Principles of Local Autonomy | LAW ON LOCAL GOVERNMENTS

Principles of Local Autonomy in the Philippines

Local autonomy is enshrined in the 1987 Philippine Constitution and operationalized through the Local Government Code of 1991 (Republic Act No. 7160). It is a foundational principle in the governance of local government units (LGUs), and it serves as a key pillar for decentralization, granting LGUs the ability to manage their own affairs. Below is a meticulous discussion of the key aspects, legal foundations, and principles of local autonomy in the Philippines:

1. Constitutional Framework

The 1987 Philippine Constitution explicitly recognizes local autonomy, with the following key provisions:

• Article II, Section 25: "The State shall ensure the autonomy of local governments."
• Article X, Section 2: "The territorial and political subdivisions shall enjoy local autonomy."
• Article X, Section 3: "The Congress shall enact a local government code which shall provide for a more responsive and accountable local government structure instituted through a system of decentralization..."

These constitutional provisions underscore the commitment of the Philippine government to decentralize power from the national government to LGUs.

2. Local Government Code of 1991 (Republic Act No. 7160)

The Local Government Code (LGC) is the main legal framework implementing the principle of local autonomy. It details the structure, powers, functions, and responsibilities of LGUs, as well as the mechanisms for fiscal autonomy and intergovernmental relations. Key provisions include:

• Devolution of Powers and Functions: The LGC devolves certain powers from the national government to LGUs, such as health services, agricultural extension services, social welfare services, public works and highways, environmental management, and more.

• Autonomous Power of LGUs: The Code grants LGUs the authority to create their own sources of revenue, such as taxes, fees, and charges, in addition to receiving their share from national taxes (Internal Revenue Allotment or IRA, now termed National Tax Allotment or NTA after the Mandanas-Garcia ruling).

• Corporate Powers: LGUs have the power to sue and be sued, to acquire and convey real or personal property, and to enter into contracts.

3. Mandanas-Garcia Ruling (GR No. 199802, 2018)

A landmark decision by the Supreme Court of the Philippines expanded the fiscal autonomy of LGUs. The ruling interpreted the term “just share” in the context of the IRA to include all national taxes, not just those collected by the Bureau of Internal Revenue (BIR). This decision effectively increased the revenue share of LGUs and further empowered them to pursue independent local development initiatives.

4. Decentralization as a Pillar of Local Autonomy

Decentralization refers to the process of redistributing powers from the central government to local governments. It has two major forms:

• Devolution: A transfer of powers, responsibilities, and resources from the national government to LGUs. LGUs are empowered to manage local affairs such as health, education, and infrastructure, in accordance with the principle of subsidiarity.

• Deconcentration: A weaker form of decentralization, where administrative powers are delegated to regional or local offices of the national government. In this case, LGUs have less control and autonomy.

5. Key Principles of Local Autonomy

The principle of local autonomy in the Philippines can be dissected into the following core aspects:

A. Political Autonomy

Political autonomy is reflected in the LGUs’ capacity to:

• Elect their own local officials, as provided by Article X, Section 8 of the Constitution.
• Formulate their own local policies, ordinances, and resolutions to address the unique needs of their communities, as authorized by the LGC.

B. Administrative Autonomy

LGUs have the autonomy to administer and implement policies in their jurisdiction. The Code empowers LGUs to:

• Enact local ordinances and perform legislative functions through their Sanggunian.
• Manage personnel, including hiring and discipline of local employees.
• Organize and reorganize their local offices in accordance with the needs of the community.

C. Fiscal Autonomy

Fiscal autonomy is one of the most critical components of local autonomy. The LGC provides for:

• The right to generate and control local revenues, such as through local taxation (property tax, business tax, etc.) and fees.
• A guaranteed share of national taxes through the National Tax Allotment (NTA). LGUs receive a portion of national taxes automatically.
• The power to incur loans and contract debt for local projects.
• Local governments can also enter into Public-Private Partnerships (PPP) to fund local infrastructure projects.

D. Local Legislative Power

The Sanggunian (local legislative council) of each LGU is vested with law-making powers. The Sanggunian has the authority to enact:

• Ordinances to regulate local matters such as public health, safety, and public order.
• Appropriation ordinances for budgetary purposes.
• Tax ordinances to generate revenues for local programs.

6. Mechanisms Ensuring Local Autonomy

A. Checks and Balances

The principle of local autonomy is balanced by mechanisms to ensure that LGUs remain accountable and transparent:

• Oversight Functions of National Agencies: While LGUs have autonomy, national agencies such as the Department of the Interior and Local Government (DILG) exercise oversight to ensure that LGUs comply with national laws and policies.

• COA Audits: The Commission on Audit (COA) has the power to audit the use of public funds by LGUs to ensure that they are properly used for local development.

• Recall: Local officials may be subject to a recall election, where the electorate can remove them from office before the end of their term for loss of confidence.

B. Inter-LGU Cooperation

The LGC encourages inter-LGU cooperation through mechanisms such as:

• Local Government Units' Alliances (LGU Alliances): LGUs may form cooperative alliances with each other to jointly address issues that cross boundaries, such as environmental protection and regional development.

• Local Special Bodies (LSBs): The LGC provides for the establishment of various consultative and decision-making bodies (e.g., Local Development Councils) that include both local officials and civil society representatives to enhance participatory governance.

7. Limitations on Local Autonomy

Despite the broad powers granted to LGUs, local autonomy is not absolute. There are limits and restrictions imposed by the Constitution, the Local Government Code, and other national laws:

• Hierarchy of Laws: LGUs must enact ordinances in accordance with national laws. National statutes and the Constitution take precedence over local ordinances.

• Subject to National Supervision: Local autonomy is always subject to the general supervision of the President. The President can intervene when LGUs act beyond their powers or when necessary to maintain public order.

• Doctrine of Local Government as “Delegate” of the National Government: LGUs are considered "creatures of the state" and derive their powers from legislation. Congress may increase or decrease their powers through subsequent laws.

8. Public International Law and Local Autonomy

The principle of local autonomy in the Philippines is consistent with international standards of governance, particularly in terms of decentralization and good governance. Local autonomy allows for:

• Local Democracy: Empowering communities to participate in decision-making aligns with principles of democracy and self-determination recognized under international law.

• Sustainable Development: Decentralization can enhance localized responses to global challenges, such as climate change, poverty, and human rights, as articulated in the UN's Sustainable Development Goals (SDGs).

Conclusion

Local autonomy in the Philippines is a fundamental principle that is constitutionally mandated and operationalized through the Local Government Code. It enables LGUs to exercise substantial control over their political, administrative, and fiscal affairs. However, local autonomy exists within the framework of national laws and is subject to general supervision by the national government to ensure that it operates in the best interests of the public. The principles of devolution, decentralization, and participatory governance shape the landscape of local governance in the country, driving more responsive and accountable local government units.