Introduction to Economics with Land Reform and Taxation

College of Arts and Sciences

San Beda College Manila

In Partial Fulfillment of the requirements in

Fiscal 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. Deri
February 20, 2015

TABLE OF CONTENTS
Page
CHAPTER 1-BACKGROUND AND HISTORICAL ACCOUNT OF THE
DEPARTMENT
Introduction

Historical Account

Significant Events and Major Breakthroughs

Persons Involved

Objectives

Organizational Structure of The Department of The Interior and Local Government

Scope and Delimitation

Significance of The Research

CHAPTER 2-DEPARTMENT STATUS, PROBLEMS AND POLICY IMPLICATIONS

Current Programs of DILG

Problems of The Department of Interior and Local Government

12

Discussion on The Strength and Limitation

13

CHAPTER 3- PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

Fig. 2 Percentage Share & Change to DILGs Budget (1998-2015)

14

Fig. 3 Department of Interior and Local Government Budget

15

Fig. 4 National Budget

15

CHAPTER 4-AREAS FOR FUTURE POLICY PRECRIPTIONS

Discussion of Policy

16

Prospect of The Department

16

Bibliography and Appendices

17
CHAPTER 1
2

BACKGROUND 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

3

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.
4

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, counterinsurgency, 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 Administration
Epimaco

Velasco

(February

4,

1998-May

30,

1998)

Nelson Collantes (June 1, 1998-June 30, 1998)

Joseph E. Estrada Administration
Joseph 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 Administration
Anselmo 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)
5

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)
6

Figure 1. Organizational Structure

Local Government Bureaus
Bureau of Fire Protection
Bureau of Jail Management and Penology
Philippine 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
7

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 2
DEPARTMENT STATUS, PROBLEMS AND POLICY IMPLICATIONS
8

Current Programs of DILG

Local Governance Performance Management System (LGPMS)- This is a selfassessment 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
9

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/
10

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 Cluster
Provincial 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
11

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
12

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 Limitation
The 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 3
PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA
Fig. 2 Percentage Share & Change to DILGs Budget (1998-2015)
Year

Total Budget

1998

86,934,657,000

Percentage Change Percentage Share National Budget

15.90

546,743,816,000

13

3.25

15.34

585,097,506,000

2000 107,020,564,495

19.22

16.09

665,094,141,000

2001

97,878,934,000

-8.54

14.72

665,094,141,000

2002

99,365,875,000

1.52

17.28

575,123,728,000

2003 123,918,100,000

24.71

20.33

609,614,730,000

2004 123,918,100,000

0.00

20.33

609,614,730,000

1999

89,763,813,000

2005

95,906,268,748

-22.61

16.05

597,663,400,000

2006

95,906,268,748

0.00

16.05

597,663,400,000

2007 145,205,942,000

51.40

22.87

635,041,878,000

2008 155,063,025,000

6.79

14.54

1,066,179,857,000

2009 181,229,816,000

16.87

15.49

1,170,318,753,000

2010 199,420,120,000

10.04

15.29

1,304,406,400,000

2011 251,702,406,000

26.22

25.16

1,000,387,764,000

2012 221,662,270,644

-11.93

17.80

1,245,193,270,000

2013 292,928,209,040

32.15

21.41

1,368,229,156,000

2014 221,422,807,472

-24.41

13.77

1,608,503,084,000

2015 104,566,889,000

-52.78

0.00

Analysis

14

15

DILG BUDGET
350,000,000,000
300,000,000,000
250,000,000,000
200,000,000,000

DILG BUDGET

150,000,000,000
100,000,000,000
50,000,000,000
0

Fig. 3 Department of Interior and Local Government Budget

16

NATIONAL BUDGET
1,800,000,000,000
1,600,000,000,000
1,400,000,000,000
1,200,000,000,000
1,000,000,000,000

NATIONAL BUDGET

800,000,000,000
600,000,000,000
400,000,000,000
200,000,000,000
0

Fig. 4 National Budget

CHAPTER 4
17

AREAS 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.

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BIBLIOGRAPHY AND APPENDICES

http://www.dilg.gov.ph/#
http://ncr.dilg.gov.ph/home/index.php/2012-05-26-06-07-22/capacity-development/localgovernance-performance-measurement-system
http://www.dilg.gov.ph/PDF_File/transparency/DILG-transparency-201312402d0ca7e79.pdf
http://www.gov.ph/2013/12/18/document-reconstruction-assistance-on-yolanda
http://www.dilg.gov.ph/news/PNP-gears-up-for-regional-launching-of-Oplan-LambatSibat/NC-2015-1034
www.dbm.gov.ph/

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