DECENTRALIZATION AND
LOCAL GOVERNANCE
UNIT 9
MAJOR FEATURES OF THE
LOCAL GOVERNMENT CODE
OF 1991
LESSON 2
SEC. 17 OF LGC OF 1991:
BASIC SERVICES AND FACILITIES
 Local government units shall
endeavor to be self-reliant and
shall continue exercising the
powers and discharging
the duties and functions
currently vested upon them.
They shall also discharge the
functions and responsibilities of
national agencies and offices
devolved to them pursuant to
this Code.
Local government units shall
likewise exercise such other
powers and discharge such
other functions and
responsibilities as are
necessary, appropriate, or
incidental to efficient and
effective provision of the basic
services and facilities
enumerated herein.
DEVOLVED BASIC SERVICES
1. Programs and projects on primary health care, maternal and child
care, and communicable and non-communicable disease control
services
2. Health services which access to secondary and tertiary health
services;
3. Purchase of medicines, medical supplies, and equipment needed
to carry out the services;
4. Social welfare services which include programs and projects on
child and youth welfare, family and community welfare,
women's welfare, welfare of the elderly and disabled persons
On Health and Social Services:
Include the Implementation of:
1. Solid waste disposal system;
2. Services or facilities related to general hygiene and
sanitation;
3. Implementation of community-based forestry
projects which include integrated social forestry
programs and similar projects;
4. Management and control of communal forests
On Environmental Management:
Include the Implementation of:
1. Inter -Barangay irrigation system;
2. Water and soil resource utilization and
conservation projects;
3. Enforcement of fishery laws in municipal waters
including the conservation of mangroves
On Agriculture:
Include the Implementation of:
1. Maintenance and Rehabilitation of the following:
a. roads and bridges
b. school buildings and other facilities for public elementary and
secondary schools
c. clinics, health centers and other health facilities
d. small water impounding projects
e. fish ports; artesian wells, spring development, rainwater collectors
and water supply systems
f. seawalls, dikes, drainage and sewerage, and flood control
g. traffic signals and road signs and similar facilities
On Infrastructure:
Include the Implementation of:
1. Tourism facilities and other tourist attractions,
2. Acquisition of equipment
3. Regulation and supervision of business
concessions,
4. Security services for such facilities
On Tourism:
Include the Implementation of:
A.Inspection of food products such as meat, fruits,
poultry, milk, fish, vegetables and other foodstuffs;
B. Adoption of quarantine regulations;
C. Enforcement of the National Building Code;
D.Regulations of tricycle operations;
E. Regulation of the real estate trade;
F. Licensing of cockpits;
Devolved Regulatory Functions:
Include the Implementation of:
SECTION 76 OF LGC OF 1991
This section granted the local government
units the power to develop their own
organizational structure staffing pattern
and appoint officials wholly paid by the
local government.
ORGANIZATIONAL STRUCTURE AND
STAFFING PATTERN
Every local government unit shall
design and implement its own
organizational structure and staffing
pattern taking into consideration its
service requirements and financial
capability, subject to the minimum
standards and guidelines prescribed by the
Civil Service Commission.
POWERS, DUTIES, FUNCTIONS AND COMPENSATION
(SEC. 447 OF LGC OF 1991)
a. The Sangguniang Bayan, as the legislative body of
the municipality, shall enact ordinances, approve
resolutions and appropriate funds for the general
welfare of the municipality and its inhabitants
pursuant to section 16 of this Code and in the proper
exercise of the corporate powers of the municipality
as provided for under section 22 of this Code
POWERS, DUTIES, FUNCTIONS AND COMPENSATION
(SEC. 447 OF LGC OF 1991)
(i) Review all ordinances approved by the Sangguniang Barangay
and executive orders issued by the Punong Barangay to
determine whether these are within the scope of the prescribed
powers of the Sanggunian and of the Punong Barangay;
(ii) Subject to the provisions of this Code and pertinent laws,
determine the powers and duties of officials and employees of the
municipality;
(iii) Determine the positions and the salaries, wages, allowances and
other emoluments and benefits of officials and employees paid
wholly or mainly from municipal funds …..
POWERS, DUTIES, FUNCTIONS AND COMPENSATION
(SEC. 447 OF LGC OF 1991)
b. It increased the share of the local government units
in the share in the internal revenue taxes as well as
taxes in the utilization and development of national
wealth; Article X, Section 6 of the 1987 Philippine
Constitution Local government units shall have a just
share, as determined by law, in the national taxes
which shall be automatically released to them.
