Creation of Local Government Units in the Philippines: Area, Population, and Income Requirements

Introduction

The creation of Local Government Units (LGUs) in the Philippines is a fundamental aspect of the country's decentralized governance framework, as enshrined in the 1987 Constitution and operationalized through Republic Act No. 7160, otherwise known as the Local Government Code of 1991 (LGC). LGUs serve as the primary vehicles for delivering public services, promoting local autonomy, and fostering grassroots development. The LGC establishes specific criteria for the creation of provinces, cities, municipalities, and barangays, emphasizing territorial integrity, demographic viability, and fiscal sustainability. These requirements—centered on area, population, and income—ensure that newly formed LGUs are capable of self-governance without unduly burdening national resources.

This article provides a comprehensive examination of the legal standards for LGU creation, drawing from the LGC and relevant jurisprudence. It covers the requisites for each type of LGU, the procedural mechanisms involved, exceptions and special considerations, and the implications of non-compliance. While the LGC remains the cornerstone, subsequent laws and court rulings have refined these provisions to address evolving socio-economic realities.

Constitutional and Statutory Foundations

Article X of the 1987 Philippine Constitution mandates the establishment of a system of local autonomy, directing Congress to enact a local government code that delineates the powers, responsibilities, and resources of LGUs. Pursuant to this, the LGC was enacted to provide for the creation, division, merger, abolition, or substantial alteration of boundaries of LGUs.

Section 6 of the LGC stipulates that LGUs shall be created or modified only by law enacted by Congress for provinces, cities, and municipalities, or by ordinance passed by the sangguniang panlalawigan or sangguniang panlungsod for barangays. However, any such creation or modification must be ratified through a plebiscite in the affected political units. This democratic safeguard ensures that the will of the local populace is respected.

The core requirements—area, population, and income—are outlined in Sections 7, 385, 441, 450, and 461 of the LGC. These thresholds are designed to guarantee that the new LGU possesses sufficient land mass for administrative efficiency, a critical population mass for representation and service delivery, and adequate revenue generation for operational independence.

Requirements for the Creation of Provinces

Provinces are the largest subnational administrative divisions, typically encompassing multiple municipalities and component cities. Under Section 461 of the LGC, a province may be created if it meets the following criteria:

Area Requirement: The territory must be contiguous and cover at least 2,000 square kilometers, as certified by the Lands Management Bureau (LMB) of the Department of Environment and Natural Resources (DENR). Contiguity implies that the land area is connected without enclaves or separations by other jurisdictions, except where separated by water bodies that do not disrupt administrative unity.
Population Requirement: The proposed province must have a population of at least 250,000 inhabitants, as certified by the Philippine Statistics Authority (PSA, formerly the National Statistics Office). This count excludes transient populations and focuses on permanent residents.
Income Requirement: The unit must demonstrate an average annual income of at least Twenty Million Pesos (P20,000,000) for the immediately preceding two consecutive years, based on 1991 constant prices. This income is derived from locally generated sources, excluding the Internal Revenue Allotment (IRA) and other national transfers, and is certified by the Department of Finance (DOF).

These requisites apply to the creation of a new province from one or more existing ones. The law prohibits the creation of provinces that would reduce the area, population, or income of the original unit below these thresholds. In practice, the process begins with a petition from interested municipalities or component cities, followed by congressional legislation and a plebiscite involving all voters in the affected areas.

Requirements for the Creation of Cities

Cities are urbanized LGUs with greater fiscal and administrative powers. The LGC distinguishes between highly urbanized cities (HUCs), independent component cities (ICCs), and component cities. Section 450 provides the baseline requirements, though amendments like Republic Act No. 9009 (2001) have increased the income threshold to reflect inflation and economic growth.

Area Requirement: A contiguous territory of at least 100 square kilometers, certified by the LMB. This ensures sufficient space for urban expansion, infrastructure, and economic activities.
Population Requirement: At least 150,000 inhabitants, as certified by the PSA. For conversion from a municipality to a city, this population must be within the proposing unit.
Income Requirement: Originally set at P20,000,000 under the LGC, this was raised to P100,000,000 by RA 9009 for the last two consecutive years, based on constant 2000 prices. The income must be locally sourced, excluding IRA, and certified by the DOF. This amendment aimed to curb the proliferation of underfunded cities reliant on national subsidies.

