Republic of the Philippines
DEPARTMENT OF FINANCE
BUREAU OF LOCAL GOVERNMENT FINANCE
8" Floor EDPC Building, BSP Complex, Roxas Boulevard, 1004 Manila
www.blgf .gov.ph I [email protected] I +63 2 527 2780 / 527 2790
MEMORANDUM CIRCULAR NO. 0 13 · 2 0 2 0
1OAUG
2121
TO All BLGF Central and Regional Directors;
All Provincial and City ·rreasurers; and Others Concerned
SUBJECT Updated Annual CPI Factors for Computation and Certification
of LGU Income Pursuant to DO No. 031.2018
This Memorandum Circular is issued to inform all concerned of the herein attached
Updated Annual Consumer Price Index (CPI) Factors, duly approved by the
Undersecretary of Revenue Operations Group, Department of Finance (DOF), to be used in
the computation and certification of the annual regular income (ARI) and the average annual
income (AAI) of kJcal government units (LGUs) for the purpose of creation, conversion, merger
or abolition of LGUs, pursuant to Department Order (DO) No . 031 .2018 1 dated 04 May 2018,
issued by the Secretary of Finance, in line with the requirements of Republic Act {RA) No.
7160, or the Local Government Code (LGC) o,f 1991, as amended by RA No. 9009, as follows :
1. The 1991 CPI factors shall be used in computing and certifying: {i) the AAI for
the creation of a municipality; {ii) the latest annual income for the conversion
of a component city into a highly urbanized city; {iii) the resulting AAI of the
original LGU to determine if the creation or conversion of the LGU would result
to AAI less than the minimum requirements prescribed in the LGC; and
2. The 2000 CPI factors shall be useo in computing \'ne AA\ ena TTlUTlicipaWty
proposed to be converted into a cit)i1.Further, the CPI factors for 2004, 2005,
2006 and 2007 shall be used in computing the resulting average ARI of the
original LGU as basis in determining the resulting income classification of the
original LGU, and to check whether it will not fall below its current income
classification, as required under Section 8 of the LGC, and pursuant to DOF
Order No. 23-082 dated 29 July 2008, issued by the Secretary of Finance.
All BLGF Central and Regional Directors are hereby instructed to disseminate this
Memorandum Circular to all provincial and city treasurers under their respective jurisdictions,
and all concerned shall be guided accordingly.
?»m1//T~
NINO RAYMOND B. ALVINA
Executive Director
1 Guidelineson the Computationand Certificationof Incomefor Creation. Conversion,Merger or Abolition of a Local GovernmentUnit
2Prescribingthe New Income Brackets for the Re-classification,of Provinces. Cities and Municipalitiesand Amending for the Purpose
Departmentof Rnance Order No. 20-05 dated July 29, 2005.
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Adm in istrativ e O icer Ill
BLGF - DOF MANILA 81/½
.
Republic of the Philippines
DEPARTMENT OF FINANCE
Roxas Boulevard Corner Pablo Ocampo, Sr. Street
Manila 1004
Updated Annual ConsumerPrice Index (CPI) Factors
Pursuantto DepartmentOrder No. 031.2018
In accordance with Department Order No. 031.2018, the following Annual CPI Factors
shall be used by the Bureau of Local Government Finance (BLGF) and local treasurers in
computing and certifying the annual regular income (ARI) and the average annual income
(AAI) for the purpose of creat ion, conversion , merger or abolition of local government units.
I Year ) For lGU Creotion/C-Dnve,sion For ARI Computation
1991 ! 2000 l 2004 2005 1 2006 2007
2015 - i - I
'I
1.593 I - ' - -
2016 l - ''; - 1.621 1.506 - -
2011 l 3.849 i 2.018 - 1.554 1.486 I -
2018 4.049 2.123 - - 1.563 ' 1.519 '
2019 4.149 l 2.175 f - r - i -
!
1.557
Issued on 1 7 JUL2020
, Departmen t of Finance, Manila.
