The document discusses the structures and functions of local government units (LGUs) in the Philippines. It states that the national government creates, merges, or abolishes LGUs through law. It outlines the criteria for land area, income, and population needed to create provinces, cities, municipalities, and barangays. It also discusses the officials, basic services, and revenue sources of LGUs. The document summarizes the Supreme Court's Mandanas-Garcia ruling, which increased LGUs' tax base and strengthened fiscal decentralization. It impacts LGUs by providing more funding through increased internal revenue allotments.

1. MPA 102
STRUCTURES AND
FUNCTIONS OF LOCAL
GOVERNMENT UNIT
R O D E M A R T B . C A S T I L L O
rbcastillo1989@gmail.com

2. Who creates, merge or abolish LGUs?
The national government by law
creates, merges or abolishes LGUs,
endows them with powers within their
jurisdictions and determines national-
local government units locations. While
these local units may be created by law,
the Local Government Code mandates
that the residents of the areas affected
by the creation should approve the
measure in a plebiscite.

3. CRITERIA IN THE CREATION/CONVERSION OF LGUs
Land Area
• At least 2,000 square
kilometer
(Certified by Land
Management Bureau)
Income
• At least
P20,000,000.00
(Certified by
Department of
Finance)
Population
• At least 250,000
(Certified by
NSO/PSA)
P R O V I N C E

4. CRITERIA IN THE CREATION/CONVERSION OF LGUs
Land Area
At least 100 square
kilometer
(Certified by Land
Management Bureau)
Income
At least
P20,000,000.00
(Certified by
Department of
Finance)
Population
At least 150,000
(Certified by NSO)
C I T I E S

5. CRITERIA IN THE CREATION/CONVERSION OF LGUs
Land Area
At least 50 square
kilometer
> (Certified by Land
Management Bureau)
Income
At least
P2,500,000.00
(Certified by
Department of
Finance)
Population
At least 25,000
(Certified by NSO)
MUNICIPALITIES

6. CRITERIA IN THE CREATION/CONVERSION OF LGUs
Land Area
Not included in the
criteria
Income
Not included in the
criteria
Population
At least 2,000
(Certified by NSO)
Provided that for Metropolitan
Manila a minimum of 5,000 due
to population density
BARANGAYS

7. CRITERIA/CONDITIONS IN THE MERGER/DIVISION OF LGUs
-Division and merger of existing local government
units shall comply with the same requirements herein
prescribed for their creation. Provided however, That such
division shall not reduce the income, population, or land
area of the local government unit or units concerned to less
than the minimum requirements prescribed in this Code:
Provided, further, That the income classification of the
original local government unit or units shall not fall below
its current income classification prior to such division.

8. Abolition of Local Government Units
Local government unit may be abolished when criteria has been
irreversibly reduced to less than the minimum standards prescribed for its
creation
Land
Area
Income Population

9. Number of LGUs (2012)
81Provinces
33Highly
UrbanizedCities
5Independent
ComponentCities
104Component
Cities
1,492
Municipalities
42,027
Barangays

10. OFFICIALS IN THE LGU
PROVINCIAL
LEVEL
EXECUTIVE
LEGISLATIVE
MUNICIPAL
LEVEL
EXECUTIVE
LEGISLATIVE

11. PROVINCIAL LEVEL
GOVERNOR
SANGUNIANG
PANLALAWIGAN
SECTORAL
REPRESENTATIVES
EX-OFFICIO
VICE GOVERNOR
There are appointed officials such as but not limited to : Secretary to the
Sanggunian, Treasurer, Assessor, Accountant, Budget Officer, PDO, Engineer,
Health Officer, CRO, Administrator, Legal Officer, Agriculturist, SWDO, ENRO,
Information Officer, Cooperative Officer, Veterinarian, General Services Officer.

12. CITIES/MUNICIPAL LEVEL
MAYOR
SANGUNIANG
PANLUNGSOD/BAYAN
SECTORAL
REPRESENTATIVES
EX-OFFICIO
VICE MAYOR
There are appointed officials such as but not limited to : Secretary to the
Sanggunian, Treasurer, Assessor, Accountant, Budget Officer, PDO, Engineer,
Health Officer, CRO, Administrator, Legal Officer, Agriculturist, SWDO, ENRO,
Information Officer, Cooperative Officer, Veterinarian, General Services Officer.

