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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS

Third Regular Session

no. 5921

House

Introduced by Rep. EVELIO R, LEONARDIA

EXPLANATORY NOTE

Fiscal autonomy of the Local Government Units (LGUs) is one of the aims of
the Philippine Constitution in realizing their self-reliance and unhampered progress.

While the Local Government Code (LGC) also advocates local autonomy,
however, the matter of fiscal autonomy as provided in its Section 290 allots forty
percent (40%) share only, to the LGUs coming from, among others, the gross
receipts on mining taxes, forestry and fishery charges, and the utilization and
development of the national wealth within their territorial jurisdiction.

That as population steadily grows among the LGUs and more infrastructures
and projects are needed to invite more investments to provide more employment and
efficient public services demanded upon the LGUs, the actualization of fiscal
autonomy and more realistic application by the LGUs of their sources of revenue
coming directly from their inherent resources need the support of a law attune to the
present time and realities

Thus, the need to increase the allotment of the LGUs to the level of fifty
percent (50%) or the equal sharing with the national government by amending Sec.
290 of the LGC, and the same fifty percent (50%) share entitled to the LGUs shall be
directly paid to them without coursing it through the national government.

As such, the approval of this bill is earnestly sought.

,

REP. EVELIO R. LEONARDIA
Lone District, Bacolod City


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY

SIXTEENTH CONGRESS:
‘THIRD REGULAR SESSION

rouseanno, 5921

INTRODUCED BY REP. EVELIO R. LEONARDIA

AN ACT
AMENDING SECTION 290 OF REPUBLIC ACT NO. 7160 OTHERWISE KNOWN AS
‘THE LOCAL GOVERNMNENT CODE OF 1991

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 290 of Republic Act No. 7160, otherwi
Government Code of 1991, is hereby amended to read as follows:

known as the Local

SEC. 290. Amount of Share of Local Government Units. — Local government units shall, in
addition to the internal revenue allotment, have a share of FIFTY [forty] percent 50%
{(40%)] of the gross collection derived by the National Government from the preceding
fiscal year from mining taxes, royalties, forestry and fishery charges, and such other taxes,
fees, or charges, including related surcharges, interests, or fines, and from its share in any
co-production, joint venture or production sharing agreement in the utilization and
development of the national wealth within their territorial jurisdiction|.J: PROVIDED, THAT
PERSONS, NATURAL OR JURIDICAL, ENGAGED IN UTILIZATION AND DEVELOPMENT OF THE
NATIONAL WEALTH, SHALL PAY DIRECTLY THE FIFTY PERCENT (50%) SHARE TO THE LOCAL
GOVERNMENT UNIT CONCERNED AND THE REMAINING FIFTY PERCENT (50%) TO THE
NATIONAL GOVERNMENT.

Sec. 2. The National Government shall be given a transitory period of three (3) years from
the time of the effectivity of this Act for the purpose of readjusting the national budget in
preparation for its complete implementation in favor of local government units

Sec. 3. All laws, decrees, orders, issuances, rules and regulations, and other issuances or
parts thereof inconsistent with this Act are hereby repealed or modified accordingly.

Sec. 4. This Act shall take effect fifteen (15) days following completion of its publication in
at least two (2) newspapers of general circul:

Approved,