Professional Documents
Culture Documents
Presently under the regime of the 1987 Constitution and the Local Government Code
of 1991
Barangays
Barangays
Barangays
Total Number of Barangays: 42,028
Administrative Structure
Local governments as political and territorial subdivisions of the State
Provinces, cities, and municipalities are directly headed by a local chief
executive (Governor for provinces, and Mayor for cities and municipalities)
and a vice (Vice Governor; Vice Mayor)
Each local government has a local legislative council called Sanggunian
(Provincial Board; City/Municipal/Barangay Council) composed of councilors,
with the Vice Governor/Vice Mayor/Punong Barangay serving as Presiding
Officer
Barangays are headed by a Chairman
Provinces
Cities
Municipalities
Barangays
Business
No
Yes
Yes
No
Real property
Yes
Yes
Share
Share
Idle land
Yes
Yes
No
No
Yes
Yes
No
No
Yes
Yes
No
No
Yes
Yes
Share
Share
Yes
Yes
No
No
Amusement places
Yes
Yes
Share
No
Professionals
Yes
Yes
No
No
Community tax
No
Yes
Yes
Share
Franchise
Yes
Yes
No
No
Demolition Permit
Health Services
Parking
Special Cockfighting
Annual Inspection
Electrical permit
Holding of Benefits
Pedicab Operations
Storage of Flammable
Materials
Bicycle Permit
Boats Permit
Fee on Occupation or
Calling
Impounding of Stray
Animals
Terminal Fees
Building Permit
Filmmaking
Market
Plumbing Permit
Burial Permit
Fire Certification
Marriage
Police Clearance
Towing Charges
Bus Terminals
Firearms Permit
Mayors Permit
Registration of Large
Cattle
Traffic Violations
Fiscals Clearance
Mechanical Permit
Rental of Facilities
Tricycle Franchising
Certification
Fishing Permit
Mineral Lands
Sanitary Permit
Tuition Fees
Mining Claims
Cockpits
Garbage Colections
Other Heavy
Equipment
Sheriffs Fees
Court Fees
Hawkers
Parades
Slaughterhouse &
Corrals
2010
2011
2012
2013
2014
(240.15)
-3%
(356.65)
-4%
(175.10)
-2%
(165.33)
-2%
42.41
0%
82.21
1%
(7182.25)
-4%
(8253.04)
-4%
(4792.78)
-2%
(4935.96)
-2%
(2071.03)
-0.8%
(859.43)
-0.3%
(329.85)
(379.03)
(220.11)
(226.69)
(95.11)
(39.47)
-4%
(329.85)
-4%
(379.03)
-2%
(220.11)
-2%
(226.69)
-1%
(95.11)
0%
(39.47)
(298.532)
(314.458)
(197.754)
(242.827)
(164.062)
(73.092)
(8.759)
(7.689)
(3.536)
(3.506)
(3.506)
(2.675)
(19.300)
(66.925)
(19.842)
(4.955)
60.872
21.154
89.706
44.500
(0.168)
10.800
22.376
39.268
(63.722)
9.452
45.018
47.966
(47.432)
9.760
61.357
72.731
(94.848)
9.888
137.524
62.493
(23.725)
15.315
121.683
68.767
(10.735)
12.227
34.695
34.103
34.724
73.648
83.441
51.424
(0.328)
0.207
0.395
2.880
0.000
0.000
0.000
(0.062)
0.000
0.000
0.000
0.000
TOTAL PSBR
Percent of GDP
2009
2010
2011
2012
2013
2014
Average
311,011
336,613
366,093
367,912
389,558
429,429
366,769
Operating Expenditures
233,662
253,867
266,240
282,506
297,731
300,887
272,482
77,349
82,745
99,853
85,407
91,826
128,542
94,287
12,785
14,726
11,816
8,873
12,895
14,185
12,547
Non-Operating Expenditures
46,525
47,551
50,055
47,577
52,159
62,941
51,135
43,608
49,921
61,614
46,703
52,562
79,785
55,699
Growth Rate
Current Operating Income & Expenditures
Income
8%
9%
0%
6%
10%
7%
Expenditures
9%
5%
6%
5%
1%
5%
7%
21%
-14%
8%
40%
12%
15%
-20%
-25%
45%
10%
5%
2%
5%
-5%
10%
21%
7%
14%
23%
-24%
13%
52%
16%
Receipts
Expenditures
