__________________________________________________________________

A REACTION PAPER ON THE LOCAL GOVERNMENT CODE OF

THE PHILIPPINES FOCUSING ON SELECTED PROVISIONS
RELEVANT TO THE CURRENT POLITICAL LANDSCAPE

__________________________________________________________________

A Requirement for the Course

DPA 311-A (LEC)
SEMINAR IN PUBLIC ENTERPRISE RISK MANAGEMENT

Submitted to:

DR. ZURAIDA NANCY COMEDOY

Faculty, School of Public A airs and Governance
Silliman University
Dumaguete City

Submitted by:

Eduard G. Lutao, MPM, LPT

Doctor of Public Administration Student
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 Table of Contents

CONTENT PAGE

I. Introduction 3
II. Summary of the Paper 6
III. Analysis of the Paper 16
IV. Re ection and Recommendations 25
V. Conclusions 31

References 32

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I. Introduction

This reaction paper provides a critical analysis of the signi cance of selected
provisions of Republic Act 7160, also known as the Local Government Code of 1991 or
LGC, to the current political landscape in the Philippines. Speci cally, this paper
considers at least ve (5) provisions and o ers insights into their relevance,
implications, and potential impact on public administration and current political
landscape. These are (1) Provision on LGU’s General Power and Functions, (2)
Provision on Share of LGU in the National Wealth, (3) Provision on the Power of LGU to
Levy and Collect Taxes, (4) Provision on Monetary Bene ts of Barangay O cials, and
(5) Provision on the Power to Manage Natural Resources.

The objectives of this paper are three-fold. Firstly, it aims to provide a

comprehensive overview of these selected provisions and their signi cance in today's
political context. Secondly, it seeks to demonstrate how these elements relate to the
author's personal and world views, o ering a thoughtful and critical analysis of the
topic areas. Finally, this paper concludes by generating possible recommendations for
further research and study, highlighting areas where further examination could yield
valuable insights.

According to Alberto Romulo, the Executive Secretary and Chairman of the

Oversight Committee on the Local Government Code of 1991, the LGC stands out as a
remarkable law in the country's history, granting local government units
unprecedented levels of autonomy. Authored by Senator Aquilino Pimentel, who is
credited as the father of the local government code, the LGC was passed by the
Philippine Congress. Despite its signi cance, it took nearly 5 years for the law to be
approved by Congress, becoming one of the last laws of the Corazon Aquino
administration. Finally, on October 10, 1991, President Aquino signed the LGC into law,
eight months before stepping down from o ce. The Code became operative on
January 1, 1992, with the provincial, city, municipal, and barangay governments chie y
responsible for its implementation within their respective jurisdictions.

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 Dubbed the bible of local governance, Republic Act 7160 was signed in 1991 to
ful ll state policy, as enshrined in the 1987 Philippine Constitution, to decentralize
governance and allow autonomy for local government units (LGUs). According to
Article X Section 3 of the Constitution, the Local Government Code is enacted to
provide for a more responsive and accountable structure of local government. The
Code, it added, will provide “a system of decentralization with e ective mechanisms
of recall, initiative, and referendum, allocate among the di erent local government
units their powers, responsibilities, and resources, and provide for the quali cations,
election, appointment and removal, term, salaries, powers and functions and duties of
local o cials, and all other matters relating to the organization and operation of the
local units.”

Implementation, which started in January 1992, became the job of President

Fidel Ramos. The Code, which replaced Batas Pambansa Bilang 337 of former
president Ferdinand Marcos, is divided into 4 parts:

• Book I – Basic principles

• Book II – Local taxation and scal matters
• Book III – LGU creation, organization, and powers
• Book IV – Transitory, penal, and and implementation provisions of the Code.

As a doctoral student in Public Administration, this paper is essential to the

author's learning process, enabling them to engage in critical analysis and evaluation
of public policies and laws that impact local government administration. By dissecting
and interpreting the selected provisions of the LGC, this paper contributes to a
deeper understanding of the practical application of theory and current trends and
developments in public administration. In doing so, this paper o ers a valuable
contribution to the eld of Public Administration, advancing knowledge and o ering
analysis and recommendations that are of crucial relevance in today's present political
landscape in the Philippines.

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 Reviewing government policies and laws is a critical aspect of Doctorate in
Public Administration (DPA) education. As public administrators tasked with
implementing, enforcing, and shaping public policies, it is essential to have a deep
understanding of the policymaking process at the local, national, and international
levels. Public policies are crucial decisions and actions taken by the government to
address social, economic, and political issues and ful ll the needs of their citizens.
Consequently, public administrators must possess strong analytical, critical-thinking,
and problem-solving skills to develop, implement, and evaluate policies that provide
e ective solutions to challenges faced by their communities.

