'Stop release of P60 B for national projects'

MANILA, Philippines - The Supreme Court (SC) was asked yesterday to stop the release of some P60.75 billion in the 2012 national budget to fund national projects.

In a 27-page petition, Batangas second district Rep. Hermilando Mandanas said the fund include local government shares in tax revenues and should instead be allocated to local government units (LGUs).

He said the amount is equivalent to the internal revenue allotment (IRA) for LGUs that has been “misappropriated” by the national government in the 2012 General Appropriations Act.

“If the unconstitutional release of the P60.75 billion is not restrained by the Supreme Court, then again the misuse of local funds for national projects will go unabated,” Mandanas said.

He said LGUs have failed to perform their duties and responsibilities including the delivery of basic services to their constituents, because of the illegal allocation of IRA funds.

Mandanas said the IRA funds should be released to LGUs, as provided under Section 6, Article 10 of the Constitution.

“The unreleased amount due to the provinces, cities, municipalities and barangays from 1992 to 2012 has already reached P500 billion,” he said.

Mandanas said the P273.3-billion IRA in the 2012 national budget is based only on the 2009 collections of the Bureau of Internal Revenue.

He said Malacañang did not include the collections of the Bureau of Customs, which are also internal revenues.

Meanwhile, Malacañang stood pat on its decision not to release the P500-billion the national government purportedly owes LGUs.

 “It’s up to the courts (to decide on the case). We will defend the position of the government before the courts. It’s a question of interpretation on the IRA,” presidential spokesman Edwin Lacierda said.

In a statement, the Department of Budget and Management (DBM) said IRA shares this year amounted to P273. 3 billion, a 4.8 decrease compared to P286.9 billion last year.

DBM Secretary Florencio Abad said the smaller IRA is due to lower revenue collections in 2009, as a result of the global economic slump as well as revenue-eroding measures passed at that time.

“Year after year, we in the DBM have followed the provisions of the Local Government Code on the share of LGUs in national internal revenue taxes, with no exception. It is unfortunate that revenues in 2009 declined, but that is the legally-mandated base year for computing the IRA for fiscal year 2012,” Abad said.

“I don’t know where he (Mandanas) is coming from. The 60-40 sharing is mandated by law,” he said. – With Delon Porcalla