Bukidnon LGUs’ IRA cut by P214M in 2012

MALAYBALAY CITY – Due to a shortfall of about 5 percent in the national revenue in 2009, the basis for the 2012 internal revenue allotment (IRA), local government units in the province will lose a total of about P213.8 million, according to a memorandum circular dated June 26 signed by Budget Sec. Jose Abad.

For 2011, LGUs in Bukidnon, including the Provincial Government of Bukidnon, the two cities and 20 towns received P4.486 billion. But due to the cut, they expect to receive P4.272 billion or P213.8 million or 4.76 percent less next year.

Bukidnon News obtained a copy of the list of reductions from Concessa B. Gamao, budget consultant of the Sangguniang Panlalawigan Wednesday. Gamao, previously the Provincial Budget Office’s chief, told Bukidnon News traditionally it could also mean a freeze on increase for salaries, for example.

The Provincial Government of Bukidnon, which received an IRA of P1.311 billion in 2011, will expect to get only P1.249 billion or about P62.265 million less.

Malaybalay City will receive P36.9 million less next year due to the cut. Of its P765.9 million in 2011, Malaybalay City expects only to receive P728.9 million or P36.9 million less in 2012. The city expects to lose P60 million due to the inclusion of 16 new cities.

Valencia City, which received about P592.8 million in 2011, will expect to receive only P564.3 million or about P28.6 million less. No data is available yet for the city IRA’s reduction due to the inclusion of the 16 new cities.

The two cities have a combined reduction of about P65.5 million.

Bukidnon’s 20 towns, with a total IRA of P1.815 billion in 2011, would be cut by P86 million or a net of P1.729 billion in 2012.


According to Section 284 of Republic Act 7160 or the Local Government Code, LGUs shall have a 40 percent share in national internal revenue taxes “based on the collection of the third fiscal year preceding the current fiscal year.”

The Department of Budget and Management showed that tax collections in 2007 reached P699.7 billion; P761.95 billion for 2008; and P720.54 billion in 2009.

“The smaller IRA next year is due to the sharp decrease of revenue collections in 2009 due to the global economic slump as well as revenue-eroding measures passed at that time,” national media reports quoted the DBM as saying.

The LGUs, the DBM was quoted, are encouraged to align their programs, projects and activities to the five priority areas under the social contract agenda of the government to maximize the impact of resources that would be available next year.

“The National Government can co-finance LGUs’ critical development projects such as school buildings, rural health centers, infrastructure that supports agriculture and tourism, and other endeavors consistent with the social contract,” it added.

The budget cuts for next year is a swing from the increase of IRA this year, compared to that of 2010.

All of Bukidnon’s LGUs received P4.486 billion this year, 8 percent higher than the IRA in 2010 at P4.154 billion or an increase of about P332 million.

At the Sangguniang Panlalawigan regular session on July 13, board members questioned representatives from the Provincial Treasurer’s Office about the collection of target revenues for 2011.

Gamao told board members collection as of May 2011 reached only P25 million out of the P67 million target. PTO officer in charge Viola Cruz earlier said they have already collected half of the target. (Walter I. Balane)


Find this story and other stories about Bukidnon in: www.mindanews.com



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