The Rule on ‘The Creation of New LGUs’ and the Income/Population Requisites

I. Introduction

This memorandum provides an exhaustive analysis of the legal framework governing the creation of new local government units (LGUs) in the Philippines, with particular focus on the indispensable income and population requisites. The creation, division, merger, abolition, or substantial alteration of boundaries of an LGU is governed by the 1987 Constitution, the Local Government Code of 1991 (Republic Act No. 7160), and pertinent jurisprudence. Compliance with the prescribed criteria is jurisdictional; failure to meet any requisite renders the creation void ab initio. This memo will outline the constitutional and statutory bases, detail the specific criteria, examine the procedural requirements, and discuss the controlling judicial interpretations.

II. Constitutional Foundation

The 1987 Constitution, in Article X, Section 10, provides the fundamental rule: “No province, city, municipality, or barangay may be created, divided, merged, abolished, or its boundary substantially altered, except in accordance with the criteria established in the local government code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected.” This provision underscores that creation is not a mere political act but a process strictly circumscribed by law, requiring both compliance with objective criteria and democratic ratification through a plebiscite.

III. Statutory Basis: The Local Government Code

The Local Government Code (LGC) operationalizes the constitutional mandate. The relevant provisions are:
For a Province: Section 461*.
For a City: Section 450*.
For a Municipality: Section 441*.
For a Barangay: Section 386*.
Each section enumerates specific requisites for creation, which invariably include minimum income, population, and land area. The LGC also prescribes the procedure for enactment, which is through a law or an ordinance, depending on the LGU level involved.

IV. The Indispensable Requisites: Income, Population, and Land Area

The LGC sets the following minimum criteria, which must all be present concurrently:

A. Income
Province: Average annual income of at least Twenty Million Pesos (P20,000,000.00) for the last two consecutive years based on 1991 constant prices. (Section 461(a)*).
City: Average annual income of at least Twenty Million Pesos (P20,000,000.00) for the last two consecutive years based on 1991 constant prices. (Section 450(a)). It must also be inhabited* by at least 150,000 inhabitants.
Municipality: Average annual income of at least Two Million Five Hundred Thousand Pesos (P2,500,000.00) for the last two consecutive years based on 1991 constant prices. (Section 441(a)*).
Barangay: There is no specified minimum income requirement for the creation of a barangay*.

The income must be derived from locally generated sources, meaning regular sources such as tax revenues, fees, and receipts. The computation must be based on 1991 constant prices to account for inflation, requiring conversion by the National Statistics Office (now Philippine Statistics Authority) or the Bureau of Local Government Finance (BLGF).

B. Population
Province: At least 250,000 inhabitants. (Section 461(b)*).
City: At least 150,000 inhabitants. (Section 450(a)*).
Municipality: At least 25,000 inhabitants. (Section 441(b)*).
Barangay: At least 2,000 inhabitants, except in metropolitan and highly urbanized cities where the requirement is 5,000 inhabitants. (Section 386(c)*).

The population must be certified by the National Statistics Office (Philippine Statistics Authority). It must be based on the latest official census, not on projections or surveys.

C. Land Area
Province: At least 2,000 square kilometers. (Section 461(c)*).
City: At least 100 square kilometers. (Section 450(b)*).
Municipality: At least 50 square kilometers. (Section 441(c)*).
Barangay: There is no specified minimum land area* requirement.

The land area must be contiguous, unless it comprises two or more islands or is separated by a local government unit independent of the others. It must be properly identified by metes and bounds, with technical descriptions certified by the Lands Management Bureau (LMB).

V. Procedural Requirements

The creation process involves legislative action and popular consent:

VI. Judicial Interpretation and Doctrines

The Supreme Court has consistently ruled that the criteria are mandatory and jurisdictional.
In Tan v. COMELEC (G.R. No. 73155, July 11, 1986, a pre-LGC but still instructive case), the Court held that the absence of a plebiscite is fatal to the validity of a new LGU*.
The seminal case of Aquilino Q. Pimentel, Jr. v. Commission on Elections (G.R. No. 132563, November 25, 1998) is controlling. The Supreme Court annulled the creation of the Province of Zamboanga Sibugay because it failed to meet the minimum income requirement. The Court emphasized that the income must be “in existence” and “available*” at the time of the law’s enactment, not merely projected or expected. Certification of compliance must be based on actual, audited figures.
The doctrine of operative fact* may apply to recognize the validity of acts done prior to the judicial declaration of invalidity, but it does not cure the inherent nullity of the creation itself.
The Court has also ruled that the plebiscite must include all areas to be partitioned from the parent LGU* and the area remaining, as all are “directly affected.”

VII. Comparative Analysis of Requisites

The following table summarizes the mandatory requisites for the creation of different LGUs as prescribed by the Local Government Code.

VIII. Certification and Evidence of Compliance

Strict proof of compliance is required. The LGC mandates certifications from specific national agencies, which are considered prima facie evidence:
Income: Certification by the Bureau of Local Government Finance (BLGF) attesting to the average annual income* based on actual collections.
Population: Certification by the National Statistics Office* (now Philippine Statistics Authority) based on the latest official census.
Land Area: Certification by the Lands Management Bureau (LMB*) of the Department of Environment and Natural Resources, containing the technical description and metes and bounds.

IX. Consequences of Non-Compliance

Failure to meet any of the statutory criteria renders the law or ordinance creating the LGU void ab initio (void from the beginning). Any subsequent acts, including the holding of a plebiscite, do not cure this fatal defect. The purported LGU is deemed legally non-existent, and all officials assuming office thereunder do so without lawful authority. However, the application of the operative fact doctrine may necessitate a gradual and orderly transition to undo the effects of the invalid creation.

X. Conclusion and Recommendations

The creation of a new local government unit is a rigid process defined by the 1987 Constitution and the Local Government Code. The income, population, and land area requisites are indispensable and conjunctive; all must be satisfied based on actual, certified, and audited data at the time of the legislative enactment. Judicial precedent, particularly the Pimentel doctrine, leaves no room for substantial compliance or projection of future capability. Therefore, any initiative to create a new LGU must be preceded by meticulous verification of compliance with all criteria through the proper certifying agencies. Legislative bodies must ensure that the required certifications are not merely pro forma but reflect verified, extant facts before passing any creating law or ordinance. Failure to adhere to these strict requirements will inevitably result in a successful legal challenge and the nullification of the creation.