Executive dept. urged to follow new IRA guidelines-A A +A
Saturday, September 21, 2013
THE Department of Budget Management (DBM) has set guidelines on the use of the 2014 Internal Revenue Allotment (IRA), which a council committee urged the executive department to follow.
The Cebu City Council’s committee on budget and finance, chaired by Councilor Margarita Osmeña, asked the local finance committee to take note of the DBM memorandum as it prepares the 2014 annual budget.
The finance committee, which is composed of Atty. Jose Marie Poblete as concurrent city administrator and city planning and development coordinator, Acting City Treasurer Diwa Cuevas and Budget Officer Nelfa Briones, is crafting the proposed 2014 budget.
The deadline for the submission of the proposed budget to the council is on October 16, 2013.
The memorandum warned local government units (LGUs) all over the country that there will be adjustments in the computation of the IRA for each unit.
The City’s IRA for this year is over P1.1 billion for the entire year. In 2012, the IRA of P1.06 billion accounted for 10.4 percent of the total receipts for that year, a report posted on the Cebu City Government’s website showed. It was almost as large as the local tax sources for 2012, which amounted to P1.28 billion.
Changes from last year include the creation of a new city and the upgrading of two component cities to highly urbanized cities.
The IRA that will be shared among the LGUs is about P341 billion, which DBM said was 12 percent higher than what is being shared this year.
But it doesn’t mean the IRA share will be higher, because of the upgrade of some LGUs.
The IRA will be shared by 43,592 local government units (LGUs), wherein 81 are provinces and 143 are cities. There are also 1,479 municipalities and 41,889 barangays.
The share will be based on population and land area.
Each LGU will be notified of its IRA share by the local DBM.
The DBM also set the guidelines on how to use the IRA. The priorities are programs on anti-corruption and transparency in governance, poverty reduction, economic growth, peace and environment.
DBM noted that the 2014 annual budget should have programs for gender and development, senior citizens and persons with disabilities, children and the Acquired Immune Deficiency Syndrome (Aids).
“LGUs shall appropriate in its annual budget 20 percent of the IRA for development projects,” reminded DBM. This will constitute the local development fund to be used for the annual investment program.
DBM also pointed out the bottom-up budgeting of the administration of President Benigno Aquino III, wherein the poorest LGUs are identified for special programs.
“It also served to make planning and budgeting processes of both local and national governments more participatory through the involvement of grassroots organizations and communities,” read the memorandum signed by DBM Secretary Florencio Abad.
Published in the Sun.Star Cebu newspaper on September 22, 2013.