This paper seeks to provide a comprehensive overview of selected provisions

of Republic Act 7160 relevant to the current political landscape in the Philippines.
Through this analysis, this paper aims to o er insights into the evolution of public
policy at the local, national, and international levels, allowing public administrators to
make informed decisions and recommendations about policy formulation,
implementation, and evaluation. As such, it is essential to understand the factors that
in uence policy decisions and the role of various actors and stakeholders in
policymaking. Furthermore, evaluating policies from the perspective of social justice,
fairness, and equity is paramount for Public Administration students.

The unique understanding of policy formulation and implementation garnered

through DPA education allows public administrators to make impactful decisions that
create signi cant bene ts to the public, private, and voluntary sectors. Consequently,
this paper provides insights into the policymaking process and public administration
best practices, enabling the development of public policies that positively contribute
to the broader development goals of the Philippines.

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 II. Summary of the Paper

This paper has selected at least ve (5) provisions of the Local Government
Code, namely: (1) Provision on LGU’s General Power and Functions, (2) Provision on
Share of LGU in the National Wealth, (3) Provision on the Power of LGU to Levy and
Collect Taxes, (4) Provision on Monetary Bene ts of Barangay O cials, and (5)
Provision on the Power to Manage Natural Resources. These provisions will be
examined in the context of current national political issues to assess their relevance in
contemporary times. The following issues will be explored to enrich the discussion:
Economic Recovery and E ect of the Mandas-Garcia Ruling, Healthcare, China
Relations, Climate Change and Natural Disasters, Maharlika Fund, Corruption and
Human Rights.

Provision on the LGUs General Power and Functions

Section 16 states that every local government unit shall exercise the powers
expressly granted, those necessarily implied therefrom, as well as powers necessary,
appropriate, or incidental for its e cient and e ective governance, and those which
are essential to the promotion of the general welfare. The provision further speci es
the areas where these powers may be exercised, including the development of
economic, social, and environmental programs and services, public works,
infrastructure projects, and the regulation of business and industries within its
jurisdiction.

Section 17 outlines the basic services and facilities that LGUs must provide within
their respective jurisdictions. These include, but are not limited to, agriculture and
sheries, health and social welfare, environmental management, public works,
infrastructure, and facilities, tourism, and human resource development.

These provisions emphasize the important role of LGUs in delivering essential

services and promoting the welfare of their constituents. They highlight the need for

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 local government o cials to exercise their powers judiciously and e ciently, and to
prioritize the needs and interests of their communities above all else.

The COVID-19 pandemic had a devastating impact on the country from early
2020 until the last quarter of 2022, resulting in almost three (3) years of economic
decline, leading to unemployment, income loss, nancial insecurity, and migration.
The newly elected o cials after the May 2022 National and Local Election inherited
from their predecessors immediate problems that need to be addressed: Economic
Recovery and Healthcare. However, this problem is not limited to national leaders, as
it is primarily a local issue, considering that local governments are the closest to the
people and hands-on in the ground. By maximizing the powers vested in the Local
Government Code, addressing the aforementioned post-COVID problems with limited
resources, manpower, and capacities can be achieved.

For instance, the absorptive capacity of LGU-run healthcare facilities, including

hospitals, rural health units, and barangay health stations, is signi cantly low. Media
reports highlight that the bed capacity requirement is too limited that some COVID-19
patients end up perishing not due to the severity of COVID-19 symptoms but because
they cannot secure a hospital bed for immediate health care. Even with a “One
Hospital Command” strategy implemented in hopes of addressing this, its
e ectiveness is limited due to several factors, such as the prioritization of patients,
availability of attending doctors and appropriate facilities, medicines, and political
dynamics of local government units.

There have been concerns raised about the possibility of availing a preferred
vaccine from China that is allegedly cheaper and more e ective for Asians. However,
this was overshadowed by the procurement scandal that involved top o cials of the
Department of Health and Department of Budget and Management. The scandal
came out like a socially demoralizing bomb, revealing that government’s procurement
of resources for PPEs, vaccines, and other health equipment were reported to be
extravagantly overpriced. There is also a question of whether these tons of items
were actually delivered since they were reported to be stocked in a warehouse.

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 According to news reports, the Philippine Senate conducted an inquiry into the
alleged overpricing of 2.4 million PPE sets procured by the Procurement Service of
the Department of Budget and Management (PS-DBM) from suppliers between March
and April 2020. It was discovered that these PPE sets were procured at a cost of PHP
1,910 per set, while some suppliers o ered the same PPE sets at a much lower cost of
PHP 400 per set. As a result, an alleged overprice of up to PHP 1.1 billion was revealed
and this is detrimental to our resources and at the expense of the health welfare of
our people.

Provision on the Share of LGU in the National Wealth

The Local Government Code of 1991 (LGC) provides for a provision on the
share of local governments in the national wealth. This provision is outlined in Section
284 of the LGC, which mandates that local government units shall have a share in the
national internal revenue taxes.

