President Gloria Macapagal-Arroyo's Executive Order No. 494 dated January 18 entitles the city to receive the amount on seven equal annual installments of P4,542,279 from May 2007 to May 2013.
Pursuant to the General Appropriations Acts of 2000 and 2001, the P20 billion IRA of the LGUs were set apart and placed under the Unprogrammed Fund.
However, the Supreme Court, citing the case of Alternative Center for Organizational Reforms and Development Inc. vs. Zamora, ruled that setting aside a portion of IRA to form part of the Unprogrammed Fund is unconstitutional.
The secretary of justice then cited that in view of the Supreme Court decision declaring the unconstitutionality of IRA's portion under the Unprogrammed Fund, the P17.5 billion of the P20 billion IRA should be released to the LGUs concerned without the need of further clarification.
Only P2.5 billion of the P20 billion IRA was released in the previous years to different LGUs in the country. As an offshoot to the High Tribunal decision and the justice secretary's opinion, Arroyo issued E.O. 494 for the release of the P17 billion IRA.
The order declares that the IRA monetization program will give participating LGUs the option to collect in advance their respective shares of the IRA Balance. - Mitchelle P. Calipayan