Creation of new cities lower IRA shares of LGUs
BACOLOD CITY -- The creation of new cities and municipalities in the country resulted to a decrease in the Internal Revenue Allotment (IRA) of local governments, said Negros Occidental Governor Isidro Zayco.
Zayco learned of the bad news during a forum organized by the League of Governors in Cebu recently.
The governors were presented with a report showing the decrease in IRA share of local governments from July to December this year.
Based on the record, the province of Negros Occidental has an IRA share from January to June of P670,030,674 or P111,671,779 a month, but it is decreased to P639,539,718 or P106,589,953 a month from July to December this year.
Meanwhile, in Negros Oriental the IRA share from January to June was P423,471,288 or P70,578,548 a month, and from July to December it decrease to P399,897,647 or P66,649,608 a month.
The Department of Budget and Management (DBM) on their website www.dbm.gov.ph posted the Local Budget Memorandum No. 57, released on July 11, 2008 informing LGUs of their final IRA share for 2008. The final figure is computed on the P210.730 B IRA corresponding to 40% of the internal revenue taxes collected in Fiscal Year 2006, and took into account the 2007 census of population issued per Proclamation No. 1489; the continued adoption of the 2001 master list of land area submitted by DENR; creation of three (3) municipalities; and conversion of 18 municipalities into cities.
"The recomputed IRA will be effected starting the releases for the month of July and every month thereafter until December 2008," the website added.
For this year 2008, the Department of Budget and Management released P210.7 billion as IRA share for all LGUs, with P47.9 billion going to cities.
However, due to the questionable conversion of 18 municipalities into cities, the increase in the IRA of the legitimate cities, has been reduced by P4 billion.
The League of the Cities of the Philippines led by their Chairman, Iloilo City Mayor Jerry Treñas is very vocal in questioning the conversion which is not provided in the Local Government Code. This means the cities are getting a measly increase in IRA despite their growing needs.
Bacolod City Mayor Evelio Leonardia, LCP Vice-Chairman, on the other hand said the decrease in IRA share adversely affects services that the city government could give to its constituents.