More projects implemented despite IRA reduction

Sunday, February 5, 2012

MAYOR Celso Lobregat assured the Zamboanga City Government will continue the massive implementation of infrastructure projects and social services despite the huge decrease in this year’s internal revenue allotment (IRA).

The city’s IRA share is lesser by P215.61 million representing a reduction of 13.27 percent compared to the allocation of last year.

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The reduction of the IRA was brought about by two factors: low collection by the Bureau of Internal Revenue in 2009 and the Supreme Court’s decision to convert 16 municipalities into cities.

When the 2011 executive budget was prepared, Lobregat said the IRA estimates was P1.511 billion and adding said amount to the estimated local taxes and reversions, the fiscal year 2011 executive budget was P2.11 billion.

However, according to Lobregat, the actual IRA share for 2011 was P1.625 billion but for 2012, the Department of Budget and Management has adjusted the city’s IRA allocation to only P1.409 billion.

“This represents an IRA reduction of P215.619 million or 13.27 percent,” Lobregat said.

He said the receipts in local taxes for 2012 is projected to increase to P620 million or P52.55 million higher compared to that of last year, to cushion the huge decrease in IRA share and to sustain the city's momentum in implementing infrastructure projects and social service programs.

Also included in 2012 annual budget is a reversion of continuing appropriation in the amount of P96.34 million and P30.44 million from prior years’ surplus, he said.

As in the past eight years, Lobregat said that with sound fiscal management, the City Government will have a well-balanced mix of a conservative Personal Services of 31 percent, a manageable Maintenance and Other Operating Expenses of 36 percent, and ensure an impressive Capital Outlay and Equipment of 33 percent.

Social services, in terms of expense classification this year, get the highest allocation at 40 percent, which is followed by general public services at 33 percent, and economic services at 27 percent.

When he was first elected as mayor in 2004, Lobregat said the city’s annual budget was P1.034 billion.

The budget soared to P2.110 billion in 2011 and for 2012, the projected annual budget is P2.156 billion, which is again more than double the budget in 2004, he said.

“Building on the successes we have made in the last eight years, this administration continues to be prudent and judicious in the allocation of the city’s revenues and resources. We continue to ensure that this money is spent wisely and sensibly,” he said.

The Lobregat administration has accomplished massive infrastructure projects from 2009-2011 with 2,048 projects amounting to P3.28 billion without borrowing a single centavo from any financial institution.