LGUs have always been at the mercy of the DBCC’s “PURSEpective.”
PURSEpective - whoever holds the purse, their perspective prevails! The Leagues are confident of its official position on the rightful IRA share contrary to the DBCC’s PURSEpective on the matter. As a result, for 2018, for example, 6% accounts for the IRA shortfalls (See Table 1).
But the Golden Rule is, whoever has the gold, makes the rules. Although it doesn’t necessarily mean that it’s the right decision. But as long as it is the most expedient way that will be most beneficial to them, and if it serves their best interest, then that’s it.
Their point of view is deemed final! There is no more room for any another critique.
Upton Sinclair bluntly concluded - “It is difficult to get a man to understand something when his salary depends upon his not understanding it.
Despite the LGUs’ outcry, there has not been a serious review of the Development Budget and Coordinating Committee’s grave discretion (which is merely recommendatory subject to the approval of the President1) to determine the basis of the internal revenue base and the computation of the IRA specially when the DBCC Resolution 2003-02 is bereft of any legal or constitutional basis. A revenue guideline loses its validity if (1) it is not germane to the mandate, (2) it does not conform to existing laws or (3) it contradicts the intent of the lawmakers on the tax laws (SC GR 148191).2
LGUs have always been at the mercy of the DBCC’s “PURSEpective”. Their assertion that LGUs should just wait for the Supreme Court decision on the non-inclusion of BOC’s internal revenue collections despite its clear mandate in Sec. 12 and 21 of the Tax Code (RA 8424) without even giving LGUs an opportunity to refute it in a formal consultation process is a reaffirmation that they will not budge on their budget priorities, especially when it will lessen the share of the National Government.
In SC GR 144256, it stated that: “Under the Constitution, the formulation and the implementation of such policies and programs are subject to "consultations with the appropriate public agencies, various private sectors, and local government units. x x x This essentially means that the President or any member of the Executive Department cannot unilaterally, i.e., without the backing of statute, withhold the release of the IRA."
(to be continued…)
1 AO 292: 1987 Admin Code, DBCC Functions under Chapter 2, “Section 7, National Economic Development Authority Inter-agency Committees. - To assist the NEDA Board in the performance of its functions, there are hereby created the following committees which shall hereafter be under the direct control of the NEDA Board and shall submit all their recommendations to the President for approval on matters involving their respective concerns. The Chairman of these committees shall be designated by the President. “
2 (SC GR 148191, Nov. 25, 2003) “A revenue regulation is binding on the courts as long as the procedure fixed for its promulgation is followed. Even if the courts may not be in agreement with its stated policy or innate wisdom, it is nonetheless valid, provided that its scope is within the statutory authority or standard granted by the legislature. Specifically, the regulation must (1) be germane to the object and purpose of the law; (2) not contradict, but conform to, the standards the law prescribes; and (3) be issued for the sole purpose of carrying into effect the general provisions of our tax laws. “
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