ALLOTMENT OF INTERNAL REVENUE TAXES
(SECTION 284 OF THE LGC OF 1991)
Local government units shall have a share in the
national internal revenue taxes based on the
collection of the third fiscal year preceding the current fiscal
year as follows:
a. On the first year of the effectivity of this Code, thirty
percent (30%);
b. On the second year, thirty-five percent (35%); and
c. On the third year and thereafter, forty percent (40%).
ALLOCATION TO LOCAL GOVERNMENT UNITS
(SECTION 285 OF THE LGC OF 1991)
The share of local government units in the
internal revenue allotment shall be allocated in the
following manner:
a. Provinces - Twenty-three percent (23%);
b. Cities - Twenty-three percent (23%);
c. Municipalities - Thirty-four percent (34%); and
d. Barangays - Twenty percent (20%)
ALLOCATION TO LOCAL GOVERNMENT UNITS
(SECTION 285 OF THE LGC OF 1991)
Provided, however, that the share of each province,
city, and municipality shall be determined on the
basis of the following formula:
a. Population - Fifty percent (50%);
b. Land Area - Twenty-five percent (25%); and
c. Equal sharing - Twenty-five percent (25%)
Provided, further, that the share of each Barangay with a population
of not less than one hundred (100) inhabitants shall not
be less than Eighty thousand pesos (P=80,000.00) per
annum chargeable against the twenty percent (20%) share of
the Barangay from the internal revenue allotment, and the balance
to be allocated on the basis of the following formula:
a. On the first year of the effectivity of this Code: 1. Population -
Forty percent (40%); and 2. Equal Sharing - Sixty percent (60%);
b. On the second year: 1. Population - Fifty percent (50%); and 2.
Equal Sharing - Fifty percent (50%);
c. On the third year and thereafter: 1. Population - Sixty percent
(60%); and 2. Equal Sharing - Forty percent (40%)
AMOUNT OF SHARE OF LOCAL GOVERNMENT UNITS
(SECTION 290 OF THE LGC OF 1991)
Local government units shall, in addition to the internal revenue
allotment, have a share of forty percent (40%) of the gross
collection derived by the national government from the preceding
fiscal year from mining taxes, royalties, forestry and fishery charges,
and such other taxes, fees, or charges, including related
surcharges, interests, or fines, and from its share in any co-
production, joint venture or production sharing agreement in the
utilization and development of the national wealth within their
territorial jurisdiction.
SOURCES OF REVENUE
• 1. National Government
• 2. Internal Revenue Allotment
• 3. Share from taxes, fees and
charges collected from the
development and utilization of
national wealth
• 4. Other grants and Subsidies
• 5. Debt Relief Program
Locally Generated
• 6. Real Property Taxes
• 7. Business Taxes
• 8. Other Local Taxes
• 9. Regulatory Fees
• 10. Operation of Local
Economic Enterprises
• 11. Tolls and Users Charges.
OTHER SOURCES OF REVENUE FOR LGUS
1. Sales/Lease of Assets
2. Credits
3. BOT-BT Scheme Legal B as is Section 18, Power to Generate
and Apply Resources.
Local government units shall have the power and authority
to establish an organization that shall be responsible for
the efficient and effective implementation of their development
plans, program objectives and priorities; to create their own sources
of revenue and to levy taxes, fees, and charges.
ROLE OF PEOPLE'S AND NONGOVERNMENTAL
ORGANIZATIONS
(SECTION 34 OF THE LGC OF 1991)
Local government units shall promote the establishment and
operation of people's and nongovernmental organizations to
become active partners in the pursuit of local autonomy. The
Local Government Code of 1991 provided the policy context
for the emergence of entrepreneurial local governments by
encouraging LGUs to enter into joint ventures and
partnerships with the private sector such as build-
operate-transfer arrangement and bond flotation.
LINKAGES WITH PEOPLE'S AND NON-GOVERNMENTAL
ORGANIZATIONS
(SECTION 35 OF THE LGC OF 1991)
Local government units may enter into joint ventures and such
other cooperative arrangements with people's and
nongovernmental organizations to engage in the delivery of
certain basic services, capability-building and livelihood
projects, and to develop local enterprises designed to improve
productivity and income, diversify agriculture, spur rural
industrialization, promote ecological balance, and enhance the
economic and social well-being of the people.
