The municipalities of Malita, Jose Abad Santos, Don Marcelino, and Santa Maria in Davao Occidental have been reclassified as first-class municipalities based on their income levels. This change, effective January 1, 2025, was announced by the Provincial Government of Davao Occidental.
Four municipalities in Davao Occidental have achieved first-class municipality status based on Republic Act 11964, also known as the “Automatic Income Classification of Local Government Units Act.” Malita and Jose Abad Santos retained their first-class municipality status, while Don Marcelino and Santa Maria were reclassified from second- and third-class municipalities, respectively.
\The provincial government stated that the reclassification took effect on January 1, following Department Order 074, Series of 2024, issued by the Department of Finance (DOF). The DOF categorizes provinces, cities, and municipalities into five classes based on their average yearly regular income for the past three fiscal years. \First-class municipalities have an income of P200 million or more; second-class municipalities have an income of P160 million to less than P200 million; third-class municipalities earn P130 million to less than P160 million; fourth-class municipalities earn P90 million to less than P130 million; and fifth-class municipalities have an income of P90 million or less. \The DOF also noted that the number of fifth-class municipalities in the Davao Region has decreased from nine last year to one this year. Davao Occidental, which was previously under the fourth income classification, is now classified as the second. Currently, only Davao de Oro, Davao del Norte, Davao Oriental, and Davao del Sur remain as first-class provinces. \In 2023, President Ferdinand “Bongbong” Marcos Jr. signed Republic Act No. 11964 into law, creating an automatic income classification system for local government units (LGUs) to provide a more responsive approach to promoting local autonomy and enabling LGUs to realize their full economic potential. \This aims to provide LGUs with more responsive approaches “promoting local autonomy and local development.” Within three months of the law's implementation, the Department of Finance, in collaboration with the Department of Budget and Management and after consultations with LGU Leagues, will issue implementing rules and regulations
DAVAO OCCIDENTAL FIRST-CLASS MUNICIPALITIES REVENUE CLASSIFICATION LOCAL GOVERNMENTS REPUBLIC ACT 11964
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