Mayor: 2014 IRA reduction won't affect city budget-A A +A
Wednesday, February 5, 2014
DAVAO City Mayor Rodrigo Duterte said the slashed Internal Revenue Allotment (IRA) of Davao City for 2014 will not generally affect the city's budget.
Duterte said there will be no belt-tightening for the city after the Department of Budget and Management (DBM) cut the IRA of Davao City for 2014 by P13,830,536.
"We cannot stop them (DBM), he said.
He said reducing the share of the IRA is the option that the DBM has to do in order for the cities and municipalities to get a "proportionate number".
In a letter dated January 15, DBM regional director Gary R. Martel informed 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.
The adjustment in the IRA share was 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".
For Councilor Danilo Dayanghirang, chairperson for the committee on finance, ways and means, said the city must collect more taxes since the demand of social services is high.
He said the city needs more budget for social services since it has become a "migration city".
Published in the Sun.Star Davao newspaper on February 06, 2014.