BrrsinessMirror
I Thursday, Octob er 17,2019
Congress to amend LGC
to hike IRA in rural areas
BY JovEE MARrE N. DELA CRUZ
9 @joyeemarie
ONGRESS will review and
amend the Local Govern-
ment Code of 1991 to
increase the internal revenue
allotment (lRA) of local govern-
menl. units in rural a reas, Speak-
er Alan Peter Cayetano said on
-Wednesday.
In a news conference follow-
ing the ocular inspection at the
New Clark City sports facilities
for the 30th Southeast Asian
Games (SEAGames) in November,
Cayetano said this review on the
LGU Code seeks to address rapid
urbanization, as well as traffic in
Metro Manila.
"Me are now facing] rapid ur-
banization; we really have to have
abalance plan. Congress has aplan
[we will tackle it after] we finish
lthe 2020 natiorial] budget. One
ofthe solutions ofCongreis is that'
we really need to look at the Local
Covernment Codeand thedistribu-
tion ofIRAamong LGUs," Cayetano
said.
'According to the Speaker, the
amendments to the LGU Code will
focus on rural areas.
"[We should] give rural areas an
. incentive and provide them with
good schools and hospitals so that
not everyone will settle in urban
areas _[to seek good facilities and
incentives]," he added.
Under the 2020 national bud-
get, Metro Manila will be allo-
cated P40.4 billion out of the na-
tionwide total of P648,9 billion
in IRA next year.
Earlier, Deputy Speaker Rep.
Luis Raymund Villafuerte of Ca-
marines also urged the Depart-
ment of Budget and Manage-
ment (DBM) to work out a plan
P40.48
Metro Manila's share in the
2020 nationwide total of P648.9
billion in internal revenue
allotment (lRA)
on how to give out the full IRA
due to LGUs since 1992 based on
the Supreme Court decision that
the IRA for LGUs should include
all taxes collected from other
government agencies apart from
the Bureau of Internal Revenue
(BIR), especially the value-added
tax (VAT).
Villafuerte, citing es-tim4ges by
Batangas Gov. Hermilando Man-
danas andformer Senate President
Aquilino PimentelJr., saidthe IRA
based on all national taxes that
werewithheldfrom LGUs amounts
to about PB00billion from 2010 to
2016 alone.
Villafuerte said this landmark
ruling would help the national
government in boosting the econ-
omy of LGUs once the country
commences the shift to a federal
system of government.
Section 6, Article X of the
1987 Constitution states that lo-
cal government units shall have
a just share, as determined by
law, in the national taxes which
shall be automatically released
to them.
Program forthe poor
MOREOVER, Cayetano said the
government will also launch a
program that will focus on the
20 poorest provinces in the
country.
SEE..LGC,,,A.2
CoNTTNUED FRoMAI
"We will launch the,2020-20 pro_
gram'for the 20 poorest provinces in
2020. ln th js prograrn, the Department
ofTrade a nd lnd ustrrTesda and the De_
p rtment of Agricuitu re willcollaborate
to help the 20 poorest provinces.
lltt
not right that the nation engages in a
scramble for resources ad leaves out
the poorl,"Cayetano said.
Ac.ording 10 data on poverty jn
cidcnce released by the philjppine
Stdii5i ics Autho,ity tpSA). poverty
worsened in'17 provinces and cities,
inciuding districts in Metro lvlanila, in
the first half of 2018.
Using PSA data, the BLrsrNEssl\4rRsoF
had ea l1.1 a6npu1o6 rnat thF l-jghesr
,r(redSe< in ooverly
1(ioence were
recorded in Basilan and lsabela C
ty,
where it worsened to 65.3 perce;t
and 52.6 percent, respectively.The rate
rose by 36.5 percentage points from
28.8 perceni jn Basilan, and by 31.97
percentage points in lsabela City com
pared to the first half of 20t 5.
Other provjnces and cities that re
corded increases in poverty incjdence
were Tawilawi which recorded an in-
crease of 6.34 percentage points; Bata
an. 5.79 percen Laqe poin ts; Davdo Or;
ental, 4.68 percenta ge points; Batanes,
3.26 percentage points; Zamboangd
del Sut 2.02 percentage points;Biliran,
1.96 percentage points;and Zambales,
i.91 percentage polnts.
The list also included the Third Dis-
trict of Metro Manja (Caloocan, l\4ala-
bon, Navotas and Valenzuela), which
recorded a poverty rate of8.1 percent,
or 1.57 percenrage points higher than
the figure recorded in 20l5; and the
First District of Metro Manila (l\,4anild,
the capital city) which saw poverty
incidence go Lrp by 0.91 percentage
points to 5.7 percent.
Howevet the National Economic
and Development Authority (Neda) re-
mains confide.1L rhar Lhe phi)ippines is
on track!o meeting its povertytarget
of 14 percenr by 2022.
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