PPG/M11.1 LOCAL GOVERNMENT/3RD.LESSON/4TH QUARTER

• Decentralization and local governance

  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.
• Province


  • A group of municipalities and component cities
  • Coordinates national development process through effective integration of programs and projects of all its sub-localities
  • Assumes area-wide functions, roles and activities
• City


  • Similar to a municipality, but more urbanized and better developed
  • Created and governed by a law, R.A. 7160, or a special law known as a charter
  • Can be either component or highly urbanized
• Cities in Nueva Ecija

  • San Jose City
  • Science City of Muñoz
  • Cabanatuan City
  • Palayan City
  • Gapan City
• Highly urbanized cities in Luzon

  • Olongapo City
  • City of Angeles
  • Baguio City
• Municipality


  • Consists of a number of barangays
  • Serves as a general purpose government for the coordination and delivery of basic, regular and direct services within its jurisdiction
• Barangay


  • The basic political unit of the government
  • Serves as the primary planning and implementation unit of the government programs, projects and activities
  • A form of forum in which the collective views of the people in the community may be crystalized and considered
• Local government


  Political subdivisions of a nation or a state constituted by law, which have substantial control over local affairs, including the power of taxation. The governing body may be elected or appointed.
• Characteristics of local governance

  • Territorial boundaries with political and administrative jurisdictions
  • Non-sovereign communities with subordinate status, governments which are below the national government
  • Authority and power to undertake public activities
  • Continuing organizations with population of more or less numerous
  • Municipal corporations
• Functions of local government

  • Provide greater political participation from the people at lower level communities
  • Impart socio-economic services for the constituency consistent with national government policies
  • Offer a means of dividing power, responsibilities and functions by geographic area or locality of the state
  • Confer or vest upon political distinction among local communities
• Enhancement powers of LGUs

  • Power to levy taxes
  • Tax exemption privileges
  • Improve budgeting system
  • Direct sourcing of funds
  • Debt relief
  • Organizational changes
  • Credit and other form of financing
  • Developing partnership
• Power to levy taxes

  One of the most important political powers of LGUs is the authority to levy taxes and increase them without prior approval of the Department of Finance. The LGUs are guaranteed of expanded shares of Internal Revenue Allotment (IRA).
• Tax exemption privileges


  Under RA 7160, LGUs are now exempted from the payment of import duties and taxes for heavy equipment or machineries, which shall be used for infrastructure projects, as well as garbage trucks and other similar equipment.
• Improve 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 (DILG). There would be no more review from the DBM. Likewise, a provision for supplemental budget of LGUs shall be accorded to them favourably.
• Direct sourcing of funds


  Local chief executives, upon the authority concerned Sanggunian or local council, may negiotiate and secure grants and donations in kind from local and foreign assistance agencies without the approval and clearance from the national government.
• 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 the fees collected by local governments; and (c) special education and statutory contributions.
• Organizational changes


  In order to make the bureaucracy truly efficient and accountable to the people, some organizational positions are recognized or created: Local School Board and Local Health Board; separation of treasury and accounting.
• Credit and other form of financing

  Liberal use of credit financing in support of local infrastructure and other socioeconomic development projects (a) borrowing from government or domestic private banks; (b) deferred payment scheme; (c) inter-LGUs loan; (d) co-financing with private sector.
• Developing partnership


  Local Public Organizations can collaborative in tandem with the private sector, by offering competitive advantages such as lower cost of doing the business, better access to markets and a skilled labor force. In providing public services or utilities, LGU can encourage public-private networking.