Recto asks Palace to release P14.8 B to LGUs

Sen. Ralph Recto challenged Malacañang yesterday to release the P14.8-billion increase in the Internal Revenue Allotment (IRA) of local government units (LOUS).

The amount represents the increase in the IRA of the LGUs under the proposed 2006 budget.

However, with the failure of Congress to pass the General Appropriations Act and the possibility of a re-enacted 2005 budget, LGUs stand to lose the promised increase.

Recto insisted that Malacañang’s firm stand to have portions of the budget slashed by the Senate restored should be complemented by a commitment to release the IRA increase.

"That’s only a small amount compared to the P391.7 billion paid to creditors. Why the double standard? We’re generous to a fault to our creditors but stingy on our local executives," Recto said.

He pointed out that the release of the IRA is not dependent on the passage of the 2006 budget. 

"The Supreme Court had ruled that this local government entitlement should be automatically appropriated. Whether there is a new budget or not, the Palace is duty-bound to release the IRA in the amount prescribed for the current fiscal year," he said. "The IRA is not something that is granted by the grace of Congress or by the generosity of the executive. It is something local governments should get without them asking for it."

Recto urged Mrs. Arroyo to order the "unconditional release" of the IRA in her forthcoming SONA.

He said many LGUs, particularly those that do not generate a lot of local revenues, are dependent on their IRA share for operating expenses.

"It is their oxygen. Deprive them of their IRA and they’ll die from slow fiscal asphyxiation," he said.

The IRA represents the share of LGUs in the internal revenue collections. The current IRA computation is based on the revenue collections three years back.

On the proposed budget cuts, Recto said he is "amenable" to the restoration of the P5-billion Kilos Asenso fund and the P3-billion Kalayaan Barangay fund if only to jumpstart the deadlock in the bicameral conference tackling the budget and also because the LGUs "truly deserve these allocations." — Marvin Sy