Growth rate of Net
Increase(Decrease) in Cash
1.60%
200,000
180,000
1.40%
160,000
140,000
1.00%
120,000
0.80%
100,000
80,000
0.60%
60,000
0.40%
40,000
0.20%
20,000
0.00%
2009
2010
2011
2012
2013
2014
1.20%
450,000
50%
400,000
40%
350,000
Amount in Million Pesos
30%
300,000
250,000
20%
200,000
10%
150,000
0%
100,000
-10%
50,000
0
-20%
2009
Operating Income
2010
2011
2012
Operating Expenditures
2013
2014
2009
2010
2011
2012
2013
2014
Average
311,011
336,613
366,093
367,912
389,558
429,429
366,769
97,510
107,316
117,447
132,278
135,176
150,721
123,408
213,501
229,296
248,646
235,634
254,381
278,708
243,361
Percentage Distribution
Income
100%
100%
100%
100%
100%
100%
100%
Local Sources
31%
32%
32%
36%
35%
35%
34%
External Sources
69%
68%
68%
64%
65%
65%
66%
Growth Rate
Income
Local Sources
External Sources
8.2%
8.8%
0.5%
5.9%
10.2%
6.7%
10%
9%
13%
2%
11%
9%
7%
8%
-5%
8%
10%
6%
1.25%
1.26%
1.24%
Percentage
1.22%
1.21%
1.21%
1.19%
1.19%
1.20%
1.17%
1.18%
1.16%
1.14%
1.12%
2009
2010
2011
2012
2013
Year
2014
External
Sources
66%
Local
Sources
34%
Growth Rate
2010
2011
2012
2013
2014
External Sources
7%
8%
-5%
8%
10%
Local Sources
10%
9%
13%
2%
11%
External Sources
Local Sources
Provinces
Grants/Aids
0.26%
Inter-Local
Transfer
0.46%
Inter-Local
Transfer
0.33%
Local Sources
18.79%
Cities
Local Sources
55.70%
Municipalities
Inter-Local
Transfer
0.30%
Grants/Aids
0.44%
Grants/Aids
0.65%
Local Sources
19.17%
IRA and
Nat'l Shares
79.88%
2009
2010
2011
Amount in Million Php
2012
2013
2014
Average
97,510
107,316
117,447
132,278
135,176
150,721
Tax Revenues
Real Property Tax
Business Tax
Other Taxes
Non-Tax Revenues
Fees and Charges
Receipts from Economic
Enterprises
Other Receipts
67,717
31,518
32,334
3,864
29,793
11,299
71,148
33,057
33,565
4,526
36,168
12,949
81,105
36,000
40,434
4,670
36,343
13,848
92,869
39,315
48,730
4,823
39,409
15,149
96,328
41,191
49,458
5,679
38,848
16,136
107,809
45,349
55,634
6,825
42,913
19,839
12,124
13,074
14,354
16,357
16,922
17,674
7,903
5,791
5,400
Local Sources
Tax Revenues
Real Property Tax
Business Tax
Other Taxes
Non-Tax Revenues
Fees and Charges
Receipts from Economic
Enterprises
Other Receipts
100%
69%
32%
33%
4%
31%
12%
100%
70%
30%
37%
4%
30%
11%
100%
71%
30%
37%
4%
29%
12%
100%
72%
30%
37%
5%
28%
13%
12%
12%
13%
12%
9%
7%
Growth Rate
10%
9%
5%
14%
5%
9%
4%
20%
17%
3%
21%
0%
15%
7%
6%
4%
4%
12%
6%
13%
15%
9%
21%
3%
8%
9%
2%
4%
5%
1%
18%
-1%
7%
11%
12%
10%
12%
20%
10%
23%
9%
10%
8%
12%
12%
8%
12%
Local Sources
Tax Revenues
Real Property Tax
Business Tax
Other Taxes
Non-Tax Revenues
Fees and Charges
Receipts from Economic
Enterprises
Other Receipts
6,370
12%
7%
10,145
8,140
Percentage Distribution
100%
100%
66%
69%
31%
31%
31%
34%
4%
4%
34%
31%
12%
12%
12%
8%
10%
14%
3%
4%
59%
-20%
-3%
-27%
-7%
123,408
86,163
37,738
43,359
5,065
37,246
14,870
15,084
7,291
100%
70%
31%
35%
4%
30%
12%
8%
1%
25%
100%
90%
20%
31%
34%
31%
30%
29%
28%
69%
66%
69%
70%
71%
72%
2009
2010
2011
2012
2013
2014
80%
70%
Growth Rate
15%
60%
50%
10%
40%
30%
5%
20%
10%
0%
2010
2011
-5%
2012
2013
2014
Year
Tax Revenues
0%
Tax Revenues
Non-Tax Revenues
Non-Tax Revenues
100,000
80,000
Other
Taxes
6%
60,000
40,000
20,000
Other Taxes
Business Tax
Real Property Tax