CREDIT FINANCING: THE ISSUES/ CONCERNS
1. The inadequacy of the internal revenue shares of the local
government units to meet the budgetary requirements of the
devolved function, programs and projects
2. The continued lack of budgetary support from the national
government for the full implementation of devolved tertiary
health services
3. The interference of national government in personnel and fiscal
management of the local government units
4. The need to further broaden the tax base of the local
government units
5. The need to devolve more power functions and programs.

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decentralization part 2.pptx

  • 2. MAJOR FEATURES OF THE LOCAL GOVERNMENT CODE OF 1991 LESSON 2
  • 3. SEC. 17 OF LGC OF 1991: BASIC SERVICES AND FACILITIES  Local government units shall endeavor to be self-reliant and shall continue exercising the powers and discharging the duties and functions currently vested upon them. They shall also discharge the functions and responsibilities of national agencies and offices devolved to them pursuant to this Code. Local government units shall likewise exercise such other powers and discharge such other functions and responsibilities as are necessary, appropriate, or incidental to efficient and effective provision of the basic services and facilities enumerated herein.
  • 5. 1. Programs and projects on primary health care, maternal and child care, and communicable and non-communicable disease control services 2. Health services which access to secondary and tertiary health services; 3. Purchase of medicines, medical supplies, and equipment needed to carry out the services; 4. Social welfare services which include programs and projects on child and youth welfare, family and community welfare, women's welfare, welfare of the elderly and disabled persons On Health and Social Services: Include the Implementation of:
  • 6. 1. Solid waste disposal system; 2. Services or facilities related to general hygiene and sanitation; 3. Implementation of community-based forestry projects which include integrated social forestry programs and similar projects; 4. Management and control of communal forests On Environmental Management: Include the Implementation of:
  • 7. 1. Inter -Barangay irrigation system; 2. Water and soil resource utilization and conservation projects; 3. Enforcement of fishery laws in municipal waters including the conservation of mangroves On Agriculture: Include the Implementation of:
  • 8. 1. Maintenance and Rehabilitation of the following: a. roads and bridges b. school buildings and other facilities for public elementary and secondary schools c. clinics, health centers and other health facilities d. small water impounding projects e. fish ports; artesian wells, spring development, rainwater collectors and water supply systems f. seawalls, dikes, drainage and sewerage, and flood control g. traffic signals and road signs and similar facilities On Infrastructure: Include the Implementation of:
  • 9. 1. Tourism facilities and other tourist attractions, 2. Acquisition of equipment 3. Regulation and supervision of business concessions, 4. Security services for such facilities On Tourism: Include the Implementation of:
  • 10. A.Inspection of food products such as meat, fruits, poultry, milk, fish, vegetables and other foodstuffs; B. Adoption of quarantine regulations; C. Enforcement of the National Building Code; D.Regulations of tricycle operations; E. Regulation of the real estate trade; F. Licensing of cockpits; Devolved Regulatory Functions: Include the Implementation of:
  • 11. SECTION 76 OF LGC OF 1991 This section granted the local government units the power to develop their own organizational structure staffing pattern and appoint officials wholly paid by the local government.
  • 12. ORGANIZATIONAL STRUCTURE AND STAFFING PATTERN Every local government unit shall design and implement its own organizational structure and staffing pattern taking into consideration its service requirements and financial capability, subject to the minimum standards and guidelines prescribed by the Civil Service Commission.
  • 13. POWERS, DUTIES, FUNCTIONS AND COMPENSATION (SEC. 447 OF LGC OF 1991) a. The Sangguniang Bayan, as the legislative body of the municipality, shall enact ordinances, approve resolutions and appropriate funds for the general welfare of the municipality and its inhabitants pursuant to section 16 of this Code and in the proper exercise of the corporate powers of the municipality as provided for under section 22 of this Code
  • 14. POWERS, DUTIES, FUNCTIONS AND COMPENSATION (SEC. 447 OF LGC OF 1991) (i) Review all ordinances approved by the Sangguniang Barangay and executive orders issued by the Punong Barangay to determine whether these are within the scope of the prescribed powers of the Sanggunian and of the Punong Barangay; (ii) Subject to the provisions of this Code and pertinent laws, determine the powers and duties of officials and employees of the municipality; (iii) Determine the positions and the salaries, wages, allowances and other emoluments and benefits of officials and employees paid wholly or mainly from municipal funds …..
  • 15. POWERS, DUTIES, FUNCTIONS AND COMPENSATION (SEC. 447 OF LGC OF 1991) b. It increased the share of the local government units in the share in the internal revenue taxes as well as taxes in the utilization and development of national wealth; Article X, Section 6 of the 1987 Philippine Constitution Local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them.
