LOCAL GOVERNMENT CODE
REVIEWER
Timeline of LG Evolution in the PH:
 Local government in the PH has its
roots in the colonial administration
of Spain which lasted in the PH for
327 years.
 The establishment of Cebu City in
1565 started the local government
system.
 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 US 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 the
Spaniards.
 Commonwealth period (1935-1940):
Commonwealth Act No. 357 allowed
women to exercise their suffrage and
vote for local officials.
 The last 50 years of the 20th century
saw several developments towards
DECENTRALIZATION. The Local
Autonomy Act of 1959, the passage
of the Barrio Charter and the
Decentralization Act of 1967 were all
INCREMENTAL national legislation
in response to the clamor for a “Self-
rule” concept.
 The PH Constitutions of 1972 and
1987 also significantly influenced
the movement for political
devolution.
 The struggle for decentralization
over the past 50 years culminated in
the passage of the LGC of 1991.
 The LGC is the most comprehensive
document on local government
touching the structures, functions and
powers, including taxation and
intergovernmental relations.
 LGC of 1991 has been implemented
for the last 31 years as part of the
continuing advocacy of the country
for effective decentralization and a
working local autonomy.
 Brgy. Captain (exercises all 3
powers; executes ordinances,
presides sessions, acts as judge in
Katarungang Pambarangay)
 Intergovernmental Relations – Metro
Naga Development Council
(comprises of Mayors along San
Miguel bay)
--- LOCAL GOVERNMENT ---
- A subordinate territorial unit that
owes its creation and existence to a
state and that derives powers from
general laws or from charters or
other specific grants made by that
state.
- Possesses basic elements of territory,
population and continuous
organization.
- A political subdivision of the State
which is constituted by law and
possessing substantial control over
its own affairs.
 Legislative Districts in Camarines
Sur
1st District  Cabusao
 Del Gallego
 Lupi
 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
 Also, improvement of
competitiveness of government and
enhances innovation more likely to
act to satisfy the wishes of citizens.
--- RATIONALE FOR “BALANCED”
DECENTRALIZATION NOT “EITHER-
OR” ---
 Not all functions can or should be
financed and managed in
decentralized way
 If national government delegates
responsibilities, they usually need to
retain policy and supervisory roles
 National government creates and
maintains “enabling conditions” that
allow local responsibility (Mandanas
Ruling additional funding)
 Decentralization depends on training
and coordination of local
government, private enterprises, and
local NGOs in planning, financing,
and management (health, education,
agriculture, roads)
DISCUSSIONS:
--- ASSIGNMENT 1 ---
1. Constitutional significance of Sec. 1,
Art. 10, LGC –
Sec. 1. 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.
The provision’s gist circulates
around the principle of
decentralization and the local
government units’ autonomy in terms
of its respective development. It also
explicitly provides for the country’s
political subdivisions – provinces,
cities, municipalities, and barangays
with each having a different local
government. Muslim Mindanao and
the Cordilleras having autonomous
regions was also mentioned which
emphasized its entitlement to
possessing financial independence
manifested in its own revenue
sources and processes.
Basically, the first section
briefly introduces the nature of local
governments in the Philippines. The
state recognizes the imperative of
devolving powers from the central
government to local governments to
amplify the effectivity and efficiency
of public administration in
addressing diverse demands across
the country. It also highlights the
importance of the citizenship
engagement at the local level thereby
imposing decentralization.
2. Number of autonomous regions
allowed by the 1987 Constitution
The 1987 Constitution allows for 2
autonomous regions in the
Philippines. As per Sec. 1, Art. 10 of
the Constitution, there shall be
autonomous regions both in Muslim
Mindanao and the Cordilleras.
However, the BARMM
 (Bangsamoro Autonomous Region in
Muslim Mindanao) is the only
existing autonomous region in the
country.
3. 1986 Constitutional Convention
retained “barangay” in spite of links
with Marcos Sr.’s regime.
