GMA TO RELEASE P6.25 B MORE FOR LGUs
In the pursuit of President Gloria Macapagal Arroyo’s commitment to speed up countryside development, Malacanang will release starting the end of this month P6.25 billion representing the Internal Revenue Allotments (IRA) share which were not released by the past administrations to various local government units (LGUs) nationwide, Interior and Local Government Secretary Jose D. Lina Jr. announced today.
The League of Provinces of the Philippines (LPP) President, Davao del Norte Governor, Rodolfo P. Del Rosario, welcomed the announcement as he called on his colleagues in all 79 provinces to support the Arroyo administration “with LGUs as partners of the national government in the pursuit of peace and development.”
The DILG said the amount will benefit the people as it will greatly help boost the LGUs capability in the delivery of basic services, especially in the areas of infrastructure projects, health and nutrition, agriculture, social welfare and environmental protection.
Lina emphasized the amount, which was withheld by the previous administration, is in addition to the IRA due for this year and other sources that LGUs can harness for the development of their respective local governments as provided for under the Local Government Code of 1991.
The P6.25 billion, he added, includes the P4 billion representing the unreleased half of the 10 percent IRA which former President Estrada withheld in 1999, and the P2.25 billion representing one-fourth of the P9 billion IRA alloted for the last quarter of the year 2000, the release of which was also deferred by the previous administration.
The DILG Secretary said the release of the P4 billion conforms with the Supreme Court ruling in the Pimentel vs. Aguirre case (G.R. 132988) declaring as unconstitutional the withholding of the IRA for local government units.
Sec. Lina also said that President Arroyo emphasized before a meeting with Del Rosario and other newly elected officials of the League of Provinces that starting with next year’s budget, the IRA for LGUs will be submitted to Congress as automatically appropriated.
He said DBM Secretary Emilia Boncodin committed that the P4 billion will be given in four installments starting this month or P1 billion every month starting this July up to October this year. On the other hand, the P2.25 billion, which is equivalent of one-fourth of the P9 billion unreleased amount will be given not later than November this year.
“Despite the budget deficit, the government under President Arroyo is doing its best to comply with the provisions of the Local Government Code insofar as the release of IRA for our localgovernment units is concerned,” Lina said.
The DILG chief also said that starting with the fiscal year 2002 budget the IRA will be allocated only in accordance with the formula prescribed by the Local Government Code, and there will be no unprogrammed fund for the IRA as well as the Local Government Service Equalization Fund (LGSEF).
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