Republic of the Philippines government units through the institution

Congress of the Philippines of effective mechanisms of recall,

Metro Manila initiative and referendum.

Eighth Congress (c) It is likewise the policy of the State to

require all national agencies and offices
Republic Act No. 7160 October 10, to conduct periodic consultations with
1991 appropriate local government units,
Setion 41(b) Amended by RA 8553 nongovernmental and people's
Setion 43 Amended by RA 8553 organizations, and other concerned
sectors of the community before any
AN ACT PROVIDING FOR A LOCAL project or program is implemented in
GOVERNMENT CODE OF 1991 their respective jurisdictions.1awphil.net

Section 3. Operative Principles of

Be it enacted by the Senate and House of
Decentralization. - The formulation and
Representatives of the Philippines in Congress
assembled:: implementation of policies and measures on local
autonomy shall be guided by the following
operative principles:
BOOK I
GENERAL PROVISIONS
(a) There shall be an effective allocation
among the different local government
TITLE I units of their respective powers,
BASIC PRINCIPLES functions, responsibilities, and
resources;
CHAPTER I
The Code: Policy and Application (b) There shall be established in every
local government unit an accountable,
Section 1. Title. - This Act shall be known and efficient, and dynamic organizational
cited as the "Local Government Code of 1991". structure and operating mechanism that
will meet the priority needs and service
Section 2. Declaration of Policy. - requirements of its communities;

(a) It is hereby declared the policy of the (c) Subject to civil service law, rules and
State that the territorial and political regulations, local officials and employees
subdivisions of the State shall enjoy paid wholly or mainly from local funds
genuine and meaningful local autonomy shall be appointed or removed, according
to enable them to attain their fullest to merit and fitness, by the appropriate
development as self-reliant communities appointing authority;
and make them more effective partners
in the attainment of national goals. (d) The vesting of duty, responsibility,
Toward this end, the State shall provide and accountability in local government
for a more responsive and accountable units shall be accompanied with
local government structure instituted provision for reasonably adequate
through a system of decentralization resources to discharge their powers and
whereby local government units shall be effectively carry out their functions:
given more powers, authority, hence, they shall have the power to
responsibilities, and resources. The create and broaden their own sources of
process of decentralization shall proceed revenue and the right to a just share in
from the national government to the local national taxes and an equitable share in
government units. the proceeds of the utilization and
development of the national wealth within
(b) It is also the policy of the State to their respective areas;
ensure the accountability of local
(e) Provinces with respect to component (m) The national government shall
cities and municipalities, and cities and ensure that decentralization contributes
municipalities with respect to component to the continuing improvement of the
barangays, shall ensure that the acts of performance of local government units
their component units are within the and the quality of community life.
scope of their prescribed powers and
functions; Section 4. Scope of Application. - This Code
shall apply to all provinces, cities, municipalities,
(f) Local government units may group barangays, and other political subdivisions as
themselves, consolidate or coordinate may be created by law, and, to the extent herein
their efforts, services, and resources provided, to officials, offices, or agencies of the
commonly beneficial to them; national government.

(g) The capabilities of local government Section 5. Rules of Interpretation. - In the

