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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE
- Local government units shall have the power and authority to create their own sources of revenues and to levy taxes, fees, and charges which shall accrue exclusively for their use and disposition and which shall be retained by them.
- LGUs have a right to just share in national taxes which shall be automatically and directly released to them without need of any further action as well as an equitable share in the proceeds from the utilization and development of the national wealth and resources within their respective territorial jurisdictions including sharing the same with the inhabitants by way of direct benefits.
- LGUs also have the power to acquire, develop, lease, encumber, alienate, or otherwise dispose of real or personal property held by them in their proprietary capacity and to apply their resources and assets for productive, developmental, or welfare purposes. (Section 18, Local Government Code)
The Local Government Code of the Philippines provides that every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance and those which are essential to the promotion of the general welfare. (Section 16, Local Government Code)
Local government units must ensure and promote the following within their respective territorial jurisdiction: (a) preservation of culture; (b) health and safety; (c) right of the people to a balanced and healthful ecology; (d) development of scientific and technological capabilities; (e) public morals; (f) economic prosperity and social justice; (g) full employment; (h) maintenance of peace and order; (i) comfort and convenience of inhabitants. (Section 16, Local Government Code)
Towards these objectives, local government units are given the power to generate and apply their own resources.
The law says:
Local government units shall have the power and authority:
(a) to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, program objectives and priorities;
(b) to create their own sources of revenues and to levy taxes, fees, and charges which shall accrue exclusively for their use and disposition and which shall be retained by them;
(c) to have a just share in national taxes which shall be automatically and directly released to them without need of any further action;
(d) to have an equitable share in the proceeds from the utilization and development of the national wealth and resources within their respective territorial jurisdictions including sharing the same with the inhabitants by way of direct benefits;
(e) to acquire, develop, lease, encumber, alienate, or otherwise dispose of real or personal property held by them in their proprietary capacity and to apply their resources and assets for productive, developmental, or welfare purposes, in the exercise or furtherance of their governmental or proprietary powers and functions and thereby ensure their development into self-reliant communities and active participants in the attainment of national goals. (Section 18, Local Government Code)
Prior authorization through an appropriation ordinance
An appropriation ordinance passed by the local government unit’s Sanggunian serves as an authorization to the local government.
The law says:
“Prior Consultations Required. – No project or program shall be implemented by government authorities unless the consultations mentioned in Sections 2 (c) and 26 hereof are complied with, and prior approval of the Sanggunian concerned is obtained: Provided, That occupants in areas where such projects are to be implemented shall not be evicted unless appropriate relocation sites have been provided, in accordance with the provisions of the Constitution.” (Section 27, Local Government Code)
Jurisprudence says:
“Where the local government unit operates under an annual as opposed to a re-enacted budget, it should be acknowledged that the appropriation passed by the Sanggunian may validly serve as the authorization required under Section 22 (c) of the LGC. After all, an appropriation is an authorization made by ordinance, directing the payment of goods and services from local government funds under specified conditions or for specific purposes.” (Quisimbing v. Garcia, G.R. No. 175527, December 08, 2008)
May any person as a taxpayer be allowed to sue the government on account of contracts it entered into using public funds?
Jurisprudence says:
“A taxpayer is allowed to sue where there is a claim that public funds are illegally disbursed, or that public money is being deflected to any improper purpose, or that there is wastage of public funds through the enforcement of an invalid or unconstitutional law. A person suing as a taxpayer, however, must show that the act complained of directly involves the illegal disbursement of public funds derived from taxation. In other words, for a taxpayer’s suit to prosper, two requisites must be met namely, (1) public funds derived from taxation are disbursed by a political subdivision or instrumentality and in doing so, a law is violated or some irregularity is committed; and (2) the petitioner is directly affected by the alleged act.” (Landbank of the Philippines v. Cacayuran, G.R. No. 191667, April 17, 2013)
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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