M
O INTRODUCTION
D
U While the national government is primary responsible for delivering essential services to the
L Filipino people through its regional, provincial, and local services, the fundamental law of
E our land recognizes the importance of local government units (LGUs) in assisting in the
delivery of these services.
1 Although students of political science are prone to be more interested in the study of
national governments, due attention should also be given to the study of local governments, the
local units of the states. Every nation is must be noted, is made up of local communities and
institutions. Without villages, towns, provinces, and cities, no nation can exist. For a nation is nothing
but a totality of those local communities. In the sagacious words of President Woodrow Wilson: “the
history of a nation is only the history of its village written large.”
The national government may be more glamorous, but the local government is more useful to all
cities. Not only is it closer to the people, but it also affords them direct participation in their
government and gives them direct services in their daily life.
Definition and nature of local government:
an overview
Local Government Unit is defined as a body politic and corporate one endowed with powers as a
political subdivision of the National Government and as a corporate entity representing the
inhabitants of its territory, and an agent of the national government.
It is a political subdivision of the State which is constituted by law and possessed of the substantial
control over its own affairs. Remaining to be an intra-sovereign subdivision of one sovereign nation,
but not intended, however, to be an imperium in imperio, the Local Government Unit is autonomous
in the sense that it is given more powers, authority, responsibilities and resources.
Local Government is described as a political subdivision of a nation or State which is constituted by
law and has substantial control of local affairs.
Local governments are key players in local development, but they are among many players. Evidently,
their effectiveness and importance depend on many factors, not least of which are budget and
capacity. Even in relatively affluent countries, most local authorities spend a small proportion of their
budgets on direct economic development support.
Local government in the Philippines has its roots in the colonial
EVOLUTION OF administration of Spain which lasted in the country for 327 years.
LOCAL GOVERNMENT The establishment of Cebu City in 1565 started the local
government system. Three centuries under Spanish government
IN THE PHILIPPINES were characterized by a highly centralized regime. The Spanish
Governor-General in Manila governed the provinces and cities in the
whole country. An important Spanish law on local governments was the Maura Law of 1893, which
allowed Filipinos to vote for their local officials.
After Spain, the United States came into power in the early 1900s and Filipinized local government
administration. The Americans issued General Order No. 43, which recognized local governments
established by Spaniards. In Commonwealth period (1935-1940), Commonwealth Act No. 357
allowed women to exercise their suffrage and vote for local officials. The post war years (1946-1971)
also saw several legislations aimed to strengthen local elections in the Philippines.
The last 50 years of the twentieth century saw several developments towards decentralization. The
Local Autonomy Act of 1959, the passage of the Barrio Chapter and the Decentralization Act of
1967 were all incremental national legislation in response to the clamor for self-rule concept.
The Philippine Constitution of 1973 and 1987 also significantly influenced the movement for political
devolution. The most significant constitutional provision (Article X of Local Government) is the
following:
“The Congress shall enact a local government code which shall provide for
a more responsive and accountable local government structure instituted
through a system of decentralization with effective mechanisms of recall,
initiative, and referendum, allocate among the different local government units
their powers, responsibilities, and resources, and provide for the qualifications,
election, appointment and removal, term, salaries, powers and functions and
duties of local officials, and all other matters relating to the organization and
operation of the local units.”
The struggle for decentralization over the past 50 years culminated in the passage of the Local
Government Code in October 1991. The Local Government Code is the most comprehensive
document on local government touching on structures, functions, and powers including taxation and
intergovernmental relations.
Reasons for existence of local government
The Existence of local governments is necessary to the state. Firstly, local governments facilitate
governmental efficiency. Local Functions are better discharged by the local government than by the
national government. By easing the burden of work on the national government the latter can
preoccupy itself with matters of national significance.
Secondly, economy is secured with the existence of local government. Usually, the expenses of
improvements in local regions are borne by the municipal councils of those localities.
Thirdly, local government serves as an educative agency in modern representative government. The
citizen retrained in political affairs by giving them full participation in their local government.
And finally, local government keeps alive the spirit of democracy and liberty. Nation, and national
governments may be shattered by revolutions and wars, but the local communities keep the spirit of
liberty. Revolutions may overturn the governments of states and nations, but they seldom work much
change in country and town. Democracy may vanish from the governments of states and nations, but
in local communities it lives on.
Decentralization
Decentralized governance refers to “the restructuring or reorganization of authority so that there is
a system of co-responsibility between institutions of governance at the central, regional and local
levels according to the principle of subsidiarity, thus increasing the overall quality and effectiveness
of the system of governance, while increasing the authority and capacities of sub-national levels.”
