HOUSE Speaker Faustino Dy III on Wednesday 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.
Speaking before municipal leaders during the general assembly of the League of Municipalities of the Philippines (LMP), Dy said the House of Representatives recognizes the call of mayors across the country to update the three-decade-old law governing local autonomy.
“We have heard your voice and your call is clear in the House. Based on your own consultation and survey, it is clearly time to review and update our 1991 Local Government Code,” Dy said in Filipino.
He 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 has been more than three decades since it was passed and during that time, a lot has changed in the management, the economy, and the responsibility of our LGUs,” he noted.
The Speaker said the need to review the law became even more apparent after 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.
“It is really imperative that we go back and review this, because after the Mandanas-Garcia ruling, the role of local governments in delivering services to our citizens has increased,” he stressed.
Dy acknowledged that many municipalities continue to struggle with limited resources despite the broader mandate placed on them.
“However, the truth is that even if the responsibility increases, it does not mean that there is an increase in our resources or resources. And unfortunately, you are the first to feel it—when there are not enough health workers, when there are not enough classrooms, and when a barangay needs help but the funds are limited,” he said.
Dy stressed that local governments remain key partners of the national government in delivering critical programs, particularly in education and community development.
According to the Speaker, reviewing the Local Government Code will allow lawmakers to examine reforms related to the NTA and the fiscal powers of municipalities.
