Assignment: Local Governance

1. Was a highly centralized government BAD or GOOD?

a. If good state the basis:

Highly Centralized government concentrates all political power and

government responsibility into the hands of a single authority. This central
authority exercises all governmental power, and any localized units of
government, such as cities and counties, are subject to it, exercising only
those powers the central government grants to them

A centralized government results in a uniform, "one-size-fits-all" approach

to government policies and programs. In addition, the national interest
takes precedence over local interests in centralized government.

The main advantage of a central government was to ensure that policy

debate and implementation in terms of service delivery is done at one
point. This will eliminate variations in service delivery approach and
channel government spending through a centrally customize service
pipeline, on the other hand, it is cumbersome to plan the delivery of
government at one point without taking into account the dynamics and
economics drivers of a particular section of the country. A one size fits all
strategy in delivering government services does not yield balanced
economic growth.

b. If bad state the basis:

Since there would be no local congress our country would be blindly

regulated and the people really would not have a say in their
government other than who they elected to represent the main bodies of
the government.

A centralized government goes directly against the constitution. The

constitution gives all local governments say in any laws not already
passed by the federal government, but since there would be no local
government, thus no representation the l government would get say over
all laws in all places.

Basically that means everything from roads, to schools, to healthcare to

you name it. All of these extra work that the centralised government
would have to do would cause a major slow down of bills getting passed
into law and a lot more protests and dissatisfied people.
2. Is the Local Autonomy enjoyed by the LGU Good for the Country?

According to the Constitution, the LGUs "shall enjoy local autonomy", and
in which the president exercises "general supervision". Congress enacted
the Local Government Code of 1991 "which shall provide for a more
responsive and accountable local government structure instituted
through a system of decentralization with effective mechanisms of recall,
initiative, and referendum, allocate among the different local
government units their powers, responsibilities, and resources, and provide
for the qualifications, election, appointment and removal, term, salaries,
powers and functions and duties of local officials, and all other matters
relating to the organization and operation of local units."

3. If the Local Autonomy give LGU Power o self Government does it work to
country Benefit?

Yes. The Following are the benefit if local autonomy gives the LGU.

Transparency means the availability of accurate information to the general

public and the articulation of government rules and regulations, and
decisions. It is herein implied that copies of rules and guidelines for the
conduct of business in the different LGUs for the information of different
stakeholders should always be readily available to all.

Accountability and transparency in government transactions work hand in

hand. Information from relevant local officials on matters concerning
procurement of equipment and materials including those needed for the
delivery of basic services devolved to LGUs, as well as the implementation of
infrastructure projects where public biddings are required, are essential
elements in responsible public service.

The principle of participation is anchored on the basic fact that people are
the very heart of the nation’s development. They are not only the ultimate
beneficiaries of progress, but are also the agents of innovation and
advancement in the society, through their active involvement in the policy
and decision making process.
4. Why is the country economically destitute?

Economic destitution is the biggest threat to freedom in the democratic

nations of the world today. To be destitute is to be unfree. Economically
destitute people are unfree to sleep undisturbed, unfree to urinate, unfree
to wash themselves, and unfree to use the resources of the world to meet
their own needs.

The destitute are unfree in the most liberal, negative sense of the word:
the destitute are not unable to wash themselves or unable to use the
resources of the world to meet their needs, they are unfree to do these
things. Because our government enforces a property rights regime that
says some people control natural resources and other people do not,
someone will interfere with them if they try to do these things that they are
very capable of doing.

5. What has decentralization on self government?

The enactment of the 1991 Local Government Code (LGC) represented a

major step forward in decentralization in the Philippines: it advanced local
autonomy by devolving expenditure responsibilities and expanding local
government taxing authority. LGUs’ added responsibilities resulting from the
1991 LGC produced a significant shift in the location of public expenditures.

Local revenue autonomy in the Philippines is limited, yet tax administration in

the Philippines is highly decentralized. Local governments have own source
revenues both in terms of a share of the national wealth (the Internal
Revenue Allotment, or IRA) and in terms of locally-raised taxes and fees. The
Bureau of Internal Revenue (BIR) administers national taxes while each LGU
administers its OSR. But there is little formal cooperation in practice. The BIR
and local tax administrations operate independently of one another. At the
same time local tax administrations mostly operate independently of one
another. Moreover, there is little formal cooperation provided for by law.

6. What is the so called presidential power to have supervision?

The Constitution vests the President with the power of supervision, not
control, over local government units (LGUs). Such power enables him to
see to it that LGUs and their officials execute their tasks in accordance
with law. While he may issue advisories and seek their cooperation in
solving economic difficulties, he cannot prevent them from performing
 their tasks and using available resources to achieve their goals. He may
not withhold or alter any authority or power given them by the law. Thus,
the withholding of a portion of internal revenue allotments legally due
them cannot be directed by administrative fiat.

7. What are the sources of revenue of the LGU?

1. Locally Generated Revenues

o Business Tax and other local taxes
2. Real Property Tax
3. Income from the Economic Enterprises
4. Fees and Charges

8. How much is the share of provinces, cities, municipalities and barangays

in the BIR collection?

Distribution to Local Government Unit:

o Provinces - 23%
o Cities - 23%
o Municipalities - 34%
o Barangay - 20%

9. How much is the share of an LGU of the National wealth located in the
province component cities and municipalities and barangays?

Provinces > Real property tax; 25 per cent.

> Tax on transfer of real property ownership; 10-15 per
cent of the property assessment.
> Tax on business of printing and publication; no less than
1 per cent but no more than 10 per cent.
> Franchise tax; percentage based on total gross
income.
> Sand and gravel tax; - computed based on cubic
meters of sand and gravel collected based on the tax
level authorized in the tax ordinance.
> Professional tax; 5-15 per cent.
> Amusement tax on admission; 3 per cent.
 Annual fixed tax per delivery truck or van of
 manufacturers or producers of or dealers in certain
products. Tax rates varies on the regulations of
the local government concerned.

Municipalities > Tax on business; based on the volume of business of the

applicant.
 Fees and charges; will be fixed by the local council or
the city which have the power to levy a rate.
 Fishery rental or fees and charges; stipulated in the
Local Tax Code and municipalities and coastal areas.
Fees for sealing and licensing of weights and measures;
dependent on the tax code of local governments
concerned.
 Community tax – computed based on the income of
individual citizens.

Cities > The city may levy and collect taxes, fees and other
impositions that the province or municipality may levy
and collect. There is not much variation with the taxing
powers of the provinces and municipalities, except that
the rates in cities are much higher than those of the
provinces of municipalities.

Barangays > Taxes and fees; like the power to tax in the
province, cities and municipalities, the taxing power of
barangays are also defined in the Local Government
Code. However, barangay government collects
barangay share is 15 per cent of the total Real Property
collection in cities and municipalities that can also tax
livestock such as cockfighting.

 Service charges: barangays may impose and collect

fees on services rendered by an agency as part of the
regulatory power of the barangay government.

 Contributions: barangay likewise are empowered to

receive contributions from the private sectors, financial
institutions and the like.