The concept of subsidiarity means that functions or tasks should be devolved to the lowest level of
social order that is capable of completing them. Therefore, decentralization relates to the role of, and
the relationship between, central and regional, provincial or municipal institutions – public, private
or civic.
However, decentralization has often been associated with governance by the state or by public
institutions.
Public sector decentralization
1. Administrative decentralization aims at transferring decision-making authority, resources and
responsibilities for the delivery of a select number of public services from the central
government to other lower levels of government, agencies, and field offices of central
government line agencies;
2. Political decentralization is where political power and authority have been decentralized to
regional, provincial or municipal levels, and this may be manifested in situations where
regional, provincial or municipal units of government are elected. It aims to give citizens or
their elected representatives more power in public decision-making, and assumes that greater
participation would lead to decisions that are better informed and relevant to diverse
interests; and
3. Fiscal decentralization refers to some level of allocation of resources to local governments to
allow them to function properly under any type of decentralization. Without resources, local
governments cannot function, so fiscal decentralization is the most comprehensive form of
decentralization. Arrangements for resource allocation are usually negotiated between local
and central authorities, and are dependent on several factors including concerns for inter-
regional equity, availability of central and local resources and local fiscal management
capacity.
Four forms of decentralization
1. Deconcentration redistributes authority and responsibility from one level of the central
government to another while maintaining the same hierarchical level of accountability. It is
often regarded as the weakest form of decentralization and used most frequently in unitary
states.
2. Delegation is the redistribution of authority and responsibility to local units of government
or agencies, not necessarily local offices of the delegating authority, or semi-autonomous
organizations not wholly controlled by the central government, but ultimately accountable to
the delegating unit or authority. For example, governments delegate responsibility when they
create public enterprises or corporations, housing authorities, transportation authorities or
regional development corporations, which may be exempt from constraints on civil service
personnel and may be able to charge users directly.
3. Devolution refers to full transfer of responsibility, decision-making, resources and revenue
generation to a local level of public authority that is autonomous and fully independent from
the devolving authority. Devolution usually transfers responsibilities for services to
municipalities that elect their own mayors and councils, raise their own revenues, and have
independent authority to make investment decisions. In a devolved system, local
governments have clear and legally recognized geographical boundaries over which they
exercise authority and within which they perform functions.
4. Divestment or market decentralization refers to transfer of public functions from government
to voluntary, private or non-governmental institutions with clear benefits to an involvement
of the public. This often involves contracting out partial service provision or administration
functions, deregulation or full privatization.
In reality, the lines between the types and forms of decentralization mentioned above are not clearly
defined. All government systems are likely to have elements of devolution, deconcentration and
delegation.
LOCAL AUTONOMY
Local autonomy means a more responsive and accountable Local Government structure instituted
through a system of decentralization. The Constitution does nothing more than to break up the
monopoly of the National Government over the affairs of Local Governments and as put by political
adherents, to ‘liberate the Local Governments from the imperialism of Manila.’ Autonomy, however,
is not meant to end the relation of partnership and interdependence between the central
administration and Local Government Units, or otherwise, to usher in a regime of federalism. Local
autonomy includes both administrative and fiscal autonomy.
In Limbona vs. Mangeline, the Honorable Supreme Court fully explained that Autonomy is either
decentralization of administration or decentralization of power. There is decentralization of
administration when the Central Government delegates administrative powers to political
subdivisions in order to broaden the base of government power and in the process to make Local
Governments ‘more responsive and accountable.’ And ‘ensure their fullest development as self-reliant
communities and make them more effective partners in the pursuit of national development and
social progress.’ At the same time, it relives the Central Government of the burden of managing local
affairs and enables it to concentrate on national concerns. The President exercises ‘general
supervision’ over them, but only to ‘ensure the local affairs are administered according to law.’ He
has no control over their acts in the sense that he can substitute their judgments with his own.
Decentralization of power, on the other hand, involves an abdication of political power in the favor
of Local Governments Unit declared to be autonomous. In that case, the Autonomous Government is
free to chart its own destiny and shape its future with constitutional author, decentralization of power
amounts to ‘self-immolation,’ since in that event, ‘the Autonomous Government becomes accountable
not to the central authorities but to its constituency.
In Basco vs. PAGCOR, it was explained that the principle of Local Autonomy under the 1987
Constitution simple means ‘decentralization.’ Futher, the Honorable Supreme Court said that it does
not make Local Governments sovereign within the state or an ‘imperium in imperio,’ that Local
Governments can only be an intra sovereign nation, it cannot be an imperium in imperio.
