By Michelle Ducut
Effective January 2025, all six provinces in the Cordillera Administrative Region (CAR) will elevate their income classifications, reflecting significant economic progress. The Department of Finance (DOF) has approved the reclassification, resulting in Abra, Apayao, and Ifugao advancing from third-class to second-class provinces; Kalinga and Benguet moving from second-class to first-class; and Mountain Province upgrading from fourth-class to third-class.
This advancement signifies enhanced local revenue generation and improved fiscal management across the region. Edna Tabanda, co-chair of the Regional Development Council (RDC) and former mayor of La Trinidad, Benguet, commended the provincial leaders for their dedication to development, stating that such progress leads to better living standards for residents. She emphasized that passionate and sincere leadership, coupled with the absence of corruption, attracts businesses and investments, benefiting the populace.
Tabanda also highlighted the importance of community cooperation with leaders who are earnest in their service. She advocated for continuous training and upskilling of local officials through the Department of the Interior and Local Government (DILG) to further enhance public service and development initiatives.
The reclassification is part of the DOF’s efforts to update the income classification of local government units (LGUs) to ensure fiscal sustainability and boost local revenues, as outlined in Republic Act No. 11964, known as the Automatic Income Classification of Local Government Units Act, signed into law on October 26, 2023.Â
The improved classifications are expected to lead to increased Internal Revenue Allotments (IRA) for these provinces, enabling them to fund more projects and services for their constituents. This development aligns with the region’s ongoing efforts to achieve greater autonomy and self-reliance.
The Cordillera Administrative Region, located in northern Luzon, comprises the provinces of Abra, Apayao, Benguet, Ifugao, Kalinga, and Mountain Province, with Baguio City serving as the regional center.