Local Fiscal Administration and Management

Recent Policy Issues/Issuances on

Local Government Revenue
Administration and Fund
Management

2012 2013 2014

LGU Revenues
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV
3. JMC on Idle Land
4. JMC on LIIC
5. JMC on 20% IRA
6. JMC on LRC
7. JMC on Review of
LRC

8. Income
Reclassification
9. LGU Borrowings
10. MB Opinion
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV Local Budget Memorandum 65 dated June
3. JMC on Idle Land 27, 2011

4. JMC on LIIC 2.2 FY 2012 PREPARATIONOF LOCALBUDGETS

5. JMC on 20% IRA
2.2.1 For the purpose of preparing the FY 2012
6. JMC on LRC budget of LGUs, the magnitude shall be
based on the P273.310 Billion IRA level
7. JMC on Review of
per the certification of the Bureau of
LRC
Internal Revenue on the actual national
8. Income internal revenue taxes collected for
Reclassification CY2009 as adjusted, which is P13.635
Billion or 4.8% lower than the FY2011
9. LGU Borrowings IRA level.
10. MB Opinion
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV DOF-DILG JMC 2010-01
3. JMC on Idle Land October 20, 2010

4. JMC on LIIC HIGHLIGHTS:

5. JMC on 20% IRA 1. RPT accounts for 35% of the local source revenue
2. LGC provides that local assessors shall update
6. JMC on LRC their SMV once every 3 years in order to conduct
the mandated general revision.
7. JMC on Review of
3. Enjoins the LCE to require the local assessors to
LRC
cause the drafting of appropriate ordinance.
8. Income 4. Enjoins the presiding officers and members of the
Reclassification sangguniang to cause the passage of an ordinance
for the updating of the SMV and appropriate
9. LGU Borrowings funding thereof.
10. MB Opinion 5. DILG and DOF to provide technical , supervisory
and monitoring functions to LGUs
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV DOF-DILG JMC 2010-02
3. JMC on Idle Land October 20, 2010

4. JMC on LIIC HIGHLIGHTS:

5. JMC on 20% IRA 1. Provides a guidelines in the imposition of Idle land
tax by provinces, cities and municipality of Pateros
6. JMC on LRC 2. The JMC aims to:
• Generate more revenues of LGUs
7. JMC on Review of
• Enhance local economic development at the
LRC
local levels through maximization of idle lands
8. Income for productive use
Reclassification • Clarify the roles of the of the NGAs in
implementing the JMC
9. LGU Borrowings
10. MB Opinion
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV DILG-DTI JMC 2011-01
3. JMC on Idle Land October 12, 2011

4. JMC on LIIC HIGHLIGHTS:

5. JMC on 20% IRA 1. Provides LGUs with a guide in formulating their
local investment and incentive code.
6. JMC on LRC 2. To enchance the competitiveness of local
investment climate through appropriate local
7. JMC on Review of
policies and programs
LRC

8. Income
Reclassification
9. LGU Borrowings
10. MB Opinion
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV DILG-DBM JMC 2011-1
3. JMC on Idle Land April 13, 2011

4. JMC on LIIC HIGHLIGHTS:

5. JMC on 20% IRA
1. Amends DILG-DBM JMC 1, September 20, 2005
6. JMC on LRC 2. Provides guidelines on the appropriation and
utilization of no less than twenty percent (20%) of
7. JMC on Review of
the Internal Revenue Allotment (IRA) for
LRC
development projects.
8. Income 3. Provides a positive list (social, economic,
Reclassification environmental) and negative list (administrative
and operational cost of LGUs)
9. LGU Borrowings
10. MB Opinion
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV DOF-DILG JMC 2012-01
3. JMC on Idle Land January 13, 2012

4. JMC on LIIC HIGHLIGHTS:

5. JMC on 20% IRA
1. To promote the robust exercise of LGU’s taxing,
6. JMC on LRC regulatory, and proprietary powers, thus ensuring
LGU’s fiscal sustainability
7. JMC on Review of
2. To promote transparency and accountability in
LRC
LGUs regulatory and proprietary functions
8. Income 3. To streamline administrative provisions for
Reclassification effective enforcement and compliance.
4. To clarify the roles and responsibilities of the NGs
9. LGU Borrowings in ensuring proper updating of local revenue code.
10. MB Opinion
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV JMC on Review of Local Revenue Code
3. JMC on Idle Land Under review

