LGUs brace for 2012 IRA slash
TALIBON PRODUCT DISPLAY at the Bagsakan Center during the Agri-Fair held at Bohol Cultural Center that ended July 22, 2011 during the 157th Bohol Foundation Day celebration with Ms. Cede Auxtero (left), better-half of Mayor Restituto Auxtero, and Tourism Officer Rachel P. Sayson. (RVO)
Local government units are now preparing for the worst as cut down of the Internal Revenue Allotment (IRA) next year from the national government looms.
According to the Department of Budget and Management, IRA cut will be about 4.8%. Grounds for the decrease are still unknown, not even the LMP members themselves understand it, except through the Memorandum Circular No. 65 issued by the DBM, said the Provincial Budget Office.
The local government units usually jack-up their respective annual budgets by at least 10% to meet the increasing needs and development of their respective turfs. End result of this (to decrease IRA) is that there would be no more allocation left for the Capital outlay for procurement or acquiring of equipment, infrastructure and facilities, most local executives say.
Almost all LGUs in the province are IRA-dependent. Without it, they, especially those (LGUs) who are in the lowest levels, such as 5th or 6th class municipality, will be most affected.
It was not immediately known what the League of Municipalities of the Philippines Bohol chapter would do regarding IRA threat considering that the league could hardly muster a quorum on its monthly meeting, said a municipal mayor.
Mayor Leoncio Evasco of Maribojoc said he is not in favor of the IRA cutback for various reasons while Jagna Mayor Fortunato Abrenilla, who was the former NEDA director, said in exclusive interview the move “is not congruence with” the policies on IRA. Abrenilla said that IRA should not be reduced at the expense of the LGUs, it is supposedly to be increased.
Evasco, who was an honored guest of the SME Summit last week sharing his town’s gains and best practices in governance, said that the reduction of IRA for next year is non-sense for following grounds: 1) DBM always asked for effectivity of salary increase it issued; 2) Magna Carta for workers, particularly on health; 3) the increase of the cost of basic services and commodities such as power and water.
Both mayors differ in treating the IRA concern. Abrenilla said that he will bring it to the attention of the LMP when it convenes soon. But Mayor Evasco seems to have a ‘cold shoulder’ on LMP Bohol considering of its failure to muster a quorum.
Mayor Jose Nicanor Tocmo of Corella town said this will definitely affect the 2012 annual budget of the municipalities. He said that he will soon make a round to the barangays to inform them of this development, saying he may advice them to base their 2012 annual budget on the 2010 annual budget. He explained that IRA cut down for 2012 was based on the 2009 level, when the country succumbed to recession that hit worldwide.
Based on the IRA slices ending December 2010, the province of Bohol got a total of share of PhP899,406,038 or almost PhP900 million.
The biggest IRA taker is the town of Ubay with PhP85,492,337 among the top ten. The town of Talibon, came in next with P68,915,906; Carmen, PhP62,213,655; Inabanga, PhP57,770,594; Loon, PhP53,556,239; Tubigon, PhP52,469,432; Sierra-Bullones, PhP46,981,177; Getafe, PhP46,833,786; Jagna, PhP46,156,988; and Guindulman, PhP46,287,832. Tagbilaran City got PhP211,802,004 for this year.
Other towns are Alburquerque with PhP23,298,407; Alicia, P39,073,713; Anda, P30,583,336; Antequera, P32,852,272; Baclayon, 29,822,429; Balilihan, P35,444,873; Batuan, P26,671,859; Bien-Unido, P33,877,433; Bilar, P35,737,240; Buenavista, P41,634,782; Calape, P41,302,371; Candijay, P44,151,265; Catigbian, P38,953,033; Clarin, P31,694,039; Corella, P22,254,398; Cortes, P26,911,085; Dagohoy, P32,853,777; Danao, P38,077,179; Dauis, P44,054,543; Dimiao, P33,913,718; Duero, P33,488,501; and G-Hernandez, P38,683,991.
Lila had PhP24,917,705; Loay, P29,393,965; Loboc, P30,415,529; Mabini, P42,300,762; Maribojoc, P30,971,635; Panglao, P36,261,538; Pilar, P42,428,561; Pres. Garcia, P36,435,478; SAgabayan, P33,198,421; San Isidro, P25,017,624; San Miguel, P38,711,919; Sevilla, P30,396,620; Sikatuna, P21,651,883; Trinidad, 47,527,635; and Valencia, P42,697,425.
In contrast, Jagna town, for instance, would be getting a total of PhP46,156,988 instead of P50,329,515 as a result of the cutdown. Maribojoc would have P30,971,635 instead of supposedly P33,773,565 as of 2010 level and Corella, from P22,254,398 instead of P24,271,330.
IRA is based on the population, land area and income including the “guaranteed share equal to actual cost of devolved national functions/city funded hospitals, which are computed separately before coming up with the total for each LGU.
The situation may be altered pending Supreme Court issuance of an entry of its judgment on abolition of Dinagat Islands as a province in G.R. No. 180050 dated April 12, 2011, Rodolfo G. Navarro, et. Al, versus Exec, Secretary Eduardo Ermita, et. Al., “reversing the earlier issued entry of judgment declaring the creation of Province (Dinagat Islands) valid and constitutional,” said the Memo Circular No. 65 signed by DILG Sec. Jesse Robredo.
Another strain that may modify the IRA shares is the reversion of 16 cities to municipalities pending issuance of an entry of judgment by the SC in consolidated cases in G. R. Nos. 176951, 177499 and 178056, League of Cities of the Philippines vs. Commission on Elections, declaring the constitutionality of the 16 city cities per SC Resolution dated February 15, 2011, the Memo circular bared.