Government opens fund for LGUs suffering from cut in IRA

CEBU, Philippines – Municipalities adversely affected by the decrease in their Internal Revenue Allotment Shares for 2008 may now avail of the “Kilos Asenso Support Fund” initiated by the national government to sustain the development programs and projects of local government units.

The fund is specifically intended to sustain development by correcting deficiencies in the construction of farm-to-market roads, small bridges, and day care centers, and to improve potable water supply and similar growth enhancing projects.

Growth enhancing projects refer to those that promote employment, education, health, and housing at the LGU’s.

Municipalities, whose IRA shares from January to June and July to December 2008, may avail of the fund, as long as they fulfill and submit requirements to the Department of Budget and Management. 

Fifth and sixth class municipalities will be given priority.

As stated in Memorandum Circular No. 022-2009 from the League of Municipalities of the Philippines, mayors have to submit the requirements to DBM on or before April 15, 2009.

DBM, through Budget Circular No. 2009-1 dated March 10, 2009, released the guidelines in availing of the fund.

In order to fast track the release of the fund, LGUs are urged to submit to DBM a letter request on the use of the fund supported by details of the project and a commitment to provide for a counterpart fund.

DBM also requires that the LGU to submit a status of the project being funded and how the fund is being utilized.

The fund shall be released directly to the local government unit requesting it and would be deposited to the LGUs account maintained with Government Servicing Banks. — Johanna T. Natavio/JMO (THE FREEMAN)