Senate bill on automatic income classification of LGUs passes final reading | Inquirer News

Senate bill on automatic income classification of LGUs passes final reading

/ 09:55 PM August 07, 2023

Senate bill on automatic income classification of LGUs passes final reading


MANILA, Philippines — The Senate passed on Monday on its third and final reading a bill that seeks to institutionalize the automatic income classification of local government units.

In the chamber’s plenary session, Senate Bill No. 2165 — the proposed Automatic Income Classification of Local Government Units Act — was approved with 22 affirmative and two negative votes with no abstention.


Under the bill,  provinces, cities, and municipalities will be classified into six classes according to income ranges and their average annual regular income for three fiscal years preceding a general income reclassification.


It authorizes the finance secretary to adjust and undertake the regular income reclassification of local governments once every three years.

The bill aims to make the income classification of LGUs reflect their prevailing economic conditions and overall financial status.

Senate Minority Leader Aquilino “Koko” Pimentel III voted against the measure, saying: “My objection is based on a policy question on whether we should delegate this power, which is legislative in nature, to the Secretary of the Department of Finance. The stand  of this representation is that there is no need to delegate this power because, even without this, the bill will achieve its objective of updating the income classification and even enhancing it.”

Sen. Risa Hontiveros said she would submit in writing her explanation of her no-vote, which she cast together with Pimentel.


Automatic LGU income classification bill makes it to Senate floor

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TAGS: 19th Congress, LGU automatic income classification, Senate

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