LOCAL GOVERNMENT CODE  The LGC is the most comprehensive

REVIEWER document on local government

touching the structures, functions and
Timeline of LG Evolution in the PH:
powers, including taxation and
 Local government in the PH has its intergovernmental relations.
roots in the colonial administration  LGC of 1991 has been implemented
of Spain which lasted in the PH for for the last 31 years as part of the
327 years. continuing advocacy of the country
 The establishment of Cebu City in for effective decentralization and a
1565 started the local government working local autonomy.
system.
 An important Spanish law on local  Brgy. Captain (exercises all 3
governments was the Maura Law of powers; executes ordinances,
1893 which allowed Filipinos to vote presides sessions, acts as judge in
for their local officials. Katarungang Pambarangay)
 After Spain, the US came into power  Intergovernmental Relations – Metro
in the early 1900s and “Filipinized” Naga Development Council
local government administration. (comprises of Mayors along San
The Americans issued General Order Miguel bay)
No. 43 which recognized local
--- LOCAL GOVERNMENT ---
governments established by the
Spaniards. - A subordinate territorial unit that
 Commonwealth period (1935-1940): owes its creation and existence to a
Commonwealth Act No. 357 allowed state and that derives powers from
women to exercise their suffrage and general laws or from charters or
vote for local officials. other specific grants made by that
 The last 50 years of the 20th century state.
saw several developments towards - Possesses basic elements of territory,
DECENTRALIZATION. The Local population and continuous
Autonomy Act of 1959, the passage organization.
of the Barrio Charter and the - A political subdivision of the State
Decentralization Act of 1967 were all which is constituted by law and
INCREMENTAL national legislation possessing substantial control over
in response to the clamor for a “Self- its own affairs.
rule” concept.
 The PH Constitutions of 1972 and  Legislative Districts in Camarines
1987 also significantly influenced Sur
the movement for political
devolution. 1st District  Cabusao
 The struggle for decentralization  Del Gallego
over the past 50 years culminated in  Lupi
the passage of the LGC of 1991.  Ragay
 Sipocot
2nd District  Gainza  Transfer of authority from central to
 Libmanan local
 Milaor  Encompasses a variety of concepts
 Minalabac which must be carefully analyzed in
 Pamplona any particular country before
 Pasacao application
 San Fernando  Each country has its own “rhythm”
3rd District  Bombon of change
 Calabanga
 Camaligan Ways Decentralization Occurs:
 Canaman a. Political Decentralization – aims to
 Magarao give citizens or their elected
 Naga representatives more power in public
 Ocampo decision-making; assumes that
 Pili decisions made with greater
4th District  Caramoan participation will be better informed
 Garchitorena and more relevant to diverse interests
 Goa in the society than those made only
 Lagonoy by national political authorities
 Presentacion - PARTICIPATION is emphasized;
 Sagnay participatory governance
 San Jose
 Siruma EXAMPLE: Naga City People’s Council –
 Tigaon wherein Naga City involves people’s council
 Tinambac in drafting ordinances/programs
5th District  Baao
b. Administrative Decentralization –
 Balatan
seeks to redistribute authority and
 Bato
financial resources among different
 Buhi
levels of government
 Bula
3 FORMS:
 Iriga
i. Deconcentration – purpose is
 Nabua
to improve production
efficiency; assigns specific
4 Major Classifications of Legislative functions and tasks
Districts in Camarines Sur before performed by the staff of the
central admin to staff in
1. River
peripheral locations within
2. Central Bay
national territory; transferred
3. Partido
to regional and district
4. Rinconada
offices; managers of
---DECENTRALIZATION in subnational units are given
DEVELOPING NATIONS--- autonomy for decision-
making
 ii. Delegation – purpose is EXAMPLES: Petron, PH Airlines, NapCor,
production efficiency; NGCP (Ayala-owned)
responsibility and resources
e. Deregulation – reduces legal
for implementing specific
constraints on private participation or
tasks and delivering certain
allows competition among private
services are transferred to a
suppliers for services that in the past
public agency, a state
were provided by the government or
enterprise, a private
regulated monopolies
enterprise, or an NGO under
a contract that may provide EXAMPLE: Oil Deregulation Law
some autonomy in
interpreting the tasks --- ARGUMENTS AGAINST
assigned under the contract DECENTRALIZATION ---
(national water supply  Makes stabilization policies more
company, agricultural difficult to implement or even
research institute, etc.) destabilization of public expenditures
iii. Devolution – improves and debt – what happens in the
allocative efficiency; entails central government can’t be
beneficiaries to participate consistently implemented ; each will
through representatives have own decision-making and
elected to the local manner of implementing
government in planning the programs/activities;
delivery of services and in the  Offloading of fiscal imbalances by
evaluation of services central governments to local
provided governments. Strong appreciation
c. Fiscal Decentralization – giving between decentralization and fiscal
local governments and private imbalances at lower levels – large
organizations revenues to carry out expenditure deficits; horizontal
service effectively. Forms include: imbalance among local governments
i. Self-financing especially those with higher-revenue
ii. Expansion of local revenues earning powers; vertical imbalance
iii. Intergovernmental transfers when central government gives fiscal
iv. Authorization of municipal responsibilities but not enough
borrowing revenue-earning powers to local
EXAMPLES: IRA (Internal Revenue governments
Allotment from Nat’l Government) &  Possibility that decentralization
Investment Ordinance retards economic growth.

