Churchill Aguilar  IT seems like most of the local government units are very dependent on their Internal Revenue Allotment (IRA). About 90 percent of their local spending comes from the national government. Yet when we look into our system there are structures that would supposedly make each local government self-governing. The devolution of powers as stipulated in the local government code provides the transfer of political and territorial powers of the national government to the local government. The essential powers that were transferred to LGUs are of course the four inherent powers of the state. These are:
  1. Police Power – This power is founded on the principle that the welfare of the people is the supreme law. So the local legislative or the Sanggunian is given power to make laws that promote the welfare of the people. Yet if we look closely to each local government, their Sangunian never exercise this power. Most of the time they just follow what the mayor says. A lot of their energy is greatly focused on their “power of the purse.” We hardly see any councilor who really conducts public hearings in aid of legislation. While their position is synonymous to the word “representative” to the people, I doubt if they really represent their people.
  2. Eminent Domain – This power allows the government to confiscate or use private properties for public use upon just compensation. Most local politicians would not dare use this power supposedly for development if the owners of the land are great funders of the election. This fear hinders the fast tracking of development.
  3. Taxation- each government has the power to levy taxes, charges and fees. Yet most of the LGUs are under collecting local taxes specifically on business taxes and real property taxes. And while politicians think it benefits them, it actually jeopardizes their social services. Without collection, they cannot provide for the basic needs of their people such as health care. Politicians dread to implement taxes intensively because it might cost them a re-election. If they are concern about their people, it is not the non-collection that answers it rather it is the adjustment of tax rates that would be sensitive to the plight of the poorer sector of their communities. I-collect ang taxes pero ayaw lang intawon sobra ka mahal nga rates. Amend the tax revenue code if you must.
  4. Corporation – The local government can always exercise its corporate power. It can enter into contracts and engage in a public enterprise that will generate big revenues. The only problem is that when a local government starts a business, it’s always losing due to mismanagement. Almost always it is used to give jobs to supporters of politicians too many to be subsidized by the income of the business. In the end, it never generates income for the local government.
If the four inherent powers are properly exercised, a local government can always earn more than its IRA. There are a few LGUs who are not IRA dependent. This goes to show that it can be done and that LGUs can actually be autonomous in its strictest sense. Local autonomy can only be achieved with the right leadership. And right leadership requires intelligent politicians that are masters in governance and our bureaucracy and not just popular and charismatic candidates. It is problematic when our requirements for elected posts is just residency and are able to read and write. With such system, right from the beginning we have already lost the game.