Local fiscal administration refers to systems, structures, processes, resources, and the policy environment government the inter-governmental

and inter-local fiscal relations, affecting, among others the following: o the giving of allotments and grants by the national government (NG) to local government units (LGUs); o sharing of taxing powers between the NG and the LGUs, and among LGUs units; o policy on tax rates and structure; o revenue and expenditure planning; o revenue and expenditure planning; o revenue utilization and expenditure allocation; o monitoring and approval of budgets, tax ordinances and other fiscal measures; o policy on borrowing and borrowing instruments; and o appointment and supervision of local fiscal officers. The trends in local fiscal administration are inadequacy of own-source revenue to finance basic and devolved functions and thus render LGUs dependent on transfers from the NG. Reliance on few local taxes, particularly the real property tax and business tax; and uneven level of expenditures hence, unequal access to local public services. With regards to the inadequacy of lgus, the national government must assist lgus in making development strategies to maximize the resources available. In that way, lgus can somehow sustain themselves and become less dependent to national government. It must also help in attracting investors regardless if the leaders are opposition or administration. Lgus must not sole rely on few local taxes. It must encourage business to pay honestly the taxes and give credit to those who pay on time. Those who evade must be persecuted regardless if they are powerful individuals and has connecrtion to top officials. The national government must help in regulating taxes and help in catching the big fishes.

LGU Role
NOVEMBER 14, 2008

Every LGU shall exercise the powers expressly granted, those necessarily implied there from, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare. Within their respective territorial jurisdiction, LGUs shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants. The role of the LGU in the Philippine setting is very ideal in approach. Optimistically aside, the idea is much possible given the proper orientation, full people support, active participation of private sectors and the existence of good, moral and responsible local chief executives.

With regard to the role of the State, the national government must support and supervise all LGUs especially those who need much assistance. Some guidelines are as follows: Internal revenue allotment must be based on the performance. Creating a transparency board committee who will monitor and evaluate the transactions of each LGUs to minimize graft and corruption. Empowering the functions of the human resource department through creating programs transforming employees as a public servant.