13. BASIC SERVICES RENDERED BY LGUs
HEALTH
AGRICULTURE
(ECONOMIC)
INFRASTRUCTURES

14. BASIC SERVICES RENDERED BY LGUs
EDUCATION
SOCIAL
SERVICES/WELFARE
ENVIRONMENT

15. SOURCESOFREVENUEFORLGUs
National Tax Allotment
Real Property Taxes, Other Local Taxes
Permits/Licenses, economic enterprises, rentals and etc.

16. GLANCE ON THE MANDANAS-GARCIA RULING
WhatistheMandanas-GarciaSupremeCourtRuling?
TheMandanas-GarciaSupremeCourt(SC)rulingreferstotheSC’sfinal
decisiononthetwo(2)separate(consolidatedonOctober22,2013) petitionsfiled
beforetheSC:(1) thepetitionfiledbyCongressmanHermilandoI.Mandanasand
otherlocalofficialsvs.ExecutiveSecretaryPaquitoN.Ochoa,Jr.,etal.(G.R. No.
199802); and(2) CongressmanEnriqueT.Garcia,Jr.vs.ExecutiveSecretary
PaquitoN.Ochoa, Jr.,etal.(G.R. No.208488).
BothpetitionschallengedthemannerinwhichtheNationalGovernment
(NG) computedtheInternalRevenueAllotment(IRA) sharesof localgovernment
units(LGUs). Inparticular,thepetitionerspleadedwiththeSCtomandatetheNG
tocomputetheIRAbasedonthe“justshares”of theLGUs.
TheSCRulingbecamefinalandexecutoryonApril10, 2019,affirmingits
earlierdecisionpromulgatedinJuly3,2018.

17. What support can the LGUs expect from the national government upon
implementationof the SC ruling?
What is the impact of this SC ruling?
The impact of the SC decision significantly increased the tax
base on which the share of the LGUs is computed from, and thus, strengthened
fiscal decentralization. It clarifies the distinction between “national internal
revenue taxes” and “national taxes” as base in the computation of the IRA of
LGUs. National internal revenue taxes include only taxes collected by the Bureau
of Internal Revenue (BIR) while “National taxes,” consists of all taxes and duties
collected by the NG through the BIR, the Bureau of Customs (BOC), and other
collecting agencies.
Central to the full devolution effort is the provision
of capacity development (CapDev) interventions for the LGUs.
Under EO No. 138, the DILG-LGA shall oversee and
harmonize the provision of technical assistance and capacity building
interventions for all LGUs to ensure the efficient utilization of
government resources on this effort, and the implementation and
management of the devolved functions.

18. SPECIAL LOCAL GOVERNMENT UNIT
1. Autonomous Region of Muslim Mindanao (ARMM)
It is covered by RA 6734 which would intended to respond to
the special needs in the predominantly Muslim areas. The region
has its Governor, Assembly as well as a cabinet. Provinces covered
include Sulu, Tawi-Tawi, Maguindanao, Lanao del Sur. In 2001,
Basilan Province(excluding Isabela City) and Marawi City voted for
their inclusion to ARMM.
The Regional Government of the Autonomous Region in
Muslim Mindanao (ARMM) is responsible for good governance and
development of all constituent units within the Autonomous Region
consistent with the declared constitutional policy on regional and
local autonomy and decentralization without diminishing the powers
and functions already enjoyed by the local government units in the
region.

19. SPECIAL LOCAL GOVERNMENT UNIT
2. Metropolitan Manila Development Authority
The Congress of the Philippines enacted Republic Act No. 7924, declaring
the Metropolitan Manila as a special development and administrative region comprising
of cities and municipalities in the area under the direct supervision of the President of
the Philippines, and creating the Metropolitan Manila Development Authority.
Metro Manila Commission (PD
824 of 1975)
Metro Manila
Authority (Executive
Order 392)
Metropolitan
Manila
Development
Authority (RA 7924)

20. -Although the Local Government Code of 1991 provides
for the devolution of powers, the Philippines remains a
unitary state…

21. Thank
You!