Binay: Excess IRA of richer cities should go to poorer LGUs
Vice President Jejomar Binay at the National Unity Party convention held at Sofitel Philippine Plaza Manila in Pasay City.
VICE President Jejomar Binay vowed to change the way the Internal Revenue Allotment (IRA) is being shared so that the excess IRA of richer cities will go to poorer local government units (LGUs).
In his speech during the National Unity Party (NUP) convention on Monday at Sofitel Philippine Plaza Manila, Binay said part of the wealth generated by richer cities that go to IRA should be coursed to the IRA of poorer municipalities.
“I think we have to revisit the IRA. Siguro kailangan palitan yung pangalan,” Binay said.
A former Makati mayor, Binay said Makati has some excess IRA. Binay said this excess IRA should go to poorer LGUs.
“So ang akin pong gagawin, kami, mayaman na ho kami sa Makati. Biruin ho ninyo, noong panahon ko, ang IRA namin 850 million pesos. Yung mga mayayaman na local government units, lalo na yung may 5 per cent na revenue, kailangan ipamigay na ho iyon doon sa mahihirap na local government units,” he said.
Binay seemed to be courting the local officials of the NUP during the convention when he vowed more funds for the poorer LGUs.
The IRA, which is the LGU annual share from the proceeds of the national internal revenue taxes, has long been seen as the pork barrel fund equivalent for local officials.
The IRA is about 40 percent of the actual collections of national internal revenue taxes sourced from income tax, estate tax and donor’s tax, value-added tax, other percentage taxes, and taxes imposed by special laws, such as travel tax, according to the Department of Budget and Management.
The breakdown of the IRA is as follows – all provinces will get 23 percent allocation, cities 23 percent, municipalities 34 percent, and barangays (villages) 20 percent.
A portion or 60 percent of the barangay IRA would still be computed based on the ratio of the population of the village to the total population of the country. Meanwhile, 40 percent would be equally shared among all the villages in the country.
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