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Local Fiscal Administration: Ilago)
Local Fiscal Administration: Ilago)
Definition
the giving and receipt of allotments and grants from the National
Government (NG) to local government units (LGUs);
allotment sharing between LGUs;
Systems;
Structures;
Processes;
Official/personnel; and
Among others, these fiscal policies set the framework and procedures on
local revenue generation that includes property tax administration, revenue
ordinance codification as well as the operations of local economic
enterprises.
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Fiscal relations between national and local government centre on the
following major areas of fiscal administration:
The major aspects of local fiscal administration are the fiscal relations
between the national government and local governments, and among the
local government units, to wit:
1. The fiscal relations between the national government and its agencies,
on the one hand, and the LGUs on the other, which we may call vertical
financial relations. This is also referred to in the literature as central-
local fiscal relations, with the Internal Revenue Allotments at its core;
and
Scope
a. Revenue Generations
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c. Other Aspects
1. Constitutional Provisions
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Political subdivisions
Did you know that the number of cities has more than doubled in
over thirty years?
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Majority of the cities in the country can be found in Luzon. As the
largest island in the country, Luzon has 65 cities or 47%, with 16
cities coming from the National Capital Region (NCR). Visayas has
39 cities or 29% with Regions VI and VII having 16 cities apiece,
while Mindanao has 33 cities. Among the regions in Mindanao,
Region X had the highest number of cities in the island at 9.
NCR 0 16 1 1,695
CAR 6 2 75 1,176
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MINDANAO 27 33 423 10,080
IX (ZAMBOANGA 67
PENINSULA) 3 5 1,904
Some cities act independently from any province and are self-
governing as referred to in the Constitution and in the 1991 Local
Government Code of the Philippines:
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Population
Population Area density
City Province Region 2007 (km²) (km²)
Autonomous Regions
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intended to be autonomous (Cordillera Autonomous Region), but the
failure of two plebiscites for its establishment reduced it to a regular
administrative region.
The President can only interfere in the affairs and activities of a local
government unit if he finds that the latter had acted contrary to law.
This is the scope of the President’s supervisory powers over local
government units. Hence, the President or any of his alter egos,
cannot interfere in the local affairs as long as the concerned local
government unit acts within the parameters of the law and the
Constitution. Any directive, therefore, by the President or any of his
alter egos seeking to alter the wisdom of a law-conforming
judgement on local affairs of a local government unit is a patent
nullity, because it violates the principles of local autonomy (Judge
Dadole vs. Commission on Audit).
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Section 5 Article X: Each local government unit shall have the
power to create its own sources of 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 governments.
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Provinces 23 %
Cities 23 %
Municipalities 34 %
Barangays 20 %
By population 50 %
By land area 25 %
By equal sharing 25 %
Over the years, the total IRA allocation to all LGUs has grown and is
currently less than 20% of the total national budget.
TOTAL
BUDGET (in PERCENTAGE
YEAR AMOUNT (in billion pesos)
billion SHARE
pesos)
1992 20.30 295.20 6.88
1993 36.12 331.70 10.89
1994 46.13 369.00 12.50
1995 52.04 372.10 13.99
1996 56.59 445.10 12.71
1997 71.04 491.80 14.44
1998 80.99 537.40 15.07
1999 96.78 593.60 16.03
2000 111.77 651.00 17.17
2001 111.77 669.88 16.69
2002 134.42 780.80 17.22
2003 141.00 804.0 17.54
2004 141.00 861.6 16.36
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2005 151.60 907.6 16.70
2006 166.0 907.6 18.29
Source: Department of Budget and Management
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The following is the breakdown of elective officials and the
minimum age requirement:
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As a matter of principle, higher legislative entities have the power to
create, divide, merge, abolish, or substantially alter boundaries of any
lower-level LGU through a law or by an ordinance, all subject to
approval by a majority of the votes cast in a plebiscite to be conducted
by the Commission on Elections (COMELEC) in the local government
unit or units directly affected.
The Local Government Code has also set requisites for creating local
government units based on verifiable indicators of viability and
projected capacity to provide services. A summary can be found in the
table below:
Sangguniang
Panlungsod
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SEC. 8. Division and Merger.of RA 7160 - Division and merger of
existinglocal government units shall comply with the same
requirements herein prescribed for their creation: Provided, however,
That such division shall not reduce the income, population, or land area
of the local government unit or units concerned to less than the
minimum requirements prescribed in this Code: Provided, further, That
the income classification of the original local government unit or units
shall not fall below its current income classification prior to such
division. The income classification of local government units shall be
updated within six (6) months from the effectivity of this Code to reflect
the changes in their financial position resulting from the increased
revenues as provided herein.
Place illustration/sample
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bank for failure to secure the appropriate mayor’s permit and
business licenses (Rural Bank of Makati vs. Municipality of Makati)
Place illustration/sample
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(2) For component cities and first to third class municipalities,
ten percent (10%); and
Place illustration/sample
Place illustration/sample
Place illustration/sample
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agency concerned: Provided, further, That when such national
agency fails to act on the request for approval within thirty (30) days
from receipt thereof, the same shall be deemed approved.
Municipal Liability
Local government units and their officials are not exempt from
liability for death or injury to persons or damage to property.
As such, the local government units is liable in damages for death or
injuries suffered by reason of the defective condition of roads,
bridges, streets, public buildings and other public works. In fact, in
the case of City of Manila vs. Teotico, the city of Manila was held
liable for damages when a person feel into an open manhole in the
streets of the city.
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c. Commission on Audit (COA)
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and expected to assume new and wider roles in local governance
through innovations and changes in the local structures though with
limited resources. Most of all they were expected to organize more
intervention in local economy to bring about more economic
development activities in the community.
With the rise in the share of LGUs in the internal revenue allotment
(from 11% to a maximum of 40%), proceeds from the utilization of
natural resources, as well as other income-enhancing powers,
decentralized development may prove to be the real tool in
actualizing national development.
Once local governments are clothed with fiscal autonomy and this
autonomy is used effectively and responsibly, development from
below would not be impossible to realize. What is left to be done
are the following:
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the installation of organizational mechanism and policy that
anticipate and address the people’s interests in an adequate
and accountable manner;
the vigilance of the people themselves in choosing individuals
who work in the LGU; and
their support and manifestation of local empowerment.
Bibliography:
Wikipedia
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