4. JMC on LIIC HIGHLIGHTS:

5. JMC on 20% IRA
1. To ensure that local revenue measures of lower
6. JMC on LRC local government units are properly reviewed by
higher local government units.
7. JMC on Review of
2. To ensure local revenue measures of LGUs are in
LRC
accordance with the LGC
8. Income 3. To provide an easy reference for reviewing
Reclassification authorities

9. LGU Borrowings
10. MB Opinion
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV DOF Department Order
3. JMC on Idle Land Under review

4. JMC on LIIC 1. Uses of LGU income classification

5. JMC on 20% IRA • Factor in allocating national and other grants
• Ceiling of salaries and wages of LGUS
6. JMC on LRC • Number of sangguniang members
• Implementation of personnel policies on LGUs
7. JMC on Review of
2. General income re-classifcation is done every four
LRC
years.
8. Income 3. It is based on the annual regular income of LGUs
Reclassification (local sources of the GF, IRA, other shares and
exclusive of non-recurring income)
9. LGU Borrowings 4. An increase of approximately 30% on the
10. MB Opinion current income bracket

11. Depository Banks

Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV LGU Borrowings
3. JMC on Idle Land
1. Debt servicing of LGUs should not exceed 20% of its
4. JMC on LIIC regular income
5. JMC on 20% IRA 2. LFC No. 1-2000 dated January 19, 2000
specified the documentary requirements needed
6. JMC on LRC in the issuance of the certification of borrowing
capacity for LGUs
7. JMC on Review of
3. BSP Circular Letter series of 2002 mandated all
LRC
banks and NBQB to require all LGUs to present a
8. Income BLGF certificate of debt service and borrowing .
Reclassification
9. LGU Borrowings
10. MB Opinion
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV
Repaublic Act 7653 – New Central Bank Act
3. JMC on Idle Land
Article III. Functions as financial advisor of the
4. JMC on LIIC government
5. JMC on 20% IRA
SEC. 123. Financial Advice on Official Cred it
6. JMC on LRC Operations.
7. JMC on Review of
Whenever the Government, or any of its political
LRC
subdivisions or instrumentalities, contemplates
8. Income borrowing within the Philippines, the prior opinion
Reclassification of the Monetary Board shall likewise be requested
in order that the Board may render an opinion on
9. LGU Borrowings the probable effects of the proposed operation on
10. MB Opinion monetary aggregates, the price level, and the
balance of payments.
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV
Requirements
3. JMC on Idle Land
1. Original of certified true copy of ordinance
4. JMC on LIIC authorizing the borrowing.
5. JMC on 20% IRA • Purpose of the project
• Certification the the project is in the AIP
6. JMC on LRC • Terms and condition of the borrowings
2. Copy of resolution designating the
7. JMC on Review of
representative
LRC
3. A waiver of confidentiality of information
8. Income 4. DOF Debt service certification
Reclassification 5. Summary of the cost of borrowings
9. LGU Borrowings
10. MB Opinion
11. Depository Banks
Policy Issues/Issuances
1. IRA Reduction
2. JMC on SMV
DOF Department Order No. 27-05
3. JMC on Idle Land December 9, 2005

4. JMC on LIIC 1. Amended Department Order No. 32-03

5. JMC on 20% IRA 2. Authorized depository banks are LBP and DBP
only.
6. JMC on LRC 3. By way of exception and subject to the
approval of the DOF
7. JMC on Review of
a. Philippine National Bank
LRC
b. Philippine Postal Savings Bank
8. Income c. Thrift, Rural and Cooperative Bansk
Reclassification d. United Coconut Planters Bank
e. Al-Amanah Islamic Investment Bank
9. LGU Borrowings f. Philippine Veterans Bank
10. MB Opinion 4. Department Order No. 27-05 is due for
amendment
11. Depository Banks
 THANK YOU

2012 2013 2014

LGU Revenues