BOOK I
GENERAL PROVISIONS
TITLE ONE. - BASIC PRINCIPLES
CHAPTER 1. - THE CODE, POLICY AND APPLICATION
SECTION 1. Title. - This Act shall be known and cited as the "Local Government Code of 1991".
SECTION 2. Declaration of Policy. - (a) It is hereby declared the policy of the State that the territorial and political subdivisions of the State shall enjoy genuine and meaningful local autonomy to enable them to attain their fullest development as self-reliant communities and make them more effective partners in the attainment of national goals. Toward this end, the State shall provide for a more responsive and accountable local government structure instituted through a system of decentralization whereby local government units shall be given more powers, authority, responsibilities, and resources. The process of decentralization shall proceed from the national government to the local government units.
(b) It is also the policy of the State to ensure the accountability of local government units through the institution of effective mechanisms of recall, initiative and referendum.
(c) It is likewise the policy of the State to require all national agencies and offices to conduct periodic consultations with appropriate local government units, non-governmental and people's organizations, and other concerned sectors of the community before any project or program is implemented in their respective jurisdictions.
SECTION 3. Operative Principles of Decentralization. - The formulation and implementation of policies and measures on local autonomy shall be guided by the following operative principles:
(a) There shall be an effective allocation among the different local government units of their respective powers, functions, responsibilities, and resources;
(b) There shall be established in every local government unit an accountable, efficient, and dynamic organizational structure and operating mechanism that will