House Speaker Faustino Dy III voiced support for revisiting the Local Government Code of 1991 and reassessing the framework governing the National Tax Allotment (NTA), highlighting the need to equip municipalities for growing public service responsibilities.
Speaking at the general assembly of the League of Municipalities of the Philippines, Dy said the House of Representatives acknowledges local leaders’ calls to modernize the three-decade-old law on local autonomy.
“Narinig po namin ang inyong boses at malinaw sa kapulungan ang inyong panawagan. Batay sa inyong sariling konsultasyon at survey, malinaw na malinaw na panahon na upang repasuhin at i-update ang ating 1991 Local Government Code,” Dy said.
Dy noted that over 30 years since its enactment, the Code must adapt to shifts in governance, economic realities, and the expanded mandates of local government units (LGUs).
He stressed the urgency of reform following the Supreme Court’s Mandanas-Garcia ruling, which increased LGUs’ share of national taxes while expanding their frontline service obligations.
“Sadyang mahalaga pong balikan natin at suriin ito, dahil pagkatapos ng Mandanas-Garcia ruling, mas lumaki po ang tungkulin ng mga lokal na pamahalaan sa paghahatid ng serbisyo sa ating mga kababayan,” Dy said.
He acknowledged that despite the broader mandates, municipalities often struggle to meet these responsibilities due to limited resources.
“Subalit, ang katotohanan po ay dumagdag man ang responsibilidad, hindi ito nangangahulugang may pagdagdag sa ating mga resources o pinagkukuhanan. At sa kasamaang palad, kayo ang unang nakakaramdam nito—kapag kulang ang health workers, kapag kulang ang classroom, at kapag kailangan ng tulong ng isang barangay pero limitado ang pondo,” Dy explained.
Dy emphasized that LGUs remain critical partners of the national government in delivering programs, particularly in education and community development.
Reviewing the Code, he said, would allow lawmakers to consider reforms affecting the NTA and fiscal powers of municipalities.
“Kung mas malaki ang responsibilidad ng LGU, dapat ay mayroon ding sapat na resources para dito,” Dy stressed.