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Question 15

2024 Bar · Political Law · 1 sub-question

15. The Local Government Code allocated shares in revenue collections to local government units (LGUs) in the following manner: 23% for the provinces, 23% for the Cities, 34% for the Municipalities, and 20% for the Barangays. In 2023, the proposed General Appropriations Act (GAA) provided a different distribution scheme of revenue collections to LGUs, to wit: 25% for the provinces, 25% for the Cities, 35% for the Municipalities, and 15% for the Barangays. Congressman Macky assailed the constitutionality of this item in the proposed GAA. The House of Representatives Budget Committee countered that it is within the power of Congress to enact laws to increase or decrease the just share of the LGUs in the revenues. Is the new distribution scheme in the proposed GAA lawful? Explain.

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