Speci cally, the section states that 40% of the total collections of the national
internal revenue taxes collected by the Bureau of Internal Revenue (BIR) shall accrue
to the general fund of the national government, while 60% shall be distributed to
local government units as follows:

- 23% shall be distributed to provinces

- 23% shall be distributed to cities and municipalities
- 34% shall be distributed to barangays

This share in the national internal revenue taxes is intended to provide local
governments with a stable source of funding for their various programs and services.
In addition, the LGC also provides for other sources of local government revenues,
such as taxes, fees, and charges, which also help fund local government initiatives.

Although LGUs are entitled to a share of the national wealth, they are also
required to ful ll speci c functions as prescribed by the accompanying code. This

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 obligation has been reinforced by the recent Mandans Garcia Ruling issued by the
Supreme Court of the Philippines.

The Mandanas-Garcia Ruling refers to a Supreme Court decision issued in

2018 that signi cantly increased the share of LGUs in the national revenue. The ruling
mandates that the internal revenue allotment (IRA) of LGUs should be based on all
national taxes, including those not explicitly listed in the previous computation.

This decision means that LGUs will now receive a higher share of the national
revenue, allowing them to have more power to fund local initiatives, promote
economic development, and improve the delivery of basic services to their
constituents.

The increase in the IRA will also lead to more scal autonomy for LGUs, as they
will have more control over their resources and nances. It is expected that this
decision will have a positive impact on the development of local economies, leading
to better living conditions for the citizens in the communities that these LGUs serve.

The LGUs are required to develop a Transition Plan in response to the scal
impacts of the Mandanas-Garcia Ruling. This involves making assumptions about new
functions and facilities, creating a structure that can accommodate devolved
functions, nancing and capacity building. However, the readiness of LGUs,
particularly smaller and poorer ones, is unclear. Furthermore, the transition period
began in 2020, coinciding with the onset of the pandemic, which severely impacted
local economies. LGUs had to spend more resources on health concerns,
vaccinations, managing death tolls and supporting victims of unemployment and
economic e ects. This situation resulted in a greater need to do more with less
available resources.

While the increased income for LGUs from the ruling may present
opportunities, there are also concerns about corruption among local o cials. There is
a risk that some LGUs may misuse public funds due to a lack of e ciency and
e ectiveness.

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 Moreover, critics fear that an increase in the share of LGUs in national revenue
may reduce the amount of funds available for national priorities. However, supporters
believe that a fairer distribution of national resources will ultimately bene t the
country as a whole.

Despite potential challenges in implementing the ruling, it is generally

considered a positive development for both LGUs and their constituents. This can
lead to better and more e cient public services and support economic growth at the
local level.

Provision on the Power of LGU to Levy and Collect Taxes

One of the powers vested among LGUs is the power to generate its own
income thru levying and collecting taxes which are found in the following:

Section 5 which grants LGUs the power to create their sources of revenue and to levy
taxes, fees, and other charges, subject to the provisions of the Constitution and
applicable laws. This includes the power to impose and collect taxes, fees, and
charges on businesses and professions within its jurisdiction, as well as on real
property, transfer of real property ownership, and other forms of wealth or property.

Section 151 details the speci c taxes, fees, and charges that LGUs may
impose. These include, among others, the real property tax, tax on transfer of real
property ownership, tax on business, and amusement tax.

Local Government Code of 1991 grants local government units extensive

powers to levy and collect taxes, fees, and charges necessary to nance their
programs and services. However, these powers are subject to certain limitations and
guidelines provided by the Constitution and the law.

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 The taxing power of LGUs is essential to their nancial autonomy and
sustainability, as provided by the Local Government Code of 1991. This power enables
LGUs to generate their revenue and meet their nancial obligations, including the
provision of basic services to their constituents.

With the authority to levy and collect taxes, fees, and charges, LGUs can fund
their development plans and programs, which are crucial in promoting economic
growth and social welfare in their respective localities. The use of such funds can be
tailored to local needs, based on local priorities, resources, and capabilities.

Furthermore, the taxation power of LGUs introduces a sense of accountability

and transparency in local governance. Local o cials, like their national counterparts,
are accountable to their constituents for the proper use of public funds, and this
power creates a direct link between LGUs and their constituents, in terms of nancial
management and decision-making.

The taxing power of LGUs is vital in creating a sustainable framework for local
development, ensuring accountability and transparency, and fostering a greater sense
of participation and partnership between local o cials and their constituents.

