ensure their fullest development as self-reliant

communities
o more effective partners in the pursuit of natl
devt and social progress

Relieves the central govt of burden of managing

local affairs
o

Public Corporations Short Sum up of Sec. 1-5,

LGC
(Page 1-22)
Sec.1 - Local Government Code
Local Government Is a Political subdivision of a
nation or state which is constituted by law has
substantial control of local affairs.
Local Government Unit is a body politic and
corporate one endowed with powers as a political
subdivision of National Government and as a corporate
entity representing the inhabitants of its territory
Composition: Provincial, Municipalities, Cities and
Barangay

1. Local Autonomy
Fullest development as self-reliant communities
Make them more effective partners in the
Attainment of national goals

Decentralized

is the process by which LGUs are given more

powers,
authority,
responsibilities
and
resources by the Natl Govt.

Devolution of national administration

Devolution -is the statutory granting of powers from
the central government of a sovereign state to govern
at a subnational level, such as a regional, local, or state
level.
Autonomy

is
either
decentralization
administration or decentralization of power.

Autonomous Government is free to chart its own

destiny and shape its future with minimum intervention
from central authorities.

Self-immolation since the Autonomou Govt

becomes accountable not to the central
authorities but to its constituency.
Local Autonomy includes both administrative and
fiscal autonomy.

Sec. 2 Declaration of Policy

Decentralization of Power Involves in the

abdication of political power in favour of LGUs declared
to be autonomous.

of

Decentralization of Administration- when the

central government delegates administrative powers to
political subdivisions;

in order to broaden the base of government power

o more responsive and accountable

Fiscal Autonomy means that local govts have the

power to create their own sources of revenue in

Equitable share in the Natl taxes released by

the Nats Govts

Power to allocate their resources in accordance

with their own priorities.

Preparations of their budgets

2. Political Processes
Accountability-institution of effective mechanism of
recall, initiative and referendum.

Recall is a mode of removal of public officer by the

people before the end of his term of office
Initative an electoral process whereby designated
percentages of the electorate may initiate legislative or
constitutional changes through the filing of formal
petitions to be acted on by the legislature or the total
electorate.

Is Legal process whereby the registered voters

of a LGU may directly propose, enact or amend
any ordinace.
Referendum is the process of referring to the
electorate for approval a proposed new state

1 | PUBCORP-Short Sum up of Sec. 1-5, LGC

constitution or amendment or of a law passed by the

legislature.

Is a legal process whereby the registered

voters of the LGUs may approve, amend or
reject any ordinace enacted by the sanggunian.
3. All National Agencies and offices to
conduct
periodic
consultations
with
appropriate:
a. LGUs
b. NGOs
c. peoples organization
d. Other concerned sectors
Sec. 3 Operative Principles of Decentralization
a) Effective allocation of power, functions,
responsibilities and resources
b) Organizational
Structure
and
operating
mechanism
c) Subject to civil service law in appointment and
removal
d) Accompanied with provision for reasonably
adequate resources and own sources of
revenue and just share in the natl taxes
e) Provinces shall ensure that the acts of their
component units are within the scope of their
prescribed powers and functions
f) Consolidation, groping or Coordination
g) Munis and Brgys shall have opportunities to
participate actively in the implementation of
natl programs and projects.
h) Continuing mechanisms of local autonomy and
administrative and organizational reforms
i) LGUs shall share with the Natl govt the
responsibility
in
the
management
and
maintenance of ecological balance
j) Accountability to their constituents quality of
local leadership
k) Improved coordination with Natl govt policies
and programs and extension of adequate
technical and material assistance to less
developed and deserving LGUs
l) Participation of Private Sectors Alternative
strategy for sustainable devt
m) Natl Govt shall ensure the decentralization
continuing improvement of performance and
quality of community of life

