Fiscal Decentralization and Service Delivery Efficiency under the Mandanas-Garcia Ruling: Evidence from One Local Government Unit (Lgu) in the Philippines
DOI:
https://doi.org/10.54536/ajiri.v5i3.7799Keywords:
Fiscal Decentralization, LGU Bagumbayan, Local Governance, Mandanas-Garcia Ruling, Service Delivery EfficiencyAbstract
Fiscal decentralization reforms increasingly require local government units (LGUs) to assume broader responsibilities in governance and public service delivery, however, evidence on how expanded fiscal autonomy translates into actual service delivery outcomes in smaller Philippine municipalities remains scarce. While the Mandanas-Garcia Ruling dramatically increased the National Tax Allotment (NTA) and fiscal authority of LGUs beginning in 2022, few empirical studies have explored whether these reforms have strengthened local governance responsiveness and service delivery efficiency at the municipal level, particularly in resource-constrained areas in Mindanao. This study shows that the implementation of the Mandanas-Garcia Ruling significantly contributes to improved service delivery efficiency in LGU Bagumbayan, Sultan Kudarat, thus validating Fiscal Decentralization Theory which presupposes that devolved fiscal authority enhances governance performance if facilitated by capable institutions and effective administrative systems. Using a descriptive-correlational research design, data were collected from 109 LGU officials, department heads, employees, and barangay officials through a validated researcher-made questionnaire and analyzed using descriptive statistics and regression analysis. Findings indicated that the implementation of the ruling in Bagumbayan was high in terms of organizational capacity, fiscal decentralization, National Tax Allotment utilization, and budget allocation reforms, whereas service delivery efficiency was likewise rated very good, particularly in health outcomes, public satisfaction, and access to basic services; regression analysis further verified that the implementation of the Mandanas-Garcia Ruling significantly predicts service delivery efficiency. These findings suggest that expanded fiscal transfers bolster local governance responsiveness and improve public service delivery, although institutional capability, leadership quality, and administrative effectiveness remain crucial factors in sustaining the long-term success of fiscal decentralization reforms in Philippine local governance.
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