SEN. Joseph Victor “JV” G. Ejercito, chairman of the Committee on Local Government, yesterday presided over the committee hearing on various local bills such as the declaration of founding anniversaries, creation of several new barangays, declaration of local holidays, creation of Negros Island Region, and the automatic income classification for local government units.
During Monday’s hybrid hearing December 5, 2022, Ejercito, author of Senate Bill No. 1530 otherwise known as the Automatic Income Classification Act for Local Government Units, said his bill aims to institutionalize automatic income reclassification every two years based on the updated table of income classifications to be released by the Bureau of Local Government Finance (BLGF).
Ejercito clarified that this move will clearly define the income classification that usually create confusion.
The senator said it is important that the financial capabilities of LGUs will be thoroughly reviewed.
“The Finance Secretary is granted clear mandate and authority to set income targets or the periodic automatic income reclassification,” Ejercito stated in his proposed measure.
“This measure seeks to factually classify the financial capabilities of LGUs consistent with the prevailing economic conditions and ultimately address the limitations to the development of the local government units,” he added.