Administrative Authority of the Secretary of Finance.
Section 5
SEC. 5. Administrative Authority of the Secretary of Finance. - The Secretary of Finance, in consultation with the National Economic and Development Authority (NEDA) and the concerned LGU leagues, shall have the authority to adjust the income ranges herein provided based on the actual growth rate of the annual regular income from the last income reclassification, and undertake the regular income reclassification once every three (3) years, in order that the income classification of LGUs may continue to conform with the prevailing economic conditions and the overall financial status of local governments: Provided, That the Secretary of Finance may consider inflation and gross regional domestic product in evaluating if an LGU has experienced prolonged economic shocks such as, but not limited to, public calamity and national emergency that may warrant retaining its current income classification: Provided, further, That the Secretary of Finance, upon recommendation of NEDA, shall upgrade the income classification of an LGU if the LGU has shown growth in real per capita locally sourced revenue every year for the past three (3) years.