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• Decentralization


  Transfer of powers from central government to local levels in a political-administrative and territorial hierarchy
• Decentralization


  • Hands over political, financial, and administrative authority from central to local governments
  • Has three components: Political Decentralization, Fiscal Decentralization, and Institutional Decentralization
• Political Decentralization


  Focuses on improved planning and monitoring of development measures, formulating strategies for the active integration of civil society and the economic sector, and the promotion of information exchange and management
• Fiscal Decentralization


  Improved financial management including qualification of participants in areas of financial management, strengthening cooperation on different levels, promoting the exchange of experiences, and formulating strategies for improved integration of the business sector and civil society in social and economic programs
• Institutional Decentralization


  Better service delivery is a matter of coordination and collaboration – bridging and empowering the public and private sectors of different regions in the country through forums, seminars, workshops, studies, and research
• Local Governance


  Local Government Units (LGU) shall endeavor to be self-reliant and shall continue exercising powers and discharging the duties and functions currently vested upon them
• Devolved Basic Services on Infrastructure

  • Maintenance & rehabilitation of roads & bridges
  • School buildings and other facilities
  • Clinics, health centers & other health facilities
  • Small water impounding projects
  • Traffic signals and road signs
• Devolved Basic Services on Environmental Management

  • Solid waste disposal system
  • Services or facilities related to general hygiene and sanitation
  • Management and control of communal forests
• Devolved Basic Services on Agriculture

  • Inter-barangay irrigation system
  • Water and soil resource utilization and conservation projects
  • Enforcement of fishery laws in municipal waters including the conservation of mangroves
• Devolved Basic Services on Healthcare and Social Services


  • Programs and projects on primary health care
  • Purchase of medicines, medical supplies etc.
  • Social welfare services
• Devolved Basic Services on Tourism

  • Tourism facilities and other tourist attractions
  • Acquisition of equipment
  • Regulation & supervision of business concessions
  • Security services of such facilities
• Organizational Structure and Staffing Pattern

  Every Local Government Unit (LGU) shall design and implement its own organizational structure and staffing pattern taking into consideration its service requirements and financial capabilities, subject to the minimum standards, and guidelines prescribed by the Civil Service Commission
• Allotment of Internal Revenue Taxes

  • In the first year of the effectivity of this code, thirty percent (30%)
  • In the second year, thirty-five percent (35%)
  • In the third year and thereafter, forty percent (40%)
• Sources of Revenue


  • National Government
  • Internal revenue allotment
  • Other grants and subsidies
  • Real property taxes
  • Business taxes
  • Other local taxes
  • Regulatory fees
• Local Government


  Units may enter into joint ventures and other cooperative arrangements with people's and non-governmental 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, industrialization promote ecological balance, and enhance