Alicia Beltran, provincial treasurer of South Cotabato, told The STAR yesterday that the "reclassification" of the province from second class to first class status was based on Department Order No. 20-05 issued by Finance Secretary Margarito Teves.
The order also specified new income brackets for provinces, cities and municipalities.
Under the new DOF classification, provinces considered first class are those earning P350 million and up. Other brackets are as follows: second class, P280 million or more but less than P350 million; third class, P210 million or more but less than P280 million; fourth class, P140 million or more but less than P210 million; fifth class, P70 million but not more than P140 million; and sixth class, below P70 million.
Beltran said that South Cotabato has even surpassed the required income of P350 million for a first class province.
The income class of local government units is reclassified every four years based on its average annual income for four consecutive years.
Annual income refers to revenues and receipts from the regular sources of local government funds such as special education find (SEF), internal revenue allotment (IRA) and other tax shares specified under the local government code.
Beltran said South Cotabato posted more than P400 million annual income over the last four years.