The centerpiece of Local Government Code is the system of decentralization as expressly mandated
by the Constitution. Devolution refers to the act by which the National Government confers power
and authority upon the various Local Government Units to perform specific functions and
responsibilities. The constitution clearly provides that Local Government Units territorial and political
subdivisions shall enjoy Local Autonomy, to be ‘more responsive and accountable local government
structure instituted through a system of decentralization. This principle, is nonetheless, strengthened
by the provision that each Local Government Unit shall have the power to create its own sources of
local revenues and to levy taxes, fees, and charges shall accurate exclusively to the Local Government
Units.
Accordingly, Local Government Units are given wider latitude to raise their own sources of revenues.
Therefore, based on the foregoing principles, tenets, and precepts, it is concluded that ‘Local
Autonomy’ includes both administrative and fiscal autonomy.
Under existing law, Local Government Units, in addition to having administrative autonomy in the
exercise of their functions, enjoy fiscal autonomy as well. Fiscal autonomy means that Local
Governments have the power to create their own sources of revenue in addition to their equitable
share in the national taxes released by the National Government, as well as the power to allocate
their resources in accordance with their own priorities. It extends to the preparation of their budgets,
and local officials in turn have to work within the constraints thereof.
CONSTITUTIONAL PROVISIONS THAT STRENGTHEN THE AUTONOMY OF LGUS
(a) The territorial and political subdivisions of the Republic of the Philippines are the provinces,
Cities, Municipalities, and Barangays. There shall be autonomous Regions in Muslim
Mindanao and the Cordilleras as hereinafter provided. (Article X, Section 1)
(b) The territorial and political subdivisions shall enjoy Local Autonomy. (Article X, Section 2)
(c) The Congress shall enact a Local Government Code which shall provide for a more responsive
and accountable Local Government structure instituted through a system of decentralization
with effective mechanisms of recall, initiative, and referendum, allocate among the different
Local Government Units their powers, responsibilities, and resources, and provide for the
qualifications, election, appointment and removal, term, salaries, powers and functions and
duties of local officials, and all other matters relating to the organization and operation of
the local units. (Article X, Section 3)
(d) The President of the Philippines shall exercise general supervision over Local Governments.
Provinces with respect to Component Cities and Municipalities, and Cities and Municipalities
with respect to Component Barangays shall ensure that the acts their Component Units are
within the scope of their prescribed powers and functions. (Article X, Section 4)
(e) Each Local Government Unit shall have the power to create its own sources of local revenues
and to levy taxes, fees, and charges subject to such guidelines and limitations as the Congress
may provide, consistent with the basic policy of Local Autonomy. Such taxes, fees, and
charges shall accrue exclusively to the Local Government Units. (Article X, Section 5)
(f) Local Government Units shall have a just share, as determined by law, in the national taxes
which shall be automatically released to them. (Article X, Section 6)
(g) Local Government shall be entitled to an equitable share in the proceeds of the utilization
and development of the national wealth within their respective areas, in the manner provided
by law, including sharing the same with the inhabitants by way of direct benefits. (Article X,
Section 7)
(h) The term of office of the elective local officials, except Barangay Officials, which shall be
determined by law, shall be Three (3) years and no such official shall serve for more than
Three (3) consecutive terms. Voluntary renunciation of the office for any length of time shall
not be considered as an interruption in the continuity of his service for the full term for which
he was elected. (Article X, Section 8)
(i) Legislative Bodies of Local Governments shall have Sectoral Representation as may be
prescribed by law. (Article X, Section 9)
(j) No province, City, Municipality, or Barangay may be created, divided, merged, abolished, or
its boundary substantially altered, except in accordance with the criteria established in the
Local Government Code and subject to approval by a majority of the votes cast in a plebiscite
in the political units directly affected. (Article X, Section 10)
(k) The Congress may, by law, create special Metropolitan Political Subdivisions, subject to a
plebiscite as set forth in Section 10 thereof. The Component Cities and Municipalities shall
retain their basic autonomy and shall be entitled to their own local executives and legislative
assemblies. The jurisdiction of the metropolitan Authority that will thereby create shall be
limited to basic services requiring coordination. (Article X, Section 11)
(l) Cities that are Highly Urbanized, as determined by law, and Component Cities whose charters
prohibit their voters from voting for Provincial Elective Officials, shall be independent of the
Province. The voters of Component Cities within a Province, whose charters contain no such
prohibition, shall not be deprived of their right to vote for Elective Provincial Officials. (Article
X, Section 12)
(m) Local Government Units may be group themselves, consolidate or coordinate their efforts,
services, and resources for purposes commonly beneficial to them in accordance with law.
