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Monday, September 13, 2004
Mindanao mayors, governors reject IRA cut
By Aquiles Zonio
GENERAL SANTOS CITY -- Local chief executives in Mindanao will be meeting within the month to discuss the proposed cut in the Internal Revenue Allotment (IRA) of local government units (LGUs).
Mayor Pedro Acharon Jr. told reporters that members of the Mindanao Confederation of Governors, City and Municipal Mayors and Non-Government Organization (Mindanao Confed) have already expressed strong objection to the planned reduction in IRA of local governments.
Acharon said the group would be holding a meeting in time for President Arroyo's visit to Davao City sometime next week.
He said the meeting would primarily focus on the proposal made by Albay Rep. Joey Salceda to withhold P20 billion from the P151 billion IRA share of LGUs next year.
Seventy percent of the annual budget of General Santos comes from the revenue allotment.
The mayor said the city stands to lose about P60 million of its allotment if Salceda's proposal was implemented.
This, he said, would impair not only completion of projects but the delivery of direly needed basic social services, particularly in rural areas, as well.
City treasurer Marcelino Dospueblos said hardest hit would be the budget for infrastructure projects.
The Arroyo administration has repeatedly warned it would be forced to cut the IRA share of LGUs in the face of the worsening fiscal crisis.
But Sen. Aquilino Pimentel, principal author of the 1991 Local Government Code (RA 7160), nixed the plan, saying many local government units are highly dependent on IRA for survival.
Instead of slashing the IRA, Pimentel proposed it should be increased to 50 percent by the National Government.
Before he left for Malaysia, Sarangani Gov. Miguel Dominguez also warned of a breakdown in local governance should the planned IRA cut pushed through.
(September 13, 2004 issue)
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