units, especially the municipalities and interpretation of the provisions of this Code, the
barangays, shall be enhanced by following rules shall apply:
providing them with opportunities to
participate actively in the implementation (a) Any provision on a power of a local
of national programs and projects; government unit shall be liberally
interpreted in its favor, and in case of
(h) There shall be a continuing doubt, any question thereon shall be
mechanism to enhance local autonomy resolved in favor of devolution of powers
not only by legislative enabling acts but and of the lower local government unit.
also by administrative and organizational Any fair and reasonable doubt as to the
reforms; existence of the power shall be
interpreted in favor of the local
(i) Local government units shall share government unit concerned;
with the national government the
responsibility in the management and (b) In case of doubt, any tax ordinance or
maintenance of ecological balance within revenue measure shall be construed
their territorial jurisdiction, subject to the strictly against the local government unit
provisions of this Code and national enacting it, and liberally in favor of the
policies; taxpayer. Any tax exemption, incentive or
relief granted by any local government
(j) Effective mechanisms for ensuring the unit pursuant to the provisions of this
accountability of local government units Code shall be construed strictly against
to their respective constituents shall be the person claiming it.
strengthened in order to upgrade
continually the quality of local leadership; (c) The general welfare provisions in this
Code shall be liberally interpreted to give
(k) The realization of local autonomy more powers to local government units in
shall be facilitated through improved accelerating economic development and
coordination of national government upgrading the quality of life for the people
policies and programs an extension of in the community;
adequate technical and material
assistance to less developed and (d) Rights and obligations existing on the
deserving local government units; date of effectivity of this Code and arising
out of contracts or any other source of
(l) The participation of the private sector presentation involving a local
in local governance, particularly in the government unit shall be governed by the
delivery of basic services, shall be original terms and conditions of said
encouraged to ensure the viability of local contracts or the law in force at the time
autonomy as an alternative strategy for such rights were vested; and
sustainable development; and
 (e) In the resolution of controversies Compliance with the foregoing indicators
arising under this Code where no legal shall be attested to by the Department of
provision or jurisprudence applies, resort Finance (DOF), the National Statistics
may be had to the customs and traditions Office (NSO), and the Lands
in the place where the controversies take Management Bureau (LMB) of the
place. Department of Environment and Natural
Resources (DENR).
CHAPTER II
General Powers and Attributes of Local Section 8. Division and Merger. - Division and
Government Units merger of existing local government units shall
comply with the same requirements herein
Section 6. Authority to Create Local Government prescribed for their creation: Provided, however,
Units. - A local government unit may be created, That such division shall not reduce the income,
divided, merged, abolished, or its boundaries population, or land area of the local government
substantially altered either by law enacted by unit or units concerned to less than the minimum
Congress in the case of a province, city, requirements prescribed in this Code: Provided,
municipality, or any other political subdivision, or further, That the income classification of the
by ordinance passed by the sangguniang original local government unit or units shall not fall
panlalawigan or sangguniang panlungsod below its current classification prior to such
concerned in the case of a barangay located division.
within its territorial jurisdiction, subject to such
limitations and requirements prescribed in this The income classification of local government
Code. units shall be updated within six (6) months from
the effectivity of this Code to reflect the changes
Section 7. Creation and Conversion. - As a in their financial position resulting from the
general rule, the creation of a local government increased revenues as provided herein.
unit or its conversion from one level to another
level shall be based on verifiable indicators of Section 9. Abolition of Local Government Units. -
viability and projected capacity to provide A local government unit may be abolished when
services, to wit: its income, population, or land area has been
irreversibly reduced to less than the minimum
(a) Income. - It must be sufficient, based standards prescribed for its creation under Book
on acceptable standards, to provide for III of this Code, as certified by the national
all essential government facilities and agencies mentioned in Section 7 hereof to
services and special functions Congress or to the sangguniang concerned, as
commensurate with the size of its the case may be.
population, as expected of the local
government unit concerned; The law or ordinance abolishing a local
government unit shall specify the province, city,
(b) Population. - It shall be determined as municipality, or barangay with which the local
the total number of inhabitants within the government unit sought to be abolished will be
territorial jurisdiction of the local incorporated or merged.
government unit concerned; and
Section 10. Plebiscite Requirement. - No
(c) Land Area. - It must be contiguous, creation, division, merger, abolition, or
unless it comprises two or more islands substantial alteration of boundaries of local
or is separated by a local government government units shall take effect unless
unit independent of the others; properly approved by a majority of the votes cast in a
identified by metes and bounds with plebiscite called for the purpose in the political
technical descriptions; and sufficient to unit or units directly affected. Said plebiscite shall
provide for such basic services and be conducted by the Commission on Elections
facilities to meet the requirements of its (COMELEC) within one hundred twenty (120)
populace. days from the date of effectivity of the law or
ordinance effecting such action, unless said law
or ordinance fixes another date.