The main reason as to why
“barangay” was retained is because
of the word’s historical context.
Although the term is associated with
Marcos connotations, the point was
really to portray a historical,
administrative figure of “cabesa de
barangay” who heads his
constituents or like a “father”
guiding his immediate family
members on a boat (balanghay).
Furthermore, it’s also used in the
laws, commentaries, books, and
other platforms but not the
Constitution. Also, using “barrio”
would be misleading because it has a
different scope from barangay.
Lastly, the arguments of the
opposition were more of Marcos
prejudice that were inappropriate to
the original context of the word.
Case Jurisprudence
CBC v. COA The EO No. 220 is
merely a preparatory
measure that does not
encroach upon the
Constitutional mandate
of the Congress to enact
Organic Acts in creating
autonomous region in
the Cordilleras. The
Constitution provides a
basic structure for such
which the former does
not. The president can
issue such for that of a
transitory nature.
Limbona v. Conte The President exercises
Mangelin et al general control over
autonomous regions.
The autonomy of the
region shall be within
the ambit of the national
sovereignty and
territorial integrity of
the Philippines and its
Constitution.
Magtajas v. Pryce The decree has the
Properties status that cannot be
amended nor nullified
by mere ordinance and
thus, ordinances that
contravene them are
invalid.
--- ASSIGNMENT 2 ---
1. What is the significance of the
declaration of local autonomy?
(Sec.2, Art. 10)
Art. 10, Sec. 2. The territorial and political
subdivisions shall enjoy local autonomy.
Sec. 2, Article 10 of the PH 1987
Constitution explicates the expressed
guarantee of self-government among local
governments. It provides that a local
government unit has the power to plan and
implement for its affairs within its sphere
without much of an interference from the
national or central government. With local
autonomy, the local government can decide
for itself and make the necessary actions for
progress for its constituents. Another
significance of this provision is the clear
manifestation of decentralization and
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
Dadole et al v. DBM, as one of the
COA alter egos of the
President, should
only exercise
general supervision
and not that of
control.
Leynes v. COA An administrative
circular cannot
supersede,
abrogate, modify or
nullify a statute. A
statute is superior to
an administrative
circular, thus the
latter cannot repeal
or amend it.
--- ASSIGNMENT 3 ---
1. What is the present form of local
government?
The present form of local government is a
reflection of the national government.
Executive and legislative bodies are co-
equal and independent from each other.
2. What is the present state of the law
on “initiative” and “recall”?
The Constitution and such laws recognize
the right of the people to directly propose,
approve or reject any law or a part thereof
passed by the Congress (Art. 6, Sec. 1 and
Art. 17, Sec. 2).
It also recognizes the right of the people to
recall their local officials to whom they lost
confidence.
Case Jurisprudence
Garcia v. The LGC says that
COMELEC the application of
limitations on local
initiatives is
confined to “all
subjects or matters
which are within
the legal powers of
the Sanggunians to
enact”.
3. What is the power of supervision?
Supervision (jurisprudence) – power of a
superior officer to ensure that lower officers
perform their functions in accordance with
the law; does not have discretion; cannot
decide for them; cannot modify or replace
them; may order the work done or re-done
but only to conform to the rules being
prescribed; power to guide and oversee
4. What is the supervisory structure in
the local government system?
Art. 10, Sec. 4, 1987 Constitution
 President – general supervision over
local governments
 Provinces – component cities and
municipalities
 cities and municipalities –
component barangays
*highly urbanized cities – not under the
supervisory power of the province; under the
President
5. When Sec. 187 of the LGC authorized the
Sec. of Justice to pass judgement on the
constitutionality or legality of a tax
ordinances or revenue measures, does he not
exercise the power of control?
- No. He is not permitted to substitute his
own judgement for the judgement of the
local government that enacted the
measure. It is an act not of control, but of
mere supervision. A supervisor does not
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.