2009
3,864
32,334
31,518
2010
4,526
33,565
33,057
2011
4,670
40,434
36,000
Tax Revenues
2012
4,823
48,730
39,315
2013
5,679
49,458
41,191
2014
6,825
55,634
45,349
Business
Tax
50%
Real
Property
Tax
44%
50,000
45,000
40,000
35,000
Other
Receipts
20%
30,000
25,000
20,000
15,000
10,000
5,000
Other Receipts
Receipts from Economic
Enterprises
Fees and Charges
2009
6,370
2010
10,145
2011
8,140
2012
7,903
2013
5,791
2014
5,400
12,124
13,074
14,354
16,357
16,922
17,674
11,299
12,949
13,848
15,149
16,136
19,839
Non-Tax Revenues
Receipts
from
Economic
Enterprises
40%
Fees and
Charges
40%
Inter-Governmental Transfers
Internal Revenue Allotment
Formula-based block grant from National Government
40% share in the national internal revenue taxes based on the National
Governments collection of the third fiscal year preceding the current fiscal
year
Allocated according to type of local
government:
Provinces - 23%;
Cities - 23%;
Barangays - 20%
Population - 50%;
Inter-Governmental Transfers
Other Shares from National Tax Collection
Share from National Wealth
Share from Tobacco Excise Tax
Share from Government Corporations (PAGCOR/PCSO)
Share from Economic Zones
120,000.00
100,000.00
80,000.00
Province
City
60,000.00
Municipality
40,000.00
20,000.00
2009
2010
2011
2012
2013
2014
Expenditure Responsibilities
Health & Social
Services
Agriculture
Inter-barangay
irrigation
system
Water and soil
resource
utilization and
conservation
projects
Enforcement
of fishery laws
in municipal
waters
Conservation
of mangroves
Environmental
Protection &
Management
Infrastructure
Solid waste
Provision for:
disposal system Public markets
General hygiene Public buildings
and sanitation
Freedom parks and
Communityother public assembly
based forestry
areas
projects
Other similar facilities
Management and
control of
Maintenance and
communal
rehabilitation of:
forests
Roads and bridges,
School buildings and
other facilities for basic
education
Clinics, health centers
and other health
facilities
Fish ports
Artesian wells
Water supply systems
Seawalls and dikes
Drainage and sewerage
Flood control system
Traffic signals and road
signs
Tourism
Development of
tourism facilities
and other
tourist
attractions
Acquisition of
equipment
Regulation and
supervision of
business
concessions
Regulatory
Functions
Certain regulatory
functions of the
national
government:
Inspection of
food products
Adoption of
quarantine
regulations
Enforcement of
the National
Building Code
Regulations of
transport
operations
Licensing of
cockpits
2009
2010
2011
2012
Amount in Million Pesos
2013
2014
Average
233,662
253,867
266,240
282,506
297,731
300,887
272,482
128,806
142,478
146,303
154,815
161,732
160,904
149,173
Social Services
57,291
58,973
65,025
69,980
76,247
79,639
67,859
Economic Services
43,884
48,427
50,288
53,173
55,384
55,943
51,183
3,681
3,989
4,625
4,538
4,369
4,402
4,267
100%
55%
25%
19%
2%
100%
54%
26%
19%
1%
100%
53%
26%
19%
1%
100%
55%
25%
19%
2%
6%
6%
8%
6%
-2%
5%
4%
9%
4%
-4%
1%
-1%
4%
1%
1%
5%
5%
7%
5%
4%
Debt Service
EXPENDITURES
General Public Services
Social Services
Economic Services
Debt Service
EXPENDITURES
General Public Services
Social Services
Economic Services
Debt Service
100%
55%
25%
19%
2%
