NEGROS Occidental Governor Eugenio Jose Lacson said Sunday, June 23, 2022, that Negros Occidental will have about P700 million cut from its National Tax Allotment (NTA) next year.
"Belt tightening and the Capitol employees' bonuses could be affected by this NTA reduction," Lacson said.
The cut, he added, will be affecting the Maintenance and Operating Expenses (MOOE), too.
The Department of Budget and Management (DBM) said that the local government units’ (LGUs) NTA, which was previously called Internal Revenue Allotment (IRA), will be reduced by at least 14 percent.
"This is a huge reduction and everybody is facing this predicament, so the higher the budget, the bigger the cut also,” the governor said..
Though the provincial government is now in the process of preparing its 2023 budget, it has yet to identify what sector will have a slash in the funds.
Various departments have already been alerted of the scenario, Lacson said.
The reduction is due to low collection in 2020 onwards, which is the height of the coronavirus disease (Covid-19) pandemic.
Meanwhile, Lacson said the postponement of the Barangay and Sangguniang Kabataan (SK) elections depends on the national government, especially the Congress.
Incoming House Speaker Leyte Representative Martin Romualdez already stressed that the government could save a lot should it postpone the elections.
He said the country has other pressing needs, especially food security.