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LOCAL GOVERMENT

The local government in the Philippines has undergone significant transformations from pre-colonial times to the present. Before Spanish colonization, local governance was organized around barangays, small kinship-based communities led by a datu.

 

During the Spanish period (1565–1898), these barangays were integrated into larger structures, becoming pueblos under colonial officials, while governance was centralized in Manila. The American colonial period (1898–1946) introduced reforms aimed at decentralization, promoting local elections and creating municipal governments under the Philippine Commission (Brillantes, 2003).

 

The 1935 Constitution provided the legal framework for local autonomy, but it was not until the post-Martial Law era that genuine local empowerment took shape with the 1987 Constitution and, significantly, the Local Government Code of 1991 (RA 7160).

 

This law devolved substantial powers to local government units (LGUs), allowing for greater fiscal autonomy and local decision-making authority (Tapales et al., 1995).

 

The Code continues to guide the operations of LGUs today, promoting decentralization and improving local governance.

 

References:

Brillantes, A. B. (2003). Decentralization and Local Governance. Philippine Journal of Public Administration, 47(1-4), 16-32.

​Tapales, P. D., Cuaresma, J., & Cabo, W. (1995). Decentralization and Development: The Philippine Experience.

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Key Topics in Local Government Law

Local Government Law in the Philippines is a critical area that addresses the organization, powers, functions, and responsibilities of local government units (LGUs) under the 1987 Philippine Constitution and the Local Government Code of 1991 (Republic Act No. 7160).

 

It provides for the decentralization of power from the national government to local governments and ensures local autonomy in governance. Below are the major subtopics, relevant provisions, case digests, and important doctrines in Local Government Law.

 

1. Creation and Structure of Local Government Units (LGUs)

 

Title I, Book III of the Local Government Code of 1991 (RA 7160)

 

Description: LGUs include provinces, cities, municipalities, and barangays. They are created by law and granted legislative, executive, and judicial powers, subject to the Constitution and laws passed by Congress. LGUs are organized into political subdivisions with defined territorial jurisdiction.

 

Pimentel v. Aguirre, G.R. No. 132988 (1999)

 

The case arose from Executive Order No. 38 issued by then-President Joseph Estrada, which reduced the internal revenue allotment (IRA) of LGUs. Senator Aquilino Pimentel Jr. filed a petition challenging the legality of the executive order.

 

The Supreme Court ruled that the reduction of the IRA is unconstitutional. The Constitution and the Local Government Code mandate the automatic release of the IRA to LGUs to ensure local autonomy.

 

Mandanas v. Executive Secretary, G.R. Nos. 199802 and 208488 (2018)

 

The case dealt with the computation of the IRA and whether it should include all national taxes, not just internal revenue taxes.

 

The Supreme Court ruled that the IRA should be computed based on all national taxes, thus increasing the funds allocated to LGUs. This decision expanded the financial autonomy of LGUs and provided them with greater resources to perform their functions.

 

2. Local Autonomy and Devolution of Powers

 

Section 2, Article X of the 1987 Philippine Constitution; Title II, Book I of RA 7160

 

Local autonomy allows LGUs to govern themselves with minimal intervention from the national government. The principle of devolution involves the transfer of certain functions, responsibilities, and resources from the central government to LGUs.

 

Ganzon v. Court of Appeals, G.R. No. 93252 (1991)

 

The case questioned the suspension of the mayor of Iloilo by the Secretary of Local Government. Mayor Ganzon claimed that the suspension violated the principle of local autonomy.

 

The Supreme Court ruled that while local autonomy is guaranteed by the Constitution, it is not absolute. The national government retains supervisory powers to ensure that LGUs perform their duties in accordance with the law.

 

3. Powers and Functions of LGUs

 

Title V, Book I of RA 7160

 

LGUs have three basic powers: police power, the power of eminent domain, and the power of taxation. These powers allow LGUs to regulate local affairs, acquire property for public use, and impose taxes within their jurisdiction.

 

City of Manila v. Laguio, G.R. No. 118127 (2005)

 

The case involved the exercise of police power by the City of Manila to close down certain establishments for alleged violations of city ordinances. The owners of the establishments claimed that the closure was illegal.

 

The Court upheld the City of Manila's exercise of police power, emphasizing that LGUs have the authority to enforce local regulations to protect public health, safety, and morals.

 

Province of North Cotabato v. Government of the Republic of the Philippines Peace Panel, G.R. No. 183591 (2008)

 

This case involved the controversial Memorandum of Agreement on Ancestral Domain (MOA-AD) between the Philippine government and the Moro Islamic Liberation Front (MILF), which aimed to establish a new political entity that would affect LGUs in Mindanao.

 

The Supreme Court ruled that the MOA-AD was unconstitutional, as it encroached on the powers of LGUs and violated the principle of local autonomy.

 

4. Local Legislation

 

Title I, Book II of RA 7160

 

LGUs are empowered to enact local ordinances that are in accordance with national laws. These ordinances have the force of law within the territorial jurisdiction of the LGU and cover matters such as local taxes, public services, and zoning regulations.

 

Tano v. Socrates, G.R. No. 110249 (1997)

 

This case challenged a Palawan provincial ordinance that banned certain fishing methods. The petitioners argued that the ordinance violated their rights to engage in lawful fishing activities.

 

The Supreme Court upheld the ordinance, affirming the power of LGUs to enact regulations that promote the general welfare within their jurisdiction.

 

5. Local Government Finance and Taxation

 

Title III, Book II of RA 7160

 

LGUs are empowered to generate their own revenue through local taxation. The Local Government Code outlines the types of taxes that LGUs can impose, including real property taxes, business taxes, and franchise taxes. LGUs also receive their share of national taxes through the IRA.

 

City of Makati v. Hon. Judge de Guzman, G.R. No. 157199 (2006)

 

The case involved a dispute over the collection of business taxes by the City of Makati. The petitioners claimed that the taxes imposed were excessive and violated national law.

 

The Supreme Court ruled in favor of the City of Makati, holding that LGUs have broad discretion in determining the rates of local taxes, provided that these taxes are reasonable and comply with the law.​

Principles and Doctrines in Local Government Law


Doctrine of Local Autonomy: This doctrine is enshrined in the 1987 Constitution and the Local Government Code, which guarantees that LGUs have the right to self-governance and manage local affairs with minimal intervention from the national government.


Doctrine of Devolution: Under this principle, certain powers and functions of the national government are transferred to LGUs, along with the necessary resources to carry out these responsibilities.

 

Leonen v. Commission on Audit, G.R. No. 229721 (2020)

 

The case involved the COA’s disallowance of certain expenses by the LGU of Leonen, Ilocos Sur. The LGU argued that the expenses were justified under the principle of local autonomy.

 

The Court upheld COA’s ruling but emphasized that the national government’s supervisory powers must be exercised sparingly and only in cases where there is clear abuse or violation of the law.

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