Mayor nixes IRA cut

FLORIDABLANCA, Pampanga – The national government must have considered the various “peculiarities” of each Local Government Unit before it decided to cut next year the budget of the Internal Revenue Allotment (IRA) of all towns and cities nationwide.

In an interview, Mayor Eddie Guerrero reiterated his concerns on the announcement made by Interior and Local Government Secretary Jesse Robredo, who recently said the national government is set to cut by 4.8 percent the IRA budget of cities and towns next year.

“Each town has its own peculiarities, which is why fiscal autonomy is important most especially when it comes to the IRA budget allotment,” Guerrero said.

The mayor said each LGU must be allowed to use its IRA budget “according to the town’s respective needs and concerns.”

“What if my municipality is located in a flood prone area? How can I work around a 5 percent budget allotted for my IRA if my town is hit by more than just one typhoon?

Considering the effects of global warming today, our country is hit with several typhoons in a year,” Guerrero said.

Guerrero added a fixed budget allotment for the IRA runs contrary to the fiscal autonomy of each LGU.

The mayor also said he hopes the national government would provide LGUs an option or an alternative that would allow them to tailor-fit their IRA budget according to their needs and priorities.

Earlier, Robredo met with Pampanga Governor Lilia “Nanay Baby” Pineda, who gathered all mayors from the province for a dialogue with the DILG secretary.

During the meeting, Robredo said the 4.8 percent budget cut on the IRA next year will be “a big challenge” to LGUs.

He explained that taxes collected for 2009 are 4.8 percent lower than those collected in 2008.

In anticipation of the budget cut next year, Robredo encouraged mayors to prioritize upcoming projects and focus on intensifying local revenue mobilization.