As an alternative to cutting on the IRA of local government units, the League of Provinces of the Philippines has brought forward the proposal for the LGUs to assist the Malacañang in its tax campaign efforts.

During the last National Executive Board meeting held in Cebu City, LPP national president and Bohol governor Erico B. Aumentado sponsored NEB Resolution No. 2004-006 which urges all LGUs to support the Malacañang’s tax collection campaign.

With the approval of the resulution, all LGUs, particularly the provincial governments, are urged to fully support the national government’s tax drive as increased tax revenues will also enhance the IRA and consequently, improve the delivery of basic services.

Aumentado is proposing that the local governments conduct local information and educational campaigns, advocacy programs and other initiatives as its way of helping in the national government’s tax collection efforts.

During the same meeting, the NEB also approved a separate resolution strongly opposing the proposal of Albay Rep. Joey Salceda to suspend the release of the IRA for 18 months and lend a portion of it amounting to P20-billion to the national government.

The governors explained that suspending the release of the IRA “would disrupt the delivery of basic social services and undermine the implementation of programs and projects that have immediate and lasting impact in the lives of our people.”

Relative to this, the LPP-NEB approved Resolution No. 2004-007 urging all 79 governors and their respective Sangguniang Panlalawigans to prioritise the utilization of their 20 percent development fund for the improvement of the delivery of basic services.

Among the priority areas identified in the resolution are health, education, water, electrification and infrastructure for job-generation and poverty reduction. Aumentado, who sponsored the said resolution, pointed out that prioritising the use of development funds for the improvement of the delivery of basic social and health services, ensuring accessible and quality education, providing access to electricity and potable water, and affording people with livelihood opportunities and infrastructure for job generations is necessary to improve their quality of life and pump prime the economy in the countryside.

This is in response to Pres. Gloria Macapagal-Arroyo’s appeal for all LGUs to fully utilize their 20 percent development fund for basic, social and economic services.

He pointed out that the LGUs may also allocate a portion out of their respective 20 percent development funds as counterpart for various poverty reduction programs under Pres. Arroyo’s convergence strategy.