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ANTONETTE
C. TlONKO
Unde rsecreta ry
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OFFINANCE
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PHOTOCOPYONFILE:
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BLGF - DOF
Page 1 of 1
Republic of the Philippines
DEPARTMENT OF FINANCE
BUREAU OF LOCAL GOVERNMENT FINANCE
g•bFloor EDPC Building , BSP Complex , Roxas Boulevard , I004 Manila
www.blgf.gov.ph I central @ blgf.gov.ph I +63 2 527 2780 / 527 2790
MEMORANDUM CIRCULAR NO. 0 1 3 · 2 0 2 0
10AUG2'21
TO All BLGF Central and Regional Directors;
All Provincial and City Treasurers; and Others Concerned
SUBJECT Updated Annual CPI Fac:tors for Computation and Certification
of LGU Income Pursuant to DO No. 031.2018
This Memorandum Circular is issued to inform all concerned of the herein attached
Updated Annual Consumer Price Index (CPI) Factors, duly approved by the
Undersecretary of Revenue Operations Group, Department of Finance (DOF), to be used in
the computation and certification of the annual regular income (ARI) and the average annual
income (AAI) of local government units (LGUs) for the purpose of creation, conversion , merger
or abolition of LGUs, pursuant to Department Order (00) No. 031.2018 1 dated 04 May 2018 ,
issued by the Secretary of Finance, in line with the requirements of Republic Act (RA) No.
7160, or the Local Government Code (LGC) of 1991, as amended by RA No. 9009, as follows :
1. The 1991 CPI factors shall be used in computing and certifying: (i) the AAI for
the creation of a municipality; (ii) the latest annual income for the conversion
of a component city into a highly urbanized city; (iii) the resulting AAI of the
original LGU to determine if the creation or conversion of the LGU would result
to AAI less than the minimum requirements prescribed in the LGC; and
2. The 2000 CPI factors shall be used m compu\mg \he AA\ of a rrrurilcipa\ny
proposed to be converted into a city. Further, the CPI factors for 2004 , 2005,
2006 and 2007 shall be used in computing the resulting average ARI of the
original LGU as basis in determining the resulting income classification of the
original LGU, and to check whether it will not fall below its current income
classification, as required under Section 8 of the LGC, and pursuant to DOF
Order No. 23-08 2 dated 29 July 2008 , issued by the Secretary of Finance.
All BLGF Central and Regional Directors are hereby instructed to disseminate this
Memorandum Circular to all provincial and city treasurers under their respective jurisdictions,
and all concerned shall be guided accordingly.
~i~l ?»:,n,~~
f¢'..,.~
NINO RAYMOND B. ALVINA
08270
Executive Director
1
Guidelines on the Computation and Certification of Income for Creation, Conversion , Merger or Abolition of a Local Government Unit
2
Prescribing the New Income Brad<ets for the Re-classification of Provinces , Cities and Municipalities and Amend ing for the Purpose
Department of Finance Order No. 20-05 dated July 29 , 2005 .
CERTIF lsJ) XEROX/TRUECOPY Page 1 of 1
FRf'' ~RIGINAL I DUPLICATE/
PHOTOCOPYONFILE:
Adm inistrative O cer 111
BLGF · DOF MANILAg' /<f.
Republic of the Philippines
DEPARTMENT OF FINANCE
Roxas Boulevard Comer Pablo Ocampo , Sr. Street
Manila !004
Updated Annual ConsumerPrice Index {CPI) Factors
Pursuant to Department Order No. 031 .2018
In accordance with Department Order No. 031.2018, the following Annual CPI Factors
shall be used by the Bureau of local Government Finance (BLGF) and local treasurers in
computing and certifying the annual regular income (ARI} and the average annual income
(AAI) for the purpose of creation, conversion, merger or abolition of local government units.
l I:
II
For LGU Creation/Conversion For ARI Computation
Year
1991 2000 i 2004 I 2005
i
i 2006 i
I 2007 !
2015 - i - ! 1.593
I
I - - .
! - I
I l
i I
201€, J - ': - 1.621 ) 1.506 \I - j - J
2017 ! 3.849 2.018 - I
i I
- i
i 1.554 1.486
I 2018 I 4.049 2.123 - I - I 1.563 1.519
'
2019 ! 4.149 2.175 - I - i
! - i 1.557 !
Issued on 1 7 JUL 2020
, Department of Finance, Manila.