Despite being empowered with the ability to levy and collect taxes, some LGUs
in the Philippines continue to remain impoverished. This issue stems from a complex
web of reasons that involve various factors, such as uneven distribution of resources,
access to funding and human capital, and resulting disparities in revenue and
development outcomes. Furthermore, corruption can hamper development e orts by
draining public funds and resources, and ine cient tax collection practices can limit
revenue generation. Additionally, as LGUs take on more responsibilities for delivering
basic services, increased operational costs may nancially strain them. When LGUs
solely rely on traditional industries such as agriculture or shing, sustaining economic
growth becomes challenging as they limit investment in new industries. For LGUs to
move towards nancial autonomy, it requires a multifaceted response from authorities
and other relevant stakeholders to address the root causes of poverty and

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 underdevelopment by redistributing resources, improving institutional and
administrative capacity, and investing in new industries.

Provision on Monetary Bene ts of Barangay O cials

The Local Government Code of 1991 also provides for the monetary bene ts of
barangay o cials in the Philippines. Speci cally, Section 393 of the Code provides
the following salary grades for barangay o cials: (a) Punong Barangay or Barangay
Chairman: Salary grade 14 (b) Barangay Kagawad: Salary grade 10

The Code further speci es that the salary rates for barangay o cials should
be based on the classi cation of the barangay, as follows:

- First-Class Barangay: Not less than P1,000.00 but not more than P2,000.00
- Second-Class Barangay: Not less than P600.00 but not more than P1,000.00
- Third-Class Barangay: Not less than P400.00 but not more than P600.00
- Fourth-Class Barangay: Not less than P325.00 but not more than P400.00
- Fifth-Class Barangay: Not less than P250.00 but not more than P325.00
- Sixth-Class Barangay: Not less than P150.00 but not more than P250.00

In addition to the salary rates speci ed in the Local Government Code,

barangay o cials are also entitled to receive allowances and bene ts, such as a
13th-month pay, a productivity bonus, and other bonuses and incentives, which may
be determined by the Department of Budget and Management (DBM) or the local
government unit.

It is important to note that the salaries, allowances, and bene ts of barangay

o cials are subject to periodic review and may be adjusted based on changes in
economic and nancial conditions.

On average, barangay o cials in the Philippines receive a monthly honorarium

between Php 10,000-20,000. This amount may seem insu cient for the enormous
responsibilities they undertake on a daily basis. Barangay o cials act as frontline

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 service providers who no less expected by the public to be well-equipped to handle
crises and extreme situations. However, their greatest challenge lies in the daily
political struggles within their communities. There is a widespread misconception that
barangay o cials have access to unlimited funds and can readily provide assistance
to those in need, leading to unreasonable expectations from the public. In reality,
these o cials oftentimes need to use their own funds to o er help, which is a
signi cant burden for those who are already struggling nancially. This unfortunate
situation may lead even honest o cials to resort to corrupt practices and alter
government projects and programs to navigate through this distressing reality at the
barangay level. Overall, the daily struggles faced by barangay o cials are a sad fate
for those who earnestly serve their community.

Provision on the Power to Manage Natural Resources

The Local Government Code of 1991 provides for the power of local
governments to manage, develop, protect, and utilize natural resources within their
respective territorial jurisdictions. Speci cally, Section 22 of the Code outlines the
general powers and duties of local governments, including the power to ensure the
rational and sustainable use of natural resources.

Under Section 389 of the Code, local government units (LGUs) are given the
authority to manage their own mining, quarrying, and timber resources, subject to
existing laws, rules, and regulations. LGUs are also empowered to issue permits and
licenses for the extraction and utilization of these resources, as well as to impose
fees and charges for their use.

In addition, Section 447 of the Code allows LGUs to establish and maintain
their own forest reserves, parks, and recreation areas, and to impose fees and
charges for their use. LGUs are also authorized to participate in the management and
development of national parks, watershed reserves, wildlife reserves, and other
similar protected areas.

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 The Local Government Code acknowledges the crucial role of natural
resources in local development and outlines the legal framework for LGUs to
participate in their management, protection, and utilization. However, these provisions
fail to capture the concept of working as an ecosystem among surrounding LGUs, as
environmental issues and natural disasters know no boundaries. The same applies to
water and watershed management. For instance, environmental degradation in the
uplands can exacerbate the impact on low-lying LGUs, while the food supply from
coastal communities can a ect the food chain in the entire ecosystem. Concrete
policies are necessary to enable LGUs to collaborate e ectively with each other. It is
vital to approach this issue collaboratively and collegially, recognizing that
environmental concerns are a shared responsibility that requires input from everyone.
In doing so, LGUs can work together to ensure sustainable development that bene ts
both their own communities and the wider environment.

LGUs should work as a cluster when addressing environmental issues and

natural disasters because these issues transcend individual or jurisdictional
boundaries. Environmental degradation, for instance, can have adverse e ects on
neighboring communities and even extend beyond national borders. Natural
disasters, similarly, can cause massive destruction and displacement that require a
coordinated response from multiple LGUs.