Special rules apply to HUCs, which require a population of at least 200,000 and an income of P50,000,000 (pre-RA 9009 levels, but subject to the updated threshold). Cities may be created by carving out territories from provinces or municipalities, but the process requires congressional action and a plebiscite. Notably, the Supreme Court in cases like League of Cities of the Philippines v. COMELEC (2008, 2011) has scrutinized city creations, ruling that exemptions from the increased income requirement violate equal protection clauses, leading to the reversion of some cities to municipal status before eventual reinstatement.

Requirements for the Creation of Municipalities

Municipalities form the basic local government structure, often rural or semi-urban. Section 441 of the LGC outlines the following:

Area Requirement: A contiguous territory of at least 50 square kilometers, certified by the LMB. Exceptions are allowed for island municipalities or those comprising multiple islands.
Population Requirement: At least 25,000 inhabitants, certified by the PSA.
Income Requirement: An average annual income of at least Two Million Five Hundred Thousand Pesos (P2,500,000) for the preceding two years, based on 1991 prices, from local sources and certified by the DOF.

Municipalities can be created from barangays or portions of existing municipalities/provinces. The sangguniang panlalawigan endorses the proposal to Congress, which enacts the enabling law, followed by a plebiscite.

Requirements for the Creation of Barangays

Barangays are the smallest LGUs, akin to villages or districts. Under Section 385 of the LGC, barangays have minimal territorial and fiscal requisites, focusing primarily on population:

Area Requirement: No specific minimum area is mandated, but the territory must be contiguous and properly identified. In practice, the LMB verifies the boundaries to prevent overlaps.
Population Requirement: At least 2,000 inhabitants in general areas, or 5,000 in highly urbanized cities and metropolitan municipalities, as certified by the PSA. This higher threshold in urban areas accounts for denser populations and service demands.
Income Requirement: None specified, as barangays rely heavily on IRA and shares from higher LGUs.

Barangays are created via ordinance by the sangguniang panlungsod or sangguniang panlalawigan, subject to a plebiscite in the affected areas. Petitions can originate from at least 10% of registered voters in the proposed area.

Procedural Mechanisms and Certifications

The creation process is rigorous to uphold viability:

Petition and Endorsement: Initiated by local resolutions or voter petitions.
Certifications:
- PSA for population.
- LMB for area and contiguity.
- DOF for income.
- Additional inputs from the Department of Interior and Local Government (DILG) on administrative feasibility.
Legislative Action: Congress passes a law for provinces, cities, and municipalities; local sanggunians for barangays.
Plebiscite: Conducted by the Commission on Elections (COMELEC), requiring majority approval from voters in the directly affected units. For provincial creations, the entire parent province votes.
Effectivity: Upon plebiscite ratification and publication.

Non-compliance with any requirement renders the creation void, as seen in jurisprudence like Navarro v. Executive Secretary (2011), where the Supreme Court invalidated a city creation for failing the area criterion due to non-contiguous territory.

Exceptions, Special Considerations, and Jurisprudence

Certain regions enjoy special provisions:

Autonomous Regions: In the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) under RA 11054 (Organic Law for BARMM), LGU creation aligns with LGC but incorporates Shari'ah and indigenous customs. Similar flexibilities apply in the Cordillera Administrative Region.
Metropolitan Arrangements: Metro Manila, governed by the Metropolitan Manila Development Authority, has unique rules where barangays can be created without strict area limits.
Moratoriums and Amendments: Periodic moratoriums on LGU creation have been imposed by executive orders to control fiscal impacts. RA 9009's income hike for cities sparked litigation, with the Supreme Court emphasizing strict adherence to updated thresholds.

Court decisions have clarified ambiguities:

In Miranda v. Aguirre (1999), the Court upheld the necessity of plebiscites for boundary changes.
Sema v. COMELEC (2008) ruled on the exclusive authority of regional assemblies in autonomous regions for LGU creation.

Implications and Challenges

Meeting area, population, and income requirements ensures LGU sustainability but poses challenges in archipelagic or underdeveloped areas. Over-creation can lead to fragmentation, reducing economies of scale, while under-creation stifles local representation. Fiscal federalism debates continue, with calls to adjust thresholds for inflation (e.g., income figures remain unindexed since 1991/2000).

In conclusion, the LGC's framework balances autonomy with viability, requiring meticulous compliance with area, population, and income standards. This system not only empowers local governance but also safeguards national cohesion through democratic and evidentiary processes. Future reforms may involve dynamic adjustments to these requisites to address demographic shifts and economic disparities.