~~
ANTONETTEC. TIONKO
Undersecretary
•
•
•
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OFFINANCE
• DEPARTMENT
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ROSALIA8. NA JO
Admin istracive Off ~r Ill
BLGF · OOF MANILA!, f </i
Page 1 of 1
Republic of the Philippines
DEPARTMENT OF FINANCE
BUREAU OF LOCA L GOVERNMENT FINANCE
8th Floor EDPC Building, BSP Complex, Roxas Boulevard, I 004 Manila
www.blgf.gov.ph I central @ blgf.gov.ph I +63 2 527 2780 / 527 2790
MEMORANDUM CIRCULAR NO. 0 1 3 · 2 0 2 0
2121
1OAUG
TO All BLGF Central and Regional Directors;
All Provincial and City Treasurers; and Others Concerned
SUBJECT Updated Annual CPI Factors for Computation and Certification
of LGU Jncome Pursuant to DO No. 031.2018
This Memorandum Circular is issued to inform all concerned of the herein attached
Updated Annual Consumer Price Index (CPI) Factors, duly approved by the
Undersecretary of Revenue Operations Group, Department of Finance (DOF), to be used in
the computation and certification of the annual regular income (ARI) and the average annual
income (AAI) of local government units (LGUs ) for the purpose of creation, conversion, merger
or abolition of LGUs , pursuant to Department Order (DO) No. 031.2018 1 dated 04 May 2018,
issued by the Secretary of Finance, in line with the requirements of Republic Act (RA) No.
7160, or the Local Government Code (LGC) o1f1991, as amended by RA No. 9009, as follows:
1. The 1991 CPI factors shall be used in computing and certifying: (i) the AAI for
the creation of a municipality; (ii) the latest annual income for the conversion
of a component city into a highly urbanized city; (iii) the resulting AAI of the
original LGU to determine if the creation or conversion of the LGU would result
to AAI less than the minimum requirements prescribed in the LGC; and
2. The 2000 CPI factors shall be used in computing the AAI of a municipality
proposed to be converted into a city. Further, the CPI factors for 2004, 2005,
2006 and 2007 shall be used in computing the resulting average ARI of the
original LGU as basis in determining the resulting income classification of the
original LGU, and to check whether it will not fall below its current income
classification, as required under Section 8 of the LGC, and pursuant to DOF
Order No. 23-082 dated 29 July 2008, issued by the Secretary of Finance.
All BLGF Central and Regional Directors are hereby instructed to disseminate this
Memorandum Circular to all provincial and city treasurers under their respective jurisdictions ,
and all concerned shall be guided accordingly.
?J?6,,7//K)
NINO RAYMOND B. ALVINA
Executive Director
1 Guidelines on the Computation and Certification of Income for Creation , Conversion , Merger or Abolition of a Local Government Unit
2Prescribing the New Income Brackets for the Re-classification of Provinces, Cities and Municipalities and Amending for the Purpose
Department of Finance Order No. 20-05 dated July 29, 2005 .
Matl• gem ••'lt •
5'( 1tem
IS090(l1:2015
Page 1 of 1
CERTIFIED
XEROXI TRUECOPY
I DUPLICATE
FROM.-ORIGINAL I
PHOTOCOPYONFILE:
'-M~
ROSA.
LIA B. NA NJO
A d mi nis trati ve O ,cer Ill
BLGF • DOF MANILA I if.
Republic of the Philippines
DEPARTMENT OF FINANCE
Roxas Boulevard Comcr Pablo Ocampo, Sr. Street
Man-ila1004
Updated AnnualConsumerPrice Index (CPI) Factors
Pursuantto Department Order No. 031.2018
In accordance with Department Order No. 031.2018, the following Annual CPIFactors
shall be used by the Bureau of Local Government Finance (BLGF) and local treasurers in
computing and certifying the annual regular income (ARI) and the average annual income
(AAI) for the purpose of creation, conversion, merger or abolition of local government units.
i For lGU CfeDtjon/umver.sion I For ARI Computation
I Year I
I I 1991 l 2000 ! 2004 2005 2006 2007
! 2015 ! - I - I 1.593 - - -
I 2016 ' - \ - l 1.621 1.506 - l -
2017 I 3.849 I 2.018 ! - f 1.554 1.486 I
- l
--'
2018 '' ;
4.049 I
I 2.123 I - - 1.563 i 1.519 I
2019 III 4.149 r 2.175 I - - - 1.557 I
Issued on l 7 JUL2020
, Departmen t of Finance, Manila.
~
ANTONETTE
--~
C. TIONKO
Undersecretary
• .
• DEPARTMENT
OFFINANCE
ofth• Phlnpplnu
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Page 1 of 1
