1

Bigger IRA, Higher LGU share

Equal sharing in a bigger pie. LGU share from internal revenues should be increased
from the present 40% to 50%. Likewise, there must be 50-50 split on the gross
collection from national wealth income.

Include VAT Collections on Oil in IRA

VAT on gasoline and diesel paid by motorists, or by farmers for their tractor fuel, is not
included in the IRA share of LGUs. As a result, local governments are deprived billions
of pesos as legitimate share of what is clearly internal revenue.

Flexibility in the Bottom-Up Budgeting (BUB) Projects

LGUs must be given more leeway in selecting BUB projects. They must be allowed to
name projects based on their development plans and the actual needs of their people.
An LGU should have the discretion to identify 40% of the BUB allotment. The rest it can
fill pursuant to the national government menu.

National Government Must Observe Police-to-Population Ratio

Police deployment in LGUs must follow at all times the standing cop-to-people ratio. If
the prevailing national ratio is 1:600 based on PNP personnel strength, then such must
reflect on the ground. Filling the unfilled positions in PNP alone would translate to an
additional new 16 policemen per town.

Sustain National Government (NG) Support in Upgrading

Local Health Facilities

Limited LGU funds simply cannot fund the modernization of locally-run-and-funded

public health clinics and hospitals. NG equity on their operations from manpower to
resources must be sustained. The LGUs deserve these as their dividends from the sin
taxes their constituents pay.

Rationalize DBM Power to Review of Local Budgets

For lesser interference from Manila, the review function of the DBM on the budgets of
provinces, cities and towns should be lifted if they have consistently complied with the
standards of public expenditure management. Recipients of the good fiscal (back page)

12-POINT
AGENDA
FOR LGUs

SEN. RALPH RECTO

SEN. RALPH RECTO

12-POINT
AGENDA
FOR LGUs

Bigger IRA, Higher LGU share

Equal sharing in a bigger pie. LGU share from internal revenues should be increased
from the present 40% to 50%. Likewise, there must be 50-50 split on the gross
collection from national wealth income.

Include VAT Collections on Oil in IRA

VAT on gasoline and diesel paid by motorists, or by farmers for their tractor fuel, is not
included in the IRA share of LGUs. As a result, local governments are deprived billions
of pesos as legitimate share of what is clearly internal revenue.

Flexibility in the Bottom-Up Budgeting (BUB) Projects

LGUs must be given more leeway in selecting BUB projects. They must be allowed to
name projects based on their development plans and the actual needs of their people.
An LGU should have the discretion to identify 40% of the BUB allotment. The rest it can
fill pursuant to the national government menu.

National Government Must Observe Police-to-Population Ratio

Police deployment in LGUs must follow at all times the standing cop-to-people ratio. If
the prevailing national ratio is 1:600 based on PNP personnel strength, then such must
reflect on the ground. Filling the unfilled positions in PNP alone would translate to an
additional new 16 policemen per town.

Sustain National Government (NG) Support in Upgrading

Local Health Facilities

Limited LGU funds simply cannot fund the modernization of locally-run-and-funded

public health clinics and hospitals. NG equity on their operations from manpower to
resources must be sustained. The LGUs deserve these as their dividends from the sin
taxes their constituents pay.

Rationalize DBM Power to Review of Local Budgets

For lesser interference from Manila, the review function of the DBM on the budgets of
provinces, cities and towns should be lifted if they have consistently complied with the
standards of public expenditure management. Recipients of the good fiscal (back page)

housekeeping should be rewarded with reasonable autonomy. After all, COA still retains oversight.

LGUs as Implementing Agencies of National Government Projects

Underspending can be cured if LGUs will be designated as implementors or contractors of NG

infrastructure projects. NG should joint venture with LGUs in order to accelerate completion of
public works projects within the capacity of LGUs to construct. This will also hasten project
identification.

Raise Personal Services (PS) Ceiling to Accommodate Salary

Standardization Law (SSL) IV for LGU Employees

Equal pay for equal work. Sixth-class towns can only implement 65 percent of the amount
prescribed by the SSL. Even if the LGU can afford to implement a higher percentage, they are
restricted from fully complying with the law. LGUs should be allowed to increase pay higher than
what is prescribed for their income class.

Subsidies for LGU Implementation of Solid Waste Management Act

housekeeping should be rewarded with reasonable autonomy. After all, COA still retains oversight.

LGUs as Implementing Agencies of National Government Projects

Underspending can be cured if LGUs will be designated as implementors or contractors of NG

infrastructure projects. NG should joint venture with LGUs in order to accelerate completion of
public works projects within the capacity of LGUs to construct. This will also hasten project
identification.

Raise Personal Services (PS) Ceiling to Accommodate Salary

Standardization Law (SSL) IV for LGU Employees

Equal pay for equal work. Sixth-class towns can only implement 65 percent of the amount
prescribed by the SSL. Even if the LGU can afford to implement a higher percentage, they are
restricted from fully complying with the law. LGUs should be allowed to increase pay higher than
what is prescribed for their income class.

Subsidies for LGU Implementation of Solid Waste Management Act

Most LGUs cannot afford their own garbage collection, waste treatment, and disposal facilities. As
a health issue, it is imperative for the national government to provide subsidies under the General
Appropriations Act in helping LGUs implement provisions of RA 9003.

Most LGUs cannot afford their own garbage collection, waste treatment, and disposal facilities. As
a health issue, it is imperative for the national government to provide subsidies under the General
Appropriations Act in helping LGUs implement provisions of RA 9003.

10

10

Automatic Release of LGU Share in IRA and National Wealth

Automatic Release of LGU Share in IRA and National Wealth

LGUs have long grappled with the challenge of expediting the release of their IRA and national
wealth share. A mechanism to solve this problem should be developed by the national agencies
concerned working closely with LGUs. One scheme that can be pursued is the retention and
remittance to the LGUs of the national wealth collections in their jurisdiction.

LGUs have long grappled with the challenge of expediting the release of their IRA and national
wealth share. A mechanism to solve this problem should be developed by the national agencies
concerned working closely with LGUs. One scheme that can be pursued is the retention and
remittance to the LGUs of the national wealth collections in their jurisdiction.

11

11

Strengthen Public Financial Management (PFM) in LGUs

National government must provide the training and other support needed by LGUs for them to
exercise greater responsibility in financial management. The PFM must focus on areas where a
specific LGU needs improvement whether in revenue generation, accounting, procurement or
auditing.

12

Meaningful Coordination between LGUs and NGs Implementing

Devolved Functions

Agencies with large budgetary footprint but minimal presence in the grassroots, like DoH and DA,
should treat LGUs as full partners in implementing their projects and not as mere recipients of
programs dictated from above.

ralphrecto.ph

facebook.com/senralphrecto

Strengthen Public Financial Management (PFM) in LGUs

National government must provide the training and other support needed by LGUs for them to
exercise greater responsibility in financial management. The PFM must focus on areas where a
specific LGU needs improvement whether in revenue generation, accounting, procurement or
auditing.

12

Meaningful Coordination between LGUs and NGs Implementing

Devolved Functions

Agencies with large budgetary footprint but minimal presence in the grassroots, like DoH and DA,
should treat LGUs as full partners in implementing their projects and not as mere recipients of
programs dictated from above.

ralphrecto.ph

facebook.com/senralphrecto