GO 'FAR' FOR LGUs

One of the short-term strategies being pursued by the Leagues to increase the funds of LGUs under the Fund Augmentation Reforms is to push for the rightful computation of the IRA by the Executive branch.   No laws need to be amended here but rather just the right implementation of existing laws.

Based from our exhaustive research on the IRA, the continued escalation of the IRA shortfalls for the period 1992-2016, already totalling an est. P1.535 Trillion due to the ff:

REASONS FOR IRA SHORTFALLS

TOTAL IRA est. Shortfalls

Ave. IRA Shortfall/Year

  1. Non-inclusion of the internal revenue taxes being collected by the Bureau of Customs (BOC) on VAT and excise taxes on imported goods (i.e. Mandanas case pending in the Supreme Court).

P806 Billion

(1992-2013)

P83 B/year

(2011-2013)

  1. Deduction of several special accounts and the COA share from the total national internal revenue collections based on an old DBCC Resolution No. 2003-02, dated September 4, 2003, defining the Revenue base of the IRA.(*Note: Based on PD 144 amended by RA 7160)

P229.4 Billion

(1992-2017)

P18 B/year

(2014-2016)

  1. Discrepancies between IRA in the GAA and amounts actually released by DBM to the LGUs.

P 500 Billion

(1992-2016)

P 76 B/year

(2014-2016)

  1. Discrepancy in mandated IRA due to LBM 74A issued on Sept, 2017 after the deadline set on June 15 each year, on the implementation of the 2015 census of population - disadvantageous to 65% of all LGUs

 

P6.123 B

For FY 2017

TOTAL IRA shortfalls

P 1.535 Trillion

P183 B/year

For 2018, the IRA share of LGUs is P522.748 Billion is only 14% of the P3.767 Trillion proposed national budget, which is lower than the 16% annual ave. share of LGUs.

 

Supposing the P183.3 Billion IRA shortfalls of previous administrations can be resolved by the Duterte administration, and added to the other direct downloads to LGUs totalling P 52.8 Billion for FY 2018 (includes the P2.3B LGSF, P26B CMGP-Kalsada funds for Provinces, P5B and P21.373B Assistance of Cities and Municipalities, respectively). This will increase LGUs’ share to 20.32% (P765 B)!

 

Such is the target for the short-term plan under the Fund Augmentation Reforms for LGUs. Far-fetched? Maybe not. If favorably considered, this will have FAR-reaching effects for local governance.

 

(To be continued)

 


Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TheLOBBYiST.
About the Author
Sandra Tablan Paredes is presently the Executive Director of the League of Provinces of the Philippines (LPP) since October, 2016 although she previously served LPP as Director from 1997 to 2004 Sandy helped organize ULAP in 1998 with former Governor Joey Lina and advocated for the LGUs' rightful IRA share, among other league advocacies, programs and projects to help local officials ensure local and fiscal autonomy and good governance. Recently served as concurrent interim Executive Director of ULAP from Jan-March 31, 2017. You can email her at This email address is being protected from spambots. You need JavaScript enabled to view it.
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