d. Privatization – government and --- ARGUMENTS FOR

private sectors cooperate to provide DECENTRALIZATION ---
services or infrastructure; selling of  Efficiency – decisions about public
government-owned corporation to expenditure on a closer level
private sector government are more responsive and
 reflect local demand more so than
remote government The provision’s gist circulates
 Also, improvement of around the principle of
competitiveness of government and decentralization and the local
enhances innovation more likely to government units’ autonomy in terms
act to satisfy the wishes of citizens. of its respective development. It also
explicitly provides for the country’s
--- RATIONALE FOR “BALANCED”
political subdivisions – provinces,
DECENTRALIZATION NOT “EITHER-
cities, municipalities, and barangays
OR” ---
with each having a different local
 Not all functions can or should be government. Muslim Mindanao and
financed and managed in the Cordilleras having autonomous
decentralized way regions was also mentioned which
 If national government delegates emphasized its entitlement to
responsibilities, they usually need to possessing financial independence
retain policy and supervisory roles manifested in its own revenue
 National government creates and sources and processes.
maintains “enabling conditions” that
allow local responsibility (Mandanas Basically, the first section
Ruling additional funding) briefly introduces the nature of local
 Decentralization depends on training governments in the Philippines. The
and coordination of local state recognizes the imperative of
government, private enterprises, and devolving powers from the central
local NGOs in planning, financing, government to local governments to
and management (health, education, amplify the effectivity and efficiency
agriculture, roads) of public administration in
addressing diverse demands across
the country. It also highlights the
importance of the citizenship
engagement at the local level thereby
DISCUSSIONS: imposing decentralization.
--- ASSIGNMENT 1 ---
1. Constitutional significance of Sec. 1, 2. Number of autonomous regions
Art. 10, LGC – allowed by the 1987 Constitution

