VIGAN CITY, Ilocos Sur (PIA) – Twenty-four local government units (LGUs) in Ilocos Sur have advanced as first income classification municipalities effective on January 1, 2025, according to Department Order No. 07, series of 2024 of the Department of Finance (DOF).
It redefines the income class of LGUs based on the updated income ranges under Republic Act (RA) No. 11964, which aims to classify LGUs based on their income ranges and average annual regular income, promoting fiscal efficiency and accountability.
RA 11964 was signed by President Ferdinand R. Marcos Jr. into law in October, institutionalizing the automatic income classification of LGUs.
Those earning an annual average income of P200 million will be classified as first class; second class are those earning P160 million or more but less than P200 million; third class are those earning P130 million or more, but less than P160 million; fourth class are those with P90 million or more, but less than P130 million; and fifth class are those with less than P90 million.
This will serve as the basis for identifying administrative and statutory aids, financial grants, and other forms of assistance to LGUs and determining LGU capability to undertake development programs and projects, among others.
LGUs who will leap from fifth class are the towns of Gregorio del Pilar, Lidlidda, Nagbukel, San Esteban, and Sigay.
Formerly fourth-class municipalities who will advance to first include the towns of Alilem, Banayoyo, Burgos, Cervantes, Galimuyod, Quirino, Salcedo, San Emilio, Santiago, and Suyo.
Additionally, the LGUs of Bantay, Magsingal, San Juan, Santa Lucia, Santa Maria, Santo Domingo, and Sinait will jump from third class.
The towns of Tagudin and Narvacan from second class will also be reclassified as first class.
Meanwhile, the classifications of LGU Cabugao and Santa Cruz will be retained as first class.
During the recent Provincial Peace and Order Council Meeting, San Emilio Mayor Joey Warren Bragado said, “We are very fortunate to be included in this, and I believe it was because of the many developments and the continuing progress in our town.”
He said that it is a historical mark because it serves as proof that despite being an upland municipality, they can compete with other municipalities all throughout the Philippines.
“I hope that this will serve as an inspiration and motivation for us to continue helping each other and working together so that we can achieve our vision of a competitive San Emilio where a united and orderly community resides,” Mayor Bragado said.
According to Mayor Bragado, these changes would entail that there will be changes in the services, policies, and payment of taxes, among others, that are necessary to implement for first-class municipalities.
He said, “All of these will be determined later, especially for the finance aspect and participation of Sangguniang Bayan because there are legislative measures that need to be done.”
Further, Caoayan and Santa LGUs from fourth class and San Ildefonso and Santa Catalina from fifth will advance to second class, whereas the towns of San Vicente and Sugpon from fifth class will be third class, and the city of Candon from fourth class city will be categorized under first class city.
The province will also retain its classification as a first-class province, and the City of Vigan will be retained as a fourth-class city. (AMB/ATV, PIA Ilocos Sur)