Working as a cluster enables nearby LGUs to pool their resources, expertise,

and experience in addressing environmental issues and natural disasters. By
collaborating, LGUs can share information and data, develop joint strategies, and
coordinate actions. This approach also allows for the integration of local knowledge
and practices, leading to more e ective and sustainable solutions.

Water management is one critical area that bene ts from a cluster approach
amongst neighboring LGUs. It allows for the protection of watersheds, rivers, and
aquifers, which produce water that bene ts numerous communities. Waste
management is another crucial area that requires the cooperation of multiple LGUs,
especially when it comes to the disposal of hazardous waste. By working together,

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LGUs can ensure proper waste disposal procedures that protect both their local
communities and the environment.

The challenges posed by environmental issues and natural disasters cannot be

overcome by individual LGUs alone. Collaborative e orts and partnerships amongst
neighboring LGUs are essential for addressing these challenges e ectively and
sustainably.

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III. Analysis of the Paper

The Local Government Code of 1991 or Republic Act 7160 was signed into law
on October 10, 1991. Hence, it is now 30 years old.

The implication of RA 7160's age on its provisions is that there may be a need
for a review and updating of some of its provisions to address changes in society and
respond to emerging concerns that were not fully contemplated or anticipated during
its writing. There may also be a need to strengthen its provisions, streamline, and
simplify some of its bureaucratic requirements to make it a more e ective tool for
local governance.

Since RA 7160 is a crucial piece of legislation that regulates the operations and
functions of local governments in the Philippines, it's important to make sure that it
responds to the current realities and demands of local governance, the changing
social, economic, and environmental landscape in the country, and the emerging
challenges brought by new technologies, innovations, and cultural identities.
Updating its provisions, therefore, must be pursued to ensure that it remains relevant
and responsive to the changing context of the country.

Sections 16 and 17 of RA 7160 or the Local Government Code outline the

powers and duties of the devolved departments and local government units,
respectively. Here are the strengths and weaknesses of these provisions:

Strengths of Section 16:

1. It gives more power to local governments to take charge of and anticipate the
needs of their constituents, allowing them to develop and implement programs,
projects and services that are sensitive to their speci c demands.

2. It enables di erent agencies to coordinate and collaborate with local authorities to

create a more e cient and e ective delivery of services to the people.

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 3. It aligns with the principle of subsidiarity, wherein responsibilities are given to the
lowest possible level of government, and issues and concerns are resolved at the
local level.

Weaknesses of Section 16:

1. It may result in inconsistencies and disparities in the provision of services, as local

governments may di er in their capacity and resources.

2. It may lead to a lack of adequate standards, quality checks, and other regulatory
measures in the delivery of services.

3. It may also result in duplication of initiatives or lead to ine cient use of resources,
as di erent local authorities embark on similar programs.

Strengths of Section 17:

1. It allows LGUs to exercise control and supervision over the management, and
utilization of natural resources and environment within their territorial jurisdiction.

2. It provides LGUs with the power to implement measures and directives regarding
environmental protection and disaster risk reduction.

3. It allows LGUs to formulate land use plans and zoning ordinances that are catered
to the speci c needs of their constituents.

Weaknesses of Section 17:

1. It may result in inconsistencies in the implementation of environmental and natural

resource management policies because of varying levels of capacity and willingness
amongst local government units.

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2. It may also lead to uneven opportunities and outcomes in economic development
since not all LGUs may have equal access to natural resources.

3. It may also create a governance vacuum where LGUs may not be held accountable
for environmental violations, or where non-governmental and civic organizations are
unable to provide adequate oversight.

Section 284 of the Republic Act 7160, or the Local Government Code of the
Philippines, outlines the requirements for the creation and implementation of a
comprehensive and integrated solid waste management plan. Here are the strengths
and weaknesses of this provision:

Strengths of Section 284:

1. It mandates local governments to establish and implement a comprehensive and

integrated solid waste management plan, which helps to protect public health and the
environment by ensuring proper waste segregation, collection, transport, treatment,
and disposal.

2. It empowers local governments and waste management stakeholders, such as

waste pickers and recyclers, to work together towards the goal of reducing waste
generation and promoting waste recovery through recycling and composting.

3. It provides incentives for the establishment of material recovery facilities and

promotes the use of environmentally sound technologies to reduce waste generation
and promote resource conservation.

Weaknesses of Section 284:

1. It may lack speci c guidelines on how to establish and implement a comprehensive

solid waste management plan, which could lead to inconsistencies in the
implementation of the law.

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 2. It may be under-enforced due to limited nancial, human, and technological
resources, which may impede progress and hinder compliance, especially in smaller
LGUs with limited economic resources.

3. It may be undermined by the lack of political will and the presence of vested
interests who prefer the continuation of practices that are harmful to public health and
the environment.

