Govs seek securitization of unreleased 2001, 2004 IRA

Even while the debates on moves to either reduce or suspend the internal revenue allotment of local government units continue to heat up, the League of Provinces of the Philippines (LPP) has likewise taken a stand on the unreleased IRA of 2001 and 2004, in light of the looming fiscal crisis in the national government.

The LPP, under the leadership of its national president Erico B. Aumentado, has sought Pres. Gloria Macapagal-Arroyo’s nod to securitize the unreleased P12.4B IRA of 2001 and 2004, brought about by the reenactment of the General Appropriation Acts of 2000 and 2003.

The league, through its National Executive Board, unanimously passed a resolution requesting for the president’s approval for the securitization of the unreleased IRA due to the LGUs.

It may be recalled that in 2001, the IRA of LGUs was reduced by P10 billion owing to the failure of Congress to pass the GAA for that year. This year, another P2.4 billion was cut from the LGU IRA due to the same circumstances.

“The discrepancy in the release of the IRA for 2001 and 2004, which amounts to P12.4 billion violates the clear provisions of the Constitution and the Local Government Act of 1991, and has undermined the delivery of basic services,” a portion of NEB Resolution No. 2004-11 thus read.
The governors likewise pointed out in the same resolution that the request for securitization should not prejudice future courses of action the league may take to collect the unreleased P17.5 billion of the unprogrammed portion of the IRA in the GAAs of 2000 and 2001.

Gov. Aumentado has personally transmitted the resolution to Malacañang, although here has been no update yet on the action taken by the president on the matter.