^ I
EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. No.
))
SENATE
758
•ffin ol Ibf f'rcrrtarf
*19 JUL 24 P4 -41
Introduced by Senator Ralph G. Recto
-REaiv.^o^
AN ACT
PROVIDING THE DIRECT REMITTANCE TO THE HOST LOCAL GOVERNMENT 
UNITS OF THEIR FORTY PERCENT (40% ) SHARE DERIVED FROM THE 
NATIONAL WEALTH AMENDING FOR THE PURPOSE SECTION 293 OF 
REPUBLIC 
ACT 
NO. 
7160, 
OTHERWISE 
KNOWN 
AS 
THE 
LOCAL 
GOVERNMENT CODE OF 1991
EXPLANATORY NOTE
As mandated in the Local Government Code, local government units (LGUs) 
are entitled to forty percent (40%) of the gross collections derived by the national 
government from the utilization and development of the national wealth by private 
persons or entities. These monies are used by the LGUs in financing development 
and livelihood projects. Unfortunately, such projects may be put on hold due to the 
delay in the release of the LGUs' share by the national government.
The present guidelines and procedures for the release of LGU shares require 
that the revenue-collecting agencies and national government agencies concerned 
submit to the Department of Budget and Management various documents before the 
shares are released to the host LGUs concerned. Hence, the evaluation of 
documents and the status of the government's overall cash position can cause the 
delay.1
This proposal seeks to amend Section 293 of the Code to expedite the release 
of LGUs' shares by mandating that the forty percent (40%) share pertaining to the
1 DOF-DBM-DILG-DENR Joint Circular No. 2009-1 March 31, 2009


host LGUs be remitted directly to the LGU concerned. On the other hand, the sixty 
percent (60%) share of the national government shall be remitted to the national 
treasury.
In view of the foregoing, the immediate approval of this measure is hereby 
requested.
mjma
ALPH G


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. No.
SENATE
758
I
(9«ic« ai 
jfcftfrtarj*
•19 
JUL 24 P4-41
RhCEIVrDBT
Introduced by Senator Ralph G. Recto
AN ACT
PROVIDING THE 
DIRECT REMITTANCE TO THE 
HOST LOCAL 
GOVERNMENT UNITS OF THEIR FORTY PERCENT (4 0 % ) SHARE 
DERIVED FROM THE NATIONAL WEALTH AMENDING FOR THE 
PURPOSE SECTION 293 OF REPUBLIC ACT NO. 7160, OTHERWISE 
KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991
Be it enacted by the Senate and House o f Representatives o f the Philippines 
in Congress assembled:
1 
Section 1. 
Section 293 of Republic Act No. 7160, otherwise known
2 
as the "Local Government Code of 1991" is hereby amended to read as
3 
follows:
4 
"Sec. 293. Remittance of the Share of Local Government
5 
Units. -  The share of local government units from the utilization
6 
and 
development of national 
wealth 
shall 
be 
remitted 
in
7 
accordance with Section 286 of this Code: Provided, however, That
8 
PERSONS, NATURAL OR JURIDICAL, INCLUDING [in -the
9 
case of any] government agenc[y]IES or government-owned or
10 
controlled corporations engaged in the utilization and development
11 
of the national wealth, [ such share] shall [be] directly remit[ted]
12 
to the provincial, city, municipal or barangay treasurer of the
13 
HOST LOCAL GOVERNMENT UNIT CONCERNED ITS FORTY
14 
PERCENT 
(4 0 % ) 
SHARE 
DERIVED 
FROM 
NATIONAL
15 
WEALTH TAXES UNDER SECTION 290 OF THIS CODE AND
16 
THE 
REMAINING 
SIXTY 
PERCENT 
(6 0 % ) 
TO 
THE


1 
NATIONAL GOVERNMENT [concerned within five (5) days after
3 
Sec. 2. Implementing Rules and Regulations. -  The Secretaries of the
4 
Department of Finance, Department of the Interior and Local Government
5 
and the Bureau of Internal Revenue, shall, within ninety (90) days from the
6 
effectivity of this Act, jointly formulate and issue the appropriate rules and
7 
regulations necessary to implement and carry out the intent, objective,
8 
purpose and provisions of this Act.
9 
Sec. 3. Repealing Clause. -  Any law, presidential decree or issuance,
10 
executive order, letter of instruction, rule or regulation inconsistent with the
11 
provisions of this Act is hereby repealed or modified accordingly.
12 
Sec. 4. Effectivity. -  This Act shall take effect fifteen (15) days
13 
following its complete publication in two (2) newspapers of general circulation
14 
or in the OfTicial Gazette.
Approved,