LGov Quiz

T or F: Local Government Units (LGUs) shall have a 40 percent share in the national internal revenue taxes based on the collection of the third fiscal year on the third year and thereafter.

• True. This is in accordance with Section 284 of the Local Government Code.

• False. The LGUs shall have 35 percent share.

• False. Not all LGUs are entitled.

• False. This was already modified in the Mandanas-Garcia ruling.

Answer explanation

Section 284 of the Local Government Code, as modified in Mandanas-Garcia ruling:

Local government units shall have a share in the national taxes based on the collection of the third fiscal year preceding the current fiscal year as follows:

x x x

(c) On the third year and thereafter, forty percent (40%).

x x x

Section 286 (a) of the Local Government Code provides that the share of each local government unit shall be released, without need of any further ______, directly to the provincial, city, municipal or barangay treasurer, as the case may be, on a quarterly basis, and which shall not be subject to any lien or holdback that may be imposed by the National Government for whatever purpose.

What are local development projects based from Section 287 of the Local Government Code?

• Development projects appropriated in its annual budget by each LGU no less than twenty percent of its annual allotment.

• Development projects appropriated by each LGU no less than twenty percent of its annual budget.

• Development projects appropriated in its annual budget by each LGU no less than five percent of its annual allotment.

• Development projects appropriated in its annual budget by each LGU no less than one percent of its annual allotment.

Answer explanation

This is the equitable share of Local Government Units (LGUs) in the proceeds derived from the utilization and development of the national wealth within their respective areas, including sharing the same with the inhabitants by way of direct benefits.

• Share of LGUs in the National Wealth

• Share of LGUs in the National Taxes

• Share from Internal Revenue Allotment

• Share from Mining Taxes

Answer explanation

T or F: A local government unit may contract loans, credits, and other forms of indebtedness.

• True. This is only allowed if transacted with any government banks.

• False. An LGU cannot contract any loans because this entails interest expense to the detriment of the public funds.

• True. It may be transacted with government or domestic private bank and lending institution.

• False. This is not allowed because it carries various risks and may be prone to corruption.

Answer explanation

Region with highest population based from 2020 Census of Population and Housing

• NCR

• Region IV-A

• Region III

• Region VIII

Answer explanation

Source: https://psa.gov.ph/statistics/population-and-housing/node/164786

The share of each local government unit shall be released, without need of any further action, directly to the provincial, city, municipal or Barangay treasurer, as the case may be, on a quarterly basis within _ days after the end of each quarter, and which shall not be subject to any lien or holdback that may be imposed by the national government for whatever purpose.

Answer explanation

T or F: Local government units shall have a share based on the preceding fiscal year from the proceeds derived by any government agency or government-owned or controlled corporation engaged in the utilization and development of the national wealth.

• True

• False

Answer explanation

Richest city in the Philippines in terms of assets based from 2022 report from the Commission on Audit.

• Davao City
• Makati City
• Cebu City
• Quezon City

Answer explanation

Which of the following is not considered/allowable project under the 20% local development fund of the LGU?

• Infrastructure Projects

• Purchase of Ambulance

• Procurement of Information System

• Training and development

Answer explanation

DBM-DOF-DILG Joint Memorandum Circular No. 1, s. 2020 dated November 4, 2020