Dear PAO,

I am a senior citizen and a beneficiary of the monthly allowance program implemented by our Local Government Unit (LGU). However, I have observed that in our city, senior citizens such as myself are granted an allowance in the amount of One Hundred Pesos (P100) per month, while in other cities the allowances may be as high as One Thousand Pesos (P1,000) per month. In view of this disparity, I want to know the basis and process by which LGUs determine the amount of monthly allowances to be distributed to senior citizens. Thank you.

Consolacion

Dear Consolacion,

In addressing your question, there is a need to first discuss the concept of fiscal autonomy of the Local Government Units (LGUs), concerning the appropriation and allocation of budgets intended for the grant of allowances to senior citizens. Article II, Section 25 of the Constitution provides that “the State shall ensure the autonomy of local governments.” Also, no less than the Supreme Court through Chief Justice Lucas P. Bersamin in the case of Congressman Hermilando I. Mandanas, et al. vs. Executive Secretary Paquito N. Ochoa, Jr. (G.R. No. 199802, July 3, 2018) stated that “Fiscal autonomy means that local governments have the power to create their own sources of revenue in addition to their equitable share in the national taxes released by the National Government, as well as the power to allocate their resources in accordance with their own priorities.”

The fiscal autonomy of LGUs is a constitutionally guaranteed principle, expressly enshrined under the 1987 Philippine Constitution, which vests upon every LGU the authority and prerogative to generate, allocate, and utilize its own financial resources according to its duly enacted ordinances and development priorities, subject only to the limitations as may be provided by law.

A local government unit (LGU), acting through its respective legislative body — namely, the Sangguniang Panlalawigan (Provincial Council), Sangguniang Panlungsod (City Council), or Sangguniang Bayan (Municipal Council) — must enact an ordinance duly appropriating public funds intended for the grant of monetary allowances to senior citizens or other marginalized sectors of society. Pursuant to the principle of fiscal autonomy as enshrined in the 1987 Philippine Constitution, every LGU is vested with the authority to allocate and disburse its financial resources in accordance with its own priorities, policies, and development agenda, free from undue interference or control by the national government or by any other LGU.

While the constitution mandates the LGUs to implement policies aimed at enhancing access to essential goods, health care, and social services for senior citizens, the practical implementation of such mandates depends on the respective LGU’s financial capacity, revenue-generating mechanisms, and budgetary constraints. Accordingly, the amount of allowances provided to senior citizens may vary among LGUs, as there exists no statutory or regulatory requirement mandating a uniform rate. The determination of such allowances is deemed to fall within the exclusive discretion of the concerned LGU guided by the principle of easy access to social services.

We hope that we were able to answer your queries. This advice was based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Thank you for your continued trust and support.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]