Davao City’s IRA cut by P13M-A A +A
Wednesday, February 5, 2014
THE Internal Revenue Allotment (IRA) of Davao City for 2014 was cut by P13 million after the Department of Budget and Management (DBM) had to adjust it for some changes in the status of at least two places somewhere else.
In a letter dated January 15, DBM-Davao Director Gary R. Martel informed Mayor Rodrigo Duterte that the adjusted IRA share of Davao City is P2,898,489,579, which is P13,830,536 less than the previous IRA pegged at P2,912,320,115.
Martel said there is an adjustment in the IRA share due to the "ratification of the cityhood law of the Municipality of San Pedro, Laguna and the transfer of Barangay San Isidro from Municipality of Bangui to the Municipality of Dumalneg, in the Province of Ilocos Norte."
The DBM said the adjustments affect only the amount of IRA shares of cities and municipalities.
However, Councilor Danilo Dayanghirang, chair for the committee on finance, ways and means, said the disadvantage of the adjusted IRA share is that Davao City tends to have a higher reduction compared to the other cities, since the computation for the adjustments of the IRA is based on the number of area and population.
"This is just minimal, but P13 million is P13 million," he said, adding that the amount can already be converted to number of medicines and other social services.
"In fact, we can buy relocation sites with this (amount) already," he added.
Dayanghirang said the city's IRA is among the sources of funds for the annual budget of the city, aside from its local sources.
He said there is no need for any legislation on the matter of adjustment.
"Therefore, we have to adjust the budget. We have to discuss it with the local finance committee," he said.
Because of the decrease on the IRA, Dayanghirang said the City must collect more taxes since the demand of social services is high.
"Our city is becoming a migration city," he added.
The city's approved annual budget for 2014 is P5,165,430,052.
Published in the Sun.Star Davao newspaper on February 05, 2014.