  • 16. ALLOTMENT OF INTERNAL REVENUE TAXES (SECTION 284 OF THE LGC OF 1991) Local government units shall have a share in the national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year as follows: a. On the first year of the effectivity of this Code, thirty percent (30%); b. On the second year, thirty-five percent (35%); and c. On the third year and thereafter, forty percent (40%).
  • 17. ALLOCATION TO LOCAL GOVERNMENT UNITS (SECTION 285 OF THE LGC OF 1991) The share of local government units in the internal revenue allotment shall be allocated in the following manner: a. Provinces - Twenty-three percent (23%); b. Cities - Twenty-three percent (23%); c. Municipalities - Thirty-four percent (34%); and d. Barangays - Twenty percent (20%)
  • 18. ALLOCATION TO LOCAL GOVERNMENT UNITS (SECTION 285 OF THE LGC OF 1991) Provided, however, that the share of each province, city, and municipality shall be determined on the basis of the following formula: a. Population - Fifty percent (50%); b. Land Area - Twenty-five percent (25%); and c. Equal sharing - Twenty-five percent (25%)
  • 19. Provided, further, that the share of each Barangay with a population of not less than one hundred (100) inhabitants shall not be less than Eighty thousand pesos (P=80,000.00) per annum chargeable against the twenty percent (20%) share of the Barangay from the internal revenue allotment, and the balance to be allocated on the basis of the following formula: a. On the first year of the effectivity of this Code: 1. Population - Forty percent (40%); and 2. Equal Sharing - Sixty percent (60%); b. On the second year: 1. Population - Fifty percent (50%); and 2. Equal Sharing - Fifty percent (50%); c. On the third year and thereafter: 1. Population - Sixty percent (60%); and 2. Equal Sharing - Forty percent (40%)
  • 20. AMOUNT OF SHARE OF LOCAL GOVERNMENT UNITS (SECTION 290 OF THE LGC OF 1991) Local government units shall, in addition to the internal revenue allotment, have a share of forty percent (40%) of the gross collection derived by the national government from the preceding fiscal year from mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges, including related surcharges, interests, or fines, and from its share in any co- production, joint venture or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction.
  • 21. SOURCES OF REVENUE • 1. National Government • 2. Internal Revenue Allotment • 3. Share from taxes, fees and charges collected from the development and utilization of national wealth • 4. Other grants and Subsidies • 5. Debt Relief Program Locally Generated • 6. Real Property Taxes • 7. Business Taxes • 8. Other Local Taxes • 9. Regulatory Fees • 10. Operation of Local Economic Enterprises • 11. Tolls and Users Charges.
  • 22. OTHER SOURCES OF REVENUE FOR LGUS 1. Sales/Lease of Assets 2. Credits 3. BOT-BT Scheme Legal B as is Section 18, Power to Generate and Apply Resources. Local government units shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, program objectives and priorities; to create their own sources of revenue and to levy taxes, fees, and charges.
  • 23. ROLE OF PEOPLE'S AND NONGOVERNMENTAL ORGANIZATIONS (SECTION 34 OF THE LGC OF 1991) Local government units shall promote the establishment and operation of people's and nongovernmental organizations to become active partners in the pursuit of local autonomy. The Local Government Code of 1991 provided the policy context for the emergence of entrepreneurial local governments by encouraging LGUs to enter into joint ventures and partnerships with the private sector such as build- operate-transfer arrangement and bond flotation.
  • 24. LINKAGES WITH PEOPLE'S AND NON-GOVERNMENTAL ORGANIZATIONS (SECTION 35 OF THE LGC OF 1991) Local government units may enter into joint ventures and such other cooperative arrangements with people's and nongovernmental organizations to engage in the delivery of certain basic services, capability-building and livelihood projects, and to develop local enterprises designed to improve productivity and income, diversify agriculture, spur rural industrialization, promote ecological balance, and enhance the economic and social well-being of the people.
  • 25. CREDIT FINANCING: THE ISSUES/ CONCERNS 1. The inadequacy of the internal revenue shares of the local government units to meet the budgetary requirements of the devolved function, programs and projects 2. The continued lack of budgetary support from the national government for the full implementation of devolved tertiary health services 3. The interference of national government in personnel and fiscal management of the local government units 4. The need to further broaden the tax base of the local government units 5. The need to devolve more power functions and programs.