DECENTRALIZATION

AND LOCAL
GOVERNANCE
Philippine Politics and Governance
LOCAL GOVERNMENT OF THE
PHILIPPINES
 ARTICLE 10, 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.
LOCAL AUTONOMY
It is level of independence granted to local
government units to administer freely their
own local affairs with the view to address the
need of the people living therein and at the
same time promote the welfare of the
constituency.
DECENTRALIZATION
It is the dispersal of authority and
responsibility, and the allocation of powers and
functions from the center or top level of
government to regional bodies or special-
purpose authorities, or from the national to
sub-national levels of government. (De
Guzman and Padilla, 1992)
POLITICAL SUBDIVIONS:
a. Province- It is comprised of a group of municipalities and
component cities. The role of the province is to coordinate national
development process through effective integration of programs and
projects of all its sub-localities.
b. Cities- It is similar to municipality, but more urbanized and better
developed. A city serves as a general purpose government fort he
coordination and delivery of all basic, regular, and direct services
within its jurisdiction.
POLITICAL SUBDIVIONS:
c. Municipalities- It consists of a number of barangays, and
serves primarily as a general purpose government for the
coordination and delivery of basic, regular, and direct services
within its jurisdiction.
d. Barangays- It is the basic political unit of the government.
It serves as the primary planning and implementation unit of
the government programs, projects, and activities, and as a
forum in which the collective views of the people in the
community may be considered.
CHARACTERISTICS OF LOCAL
GOVERNANCE
1. Local governments are defined as territorial boundaries with political
and administrative jurisdiction.
2. Local governments are non-sovereign communities with subordinate
status, government which are below the national government.
3. Local governments have authority and power to undertake public
activities.
4. Local governments are continuing organizations with population of
more or less numerous.
5. Local governments are municipal corporations.
 ENHANCEMENT POWERS
1. Power to levy taxes- it is the power of LGUs to levy taxes and increase them
without prior approval of the Department of Finance.
2. Tax exemption privileges- Under RA 7160, LGUs are now exempted from
payment of import duties and taxes for heavy equipment or machineries which
shall be used for infrastructure projects.
3. Improved budgeting system- LGUs can formulate and implement local
development priorities and projects without securing the initial approval of the
Department of Interior and Local Government.
4. Direct sourcing of funds- LGUs are given the power to negotiate and secure
grants or donations in kind from local or foreign assistance agencies without
the approval and clearance from the national government.
 ENHANCEMENT POWERS
5. Debt Relief- LGUs debts are written off as follows (a.) unremitted contributions to the
integrated national public funds; (b) unremitted national government shares of taxes, charges,
and fees collected by local governments; (c) special education funds and statutory
contributions.
6. Organizational changes- Creation of new mandatory positions like the creation of the office
of the Local School Board and Local Health Board; separation of treasury and accounting
functions.
7. Credit and other forms of financing- (a) Borrowing from the government or domestic
private banks; (b) deferred payment scheme; (c) inter-LGUs loan; (d) co-financing with
private sector; and (e) other development financing schemes now are allowed.
8. Developing partnership- Local Public Organizations can collaborate in tandem with private
sectors, by offering competitive advantages such as lower cost of doing business, better access
to markets, and a skilled labor force.
GENERAL SUPERVISION OVER
LOCAL GOVERNMENT
Article 10, Section 4
The President of the Philippines shall have exercise
general supervision over local governments. Provinces
with respect to component cities and municipalities
with respect to component barangays shall ensure that
the acts of their component units are within the scope
of their prescribed powers and functions.