Poor municipalities will be given bigger internal revenue allotment (IRA) to enable them to implement more projects and programs beneficial to their constituents, according to Vice President Jejomar Binay.
Binay on Tuesday said under his administration, the criteria for the IRA distribution will be reviewed and poor local government units (LGUs) will be given higher shares from taxes collected by the government.
“We will revisit the IRA distribution to make sure there will be more national government assistance to poor municipalities,” the Vice President added.
“We must ensure that municipalities with low income will have enough funds to implement projects and programs for the benefit and welfare of their constituents,” he said.
The IRA is a local government unit’s share of revenues from the Philippine national government.
Binay noted that instead of focusing on how LGUs can meet the criteria to avail of a bigger IRA, the national government should give more attention to providing assistance to municipalities with low revenues.
“Right now, LGUs need to meet three criteria to get a bigger share of IRA: 50 percent for population, 25 percent for land area and 25 percent for the revenue,” he said.
“If you have a rich local government like Quezon City or Makati, you can definitely get the 25 percent because of revenue. You can also easily qualify for the 50 percent because of the population,” Binay added.
“However, we have many poor local governments with low revenues who rely heavily on their IRA. We need to come up with terms on how to give them assistance that they may be empowered to become IRA-independent,” he said.
Binay had served as mayor of Makati for almost three decades.