GMA commended for automatic release of IRA

THE League of Provinces of the Philippines has commended Pres. Gloria Macapagal-Arroyo for upholding the principles of local autonomy and decentralization.

The league’s National Executive Board, during its 1st NEB meeting has unanimously approved NEB Resolution No. 2004-010 which commends the president for preparing and submitting to Congress a national budget for 2005 that excludes the internal revenue allotment (IRA) from the proposed National Expenditure Program for next year.

“This proposal signifies a dramatic and significant shift in the treatment of the IRA in accordance with the principles of local autonomy and decentralization,” the resolution stated.

At the same time, the league also urged the president, through the Department of Budget and Management, to treat the IRA for automatic release in succeeding budget preparations.

Gov. Erico B. Aumentado, who is also the national president of the LPP, explained that the Local Government Code of 1991 provides that the share of the local government units in the national taxes shall be based on the collection of the third fiscal year before the current fiscal year. In the case of the 2005 IRA share, this will be based on the tax collections in 2001.

At the same time, the governors also noted that the IRA for LGUs in 2005 has increased by P10 billion over the re-enacted 2003 General Appropriations Act of 2003, which is also being used as the basis for this year’s national budget.

The LPP-NEB members pointed out that the IRA in the proposed budget will help accelerate the implementation and attainment of the President’s 10-point agenda, which the league committed to support.

In a separate resolution, the NEB expressed support to the administration’s 10-point agenda which seeks to create jobs, prioritise the construction of educational facilities, reduce the budget deficit, connect the islands through transportation and communication infrastructures, provide electricity and potable water for all, decongest Manila and build government centers in other parts of the country, develop Clark and Subic, computerize the electoral process, pursue the peace process and put an end to the divisiveness of the people, in order to ensure a stronger Republic that affords greater growth opportunities for the Filipinos.

This support will also translate to the implementation of the objectives of the ten-point agenda and complementary programs and projects in the 79 provinces.