Fiscal Implications of the Local Government Code of 1991

Through the provision of the Local Government Code, transfer of responsibilities from the national to the local level has been instituted. This paper analyzes some of the LGC provisions since these affect the country’s financial status. Simulation of fiscal repercussions is performed, the results of which are compared to status quo. The exercise illustrated in this article can be used to define the strengths and weaknesses of the new Code that will aid the smooth implementation of its provisions.