(Article X, Section 13)
(n) The President shall provide for Regional Development councils or other similar bodies
composed of Local Government Officials, regional heads of departments and other
government offices, and representatives from non-governmental organizational within the
regions for purposes of administrative decentralization to strengthen the autonomy of the
units therein and to accelerate the economic and social growth and development of the units
in the region. (Article X, Section 14)
STATE POLICIES ON LOCAL GOVERNMENT UNITS
The following are the Declaration of Policy, namely:
(a) It is hereby declared the policy of the state that the territorial and political subdivisions of
the state shall enjoy genuine and meaningful Local Autonomy to enable them to attain their
fullest development as self-reliant communities and make them more effective partners in the
attainment of national goals. Toward this end, the State shall provide for a more responsive
and accountable Local Government structure instituted through a system of decentralization
whereby Local Government Units shall be given more powers, authority, responsibilities, and
resources. The process of decentralization shall proceed from the National Government to
the Local Government Units.
(b) It is also the policy of the state to ensure the accountability of Local Government units through
the institution of effective mechanism of recall, initiative and referendum.
(c) It is likewise the policy of the State to require all national agencies and offices to conduct
periodic consultations with appropriate Local Government Units, non-governmental and
people’s organizations and other concerned sectors of the community before any project or
program is implemented in their respective jurisdictions.
LOCAL GOVERNMENT CODE OF 1991
The Local Government Code of 1991 took effect on January 01, 1992, after its publication
in the newspaper of general circulation. Republic Act No. 7160, otherwise known as the Local
Government Code of 1991 applies to all provinces, cities, municipalities, barangays, and other
political subdivisions as may be created by law, and, to the extent herein provided, to officials, offices,
or agencies of the National Government.
In interpreting provisions of the Local Government Code, the following rules shall apply:
(1) Any provision on a power of a Local Government Unit shall be liberally interpreted in its favor,
and in case of doubt, any question thereon shall be resolved in favor of devolution of powers
and of the lower Local Government Unit. Any fair and reasonable doubt as to the existence
of the power shall be interpreted in favor of the Local Government Unit concerned;
(2) In case of doubt, any tax ordinance or revenue measure shall be construed strictly against
the Local Government Unit enacting it, and liberally in favor of the taxpayer. Any tax
exemption, incentive or relief granted by any Local Government Unit pursuant to the
provisions of the Code shall be construed strictly against the person claiming it;
(3) The general welfare provisions in the Code shall be liberally interpreted to give more powers
to Local Government Units in accelerating economic development and upgrading the quality
of life for the people in the community;
(4) Rights and obligations existing on the date of effectivity of the Code and arising out of
contracts or any other source of presentation involving a Local Government Unit shall be
governed by the original terms and conditions of said contracts or the law in force at the
time such rights were vested;
(5) In the resolution of controversies arising under the Code where no legal provision or
jurisprudence applies, resort may be had to the customs and traditions in the place where
the controversies take place;
(6) Where a law is capable of two interpretations, one in favor of centralized power in
Malacañang and the other beneficial to local autonomy, the scales must be weighed in favor
of autonomy:
(7) The powers of Municipal Corporations are to be construed in strictissimi juris and any doubt
or ambiguity must be construed against the Municipality;
(8) Any doubt therefore as to the power of the Secretary to interfere with local affairs should be
resolved in favor of the greater autonomy of the Local Government;
(9) Indispensable to decentralization is devolution and the Local Government Code expressly
provides that ‘any provision on a power of a Local Government Unit shall be liberally
interpreted in its favor, and in case of doubt, any question thereon shall be resolved in favor
of devolution of powers and of the lower Local Government Unit. Any fair and reasonable
doubt as to the existence of the power shall be interpreted in favor of the Local Government
Unit concerned.
REFERENCES:
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Bowman Ann O’M. and Richard C. Kearney (2015). State and Local Government. USA: Cengage
Learning.
Dannug, Roman R. and Marlo B. Campanilla (2004). Politics, Governance, and Government with
Philippine Constitution Second Edition. Quezon City: C & E Publishing, Inc.
Donova, T., [Link] (2017). State and Local Politics. USA: Cengage Learning.
Garcia, Carlito D. (2015). Philippine History and Government for College Students Revised Edition.
Mandaluyong City: Books Atbp. Publishing Corp.
Hechanova, Ma. Regina M. [Link] (2017). Transforming Local Government. Quezon City: Ateneo De
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