House Speaker Faustino “Bojie” Dy III favors proposals to revisit the National Tax Allotment (NTA) framework and review key provisions of the 1991 Local Government Code, if only to help municipalities meet their growing responsibilities in delivering services to the people.

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.

“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,” said the Isabela 6th district representative.

(We have heard your voice, and your call is clear to the assembly. Based on your own consultations and surveys, it is unmistakably time to review and update our 1991 Local Government Code.)

Dy 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 (LGUs).

The Speaker said the need to review the law became even more apparent in the backdrop of the Supreme Court’s (SC) Mandanas-Garcia ruling, which expanded the share of national taxes allocated to LGUs, but also increased their responsibilities in delivering frontline services.

“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.

(It is truly important that we revisit and review this, because after the Mandanas-Garcia ruling, the responsibilities of local governments in delivering services to our people have grown even greater.)

The House leader acknowledged that many municipalities continue to struggle with limited resources despite the broader mandate placed on them.

“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,” he said.

(However, the truth is that while responsibilities have increased, this does not necessarily mean that our resources or sources of funding have also increased. And unfortunately, you are the first to feel this—when there are not enough health workers, when classrooms are lacking, and when a barangay needs help but the funds are limited.)

Dy stressed that LGUs remain key partners of the national government in delivering critical programs, particularly in education and community development. According to him, reviewing the Local Government Code will allow lawmakers to examine reforms related to the NTA and the fiscal powers of municipalities.

“Kaya tama po kayo, importanteng pag-usapan at pag-aralan ang mga reporma sa Local Government Code, lalo na pagdating sa National Tax Allotment at sa fiscal powers ng ating mga munisipyo. Kung mas malaki ang responsibilidad ng LGU, dapat ay mayroon ding sapat na resources para dito,” he said.

(That is why you are right: it is important to discuss and study reforms to the Local Government Code, especially when it comes to the National Tax Allotment and the fiscal powers of our municipalities. If the LGUs are given greater responsibilities, then they must also have sufficient resources to fulfill them.)