All LGUs in Agusan Sur now in first-class income category

SAN FRANCISCO, Agusan del Sur (MindaNews / 23 January) – Finally, all the 13 towns and the lone city of Bayugan in Agusan del Sur are now classified as first-class local government units (LGUs) by the Department of Finance (DOF).

According to DOF Order 074 Series of 2024 issued last December, the province’s 13 towns have surpassed the P200 million annual income requirement while Bayugan City exceeded the P1.3 billion yearly income threshold to qualify for the department’s income reclassification for LGUs across the country.

Alvin Elorde, provincial treasurer, said Agusan del Sur has long been a first-class province and that last year, its annual income has more than doubled from the P1.5 billion threshold to P3.360 billion.

In 2023, only four municipalities of the province remained below the first-class category. These are Rosario, Talacogon and Veruela in the second-class category, and Sta. Josefa as third-class.

With DOF’s order last month, Agusan del Sur is now the only province in the Caraga region where all its LGUs are classified as first-class, based on their annual local revenues, which include fees and receipts, and shares from national sources, particularly from the National Tax Allotment (NTA).

Elorde said the feat of most LGUs in Agusan del Sur to have been classified as first-class in terms of income was largely due to the Mandanas-Garcia ruling of the Supreme Court in 2019.

The ruling, which took effect in 2022, increased the NTA shares of LGUs to 40% of all national taxes beyond those collected by the Bureau of Internal Revenue.

The camp of Agusan del Sur Rep. Adolph Edward “Eddiebong” Plaza (second district) described the development as a “historic feat.” (Chris V. Panganiban / MindaNews)