Local Government Code of 1991
The Local Government Code of 1991 is a significant piece of legislation in the Philippines that established the structure and functions of local government units (LGUs). Officially known as Republic Act No. 7160, this code was enacted by the Congress of the Philippines to enhance the autonomy of local governments, thereby promoting a more responsive and accountable local government structure.
The Local Government Code of 1991 is designed to improve the governance of provinces, cities, municipalities, and barangays—the primary four levels of administrative divisions in the Philippines. It grants these local units significant autonomy, enabling them to govern their respective areas with greater flexibility and self-reliance. The code delineates the powers, responsibilities, and functions of the local government units, thus decentralizing the authority from the national government.
Administrative Divisions
Under the Local Government Code of 1991, the administrative divisions of the Philippines are categorized as follows:
- Provinces: The highest level of administrative division, governed by a governor and Sangguniang Panlalawigan.
- Cities: Cities have their own charters and are independent of provincial governance. They are governed by a mayor and a Sangguniang Panlungsod.
- Municipalities: Municipalities, like cities, have autonomy and are governed by a mayor and a Sangguniang Bayan.
- Barangays: The smallest local government units, led by a Barangay Captain and the Sangguniang Barangay.
Powers and Functions
The Local Government Code of 1991 empowers LGUs to:
- Generate and manage their own resources: This includes the power to levy taxes, fees, and charges. For instance, LGUs can impose a basic real property tax and other local taxes.
- Share in national revenue: LGUs are entitled to a share in the national internal revenue taxes, a mechanism referred to as the Internal Revenue Allotment (IRA). The code specifies that LGUs should receive a minimum of 30% of national internal revenue collection.
- Legislate locally: LGUs have the power to enact local legislation to promote the general welfare of their constituents.
Financial Management
One of the most crucial aspects of the Local Government Code is its provisions for financial management. It outlines how LGUs can utilize their finances to support local development efforts effectively. LGUs are encouraged to promote economic development by mobilizing their resources and ensuring efficient delivery of basic services.
Impact and Importance
The enactment of the Local Government Code of 1991 marked a pivotal shift in the governance of the Philippines. By decentralizing authority, the code aimed to make local governments more dynamic and adaptive to the unique needs of their communities. It also laid the groundwork for more participatory governance by involving the local population in planning and decision-making processes.