Gov't to put up P3.7B amelioration fund for cities
The Philippine government is contemplating to put up an amelioration fund for the 118 cities affected by the recent approval of new cities. The proposed amelioration fund is estimated to reach P3.7 billion.
Mayor Jerry Treñas said the office of President Gloria Macapagal-Arroyo and the Department of Budget and Management are now threshing out the details for the realization of the amelioration fund. The amelioration fund will be sourced out from the government's collection.
Treñas, who is also the president of the League of Cities in the Philippines (LCP) said the setting up of the amelioration fund is not to appease the league for its plan to file a case before the Supreme Court for the approval of new cities. The case which the league is planning to file will be pushed through without prejudice to the President's assurance to come up with an amelioration fund for the affected cities.
Some of the 16 towns converted into new cities lacks the income requirements, population and land area. The new towns were exempted from the yearly requirement which is P100 million a year. The town's yearly income should be attested by the Department of Finance (DoF). The approval of new cities will automatically decrease their Internal Revenue Allotment (IRA) share.
Department of Budget and Management Secretary Rolando Andaya Jr. estimated that each city will lose at least P2 million of their IRA share. If there are 118 cities, the amelioration is roughly estimated to P3.7 billion. Other cities which have bigger IRA share will likewise have a bigger cut.
Each city should receive their IRA share based on the actual computation regardless of the amelioration fund. The IRA share should be received as it is. The proposed amelioration fund is a standby fund and its release will not affect the projected IRA share of each city, said Treñas.