SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session , 
) 
'13 
JUL -8 P 2 :43 
SENATE 
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_______________ 
S_._N_O_. __ U __ 
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Introduced by Senator Ralph G, Recto 
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 host LGUs be remitted 
directly to them. On the other hand, the sixty percent (60%) share of the national government 
shall be paid to the national treasury. 
In view of the foregoing, the immediate approval ofthis measure is hereby requested. 
o 
mjma 
I DOF-DBM-DILG-DENR Joint Circular No. 2009-1 March 31,2009 
i. 


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SIXTEENTH CONGRESS OF THE REPUBLIC ) 
(~HI;r "f I~ •. *,m."r~ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL -8 P 2 :43 
SENATE 
S. No. 
613 
Introduced by Senator Ralph G. Recto 
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 
i 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
I 
1 
SECTION 1. Section 293 of Republic Act No. 7160, otherwise known as the "Local 
2 
Government Code of 1991" is hereby amended to read as follows: 
3 
"SEC. 293. Remittance of the Share of Local Government Units. - The 
4 
share oflocal government units from the utilization and development of national 
5 
wealth shall be remitted in accordance with Section 286 of this Code: Provided, 
6 
however, That PERSONS, NATURAL OR JURIDICAL, INCLUDING [in 
7 
the case of any] government agenc[y]IES or government-owned or controlled 
8 
corporationS engaged in the utilization and development of the national wealth, 
9 
[such share] shall [be] directly remit[ted] THE FORTY PERCENT (40%) OF 
10 
THEIR NATIONAL WEALTH TAXES UNDER SECTION 290 OF THIS 
11 
CODE to the provincial, city, municipal or barangay treasurer, AS THE CASE 
12 
MAY BE, OF THE HOST LOCAL GOVERNMENT UNITS AND THE 
13 
REMAINING 
SIXTY 
PERCENT 
(60%) 
TO 
THE 
NATIONAL 
14 
GOVERNMENT [concerned within five (5) days after the end of each 
15 
quarter]." 
16 
SEC. 2. Implementing Rules and Regulations. - The Secretaries of the Department of 
17 
Finance, Department of Budget and Management and the Department of the Interior and Local 
18 
Government, in coordination with one (I) representative from each of the following: (i) The 
19 
League of Provinces, (ii) The League of Cities' (iii) The L"ague of Municipalities and (iv) The 
20 
Liga ng mga Barangay, shall jointly within thirty (30) days from the effectivity of this Act, 
21 
formulate and issue the appropriate rules and regulations necessary to implement and carry out 
22 
the intent, objective, purpose and provisions of this Act. 
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1 
SEC. 3. Separability Clause. - All laws, executive orders, decrees, rules and regulations 
2 
or parts thereof which are inconsistent with any of the provisions of this Act are hereby repealed 
3 
or modified accordingly. 
4 
SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days from the date of 
5 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
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