Local chief executive has the power to appoint

all officials and employees of LGU
o Whose salaries and wages are wholly or mainly
paid out of the funds of his LGU and are not
otherwise provided for this code.
o Those who may be authorized by law to
appoint
Except Provincial, City and Municipal treasurers
are appointed by the Secretary of Finance
Barangays
o Must secure the approval of a majority of all
the members of the sangguniang barangay
prior to appointment and replacement
Civil service law according to merit and fitness
to be determined as far as practicable by
competitive examination
Policy determining, primarily confidential, and
highly technical positions are exempt from this
rule.
Qualification standard is defined in section 20, PD
807 Minimum reqts of position in terms of
education, training and experience, civil eligibility,
physical fitness and other qualities
Civil Service Commissions power is limited to
approving or disapproving an appointment. It does
not have any authority to direct that an
appointment of a specific individual be made. Once
CSC attests to the eligibility of the person chosen
to fill a vacant position, its role in the appointment
process necessarily ends. Hence , CSC cannot
encroach upon the discretion vested in the
appointing authority.
General: Power to remove resides in the same
public officer where the power to appoint is vested.
Except: Provided by Law, ocal Chief executive may
impose the penalty of removal from service,
demotion in rank, suspension

Sec. 4 - Scope of Application

Extent of autonomy of Autonomous Regions

(RA6766 Autonomous Region of Muslim Mindanao
and EO220 Cordillera Administrative Region) are
not territorial and political subdivision. Hence, it is
not applicable in this code.

Creation of Autonomous Regions approval

made effective by majority of votes cast by the
constituent units in a plebiscite called for the

purpose. Simple majority of votes approving the

Organic Act in individual constituent units and not
a double majority of the votes in all constituent
units put together, as well as in the individual
constituent units.
Extent
of
power
of
Metro
Manila
Development Authority
o PD1605 does not allow either the removal
of license plates or the confiscation of dirvers
licenses for traffic violations committed in
Metropolitan Manila and no provision that
Metropolitan Manila Commission (MMDA) to
impose sanctions but to discipline and to
impose fines.
Metropolitan or Metro Manila is a body
compesed of several LGUs. RA7924-declared as
special devt and administrative region
Basic Metro-wide Services
(1) Devt planning
(2) Transport and Traffic management
(3) Solid Waste
(4) Flood control and sewerage management
(5) Urban renewal, zoning and land use planning,
and shelter services
(6) Health and sanitation, Urban protection and
pollution control
(7) Public Safety

Sec. 5 Rules of Interpretation

LGC - Liberally interpreted in its favour, of

devolution of powers and of LGUs

Tax Ordinance strictly against LGU and liberally

for Tax payer. Tax Exemption strictly against the
person claiming it.

General Welfare of LGC liberally to LGU

Rights and Obligations (arising in Contracts)

original terms and conditions of said contracts or
the law in force at the time such rights were vested

Resolution of controversies Customs and

traditions
Liberal Construction means giving
language its generally accepted meaning.

statutory

Strict Construction relative and not a precise, term,

which varies in degree according to the character of
the law construed, should be limited to its express

2 | PUBCORP-Short Sum up of Sec. 1-5, LGC

terms and one which refuses to extend the law by

implication, inference, or construction, and confines its
operation to cases clearly within the letter of the
statute, as within its spirit or reason.
Dillon Rule a municipal corporation possess and can
exercise only the following powers in the absence of
contrary legislative intent:
(1) Those granted in express words
(2) Those necessarily implied or necessarily
incident to the powers expressly granted
(3) Those absolutely essential to the declared
objects and prposes of the corporation not
simply convenient, but indispensable
(4) Any fair doubt as to the existence of a power is
resolved by the courts against the sorporation
againsts the existence of the power
Customs are the juridical rule which results from a
constant and continued uniform practice by the
members of a social community, with respect to a
particular state of facts, and observed with a conviction
that it is juridically obligatory.
(1) Plurality of acts or various resolutions of a
juridical question raised repeatedly in life
(2) Uniformity, or identity of the acts or various
solutions to the juridical question
(3) General practice by the great mass of the
social group
(4) Continued performance of these acts for a long
period of time
(5) General conviction that the practice must not
be contrary to law, morals or public order.
Tradition are inherited or established way of
thinking, feeling or doing; a cultural continuity
embodied in a massive complex of evolving social
attitudes, beliefs, conventions, and institutions rooted
in the experience of the past and exerting an orienting
and normative influence on the present.
Cases:
MMDA v. Bel-Air Village Association Inc., G.R. No.
135962, March 27, 2000)
Ganzon v. CA, G.R. No. 93252, August 5, 1991)
Basco v. C.A., G.R. No. 91649, May 14, 1991)

Mathay v. CA, G.R. No. 124374, December 15, 1999)

3 | PUBCORP-Short Sum up of Sec. 1-5, LGC