BOKOD, Benguet – The Cordillera Regional
Development Council and the Regional Peace and Order Council passed a
resolution urging Congress to upgrade and institutionalize income
classification of provinces, cities and municipalities.
Both bodies
said in joint resolution there is clamor to increase the income classification
of local governments which has not been allegedly adjusted since 2008 or over a
decade ago.
The
resolution noted the income classification of provinces, cities and
municipalities in the country serves as the basis for the determination of
financial capability of local governments to provide, in full or in part, the
funding requirements of development projects and other priority needs in their
localities.
The RDC-CAR
and RPOC-CAR said income classification of local governments can also be used
as a factor in the allocation of national and other financial grants and is
important in the fixing of maximum tax ceilings imposed by the local
governments; the determination of administrative and statutory aid, financial
grants, and other forms of assistance to local governments; the establishment
of the salary scales and rates of allowances, per diems, and other emoluments
officials and personnel may be entitled; the implementation of personnel
policies on promotions, transfers, details or secondment and related matters at
the local government levels; the formulation and execution of local government
policies and the determination of financial capability of local governments to
undertake developmental programs and priority projects.
According to
the resolution, the advantages of upgrading the income classification of local
governments are the corresponding increase in the Internal Revenue Allotment
(IRA); increase in salaries of officials and personnel; sustained implementation
of Magna Carta of personnel for the 4th to 6th class local governments and
provision of mandatory services.
The
resolution said disadvantages of income classification are lowering of the
personnel services cap from 55 percent to 45 percent and the requirement of
higher equity when the local governments apply for a loan.
Aside from the advantages of the
proposed income classification, the RDC-CAR and RPOC-CAR added that other
considerations which warrant the upgrading of local government income are the
reported increasing population based on the 2015 census; selection of programs
and projects based on LGU income classification and availment of loans by the
LGU which is based on their capacity to pay back.
Despite the
identified disadvantages, the resolution asserted that upgrading the income
class of the LGUs will bring them confidence in fulfilling the funding
requirements of development programs and projects in their own locality.
Section 9 of
Executive Order No. 249, series of 1987 lodges on the Secretary of Finance the
authority to review the income ranges, at least once every four years, provided
that the finance department shall recommend appropriate changes or revisions to
the proper authority, such that the income classification may continue to
conform with prevailing economic conditions and the overall financial status of
the local governments. -- Dexter
A. See
No comments:
Post a Comment