SUMMARY OF THE LOCAL GOVERNMENT CODE OF 1991

By: Lyla P. Hadji Ampat

BOOKS. The Local Government Code of 1991 is divided into four (4) books:

1. Book 1. General Provisions

2. Book 2. Local Taxation and Fiscal Matters
3. Book 3. Local Government Units (LGUs)
4. Book 4. Miscellaneous and Final Provisions

CONSTITUTIONAL BASIS. The Local Government Code of 1991 is based on Article X

of the 1987 Constitution, particularly Section 3, which states that “[t]he Congress shall
enact a local government code which shall provide for a more responsive and
accountable local government structure instituted through a system of decentralization
with effective mechanisms of recall, initiative, and referendum, allocate among the
different local government units their powers, responsibilities, and resources, and provide
for the qualifications, election, appointment and removal, term, salaries, powers and
functions and duties of local officials, and all other matters relating to the organization and
operation of the local units.”

DECLARATION OF POLICY. Section 2 of the Local Government Code states that it is a

declared policy of the State “that the territorial and political subdivisions of the State shall
enjoy genuine and meaningful local autonomy to enable them to attain their fullest
development as self-reliant communities and make them more effective partners in the
attainment of national goals. Toward this end, the State shall provide for a more
responsive and accountable local government structure instituted through a system of
decentralization whereby local government units shall be given more powers, authority,
responsibilities, and resources.”

CONSTITUENT UNITS. The territorial and political subdivisions of the Republic of the
Philippines are the provinces, cities, municipalities, and barangays.

OVERSIGHT. The President of the Philippines shall exercise general supervision over
local governments. Provinces with respect to component cities and municipalities, and
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.

REVENUE GENERATION. Each LGU shall have the power to create its own sources of
revenues and to levy taxes, fees and charges subject to such guidelines and limitations
as the Congress may provide, consistent with the basic policy of local autonomy. Such
taxes, fees, and charges shall accrue exclusively to the local governments.

INTERNAL REVENUE ALLOTMENT. The LGUs shall have a just share, as determined
by law, in the national taxes which shall be automatically released to them.

DEVOLVED BASIC SERVICES.

1. Agricultural Support Services

2. Health and Social Services
3. Solid Waste and Environmental Management
4. Local Public Infrastructures
5. Tourism and Information Services
THE SANGGUNIAN. This refers to the legislative body of the LGU, which shall enact
ordinances, approve resolutions and appropriate funds for the general welfare of the local
government and its inhabitants.

THE LOCAL CHIEF EXECUTIVE. The LGUs are headed by their respective local chief
executives: Provincial Governors for provinces, Mayors for municipalities and cities, and
Barangay Chairmen for barangays.

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.

APPOINTED LOCAL OFFICIALS. Secretary to the Sanggunian, Treasurer, Assessor,

Accountant, Budget Officer, Planning and Development Coordinator, Engineer, Health
Officer, Civil Registrar, Administrator, Legal Officer, Agriculturist, Social Welfare and
Development Officer, Environment and Natural Resources Officer, Architect, Information
Officer, Cooperatives Officer, Population Officer, Veterinarian, and General Services
Officer.

CORPORATE POWERS. The LGU also has corporate powers, enter into contracts, and
exercise such powers granted to corporations, subject to the limitations provided in the
Local Government Code and other laws.

LOCAL BOARDS AND COUNCILS.

1. Local School Boards

2. Local Health Boards
3. Local Development Councils
4. Local Peace and Order Council

LOCAL INITIATIVE AND REFERENDUM. The legal process whereby the registered
voters of a local government unit may directly propose, enact, or amend any ordinance.