‘Shift to parliamentary system spells automatic release of IRA’

In a unicameral parliamentary government, local government units (LGUs) will automatically get their share of Internal Revenue Allotment (IRA) and will no longer be a hostage to a "hostile Senate," League of Municipalities of the Philippines(LMP) president and Binalonan, Pangasinan Mayor Ramon Guico said yesterday

Guico said that with the automatic release of IRA to LGUs, they would be able to better implement their programs and delivery of services.

"Our IRA will no longer be exploited as a striking balance by some opposition senators who are using the LGUs as pawns in their quarrel with Malacañang," he said, expressing the sentiments of 1,502 town mayors nationwide.

He said the perennial legislative gridlock that has stalled economic growth for decades would finally be eliminated if the country adopts a one-house parliamentary system since this would ensure the automatic release of the IRA shares of the LGUs annually.

He said LMP welcomed the support of such business groups as the Philippine Chamber of Commerce and Industry (PCCI), Federation of Filipino Chinese Chambers of Commerce and Industry (FFCCCI) and Exporters Federation of the Philippines (PhilExport) for the immediate holding of a plebiscite.

Guico said the recurring budget standoffs between Malacañang and the House of Representatives, on one hand, and the Senate, on the other have severely dented local governance and countryside development because the most prominent casualty of this impasse is the LGUs’ IRA allocation.

The budget deadlock threatens to deprive LGUs of a staggering P15 billion in their aggregate IRA share because Malacañang has no recourse but to release the same IRA amount of P151 billion based on a re-enacted 2005 national budget, Guico noted.

A higher P166 billion IRA outlay has been proposed in the General Appropriations Act (GAA) of 2006.

Guico said this P15-billion needed additional funds is just part of some P60 billion in development funds for LGUs this year that have been imperiled because of the cuts made by senators in the proposed 2006 General Appropriations Act on suspicion that such outlays like the P5-billion Kilos Asenso and P3-billion Barangay Kalayaan funds are presidential pork that will be used to buy LGU support for Charter change.

To correct this problem, Guico said Malacañang is now asking Congress to approve a supplemental budget of P46.4 billion that includes, among others, an extra P14.8 billion outlay for LGUs to cover the IRA gap.

"But the approval of this additional outlay will remain at the mercy of self-serving political and electoral agenda of senators who thrive best in a defective, conflict-riddled bicameral presidential government," Guico said.

"An overwhelming majority of our people are fed up with this executive-legislative gridlock. They are now aware that the only way to get rid of this poison is to abolish the institution responsible for this annual budget charade," Guico said.

LMP secretary-general and Angono Mayor Gerry Calderon shared Guico’s view, saying the deferment of the IRA’s incremental increase approval will mean a continued delay in the delivery of basic services to the people.

"This has also stalled implementation of development initiatives at the local government level that would help create jobs, address malnutrition among children, and build more schools, homes, farm-to-market roads, water and small irrigation facilities," he noted.