Arroyo seeks revenue allotment share for 300 new barangays

MANILA -- Pampanga Representative Gloria Macapagal-Arroyo filed a bill seeking amendments to the Local Government Code, which will allow 300 new barangays (villages) to get their full share of the Internal Revenue Allotment (IRA).

The Local Government Code of 1991 or Republic Act 7160 ascertains the share of the local government units in the IRA and defines the terms of IRA sharing.

Barangays created after the effectivity of the law are not entitled to receive any share of the IRA, the former President noted.

"Their financial requirement is left as the responsibility of LGUs, hence becomes discretionary in nature," she said.

Arroyo said there were 41,687 barangays already existing before the Local Government Code was passed, and nearly 300 new barangays were created after the enactment of the law in 1992.

Arroyo added that her proposal, House Bill 6029, shall also provide the legal base for redistributing the IRA shares of the LGUs to the barangays, regardless of date of creation.

The bill provides for the amendment of Section 285 of RA 7160 so that the share of LGUs in the IRA shall be allocated in the following manner: province – 23 percent, cities – 23 percent, municipalities – 34 percent, and barangays – 20 percent.

Another amendment is that on the third year and thereafter of the effectivity of the amended Local Government Code, the share of each province, city and municipality shall be determined on the following formula: population – 60 percent, and equal sharing – 40 percent.

It also provides that in the allocation and release of funds, the Department of Finance, Department of Interior and Local Government, and Department of Budget and Management shall ensure the equal treatment of all barangays regardless of the date of creation. (Kathrina Alvarez/Sunnex)