Percentage Distribution
100%
100%
56%
55%
23%
24%
19%
19%
2%
2%
Growth Rate
9%
5%
11%
3%
3%
10%
10%
4%
8%
16%
Note:
Social Services is the sum of Department of Education, Health, Nutrition and Population Control, Labor and Employment, Housing and
Community Development, and Social Services and Social Welfare
100%
10.00%
90%
9.00%
80%
8.00%
70%
7.00%
60%
6.00%
50%
5.00%
40%
4.00%
30%
3.00%
20%
2.00%
10%
1.00%
0%
0.00%
2009
2010
2011
2012
2013
2014
Social Services
Economic Services
Debt Service
Economic
Services
19%
Social
Services
25%
Growth Rate
Debt
Service
1%
General
Public
Services
55%
20%
Growth Rate
15%
10%
5%
0%
-5%
General Public Services
Social Services
Economic Services
Debt Service
2010
11%
3%
10%
8%
2011
3%
10%
4%
16%
2012
6%
8%
6%
-2%
2013
4%
9%
4%
-4%
2014
-1%
4%
1%
1%
Sub-national Debt/Borrowing
Any local government unit may create indebtedness, and
avail of credit facilities to finance local infrastructure and
other socio-economic development projects (based on the
approved local development plan and public investment program)
Sub-national Debt/Borrowing
Statutory Limitations: the amount of appropriations for
debt servicing shall not exceed 20% of the regular income
of the local government unit concerned.
Ex ante monitoring/regulations: DOF/BLGF certifies debts
service ceiling and net borrowing capacity of LGUs; the
Monetary Board issues opinion on the monetary and
balance of payments implications for every proposed
borrowing of local governments
Policy preference to secure loans with government
financial institutions
80,000
0.80%
70,000
0.70%
60,000
0.60%
50,000
0.50%
40,000
0.40%
30,000
0.30%
20,000
0.20%
10,000
0.10%
0.00%
2009
2010
2011
2012
2013
2014
LGU Borrowings
Organizational Structure
Strategic Thrusts and Programs
Special Projects
VISION:
The Bureau of Local Government Finance of the Department of Finance is the focal agency
and an authority in local finance that aims to be at the forefront of local economic growth
leading the way towards national development.
BLGF Clientele
LGUs: Local Chief Executives, Local Legislative, Council,
Local Finance Committee, Local Treasurer, Assistant
Treasurer and Treasury Personnel, Local Assessor,
Assistant Assessor and Assessment Personnel
National Government Agencies: DOF, DILG, DEN, DAR,
DBM, NEDA, CSC, COA, Ombudsman
Government Financial Institutions: BSP, LBP, DBP, etc.
Development Partners/Bilateral/Multilateral Institutions
General Public/Taxpayers
Organizational Structure
Special Projects
L O G O F I N D Local Government Finance and Development
ADB TA 7809
REGALA
Moving forward
Review of the fiscal provisions of the 1991 Local Government Code: consider
amendments on tax assignments and revenue mandates
Review current regulations on utilization of national transfers, local fiscal incentives,
subnational borrowing, etc.
Prioritize the key legislation pending in Congress:
Valuation Reform Bill: recentralize the approval of property valuations
Income Classification Bill for the Secretary of Finance to set income brackets and to
regularly reclassify local governments every 3 years
Bill increasing the income requirement for creation of cities from Php100M to Php250M
(which may be increased every 3 years).