Press Release - Fueling LGUs prosperity: Gatchalian champions 'Automatic Income Classification of LGUs Act'

Senator Win Gatchalian said the enactment into law of a measure that provides for automatic classification of local government units (LGU) will foster rural development and drive economic growth in the countryside. Malacañang announced Friday that President Marcos has signed the measure into law.

"The pandemic has emphasized the vital role of LGUs in mobilizing resources and providing critical and urgent services at the grassroots level. They are the focal partners of the national government in improving productivity, progress, and prosperity in the different areas of the country," said Gatchalian, one of the authors of Republic Act No. 11964 or the Automatic Income Classification of Local Government Units Act.

"Sa kabila ng kanilang mahalagang papel, may mga LGU sa buong bansa na nahihirapan sa pagbibigay ng mga pangunahing serbisyo sa kanilang mga nasasakupan dahil kulang ang kanilang pondo at mga kagamitan. Mabigat ang dami ng kanilang mga tungkulin dahil kulang din sila ng tauhan, kaya mahalaga ang klasipikasyon ng kita ng mga LGU na ito," he added.

"Bilang dating alkalde ng Valenzuela, alam ko mula sa aking sariling karanasan ang mga paghihirap na kinakaharap ng mga LGU sa pagbibigay ng mga pangunahing serbisyo sa mga mamamayan. Ang mga limitasyong dulot ng hindi maayos na klasipikasyon ng kita ay nakakaapekto sa mga programa at tulong para sa mga komunidad," Gatchalian pointed out.

The lawmaker explained that the new LGU income classification system will serve as the basis for the government's computation of how much administrative and statutory aid, financial grants, and other forms of assistance will be provided to an LGU.

According to him, the new law would effectively and systematically determine the LGUs' financial capability and fiscal position that are reflective of the economy and the state of local development. "Ito ay magiging susi upang makapagbigay ng dekalidad na serbisyo ang mga LGU sa kanilang mga constituents," Gatchalian emphasized.

An LGU's income classification is used to determine its financial capacity to implement programs and projects, as well as how it will implement salary laws and administrative issuances on allowances.

Pagpapasi