TACLOBAN CITY, Leyte, August 16, (PIA) -– Local government units may now experienced little relief of their worries in the reduction of their Internal Revenue Allotment (IRA) in 2012 as the regional director of the Philippine Information Agency (PIA) in Region 8 revealed that local government units has still a collectible of P5-B in IRA shares from the national government.
PIA-8 Regional Director Erlinda Olivia P. Tiu informed the public live on Tuesday in the PIA regular radio program “Suruswerte ha PIA” that the P5-B in IRA share due to LGUs was part of the P20-B short in IRA releases due to LGUs during the Estrada presidency that was the subject in the Mandanas vs Ermita case.
She added that the 75% of the collectible IRA was paid during the Arroyo presidency through a Land Bank-facilitated monetization scheme charged to the national government treasury in seven years.
It was learned that 50 members of the League of Provinces of the Philippines have consolidated their positions in its 19th general assembly at the Century Park Hotel where various options were raised in order to avert the reduction in their IRA for 2012 which is expected to result in reduced social welfare spending.
It was further learned that members of the League of Provinces of the Philippines (LPP) trooped to MalacaƱang Palace for a brief dialogue with President Noynoy Aquino last August 7, 2011 and insisted upon the President the P5 billion collectible in IRA due to LGUs.
She further said that President Benigno S. Aquino pledged to consider the idea of the governor submitted in his office and informed them soon if it is feasible or not the soonest time.
There was even a group of mayors in Eastern Visayas who would like to write to President Aquino asking to defer the implementation in the reduction of IRA for LGUs scheduled for next year.
She emphasized that the reduction in IRA of LGUs in 2012 was not an idea of President Aquino or an idea of DBM Secretary Abad but it came out due to the computation of the BIR.
Meanwhile, DBM Regional Director Imelda Laceras urged the local officials in the region to submit their positions regarding the impending cut in their IRA for 2012 so they may be clarified and could further ask assistance for policymakers of the country to consider their stand on the issue.
Director Laceras was the guest on August 16 episode of Suruswerte ha PIA where she explained thoroughly the reasons behind the cut of IRA in LGU in 2012. (PIA 8)
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