Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19th CONGRESS 
First Regular Session 
HOUSE BILL NO.  ____ 
___________________________________________________________________________ 
Introduced by REP. BERNADETTE “DETTE” G. ESCUDERO 
___________________________________________________________________________ 
AN ACT 
PROHIBITING ANY FORM OF INTERFERENCE BY NATIONAL 
GOVERNMENT AGENCIES WITH THE USE OF THE NATIONAL TAX 
ALLOTMENT AND LOCALLY GENERATED REVENUES OF LOCAL 
GOVERNMENT UNITS 
EXPLANATORY NOTE 
The imposition by national government agencies (NGAs) of a wide assortment of 
rules and regulations on LGUs has effectively impinged on the autonomy supposedly granted 
to them under the 1987 Constitution and the Local Government Code of 1991. This rampant 
use of executive issuances has continually deprived LGUs of the opportunity to manage their 
own affairs and to develop their own mechanisms to address the concerns of their constituents. 
This bill seeks to carve a path towards a more genuine local autonomy by prohibiting 
NGAs from issuing or promulgating rules and regulations that would interfere with the 
utilization of National Tax Allotment and locally-generated revenues, rendering the same void 
and without effect. It also penalizes with removal from office those responsible NGA officials 
and employees who failed to heed to such prohibition. Through these interventions, it is hoped 
that LGUs would have enough leeway to perform their mandates without excessive 
restrictions imposed by the national government.  
Ultimately, this bill seeks to realize the objectives of the Local Government Code by 
allowing LGUs to enjoy genuine and meaningful local autonomy, enabling them to realize 
their fullest development as self-reliant communities, and making them more effective 
partners in the attainment of national goals. 
In line with these intentions, the passage of the bill is hereby sought. 
BERNADETTE “DETTE” G. ESCUDERO 
July 26, 2022
6:22 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19th CONGRESS 
First Regular Session 
HOUSE BILL NO.  ____ 
___________________________________________________________________________ 
Introduced by REP. BERNADETTE “DETTE” G. ESCUDERO 
___________________________________________________________________________ 
AN ACT 
PROHIBITING ANY FORM OF INTERFERENCE BY NATIONAL 
GOVERNMENT AGENCIES WITH THE USE OF THE NATIONAL TAX 
ALLOTMENT AND LOCALLY GENERATED REVENUES OF LOCAL 
GOVERNMENT UNITS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Declaration of Policy. — It is hereby declared the policy of the State for the 
government to strengthen, and work for, full local autonomy1 as a means to ensure  local fiscal 
governance and administration of Local Government Units (LGUs) without any interference 
from the National Government (NG), especially with funds constitutionally allocated to and 
solely generated by them. While the President may have general supervision over LGUs, such 
power must be used to enhance, not to frustrate, self-governance of every territorial and 
political subdivision of the State. 
Sec. 2. Prohibition. — Notwithstanding any other provisions of law to  the contrary, 
all agencies of the NG shall not issue or promulgate any rules or regulations in the form of 
memoranda, circulars, orders, resolutions, guidelines or any other issuances in the 
performance of their respective statutory functions and duties that shall interfere, in any form, 
with the use of the National Tax Allotment and locally generated revenues of LGUs.   
1 Sec. 2, Art. X of the Constitution. The territorial and political subdivisions shall enjoy local autonomy. 
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Sec. 3. Definition of Terms. - For purposes of this Act:  
 
National Government shall refer to the entire machinery of the central government as 
distinguished from the different forms of local governments. 
 
Interference in any form shall mean any rules or regulations in the form of memoranda, 
circulars, orders, resolutions, guidelines or any other issuances that impede, prevent, disturb 
or obstruct the activities or the conduct of the business or contractual relations of LGUs, or 
those that enter into the local concerns, duties or functions of LGUs.  
 
Local Government Units shall refer to the territorial and political subdivisions of the 
Philippines established by or in accordance with Section 1, Article X of the Constitution.2 
 
National Tax Allotment shall refer to the just share of LGUs in the national taxes as 
provided under Section 6, Article X of the Constitution.3 
 
Locally Generated Funds shall refer to any and all funds solely realized, produced or 
gained by LGUs and that as provided for in Section 5, Article X of the Constitution.4 
 
Sec. 4. Effect. — Notwithstanding any other provisions of law to  the contrary, any 
rules or regulations in the form of memoranda, circulars, orders, resolutions, guidelines or any 
other issuances issued or promulgated by agencies of the National Government in violation of 
this Act shall be rendered void and without effect. Furthermore, any official or employee of 
the National Government found to be responsible for such issuance or promulgation by a court 
of competent jurisdiction under this Act shall be removed from office.  
 
                                                             
2 The territorial and political subdivisions of the Republic of the Philippines are the provinces, cities, 
municipalities, and barangays. 
3 Sec. 6. Local government units shall have a just share, as determined by law, in the national taxes 
which shall be automatically released to them. 
 
4 Each local government unit shall have the power to create its own sources of revenues and to levy 
taxes, fees, and charges subject to such guidelines and limitations as the Congress may provide, 
consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively 
to the local governments. 
 
 


 
Sec. 5. Separability Clause. - If any part or provision of this Act shall be held 
unconstitutional or invalid, other provisions hereof which are not affected hereby shall 
continue to be in full force and effect. 
 
Sec. 6. Repealing Clause - All laws, presidential decrees, executive orders, rules, and 
regulations or parts thereof which are inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
 
Sec. 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or at least two (2) newspapers of general circulation. 
 
Approved,