4. It may also be challenged by improper allocation and spending of funds, leading to

ine ective implementation of solid waste management programs.

Section 284 provides a framework for local governments to manage waste

more e ectively and e ciently. However, its e ectiveness will depend on the proper
implementation of its provisions, adequate funding, and political will to push through
meaningful reforms that are bene cial to the people and the environment.

Section 5 of Republic Act 7160, or the Local Government Code of the

Philippines, declares the territorial and political subdivisions of the country, while
Section 151 outlines the duties and responsibilities of the local chief executive. Here
are the strengths and weaknesses of each provision:

Strengths of Section 5:

1. It provides clear boundaries and divisions of the country, making it easier to identify
and locate speci c regions, provinces, cities, municipalities, and barangays.

2. It de nes the set of powers and responsibilities of each local government unit,
providing a reliable legal foundation for local governance.

3. It ensures the constitutional principle of local autonomy in the administration of

local a airs.

Weaknesses of Section 5:

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1. It requires reassessment to ensure that the current geopolitical divisions of the
country still re ect the cultural, social, economic, and environmental realities of the
regions they represent.

2. It may need to be reviewed and updated to cater to the changing needs and
emerging challenges brought by the current realities of the country.

Strengths of Section 151:

1. It assigns the local chief executive with the responsibility of enforcing law and order
in the locality, ensuring public safety, and promoting the management and delivery of
basic services to the citizens.

2. It provides the local chief executive with wide managerial discretion to improve
local governance and forge partnerships with local stakeholders, such as non-
government organizations and the private sector.

3. It empowers local chief executives to participate in provincial or regional councils

that promote interlocal cooperation and coordination in the development of multi-
sectoral programs and projects.

Weaknesses of Section 151:

1. It provides too much discretion to the local chief executive, which could lead to
abuse of power and corruption if not properly regulated and checked.

2. It may need to be reviewed and updated to ensure that the responsibilities of local
chief executives remain aligned with the changing needs and emerging challenges of
local governance.

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3. It may need to be enhanced with speci c mechanisms for monitoring and
evaluation to ensure accountability and transparency in the performance of their
duties.

Both Section 5 and 151 of RA 7160 are instrumental in de ning the foundations
of local governance in the Philippines. While they have respective strengths and
weaknesses, a symbiotic relationship between the two provisions is essential to
ensuring that local governance remains democratic, transparent, and e ective in
delivering essential services to citizens.

Section 393 of Republic Act 7160, or the Local Government Code of the
Philippines, provides for the automatic release of 20% of the national internal revenue
allotment (IRA) to the local government units (LGUs). Here are the strengths and
weaknesses of this provision:

Strengths of Section 393:

1. It guarantees a stable source of funding for the LGUs, which helps them to plan and
deliver public services more e ciently and e ectively.

2. It promotes scal autonomy and decentralization, allowing LGUs to have nancial

resources that can be used according to their speci c needs and priorities.

3. It helps to reduce the imbalance in the distribution of wealth and resources

between the national government and LGUs.

4. It provides a sense of security for LGUs, especially when it comes to budget

planning and decision-making.

Weaknesses of Section 393:

1. It may lead to the inequitable distribution of funds within LGUs due to unequal
population sizes, geographic size, or other factors that may a ect revenue generation.

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 2. It may also allow some LGUs to become overly dependent on national government
funds, decreasing their interest in establishing sustainable local revenue sources.

3. It may discourage LGUs from pursuing sound scal management practices due to
the automatic release of funds.

4. It may be a ected by economic and political changes, such as in ation or national

budget cuts, which could reduce the amount received by LGUs.

Section 393 provides a vital mechanism for LGUs to have access to scal
resources needed to deliver essential public services to their constituents. While it
has its strengths and weaknesses, periodic reviews and monitoring of the
implementation of this provision can lead to equitable distribution and better scal
responsibility and management among LGUs. Section 22, 389, and 447 of Republic
Act 7160, or the Local Government Code of the Philippines, provides for the local
revenue-generating powers of local government units (LGUs). Here are the strengths
and weaknesses of each provision:

Strengths of Section 22:

1. It empowers LGUs to impose taxes, fees, and charges on various goods,

services, and activities within their jurisdiction, providing them with a reliable and
sustainable source of revenue.

2. It encourages LGUs to become more self-reliant and autonomous in terms of

their nances, reducing their dependence on national revenue sources.

3. It allows LGUs to tailor- t tax policies and schemes to their speci c needs and
priorities, and in response to local economic and social conditions.

4. It promotes e ective and e cient management of local resources, evidenced by

the imposition of tax policies that are consistent with fair practices and due process.

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 Weaknesses of Section 22:

1. It may lead to extortion or corruption when implemented without proper

regulation, monitoring, or evaluation.

2. It may cause confusion and inconsistencies in tax policies due to the lack of
uniformity and standardization resulting from the varying implementations by
di erent LGUs.

