1. Did the Local Government Code, repeal Sec. 4 of EO 127 s. 1987?

The Local Government Code did not repeal Sec. 4 of EO 123 s. 1987 otherwise
known as the Reorganization of the Ministry of Finance.

Under the said law, Sec. 4 of Executive Order No. 127, provides;

“SEC. 4. Mandate. -The Ministry shall be responsible for the formulation,

institutionalization, and administration of fiscal policies in coordination with other
concerned subdivisions, agencies, and instrumentalities of government.

Moreover, the Ministry shall be responsible for the generation and

management of the financial resources of government, ensuring that said
resources are generated and managed judiciously and in a manner supportive of
development objectives., The Ministry shall be responsible for the supervision of
the revenue operations of all local government units, with the objective of making
these entities less dependent on funding from the national government.

Finally, the Ministry shall be responsible for the review, approval, and
management of all public sector debt, whether foreign or domestic, with the end
in view of ensuring that all borrowed funds are effectively utilized and all such
obligations are promptly serviced by the government.1

It can be gleaned from the said provision the following salient points as mandates of
the Department of Finance;

1. Formulation, institutionalization, and administration of fiscal policies in

coordination with other concerned subdivisions, agencies, and instrumentalities
of the government;
2. Generation and management of the financial resources of the government;
3. Supervision of the revenue operations of all local government units;
4. Review, approval, and management of all public sector debt, domestic or foreign;
and

Further, Sections 33 (1) and (2) of Executive Order No. 292, series of 1987, or the
“Administrative Code of 1987” provide that the Bureau of Local Government Finance
(BLGF) shall “Assist in the formulation and implementation of policies on local
government revenue administration and fund management; Exercise administrative
and technical supervision and coordination over treasury and assessment operation of
local governments.”2

When the Local Government Code was enacted, it mainly established the system
and defined powers of provincial, city, municipal, and barangay governments in the
Philippines. It provides for a more responsive local government structure instituted

1
Sec 4, Executive Order 127, Reorganizing the Ministry of Finance
2
Sec 33, Par (1) and (2), Executive Order No. 292, series of 1987
through a system of decentralization whereby Local Government Units are delegated
more powers, authority, responsibilities, and resources. Under this, local government
units, in addition to having administrative autonomy in the exercise of their functions,
enjoy fiscal autonomy as well. The Local Government Code's enactment in 1991
embodied the basic policy of local autonomy. A crucial part of local autonomy is fiscal
autonomy,3 which refers to the local government units' power to "create [their] own
sources of revenues and to levy taxes, fees, and charges" that shall then accrue
exclusively to them. Fiscal autonomy also includes the power to allocate resources to
align with their priorities.4

Local fiscal autonomy does not, however, rule out any manner of national
government intervention by way of supervision, to ensure that local programs, fiscal and
otherwise, are consistent with national goals. Significantly, the President, by
constitutional fiat, is the head of the economic and planning agency of the government.
Primarily responsible for formulating and implementing continuing, coordinated, and
integrated social and economic policies, plans, and programs for the entire country.
However, under the Constitution the formulation and the implemenrtation of such
policies and programs are subject to “consultations and with the appropriate public
agencies, various private sectors, and local government units” the President cannot do
so unilaterally. 5

In connection with this, Section 1 of Book IV of the Administrative Code of the

Philippines provides:

“The Executive Branch shall have such Departments as are necessary for the
functional distribution of the work of the President and for the performance of
their functions.”

Thus, the Chief Executive of the land exercises power through the Cabinet which
is comprised of different departments. Department secretaries such as the Secretary of
Finance, actually function as representatives of the President for obviously, the latter
cannot immediately and personally attend to each and every required task or national
issue.

a. In relation to the question of whether or not the Secretary of Finance have

supervision over the assessors, particularly supervision through
prescribing the competency framework?

Based on the foregoing, the Secretatry of finance have supervision over the
Assessors, particularly supervision though prescribing the competency framework.
Under the provisions of Section 4, 3rd paragraph, of EO 127, the Department of
Finance shall be responsible for the supervision of the revenue operations of all
local government units.

3
Province of Pampanga vs. Executive Secretary Alberto Romulo and DENR, G.R. No. 195987, January 12, 2021
4
Pimentel vs Aguirre, G.R. No. 132988, July 19, 2000
5
Id
 The Bureau of Local Government Finance, shall assist the Department of
Finance in the formulation and implementation of policies over local government
revenue administration and fund management.6 Likewise, BLGF shall exercise technical
supervision over the assessment operations of all local governments.7 For this purpose,
the role of the Secretary of Finance, through DOF and the BLGF, relative to the
aforesaid functions and services are generally supervisory and coordinative in nature,
particularly on local fiscal and financial management, treasury and assessment matters,
appointment of treasurers, resource mobilization, credit financing, and capacity building,
among others.

2. How can Section 1.4 of the attached draft DO be re-worded to be consistent

with Sec. 4 of EO 127 s. 1987?

The Sec 1.4 of the attached draft Department order to be consistent with Sec. 4 of EO
127 s. 1987 should be reworded as follows:

1.4 – Section 4 of EO 127 s. 1987, mandates that the Department of finance

shall be responsible for the supervision of the revenue operations of all
local government unit (LGUs)

6
DOF Dpartment Circular No. 001-2015
7
EO No. 127, s. 1937