A significant 76% of local government units (LGUs) in Eastern Visayas have seen an enhancement in their income classification due to the general income reclassification initiated by the Bureau of Local Government and Finance 8 (BLGF-8), which took effect on January 1, 2025.
The income reclassification by BLGF-8 is guided by Republic Act (RA) No. 11964, known as the Automatic Income Classification of Local Government Units Act.
This law, enacted by President Ferdinand R. Marcos Jr. on October 26, 2023, aims to boost the revenue of local government units (LGUs) through the Department of Finance (DOF), facilitating fiscal sustainability among local governments.
In a recent Kapihan sa PIA Eastern Visayas, the BLGF-8 revealed that LGUs are being categorized based on their locally sourced revenue (LSR), which comprises tax revenues from real property taxes, business taxes, and other local taxes, as well as non-tax income from fees, government business operations, and other miscellaneous earnings.
Out of 136 towns in Eastern Visayas, 106 have been upgraded in their income classification according to the new guidelines set by the Department of Finance (DOF), as reported on Monday. The upgraded municipalities include 34 from Leyte, 18 from Samar, 18 from Northern Samar, 17 from Eastern Samar, 12 from Southern Leyte, and 7 from Biliran.
Moreover, Maria Rosaura Espejo, who leads the Bureau of Local Government Finance (BLGF) regional financial monitoring and evaluation unit, mentioned that four out of six provinces and three out of seven cities in the region also experienced improvements in their income status.
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