3. It may make the cost of doing business or living in certain areas too high, which
could hamper local growth and progress.

Strengths of Section 389:

1. It enables LGUs to generate revenue by imposing taxes on real property and

other assets within their jurisdiction.

2. It encourages LGUs to promote and incentivize growth and development by

imposing property taxes on underutilized or unoccupied lands and buildings.

3. It provides a fair and accurate basis for assessing property tax based on true
market value and consideration of property characteristics.

Weaknesses of Section 389:

1. It may inadvertently discourage landowners from investing in their properties due

to the imposition of high property taxes.

2. It may lead to the underassessment and undervaluation of properties, resulting in

reduced property tax revenue.

3. It may require signi cant resources and technical expertise to establish an

e ective and e cient assessment and taxation system.

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Strengths of Section 447:

1. It authorizes LGUs to impose regulatory fees and charges on speci c types of

business or activities that require government intervention, such as licensing and
permitting fees.

2. It enables LGUs to generate revenue and compel the adherence of businesses to

standards and regulations.

3. It provides a mechanism to regulate businesses and activities to ensure the

safety, health, and welfare of the public.

Weaknesses of Section 447:

1. It may impose undue burdens on businesses and individuals, especially when

regulatory fees and charges are not commensurate to the level of regulatory service
provided.

2. It may be prone to corruption and extortion, especially when the imposition of

regulatory fees and charges are not based on fair assessment and due process.

3. It may require signi cant administrative resources and technical expertise to

establish an e ective and e cient regulatory system.

Sections 22, 389, and 447 of RA 7160 are critical in providing LGUs with the power
to establish sustainable and equitable revenue-generating mechanisms. While these
provisions have their respective strengths, they need proper regulation and
monitoring to prevent abuses and ensure e ective implementation.

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 IV. Re ection, Recommendations and Conclusion

Re ection and Recommendation

As the author navigated the paper and writing process for this reaction paper,

two distinct perspectives emerged: that of a DILG o cer responsible for general

supervision of LGUs as a delegated function of the President of the Philippines, and

that of a scholar and student of public administration seeking to propose radical

changes in policies and systems management. This dual perspective allowed the

author to analyze the text critically and propose innovative solutions that blend

professional and academic interests, resulting in a more comprehensive and nuanced

understanding of the issues at hand.

The Local Government Code was designed to address centralism that has

been a characteristic of the Philippine political administration since colonial times.

While this setup allowed for the consolidation of the State in an archipelago of over

7100 islands, it has become obsolete and unresponsive to the demands of modern

public management. With recognition of the crucial role of local government units, the

writers of the 1987 Constitution mandated the enactment of a Local Government Code

in Section 3 Article X. The intent of the Code was to institute a more responsive and

accountable local government structure through decentralization, with mechanisms of

recall, initiative, and referendum. It aimed to allocate powers, responsibilities, and

resources among di erent local government units, and establish guidelines regarding

the quali cation, election, appointment, removal, term, salaries, powers, duties, and

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 functions of o cials. The author is inquiring whether speci c provisions outlined in the

paper have accomplished the Code's primary goals, which include providing local

government units with the opportunity to operate as self-reliant communities and

active partners for national objectives, quicker decision-making at the local level,

increased participation by ordinary citizens and organized groups in the conduct of

public a airs and the government's business, and delivery of basic services more

competently.

After over 30 years of implementation, opinions vary as to whether the Local

Government Code (LGC) of the Philippines has achieved its objectives. Supporters

argue that the LGC has successfully promoted decentralization and encouraged local

government units to become more self-reliant, e cient, and better equipped to

provide basic services to their constituents. The LGC has given local governments

more autonomy and resources by allowing them to collect and manage their revenue.

However, others contend that the extent of decentralization has been limited,

and it has not fully achieved its intended results. They argue that national government

o cials' corruption and political interference still hinders the law's success, despite

the noble intentions of the law.

It is important to note that di erent interpretations of what constitutes success

exist. Some view success as merely achieving the objectives outlined in the law.

Others look at how these objectives have been translated into improvements in local

government units' capabilities and service delivery. Hence, further research is needed

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to determine whether the LGC has been e ective in enhancing the quality of life for

citizens and communities.

While the LGC has contributed to the decentralization of the Philippine

government, the level of its achievement in terms of the objectives of the law remains

debatable.

The herein recommendations were formulated based on the identi ed

weaknesses of the provisions, and can serve as a blueprint for creating policies and

implementing systemic reforms and improvements:

First, to address the disparities and inconsistencies in resource allocation

across local government units (LGUs) in the Philippines, it is essential to establish a

national framework that is impartial and equitable. Resource allocation should be

determined by objective measures that take into account each LGU's socioeconomic,

institutional, and environmental state. This framework will ensure fair and transparent

allocation and distribution of resources, thereby maximizing their e ectiveness in

addressing development challenges.

