Local Government Code of 1991, Republic Act No. 7160

Local governance is at the heart of nation-building. Before the 1990s, much of the Philippines’ development planning and decision-making was concentrated in the national government, often leaving local communities with limited say in their own progress. To address this imbalance and bring governance closer to the people, the government enacted Republic Act No. 7160, more popularly known as the Local Government Code of 1991. Signed into law on October 10, 1991, it granted provinces, cities, municipalities, and barangays greater autonomy, authority, and resources to manage their affairs and pursue growth tailored to their unique needs.

What is RA 7160?

RA 7160 is the landmark legislation that decentralizes governance in the Philippines. It transfers powers and responsibilities from the national government to LGUs of provinces, cities, municipalities, and barangays, enabling them to manage local affairs more effectively. Under the Code, LGUs are authorized to create their own revenue sources, implement local ordinances, regulate land use, and deliver public services tailored to community needs.

One of its most notable features is the Internal Revenue Allotment (IRA), which allocates a significant share of national taxes to LGUs. This funding ensures that even resource-poor areas can provide essential services in health, education, infrastructure, and environmental management.

What RA 7160 Provides?

RA 7160 serves as an enabler for community-driven development by creating a framework where local officials are accountable to their constituents rather than solely to the central government. Through the devolved powers it grants, LGUs are empowered to enact ordinances and resolutions that reflect community priorities, generate revenues through local taxation and fees, manage natural resources and regulate land use for balanced development, and deliver basic services such as health care, social welfare, agricultural support, and infrastructure. In addition, the Code allows LGUs to forge partnerships with the private sector, non-government organizations, and even international institutions to pursue projects that benefit their jurisdictions. By granting these authorities, RA 7160 equips LGUs with the tools to innovate, respond quickly to local challenges, and harness opportunities that promote inclusive and sustainable growth.

Why Does RA 7160 Matter?

RA 7160 plays a critical role in strengthening grassroots democracy by decentralizing power and giving local governments greater autonomy to address the needs of their communities. It ensures that development is not dictated solely from the national level but is shaped by the priorities of provinces, cities, municipalities, and barangays. By promoting accountability, transparency, and citizen participation, the law fosters stronger connections between local leaders and their constituents, making governance more responsive and inclusive.

At PRIME Philippines, we recognize the importance of RA 7160 in enabling local governments to become true engines of growth. The Local Government Code remains a cornerstone of progress, empowering LGUs to innovate, deliver essential services, and drive community-centered development, proving that sustainable nation-building begins at the local level.