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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
'13 
JtIL -1 P 1 :27 
SEN ATE 1'"' 
SENATE BILL NO. ___ 
A_'} 
Introduced by Senator Ferdinand R. Marcos, Jr .. 
EXPLANATORY NOTE 
The enactment of the Local Govemment Code (LGC) of 1991 with its concept of 
local autonomy had empowered the local govemment units (LGUs) to chart the 
destiny of their locality. Such empowerment carries with it enormous responsibilities 
especially on the devolved functions of agriculture, health care. social services and 
environmental management. 
Towards the attainment of a meaningful local autonomy. the LGC of 1991. 
pursuant to the Constitution. endeavors to ensure the fiscal autonomy of LGUs by 
allocating to them. in addition to their revenue generating powers. a just share in the 
Intemal Revenue collections and a just share in the proceeds of the utilization and 
development of the national wealth within their respective areas. These equitable 
shares are designed to correct the imbalance in revenue-raising capacities and 
expenditure needs of the goveming provinces. cities. municipalities and barangays. 
However, although Sections 286 and 293 of the LGC of 1991 mandate that the 
share of the LGUs in the proceeds of the utilization and development of the national 
wealth be directly released to the concemed LGUs within five (5) days after the end of 
each quarter, LGUs are complaining that under the present system. the National 
Govemment either fails to remit or fully remit the said share to the host LGUs, or takes a 
long time before the LGUs receive the said share. These unfortunate situations are 
negatively impacting on the efforts of LGUs to effectively program their priorities, as well 
as on the delivery of basic services to their constituents. 
This bill proposes the amendment of Section 293 of the LGC of 1991 by 
mandating the automatic appropriation and release to the concerned LGUs of the 
forty (40%) share from national wealth taxes under Sections 290 and 291 of the LGC of 
1991. This method will strengthen the autonomy of LGUs by ensuring prompt receipt of 
their just share in the utilization and development of national wealth. 
Thus, the early passage of this bill is earnestly requested. 
) 
FERDINAND . MARCOS, JR. 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
SENATE BILL NO. 
Introduced by Senator Ferdinand R. Marcos, Jr. 
'13 JYl-l Pl:27 
AN ACT PROVIDING FOR THE AUTOMATIC APPRORIATIONS AND RELEASE TO 
THE HOST LOCAL GOVERNMENT UNIT OF ITS FORTY (40%) SHARE OF THE GROSS 
COLLECTION DERIVED BY THE NATIONAL GOVERNMENT FROM NATIONAL WEALTH 
TAXES, AMENDING FOT 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 of Representative of the 
Philippines in congress assembled: 
SECTION I.Section 293 of Republic Act No. 7160, otherwise known as the 
Local Government Code of 1991, is hereby amended to read as follows: 
"Section 293.AUTOMATIC APPROPRIATION AND RELEASE OF THE 
FORTY PERCENT (40%) SHARE DERIVED FROM NATIONAL WEALTH TAXES 
UNDER SECTIONS 290 AND 291 OF THIS CODE [Remittance of the Share of 
Local Government Units]. - The share of local government units from the 
utilization and development of national wealth shall be AUTOMATICALLY 
APPROPRIATED AND RELEASED TO THE HOST LGUS [remitted in accordance 
with Section 286 of this Code Provided however, That in the case of 
anygovernment agency or government-owned or controlled corporation 
engaged in the utilization and development of the national wealth, such 
shareshall bedirectly remitted to the provincial, city, municipal or 
barangay treasurer, within five (5) days after the end of each quarter]. 
SECTION 2.Repealing Clause. - All lows, decrees, executive orders, rules 
and regulations, or parts thereof, inconsistent with the provisions of this Act ore 
hereby repealed or modified accordingly. 
SECTION 3.Effectivity Clause. - This Act sholl take effect fifteen (15) days 
following its publication in the Official Gazette or in oat least two (2) newspapers 
of general circulation. 
Approved,