPHY AND APPENDICES

http://www.dilg.gov.ph/#http://ncr.dilg.gov.ph/home/index.php/2012-05-26-06-07-22/capacity-development/local-governance-performance-measurement-systemhttp://www.dilg.gov.ph/PDF_File/transparency/DILG-transparency-2013124-02d0ca7e79.pdfhttp://www.gov.ph/2013/12/18/document-reconstruction-assistance-on-yolandahttp://www.dilg.gov.ph/news/PNP-gears-up-for-regional-launching-of-Oplan-Lambat-Sibat/NC-2015-1034www.dbm.gov.ph/

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