By Rachel Magday
In a landmark development for the province, Nueva Vizcaya under the leadership of Governor Atty. Jose V. Gambito has been elevated from a second-class province to a first-class province, effective January 1, 2025, based on Department Order No. 074, Series of 2024, issued by the Department of Finance (DOF).
This change is in line with Republic Act No. 11964, known as the “Automatic Income Classification of Local Government Units (LGUs) Act,” which was signed into law by President Ferdinand R. Marcos.
Finance Secretary Ralph Recto signed the order on November 5, 2024, which outlines the income classifications of provinces, cities, and municipalities based on their average annual regular income over the three fiscal years preceding a general income reclassification.
Under the updated classification system, provinces are categorized into five classes according to specific income ranges:
- 1st Class: ₱1.5 billion or more
- 2nd Class: ₱900 million to less than ₱1.5 billion
- 3rd Class: ₱700 million to less than ₱900 million
- 4th Class: ₱500 million to less than ₱700 million
- 5th Class: Less than ₱500 million
The income classification is determined by a combination of national tax allocation (NTA) and local revenue sources. This classification will play a crucial role in determining financial grants and other assistance to localities, as well as their capacity to implement priority programs, according to President Marcos.
In 2023, Nueva Vizcaya reported an impressive annual income exceeding ₱2 billion, which included over ₱700 million in local taxes.
The province’s locally-sourced revenue for the fiscal year 2023 reached ₱717,096,656.06, surpassing the target of ₱391,387,274.00 and reflecting a remarkable collection efficiency rate of 183.22%. This growth signifies a booming business environment in the province.
Governor Gambito emphasized the province’s thriving economic landscape, remarking, “We can confidently say that we have a healthy and vibrant economy right now.” He highlighted that the declaration of Nueva Vizcaya as an insurgency-free province has played a crucial role in attracting more investors. Additionally, he pointed out that infrastructure projects, such as the Kalsada ti Kabanbantayan, have been instrumental in supporting farmers by facilitating the transport of their produce to markets, thereby invigorating the local economy. The governor also committed to continuing the momentum of growth and development, ensuring that the province remains an attractive destination for investment and progress.
Moreover, Nueva Vizcaya demonstrated an impressive year-on-year growth rate of 68.20% in total locally sourced revenues from fiscal year 2022 to 2023, highlighting its economic resilience and potential for further development.
Provincial Treasurer Rhoda S. Moreno attributed this success to various initiatives, stating, “A big factor is due to the passage of SP ordinances providing taxpayers easy and convenient ways to settle their delinquent taxes through compromise agreement schemes, condonation of penalties, electronic/online tax payment systems, and other innovative approaches introduced by the Provincial Treasury geared toward the enhancement of our locally sourced revenues.”
