North Luzon LGUs decry decrease in IRA allotments

LA TRINIDAD, Benguet – Local government units in Northern Luzon decried the adjusted Internal Revenue Allotment (IRA) of LGUs for the current year saying they have to adjust and prioritize or not implement programmed projects.

But the Dept. of Budget and Management said the IRA of local government units for the current year is due to the creation of new barangays nationwide and discontinuance of allotment for devolved functions under the Local Government Code.

In Benguet, Cordillera DBM regional director Irene Gahid explained the reasons for IRA share adjustment before members of the Sangguniang Panlalawigan in the capital town of La Trinidad recently.

The DBM had issued local budget memorandum no. 77-B which provides final appropriations amending earlier directive LBM 77 which indicates tentative budgetary allocation.

The provincial government of Benguet got deduction of P17, 148,824.00 or 1.59 percent from its IRA share.

From P1.078846 billion it is now reduced to P1.061698 billion.

For the municipalities of the province, all except the capital town of La Trinidad incurred reduction totaling to P7.3 million. 

La Trinidad LGU got an increase of IRA share of P398, 007, from P255.424 million to P255.822 million.

Gahid said IRA shares of LGUs have been adjusted following the creation of   15 new barangays   nationwide by virtue of various laws.

Moreover, there are devolved functions from the national government to the local government such as agricultural extension, community-based forestry, field health and hospital services, public works, social welfare services among others.

The discontinuance of the Cost of Devolved Functions or CODEF should have been after the devolution took effect in 1992, but will only be implemented this year, she added.

            “The cost of devolved functions was not removed actually, it was just redistributed to all LGUs, thus the decrease in some,” Gahid explained.

 Sections 284 and 285 of the LGC were used as basis for computation of IRA adjustments, she added.  

Gov. Crescencio Pacalso said that banking on the earlier approved budget, they have already appropriated their 2019 IRA share. 

However, with the adjustment, there is now P17 million shortfall and they will have to look for other means to fund programmed projects, otherwise they will be forced to prioritize and defer the others  until there are enough funds.

Based on the Bureau of Local Government and Finance figures in 2016, the province is 72 percent IRA-dependent. 

La Trinidad is only 56% IRA-dependent followed by Itogon at 62%, Bokod, 71%,   and Tuba at 74%. The rest of the towns’ IRA dependency range from 81 to 96 %. -- JDP/SCA-PIA CAR, Benguet