Sec. 1. The territorial and political The 1987 Constitution allows for 2
subdivisions of the Republic of the autonomous regions in the
Philippines are the provinces, cities, Philippines. As per Sec. 1, Art. 10 of
municipalities, and barangays. the Constitution, there shall be
There shall be autonomous regions autonomous regions both in Muslim
in Muslim Mindanao and the Mindanao and the Cordilleras.
Cordilleras as hereinafter provided. However, the BARMM
 (Bangsamoro Autonomous Region in which the former does
Muslim Mindanao) is the only not. The president can
existing autonomous region in the issue such for that of a
country. transitory nature.
Limbona v. Conte The President exercises
Mangelin et al general control over
autonomous regions.
3. 1986 Constitutional Convention
The autonomy of the
retained “barangay” in spite of links region shall be within
with Marcos Sr.’s regime. the ambit of the national
sovereignty and
The main reason as to why territorial integrity of
“barangay” was retained is because the Philippines and its
of the word’s historical context. Constitution.
Although the term is associated with Magtajas v. Pryce The decree has the
Marcos connotations, the point was Properties status that cannot be
really to portray a historical, amended nor nullified
administrative figure of “cabesa de by mere ordinance and
barangay” who heads his thus, ordinances that
constituents or like a “father” contravene them are
invalid.
guiding his immediate family
members on a boat (balanghay).
Furthermore, it’s also used in the --- ASSIGNMENT 2 ---
laws, commentaries, books, and
1. What is the significance of the
other platforms but not the
declaration of local autonomy?
Constitution. Also, using “barrio”
(Sec.2, Art. 10)
would be misleading because it has a
different scope from barangay. Art. 10, Sec. 2. The territorial and political
Lastly, the arguments of the subdivisions shall enjoy local autonomy.
opposition were more of Marcos
prejudice that were inappropriate to Sec. 2, Article 10 of the PH 1987
the original context of the word. Constitution explicates the expressed
guarantee of self-government among local
Case Jurisprudence governments. It provides that a local
CBC v. COA The EO No. 220 is government unit has the power to plan and
merely a preparatory implement for its affairs within its sphere
measure that does not without much of an interference from the
encroach upon the national or central government. With local
Constitutional mandate
autonomy, the local government can decide
of the Congress to enact
for itself and make the necessary actions for
Organic Acts in creating
autonomous region in progress for its constituents. Another
the Cordilleras. The significance of this provision is the clear
Constitution provides a manifestation of decentralization and
basic structure for such devolution of powers.
 2. Are autonomy and decentralization City principal of the
the same? LGUs.
San Juan v. CSC If a law is subject to
Decentralization and autonomy are 2 2 interpretations
different concepts. The former refers to the where one would be
process of transferring powers from the beneficial to the
central government towards local local autonomy, it
governments whereas the latter is the effect must be resolved in
of such transfer of powers. Otherwise stated, favor of the latter.
the local autonomy enjoyed by the local
governments is an outcome of
--- GRADED ACTIVITY ---
decentralization. That is why the degree of
such local autonomy depends upon the kind 1. The law says that the budget officer
of decentralization effected. shall be appointed by the Department
head upon the recommendation of
3. What is the meaning of local
the head of local government subject
autonomy as it has emerged in the
to civil service rules and regulations.
recent decisions?
If none of those recommended by the
The grant of local autonomy is Constitutionally local government head meets the
mandated and allows local government units to requirements of law, may the
make independent administrative determinations Department head appoint anyone he
subject only to the Executive branch's general chooses?
supervision. Thus, any regulations imposed on
the exercise of local autonomy should not, in No. It is well-settled principle in
any way, amount to control. This is according to jurisprudence that in case no one
the Province of Camarines Sur, Represented by qualifies from the nominees submitted
Governor Miguel Luis R. Villafuerte VS. COA by the local government head, the DBM
G.R. No. 227926, March 10, 2020. head shall return the same and ask for
Case Jurisprudence another recommendations. Otherwise, it
Laguna Lake A general law would impugn the Constitutionally
Development cannot be construed granted local autonomy among the local
Authority v. CA to have repealed a government units.
special law. LLDA
2. May the COA reduce the allowance
is a special law
which should given to judges by local
prevail over the governments?
LGC, a general law. No. COA, as an administrative agency and
Tan v. Perena A municipal an alter ego of the President, exercises
ordinance shall not
general supervision over local government
contravene the
units. It cannot impose, through its
Constitution or any
statute, otherwise, it administrative circular, the exercise by the
is void. local governments of their powers as
Batangas CATV, The national prescribed by the Local Government Code.
Inc. v. Batangas legislature is the
 Case Jurisprudence confined to “all
Dadole et al v. DBM, as one of the subjects or matters
COA alter egos of the which are within
President, should the legal powers of
only exercise the Sanggunians to
general supervision enact”.
and not that of
control.
Leynes v. COA An administrative 3. What is the power of supervision?
circular cannot Supervision (jurisprudence) – power of a
supersede, superior officer to ensure that lower officers
abrogate, modify or
perform their functions in accordance with
nullify a statute. A
the law; does not have discretion; cannot
statute is superior to
an administrative decide for them; cannot modify or replace
circular, thus the them; may order the work done or re-done
latter cannot repeal but only to conform to the rules being
or amend it. prescribed; power to guide and oversee
4. What is the supervisory structure in
--- ASSIGNMENT 3 --- the local government system?

1. What is the present form of local Art. 10, Sec. 4, 1987 Constitution
government?
 President – general supervision over
The present form of local government is a local governments
reflection of the national government.  Provinces – component cities and
Executive and legislative bodies are co- municipalities
equal and independent from each other.  cities and municipalities –
component barangays
2. What is the present state of the law
on “initiative” and “recall”? *highly urbanized cities – not under the
supervisory power of the province; under the
The Constitution and such laws recognize
President
the right of the people to directly propose,
approve or reject any law or a part thereof 5. When Sec. 187 of the LGC authorized the
passed by the Congress (Art. 6, Sec. 1 and Sec. of Justice to pass judgement on the
Art. 17, Sec. 2). constitutionality or legality of a tax
ordinances or revenue measures, does he not
It also recognizes the right of the people to
exercise the power of control?
recall their local officials to whom they lost
confidence. - No. He is not permitted to substitute his
own judgement for the judgement of the
Case Jurisprudence
local government that enacted the
Garcia v. The LGC says that
COMELEC the application of measure. It is an act not of control, but of
limitations on local mere supervision. A supervisor does not
initiatives is have the authority to lay down the rules
in accomplishing a particular act and
who does not exercise discretion over
such. What he mainly does is to ensure
that the rules are being followed.