BIGGER FUNDS, MORE WORK; LGUs welcome IRA hike with caution

ILOILO City – While some local chief executives in Western Visayas have concerns relative to the implementation of the Supreme Court (SC) ruling on the Mandanas-Garcia petitions slated next year, others welcomed it.

“We are ready,” said Iloilo City’s Mayor Jerry Treñas on the expected devolution of functions of national government agencies to local government units (LGUs) as a consequence of their having a bigger Internal Revenue Allotment (IRA).

Kaya ta gid – CSWD (City Social Welfare and Development), local roads, agriculture…Ready kita,” Treñas told Panay News.

For the city mayor, here’s one big advantage: the LGU can immediately implement projects.

With national government agencies handling these, “we have to wait for the national appropriation before implementation,” said Treñas.

In July 2018, the SC ruled in favor of the petitions filed separately by Gov. Hermilando Mandanas of Batangas and the late Rep. Enrique Garcia Jr. of Bataan questioning the computation of the IRA.

In its decision, the high court expanded the source of IRA to include other national taxes such as customs duties. The IRA must be computed based on all national taxes, and not just from National Internal Revenue Taxes (NIRT), it stressed.

The SC further stated that the NIRT as provided in Section 284 of the Local Government Code contravened the express provision in Section 6, Article X of the 1987 Constitution.

Department of Interior and Local Government (DILG) Region 6 legal officer Atty. Cedric Jaranilla said preparations are now underway relative to the implementation of the Mandanas-Garcia ruling next year.

This new IRA sourcing, Jaranilla underscored, is very advantageous to LGUs “kay madugangan ang ila shares sa national taxes.”

At present, an LGU’s IRA comes from 40 percent of NIRT collected by the Bureau of Internal Revenue (BIR). With the Mandanas-Garcia ruling, it is projected that LGUs will have a 27.61 percent increase in the total IRA shares.

Iloilo’s Gov. Arthur Defensor Jr. also has a take with this development.

Pabor gid ‘na sa aton,” Defensor told Panay News. However, he said, “damo lang garing ang obligasyon. But waay kita choice.”

The provincial government is now expanding its Engineering Department, among others, in preparation for the added functions that would be downloaded to the LGUs, he said.  

Any prospected projects eyed from the shares that would come from the ruling’s implementation?

“So far wala pa man because wala pa kita exact figure for the provincial government,” said Defensor.

The SC ruling has not taken effect at an earlier date, he said, probably because the national government wasn’t ready to execute it as a big sum of fund is required.  

‘LOOKING FORWARD’

She has since been aware of the SC ruling so for Mayor Rosario Mediatrix Fernandez of San Enrique, Iloilo, the move would be a great advantage to the LGU.

“At that time daw indi kami kapati nga that much amount will be downloaded to the LGUs pero since it was already approved by the court or probably ginpaboran sang court, we look forward sa sini nga makabulig sa amon banwa,” Fernandez said in an interview with Panay News.

She went on: “This is the tax collection of the national government like customs in which may share ang LGUs pero wala na-remit sa LGUs. So, nag-accumulate na ini sia like customs and other national agencies dues nga dapat under the law… daw may share ang LGUs so ang naghikotar amo si Governor Mandanas on behalf of LGUs.”

Fernandez said they are also waiting for the guidelines from the national government relative to its implementation.

As to the devolution of functions, Fernandez said there would be no problem “basta may additional funds lang” and that LGUs focus more on development/community projects.    

Meanwhile, Mayor Macario Napulan of Miag-ao, Iloilo, said he is also in favor of the implementation of the ruling in 2022.

However, he clarified, that the amount should be specified as to where it would be allocated like in social welfare, health and/or agriculture.  

Napulan also believed that the LCEs have no discretion as to where they would allot the fund because possibly “may naka-desinyo na nga proyekto or programa nga gamitan.”

The mayor is hoping, though, that they will be given such discretion for them to allot the fund to development projects that would benefit the community.   

Waay naman ta mahimo,” Napulan said. “Batunon ta na lang kag sundon ang order nila.”

On the other hand, while Mayor Jett Rojas of Ajuy, Iloilo sees the development as advantage, he cannot deny the fact that this would also mean more functions for the LGU.  

Daku ang madugang sa income sang LGUs pero daw may nabatian ako nga daw may i-devolve sa LGUs nga functions. Ang nabatian ko ang BFP (Bureau of Fire Protection) under na sa LGU,” said Rojas.

Rojas also asked: “Kon munisipyo na ang ma-gasto (salary) basi kon sobra pa sa mabaton namon nga additional IRA ang ma-gasto namon sa ila?”

The mayor also pointed out that most LGUs are facing budget constraints due to the coronavirus pandemic so it is “better not to devolve more functions to the LGUs.”

‘AMPLE TRANSITION PERIOD’

Two mayors in Negros Occidental have likewise welcomed the development.

According to Silay City’s Mayor Mark Golez, it will not be easy that there will be devolved functions to the LGUs, but “we will always be prepared, and we have already made some contingencies for this.”

However, Golez hopes that the national government would provide LGUs “proper capability enhancement and ample transition period to adjust to these new and added responsibilities.”

San Carlos City’s Mayor Renato Gustilo, meanwhile, said this something that the LGUs should look into. He, however, had some concerns.

“We should compute what are the additional functions that will be downloaded from the national government to the LGUs kay basi bala magdako pa ang amon swelduhan kag galastuhan sa mga programa sang sa IRA nga mabaton namon,” he opined.

Further, he said, “we welcome the increase of IRA but as far as additional responsibility from the national government, I don’t think so.”

Gustilo said if there will be no additional responsibilities, the fund will be reverted to more projects.

The two mayors also underscored that if this will be implemented, there will be an increase in the allocation for general services because they have to hire additional employees to implement the national projects.

Silay City currently has more than P700 million IRA while San Carlo City has more than P900 million./PN

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