A House committee has approved a measure seeking to rationalize the income requirements for the creation of provinces and declaration of highly urbanized status for cities.
The committee on local government approved House Bill 3209 authored by Cebu Rep. Pablo John F. Garcia (3rd district), which seeks to amend Republic Act (RA) 7160 or the Local Government Code of 1991.
Under the existing law, a city may be created if the income of a municipality subject to conversion is not less than P100 million, while a P20-million income requirement is needed to declare an area a new province. A P50-million income requirement is needed to declare a city as highly urbanized.
Mr. Garcia noted that even if RA 9009 which amended RA 7160 increased the average annual income requirement for a municipality to be converted to a component city, it did not amend the minimum income for the creation of a province and the declaration of a highly urbanized city.
The Garcia bill seeks to require an area to be called a province with a contiguous territory of at least 2,000 square kilometers or a population of not less than 250,000; and if it has an average locally generated annual income of not less than P200 million for the last consecutive years based on 2000 constant prices, as certified by the Department of Finance.
The bill also provides that cities with a minimum population of 200,000 inhabitants will be called highly urbanized and should have an average locally generated annual income of not less than P250 million for the last two consecutive years.
The average annual income includes the income accruing to the general fund. — BusinessWorld
The committee on local government approved House Bill 3209 authored by Cebu Rep. Pablo John F. Garcia (3rd district), which seeks to amend Republic Act (RA) 7160 or the Local Government Code of 1991.
Under the existing law, a city may be created if the income of a municipality subject to conversion is not less than P100 million, while a P20-million income requirement is needed to declare an area a new province. A P50-million income requirement is needed to declare a city as highly urbanized.
Mr. Garcia noted that even if RA 9009 which amended RA 7160 increased the average annual income requirement for a municipality to be converted to a component city, it did not amend the minimum income for the creation of a province and the declaration of a highly urbanized city.
The Garcia bill seeks to require an area to be called a province with a contiguous territory of at least 2,000 square kilometers or a population of not less than 250,000; and if it has an average locally generated annual income of not less than P200 million for the last consecutive years based on 2000 constant prices, as certified by the Department of Finance.
The bill also provides that cities with a minimum population of 200,000 inhabitants will be called highly urbanized and should have an average locally generated annual income of not less than P250 million for the last two consecutive years.
The average annual income includes the income accruing to the general fund. — BusinessWorld
