The Department of Finance (DOF) issued Department Order No. 074.2024 in December 2024, establishing the income classification of provinces, cities, and municipalities under Republic Act No. 11964.
This directive underscores the economic resilience and revenue growth of local government units (LGUs) across the country, with Isabela serving as a prime example.
On January 1, 2025, several LGUs in Isabela moved to higher income classifications, highlighting the province’s progress in fiscal management and local development.
Isabela remains classified as a first-class province, reflecting its sustained economic strength and leadership.
The City of Ilagan and Santiago City hold first-class city status, cementing their roles as regional economic leaders. Meanwhile, Cauayan City has been elevated to second-class city status.
Twenty-four municipalities in Isabela are now classified as first-class LGUs. These include Alicia, Cabagan, Dinapigue, Echague, Jones, Palanan, Roxas, San Mariano, San Mateo, and Tumauini, which were already recognized as first-class municipalities prior to the issuance of the No. 074.2024. Newly joining this rank are Luna, advancing from fifth to first class; Delfin Albano, Mallig, Naguilian, Quezon, Quirino, and Reina Mercedes, rising from fourth to first class; Angadanan, Aurora, Cabatuan, and Cordon, moving from third to first class; and Divilacan, Ramon, and San Pablo, transitioning from second to first class.
Four municipalities were upgraded from fourth to second class: Benito Soliven, Gamu, San Guillermo, and San Manuel. Additionally, Maconacon and San Agustin advanced from third to second class.
Four municipalities are now classified as third-class LGUs: San Isidro, which advanced from fifth class, and Burgos, Santa Maria, and Santo Tomas, which progressed from fourth to third class.#
