The province of Northern Samar, along with most of its municipalities, starts the year 2025 with a new income classification, based on the Department of Finance Order No. 71-2024 which provides for the First General Income Reclassification of provinces, cities, and municipalities. From second class province, Northern Samar is now among first class provinces, based on its Average Annual Regular Income (AARI) over the past 3 fiscal years.
Of the 24 municipalities of Northern Samar, 3 are now first class, defined by an annual regular income exceeding P200 million – Catarman, Laoang and Mondragon. Catarman has maintained its first class status, while Laoang and Mondragon ascended from 2nd and 3rd class respectively.
Qualified for 2nd class, Catubig, Las Navas, and Palapag elevated from 3rd class, joined by Pambujan and San Isidro from 4th class. Meanwhile, Bobon, Gamay, Lavezares, Lope de Vega, San Roque, and Silvino Lubos ascended from 4th class to 3rd class. Equally signaling noteworthy advancements, Allen, Mapanas, San Jose, and Victoria moved up from 5th to 4th class municipalities.
These latest income class classifications, a mark of the LGUs’ economic growth over the years, were unveiled during the 4th Quarter Joint Councils Meeting with stakeholders presided over by Governor Edwin Ongchuan last December 2024 at the Provincial Capitol.
Achieving higher income classification is pivotal for development, implying growing financial strength and resource mobilization. This expanded financial capacity and resource accessibility enables increased investments in key sectors as healthcare, education, infrastructure, agriculture and other economic interventions, positioning LGUs to provide better quality of life for their residents. While some municipalities retained their income class, the overall trend points to economic improvement across Northern Samar.
As Northern Samar steps into the New Year, the results of this reclassification bring a renewed sense of opportunity and purpose. The updated classification provides a strategic foundation for local governments to set clear, data-driven objectives for 2025. The new income statuses serve as both a reflection of progress and a catalyst for future growth, guiding municipalities toward focused investments that will drive sustained economic development.
This reclassification also reaffirms the need for concerted efforts among municipal governments, provincial offices, and stakeholders to tackle economic disparities and unlock opportunities for inclusive development.
The focus should be on leveraging improvements to further strengthen local governance and ensure that the gains made in 2024 translate into tangible benefits for all communities in 2025.
Source: PPDO
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