HOUSE lawmakers on Wednesday ratified a bicameral conference committee report on the priority measure institutionalizing the income classification of local government units (LGUs).
Congressmen voted through voice voting at the plenary to ratify the bicameral report that reconciled Senate Bill 2165 and House Bill No. 7006, a priority measure of President Ferdinand R. Marcos, Jr.
The bicameral committee adopted the Senate version as the working draft during discussions. The Senate ratified the bicameral report on Tuesday.
Under the proposed law, provinces, cities and municipalities will each be classified into six classes according to their income. The reconciled version of the measure also adjusted income thresholds for provinces.
Second-class provinces are those with a yearly income of between P900 million and P1.5 billion. For third-class provinces, the range is between P700 million and less than P900 million, while for fourth-class provinces, between P500 million and P700 million. Fifth-class provinces are those with less than P500 million annual income.
The classification would help in the identification aids, grants and other forms of assistance to the LGU; determine the financial capability of LGUs to undertake developmental programs and priority projects, as well as compensation to LGU personnel pursuant to the Salary Standardization Law of 2019, among others. — Beatriz Marie D. Cruz
