1. Role of the
Local Government
in Development
Edwin RB. Gbargaye
Discussant/Presenter
Professor: Dr. Jo B. Bitonio
DM 215 Governance & Regional Administration
PSU, Urdaneta City, Pangasinan

2. Structure & Function/Distinction
- Significant provision of RA 7160
- Issues and Problems in Decentralization

4. Region Provinces Cities Municipalities Barangays
NCR - 16 1 1,705
CAR 6 1 76 1,176
I 4 8 117 3,265
II 5 3 90 2,311
III 7 13 117 3,102
IV-A 5 13 129 4,011
IV-B 5 2 71 1,458
V 6 7 107 3,471
VI 6 16 117 4,051
VII 4 12 120 3,003

5. Region Provinces Cities Municipalities Barangays
VIII
6 4 139 4,390
IX
3 5 67 1,904
X
5 8 85 2,022
XI
4 5 44 1,162
XII
4 5 45 1,194
XIII
(CARAGA)
5 3 70 1,310
ARMM
5 1 117 2,490
TOTAL
80 122 1,512 42,025

6. Number of LGUs by Level
42025
80 122 1512
Provinces Cities Municipalities Barangays
Source: NSCB 2010

7. Number of Capital Towns, Component
Cities and Independent Component Cities
as of June 30, 2010
Capital Towns 41
Independent Component Cities (ICCs) 5
Component Cities (CCs) 84
Highly Urbanized Cities (HUCs) 33
0 10 20 30 40 50 60 70 80 90

8. Section 76. of LGC of 1991
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

10. National Government
ARMM MMDA
5 Provinces
16 Cities 1 Municipalities
1 City
Barangay Barangay
117
Municipalities
2490
Barangays

11. National
Government
Province Highly Urbanized City
Municipality Component City
Barangay Barangay Barangay
Structure of Philippine Local
Government Padilla: 1998

12. The Role of the Local
Government in
Development
• The local government is also called the
governments of the parts of a nation. Its levels
vary according to the political pattern and
experience of each and every nation like the
Philippines. According to (Humes and Martin
1969), the state supervised units which can
also be described as “infra-sovereign” local
governments do not have any aspect of
sovereignty.

13. The Role of the
Local Government
in Development
• In unitary states like the Philippines
the supervision over local governments
is done by the national government.
• The UN defines local governments
as “political subdivisions of a nation or
state” (UN 1962); some authorities refer
to them as “parts” of the government of
a nation or state.

14. The Role of the
Local Government
in Development
• This entails assessment of the resources, leadership
potentials and administrative capabilities of the different
levels of local government, which would be the basis for
determining the powers, functions and services to be
devolved to them.
• Local government officials, as earlier mentioned,
make political decisions. Like earmarking revenues for
different projects for the public good. These decisions
generally take the form of ordinances.

15. The Role of the
Local Government
in Development
On Development
• National development is a good achieved 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 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.
There salaries are also paid from local funds.

16. The Role of the
Local Government
in Development
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.

17. The Role of the
Local Government
in Development
Revenue Generation
- 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. Local units impose the property realty tax, and
much depends on their assessment and collection
efficiency. They also tax business. Cities and
municipalities impose the amusement tax. Barangay
clearance is now needed before permits can be given by
the cities and municipalities for businesses.

18. The MAJOR FEATURES
Republic Act No. 7160 otherwise known as the
Local Government Code of 1991

19. A. 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.

20. 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;

21. 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;

22. 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;

23. On Infrastructure:
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;

24. 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

25. Devolved Regulatory Functions
Inspection of food products such as
meat, fruits, poultry, milk, fish, vegetables and other foodstuffs
Adoption of quarantine regulations
Enforcement of the National Building Code
Regulations of tricycle operations
 Regulation of the real estate trade
Licensing of cockpits
B. It granted the local government units the power to develop their
own organizational structure staffing pattern and appoint officials
wholly paid by the local governments;

26. Sec. 447. of LGC of 1991
Powers, Duties, Functions and Compensation. –
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, and shall

27. (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;
(vii) Subject to the provisions of this Code and pertinent
laws, determine the powers and duties of officials and
employees of the municipality;
(viii) Determine the positions and the salaries, wages,
allowances and other emoluments and benefits of officials
and employees paid wholly or mainly from municipal funds
and provide for expenditures necessary for the proper
conduct of programs, projects, services, and activities of
the municipal government;

28. NEDA Board
RDC
PDC CDC
MDC
BDC
DILG: 1992 The Government Planning Hierarchy

29. 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
sect6or such as build-operate-transfer
arrangement and bond
flotation.

30. 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.

31. 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.

32. The Significant Provision of RA 7160
(Local Government Code)
1.When the local government code of the Philippine was
passed it was hailed as a giant step towards the
increase of autonomy in the country (Cariño, 1998).
2.It is about the transfer of certain powers from
national to local levels, increased the financial
capacity of local government units, and give greater
voice not only to local governments but to the people
as well.
3.When Filipinos speak of devolution today they usually
refer to the Code.
4. The essence of Devolution

33. The Significant Provision of RA 7160
(Local Government Code)
5. The essence of Devolution
6. Democracy and Decentralization
7. Decentralization is the means
for increasing democratic strides.
8. Stresses the greater
effectiveness of service delivery through a
decentralized system.
9. Decentralized powers are
utilized for more effective management.

34. THE ISSUES/ CONCERNS
(a) The inadequacy of the internal revenue shares of the local
government units to meet the budgetary requirements of
the devolved function, programs and projects;
(b) The continued lack of budgetary support from the national
government for the full implementation of devolved
tertiary health services;
(c) The interference of national government in personnel and
fiscal management of eth local government units;
(d) The need to further broaden the tax base of the local
government units; and
(e) The need to devolve more power functions and programs.

35. Issues and Problems in
Decentralization
•In the Phil decentralization is a strategy for development
and democratization since the 1950s. This thrusts,
however, have shifted over time. Decentralization in the
past focused on deconcentration (administrative
decentralization)
•Decentralization during the late eighties up to the present
focused on devolution or political decentralization. The
government had stepped up its decentralization efforts by
emphasizing devolution.

36. Issues and Problems in
Decentralization
• Under the LGC responsibility sharing and
authority sharing, local governments were
mandated to supplement or assist in the delivery of
these functions.
• Decentralization changes have been made to
pursue development and democratization goals.
• Privatization is another area of decentralization. It
is a policy reform that disposes idle GOCCs. Its an
economic and political benefit to national
government.

37. Some of the Problems
of Decentralization are:
• Political dynasty (elite dominated politics)
• It encourages corruption

38. Reference:
RELEVANT PROVISIONS OF LOCAL
GOVRNMENT CODE OF 1991
Comparative Study Tour on Local
Government Administration and
Management
Development Academy of the Philippines,
2006