Furthermore, additional factors that a ect LGUs' development, such as

exposure to climate change and natural disasters, present economic opportunities,

peace and order situations, tourism and trade strengths and potentials, cultural

diversity, and availability of external grants and aid, may also be considered in the

distribution of national wealth.

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 Ultimately, if we want to rise as a nation and achieve sustainable development,

wealth distribution must not only be equal but also equitable. Establishing a national

framework supported by objective criteria will ensure that every LGU is given the

resources it needs to reach its full development potential, regardless of its current

starting position.

Secondly, despite the signi cant role of local government units (LGUs) in

generating revenues, many LGUs struggle to do so e ciently due to various factors.

For one, the scarcity of competent personnel and lack of access to advanced

technology hamper their ability to maximize revenue generation opportunities.

Additionally, a corrupt system that has its roots in Filipino culture and tradition

exacerbates the problem.

The disconnect between the power to generate revenues and the actual

implementation of revenue generation strategies has been an ongoing issue in many

local government units (LGUs). This gap, which remains wide, is often not a priority

among local leadership.

Another challenge is the weak system of accounting for and updating

collectibles from the wealthy and in uential. Unfortunately, this situation allows the

rich to evade taxes and shirk their obligations. This is in stark contrast to the harsh,

endless taxing and collection process experienced by poorer merchants and vendors.

To address this issue, the government needs to institute improved standards

for quality checking and regulatory measures. Such measures will help level the

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 playing eld, ensure that the rich ful ll their tax obligations, and ease the burden on

poorer citizens. By doing so, the government can ensure that its revenue generation

policies are transparent, fair, and e ective in promoting the overall progress and

development of the country.

Thirdly, Although there have been observed e ort to consider the

environmental impact of infrastructures and economic developments in the country,

there remains much work to do. National and local actors need to collaborate and

have a shared responsibility to protect the environment. It's essential also to involve

environmental advocates and alliances in the decision-making process.

Agencies such as the Department of Public Works and Highways (DPWH),

Department of Environment and Natural Resources (DENR), Bureau of Fisheries and

Aquatic Resources (BFAR), National Commission on Indigenous Peoples (NCIP), and

LGUs must work together and act as project managers and responsible stewards. We

need to create a system that can regulate existing practices and another system to

encourage better environmental practices.

By doing so, we can strike a balance between the country's economic

development goals and environmental sustainability objectives. This collaboration

among government agencies and stakeholders will ensure that we are taking

concrete steps towards promoting sustainable and environmentally responsible

developments for a healthier and better Philippines.

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 Lastly, one possible recommendation to address the issue of low honoraria or

salary of barangay o cials in the Philippines is to propose a policy reform that will

help provide a sustainable and equitable system of compensation for barangay

o cials.

This could include regularizing the honoraria and salary of barangay o cials,

either by increasing their salary or ensuring that they receive a standard amount of

honoraria based on their roles and responsibilities. Moreover, the government could

consider providing additional bene ts, such as life or health insurance, to help

improve their economic security.

Another option is to conduct an in-depth study of the current compensation

system and determine what adjustments may be necessary to ensure that it re ects

the actual cost of living for barangay o cials and adequately compensates them for

their services.

Furthermore, the government could consider working with local and

international NGOs and private organizations to establish sustainable community-

wide programs that support barangay o cials and their families. These programs

could provide a ordable housing, education, and other vital services to help improve

the quality of life for barangay o cials.

Indeed, it's crucial to secure the livelihood of barangay o cials and provide

adequate compensation to realize their potential contributions to the community and

prevent the e ects of corruption.

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V. Conclusion
As a student of DPA, the reaction paper demonstrates the importance of critical
thinking and analysis in promoting e ective and sustainable governance. By
assessing the provisions of "The Local Government Code - Selected Provisions
Relevant to the Current Political Landscape," the student identi ed the critical gaps
and opportunities in local governance that require attention.
Through this exercise, the student was able to recognize the risks involved and
develop measures to mitigate them. The analysis of the current political landscape
demonstrates that strong data analysis, sound policy-making, and community
participation are crucial for e ective governance.

Writing a reaction paper is not simply a task required for education, but it is an
opportunity to shape the discourse surrounding government policies and their impact
on the country. The student's perspective as a concerned citizen and future public
servant can bring a fresh and essential perspective in promoting a sustainable future
for the Philippines.

In conclusion, the reaction paper is a vital step towards promoting critical

thinking and analysis that can contribute towards e ective and sustainable solutions
for the country. It is the duty of the student, policymakers and citizens to act on the
insights gleaned from this exercise, and to work relentlessly in building resilient and
inclusive communities that can weather the various challenges of the current political
climate.

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References

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