LTOM BOOK 1: CHAPTER 1: FISCAL ORGANIZATION

CHAPTER ASSESSMENT
1. The _____ of the Philippines shall exercise general supervision over local governments.
2. Each _____ 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.
3. LGUs shall have a ______ in the national taxes which shall be automatically released to them.
4. LGUs shall have the power to acquire, develop, lease, encumber, alienate, or otherwise dispose of ______ held
by them in their proprietary capacity.
5. It is a body politic and corporate endowed with powers to be exercised by it in conformity with law.
6. When a new local government unit is created, its corporate existence shall commence upon ____ and _____.
7. Give at least 3 corporate powers of LGU.
8. Unless otherwise provided in the LGC, no contract may be entered into by the Local Chief Executive (LCE)
in behalf of the LGU without prior authorization by the ______ concerned.
9. The ______ shall consist of monies and resources of the local government which are available for the
payment of expenditures, obligations or purposes not specifically declared by law as accruing and
chargeable to, or payable from, any other fund.
10. _____ consist of the respective shares of provinces, cities, and municipalities in the proceeds of the
additional tax on real property to be appropriated for purposes prescribed in Sec. 272 of the LGC;
11. ______ which shall consist of private and public monies which have officially come into the possession of the
local government or of a local government official as trustee, agent or administrator, or which have been
received as a guaranty for the fulfillment of some obligation.
12. As a general rule, the creation of an LGU or its conversion from one level to another level shall be based on
three (3) verifiable indicators of viability and projected capacity to provide services which are _____, _______
and ______.
13. It must be sufficient, based on acceptable standards, to provide for all essential government facilities and
services and special functions commensurate with the size of its population, as expected of the local
government unit concerned.
14. It shall be determined on the total number of inhabitants within the territorial jurisdiction of the local
government unit concerned.
15. It must be contiguous, unless it comprises two or more islands or is separated by a local government unit
independent of the others; properly identified by metes and bounds with technical descriptions; and
sufficient to provide for such basic services and facilities to meet the requirements of its populace.
16. Compliance with income, population and land area shall be attested to by the _______, Philippine Statistics
Authority (PSA), and the Land Management Bureau (LMB), respectively.
17. A plebiscite shall be conducted by the Commission on Elections (COMELEC) within _______ from the date of
effectivity of the law or ordinance effecting such action, unless said law or ordinance fixes another date.
18. A province may be created if it has an average annual income, as certified by the Department of Finance
(DOF) thru the Bureau of Local Government Finance (BLGF), of not less than _____ based on 1991 constant
prices.
19. A province may be created if it has contiguous territory of at least _______, as certified by the LMB; or
20. A province may be created if it has a population of not less _____ inhabitants, as certified by the NSO now
PSA.   
21. A municipality or a cluster of “barangays” may be converted into a component city if it has a locally
generated average annual income, as certified by the DOF thru the BLGF, of _____ for the last two (2)
consecutive years based on 2000 constant prices
22. A municipality or a cluster of “barangays” may be converted into a component city if it has a contiguous
territory of at least _____, as certified by the LMB.
23. A municipality or a cluster of “barangays” may be converted into a component city if it has a population of
not less than _____, as certified by the NSO now PSA.
24. A municipality may be created if it has an Average Annual Income, as certified by the Provincial Treasurer,
of at least _____ for at least two (2) consecutive years based on 1991 constant prices;
25. A municipality may be created if it has a population of at least _______, as certified by the National Statistics
Office; and
26. A municipality may be created if it has a contiguous territory of at least _______, as certified by the Land
Management Bureau.
27. Cities shall be classified as HUC if it has a minimum population of ______ inhabitants, as certified by the PSA.
28. Cities shall be classified as HUC if it has the latest annual income of at least _____ based on 1991 constant
prices, as certified by the City Treasurer.
29. The income classification of LGUs shall be updated within _____ to reflect the changes in their financial
position resulting from the increased revenues as provided herein.
30. The legislative power of the autonomous government shall be vested in the ______ except to the extent that it
is reserved to the people by provisions on initiative and referendum as provided by law.