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Sunday, October 03, 2004
City's revenue allotment to suffer P80.6M cut
CEBU CITY -- Cebu City stands to lose some P80.6 million in its Internal Revenue Allotment (IRA) in 2005 if the proposal to cut shares of the local government units is imposed.
Cebu City is the sixth of "top 10 losers" if this happens.
A document from the League of Cities of the Philippines shows that Cebu City is 36.46 percent dependent on its IRA.
The document cited the office of Sen. Aquilino Pimentel Jr. as the source of the data.
Cebu City Administrator Juan Saul Mon-tecillo, in a telephone interview, said the projected loss in the IRA share will not really affect City Hall's finances.
Although the amount is quite big, he said only a third or a fourth of Cebu City's annual budget comes from its IRA share.
"Dili kaayo apektado. But we just have to tighten our belts. We just have to peg our local development fund on the IRA at 25 percent," Montecillo said.
Cebu City based its 2005 annual budget's IRA component on its share the previous year.
Mayor Tomas Osmeņa, in an earlier interview, said he would not really mind if the City's IRA is reduced as long as others will also sacrifice since the country is in financial crisis.
Montecillo's office is set to submit for review and approval by the City Council by Oct. 15 the City's 2005 annual budget.
Montecillo said the proposed cut on IRA share will be more telling on cities, municipalities, provinces, and even barangays that are IRA-dependent.
Puerto Princesa City could lose a little over P100 million and it is 90.67 percent dependent on its IRA.
Eleven other cities in Central Visayas could also lose millions if their IRA share is slashed.
Cebu has the biggest IRA loss in the region.
Bayawan City in Negros Oriental ranks second in the region. If its IRA share is cut, it stands to lose about P43.3 million.
Mandaue City ranks third. It could lose some P28.4 million.
Sought for comment, Mandaue City Administrator Serafin Blanco said the loss will not have a great effect because Mandaue is only 40 percent dependent on its IRA.
Blanco said the City is imposing measures that would ensure revenue collection.
Late last month, some 50 mayors from the Visayas and Mindanao lobbied for the retention of their IRA and the implementation of strategies that promote local autonomy.
The mayors said the formula used for the distribution of their IRA must be amended so that population density, not land area, will be made as basis for the computation.
Last July 21, the Cebu City Council opposed Albay Rep. Joey Sal-ceda's proposal to cut the IRA shares to help the country weather the financial crisis.
Through a resolution penned by Councilor Edgardo Labella, the council said that instead of suspending the release of IRA for local governments, the Arroyo administration should explore other "revenue-generating measures." (AAG/RHM)
(October 3, 2004 issue)
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