Several towns in Mindoro provinces have undergone income reclassification according to Department Order (DO) No. 074-2024 issued by the Department of Finance (DOF).

The reclassification, based on the average annual regular income over the past three fiscal years, reflects the current economic status of these local government units (LGUs).

Under the new classification, towns in both Occidental and Oriental Mindoro have seen shifts in their income brackets.

In Occidental Mindoro, the town of Magsaysay has been reclassified from the 3rd income class to the 2nd, indicating an increase in its average annual regular income.

Also, the town of Rizal has moved up from the 3rd to the 2nd income class.

In Oriental Mindoro, the town of Baco has been upgraded from the 3rd to the 2nd income class, while Bongabong has seen a notable jump from the 4th to the 2nd income class.

Other towns such as Bulalacao and Mansalay have also been reclassified from the 3rd to the 2nd income class, reflecting improved financial standing.

The reclassification is part of the government’s efforts to update income categories for local government units across the country every few years. It is based on an analysis of the past three fiscal years’ annual regular income data.

The reclassification is part of the DOF’s mandate under Republic Act No. 11964, which requires the automatic income classification of LGUs based on their average annual regular income.

The income ranges for provinces, cities, and municipalities are clearly defined, with municipalities classified into five income brackets ranging from the 1st class (P200,000,000.00 or more) to the 5th class (less than P90,000,000.00).

The DOF’s order, which takes effect on January 1, 2025, is expected to have implications for the allocation of national funds and the determination of local revenue-sharing schemes.

The reclassification will also influence the eligibility of LGUs for certain national programs and projects intended for economic development.

The income classification is based on the approved Statement of Receipts and Expenditures (SRE) submitted by the LGUs, ensuring that the data used is accurate and up-to-date.

The DOF has pointed out that LGUs that have not complied with financial reporting requirements will be classified using the latest available year-end data approved by the Bureau of Local Government Finance (BLGF).

Below is the 2024 classification status (previous and current) of the municipalities in both Occidental and Oriental Mindoro provinces:

Occidental Mindoro
Abra de Ilog
Previous Classification: 3rd
New Classification: 3rd

Calintaan
Previous Classification: 5th
New Classification: 5th

Looc
Previous Classification: 5th
New Classification: 4th

Lubang
Previous Classification: 4th
New Classification: 4th

Magsaysay
Previous Classification: 3rd
New Classification: 2nd

Paluan
Previous Classification: 3rd
New Classification: 1st

Rizal
Previous Classification: 3rd
New Classification: 2nd

San Jose
Previous Classification: 1st
New Classification: 1st

Santa Cruz
Previous Classification: 1st
New Classification: 1st

Oriental Mindoro
Baco
Previous Classification: 3rd
New Classification: 2nd

Bansud
Previous Classification: 3rd
New Classification: 3rd

Bongabong
Previous Classification: 4th
New Classification: 2nd

Bulalacao
Previous Classification: 3rd
New Classification: 1st

Gloria
Previous Classification: 3rd
New Classification: 3rd

Mansalay
Previous Classification: 3rd
New Classification: 2nd

Naujan
Previous Classification: 1st
New Classification: 1st

Pinamalayan
Previous Classification: 1st
New Classification: 1st

Pola
Previous Classification: 3rd
New Classification: 2nd

Puerto Galera
Previous Classification: 1st
New Classification: 1st

Roxas
Previous Classification: 2nd
New Classification: 1st

San Teodoro
Previous Classification: 4th
New Classification: 2nd

Socorro
Previous Classification: 3rd
New Classification: 2nd

Victoria
Previous Classification: 3rd
New Classification: 2nd