ROLES AND FUNCTIONS OF LOCAL
GOVERNMENT UNITS
The local government is also called “the
governments of the parts of a nation.”
In unitary states like the Philippines the
supervision over local governments is done by the
national government.
ON DEVELOPMENT
National development is a good achievement
through an effective partnership between the
central and local governments, each one
performing a service as an aspect of a function
which it can adequately perform.
The Republic Act No. 7160, or the Local
Government Code (LGC) devolves to all local
units the administration of five basic services:
agriculture, health, social welfare,
maintenance of public works and highways,
and environmental protection.
- What this means is that the appointment of
persons performing these functions in their
local areas is now done by the local chief
executives.
- Their salaries are also paid from local
funds.
REVENUE GENERATION
Local governments are authorized by law to
impose certain taxes to support their activities.
However, their main source of revenue is the
internal revenue tax, which is shared by the
national government with them.
- The Code raises their share of these taxes
from 20 percent to 40 percent. It also
modifies the sharing schemes by providing
for the following: 34 percent to the
municipalities, 23 percent to the cities,
23 percent to the provinces, and 20
percent to the barangays.
Internal revenue allotments (IRA) are also divided
according to other criteria: 50 percent by
population, 25 percent by area, and 25 percent
in terms of equal sharing.
MAJOR FEATURES OF RA 7160 or THE
LOCAL GOVERNMENT CODE
Sec. 17 of LGC of 1991, Basic Services and
Facilities.
a. 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
On Health and Social Services:
1. include the implementation of programs
and projects on primary health care,
maternal and child care, and
communicable and noncommunicable
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 Environmental Management:
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 Agriculture:
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 Infrastructure:
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,
f. rainwater collectors and water supply
systems;
g. seawalls, dikes, drainage and sewerage,
and flood control;
h. traffic signals and road signs; and similar
facilities.
On Tourism:
1. Tourism facilities and other tourist
attractions;
2. Acquisition of equipment;
3. Regulation and supervision of business
concessions; and
4. Security services for such facilities.
DEVOLVED REGULATORY FUNCTIONS:
 1. Inspection of food products such as meat,
fruits, poultry, milk, fish, vegetables and
other foodstuffs.
2. Adoption of quarantine regulations.
3. Enforcement of the National Building
Code.
4. Regulations of tricycle operations.
5. Regulation of the real estate trade.
6. Licensing of cockpits.
Sec. 447. of LGC of 1991
Powers, Duties, Functions and Compensation.
– better public services for the people.
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.
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.
Section 35 of the LGC of 1991
Linkages with People's and Non-
Governmental Organizations. – 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.
Section 34 of the LGC of 1991
Role of People's and Nongovernmental
Organizations. – 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.
HOW DECENTRALIZATION AFFECTS
GOVERNANCE
- One of the major initiatives aimed in the
continuing attempt to design & develop a
more responsive Philippine Public
Administration, culminating with the
enactment of the Local Government Code
of 1991.
- The Philippine’s Local Government Code
of 1991, also known as RA 7160 has been
lauded as one of the BEST & MOST
REVOLUTIONARY REFORM LAWS in
ASIA.
Decentralization
- transfer of powers from central government to
lower levels in a political-administrative & territorial
hierarchy.
- to allow for the participation of people & local
government.
- to hand over political, financial & administrative
authority from central to local governments, so
that the government can facilitate & guarantee
3 COMPONENTS OF DECENTRALIZATION IN
THE PHILIPPINES
1. Political Decentralization
2. Fiscal Decentralization
3. Institutional Decentralization
POLITICAL DECENTRALIZATION also called
as Devolution
 Philippines is made up of thousands of
islands, making it difficult for a highly-
centralized government to manage. This is
a major step to harmonize gender-culture
sensitive plans & budgets.
 involves the transfer of powers &
responsibilities from national government
agencies to local governments as provided
for in the Local Government Code.
 improves the modes of operation &
cooperation between executives, civil
servants & citizens regarding the
principles of good governance.
3 Indicators of PD:
 Accountability – local committees
consisting of men & women work in
selected LGUs according to the guidelines
of the LGC to implement result-oriented &
target-relevant decisions & measures.
 Transparency – selected LGUs & national
organizations/ departments publish their
annual budgets in media accessible to
citizens such as newspapers, bulletin
boards at the town hall & churches; &
report semiannually on the implementation
status of programs in citizen’s assemblies.
 Responsibility and Participation – The
portion of programs and projects realized
by LGUs through active & quantifiable
participation, such as job performance &
financial contributions of citizens.
 PD focuses among others on improved
planning & monitoring of development
measures, formulating strategies for the
active integration of civil society & the
economic sector, & the promotion of
information exchange & management.
IMPACT OF POLITICAL DECENTRALIZATION:
 PD empowered Local Leaders to take
greater control over their region’s
 destinies. Local Leaders, citizens & other
stakeholders are given more freedom in
determining their development paths.

 PD delegated some powers from the

central authority to the local authorities,
who are much familiar with the cultural,
social & economic aspects of their
respective regions.

FISCAL DECENTRALIZATION
- The main objective is for the provinces,
cities & municipalities to use their financial
resources more efficiently, generate
additional resources & tap alternative
resources.

- The Medium-Term Philippine

Development Plan 2004-2010 (MTPDP) –
specifies the need to maintain fiscal
discipline in government spending. It
outlines several measures to ensure that
fiscal strength is achieved. It calls for a
strengthening of the revenue generation
effort of the LGUs.

3 Indicators of FISCAL DECENTRALIZATION

 The dependency of the cooperating LGUs
on national funds is reduced (2005-2009)
by generating additional funds.

 Improved fiscal systems, especially just

taxation for a measurable & transparent
improvement of tax revenues.

 The participating institutions (LGUs,

selected gov’t depts, ect) on national,
regional & municipal level pre sent
coordinated, harmonized and gender-
sensitive development plans & budgets
are properly implemented.