House Speaker Faustino “Bojie” G. Dy III on Tuesday expressed openness to revisiting the National Tax Allotment (NTA) framework and reviewing key provisions of the 1991 Local Government Code to help municipalities better meet their growing responsibilities in delivering public services.
Dy made the statement as he spoke before municipal leaders during the general assembly of the League of Municipalities of the Philippines (LMP), where he acknowledged the calls of mayors across the country to update the three-decade-old law governing local autonomy.
“We heard your voices and it is clear to the House your clamor. Batay sa inyong sariling konsultasyon at survey, malinaw na malinaw na panahon na upang repasuhin at i-update ang ating 1991 Local Government Code,” Dy said.
The Speaker noted that more than 30 years after its passage, the Local Government Code must now reflect major shifts in governance, economic realities and the evolving responsibilities of local government units.
“It is almost three decades when it was passed and in this time big changes in governance, economy, and responsibility occurred in LGUs,” said Dy.
Dy said the need to review the law became even more apparent following the Supreme Court’s Mandanas-Garcia ruling, which expanded the share of national taxes allocated to local governments but also increased their responsibilities in delivering frontline services.
“Sadyang mahalaga pong balikan natin at suriin ito, dahil pagkatapos ng Mandanas-Garcia ruling, mas lumaki po ang tungkulin ng mga lokal na pamahalaan sa paghahatid ng serbisyo sa ating mga kababayan,” Dy said.
He acknowledged that many municipalities continue to struggle with limited resources despite the broader mandate placed on them.
“Subalit, ang katotohanan po ay dumagdag man ang responsibilidad, hindi ito nangangahulugang may pagdagdag sa ating mga resources o pinagkukuhanan. At sa kasamaang palad, kayo ang unang nakakaramdam nito—kapag kulang ang health workers, kapag kulang ang classroom, at kapag kailangan ng tulong ng isang barangay pero limitado ang pondo.”
Dy stressed that local governments remain key partners of the national government in delivering critical programs, particularly in education and community development.
According to Dy, reviewing the Local Government Code will allow lawmakers to examine reforms related to the NTA and the fiscal powers of municipalities.
“Kaya tama po kayo, importanteng pag-usapan at pag-aralan ang mga reporma sa Local Government Code, lalo na pagdating sa National Tax Allotment at sa fiscal powers ng ating mga munisipyo. Kung mas malaki ang responsibilidad ng LGU, dapat ay mayroon ding sapat na resources para dito.”