‘We’ll survive IRA cuts’

The Capitol is confident that operations of the provincial government will not be affected by the looming Internal Revenue cuts as 16 new cities across the country gain higher   IRA allotments for fiscal year 2012.

Provincial Treasurer Roy Salubre told Cebu Daily News that Capitol has not been “IRA dependent.”

He said the governor pushed for “better revenue collection and creating more economic enterprises through public-private partnerships” as Capitol’s solutions to a cut of  at least P77.4 million next year.

Last April, Garcia announced solutions to cover up for the loss of at  least  40 percent in real property tax collections from Naga, Bogo and Carcar cities.

Garcia said Ciudad’s proprietor Fifth Avenue will rent the lot at P77 per square meter and share one and one half of  its gross profit to the province.

The Central Command lot in barangay Apas will soon be offered for development.

The mayors of Cebu, Mandaue and Lapu-Lapu cities said their localities can weather  slashed IRAs.

Cebu City Mayor Michael Rama said he fully understands the need for the IRA cuts, which would be added to the IRAs of  the newly created cities.

Mandaue City Mayor Jonas Cortes said the cut would affect the delivery of basic services in the city while Lapu-Lapu City Mayor Radaza said the amount that will be cut off is too large.

But Cortes said they will cope by maximizing on economic activity especially in the city’s new market and slaughterhouse.

Radaza, meanwhile, said she is looking at cost-cutting measures but will  discuss the IRA cut with department heads and ask for suggestions to cope with the cuts.

In a memorandum dated June 27, Budget Secretary Florencio Abad said the computation of the budget for local government units in 2012 will take into account any entries of judgment made by the Supreme Court on the status of 16 towns that had been vying for cityhood.

According to the memorandum, provinces in Central Visayas have to share the amount of P3.9 billion, cities P4.9 billion, towns P6.3 billion and barangays 3.8 billion.

Cebu City is set to lose at least P52 million of its P1-billion IRA share in 2012.

“Let’s not think about losing (P52 million of our IRA share),” Rama said, adding that he  still intends to pursue his plan to have a P10 billion budget for next year.

Rep. Tomas Osmeña of Cebu City’s south district said Cebu City would survive  an IRA cut.

He said he adopted a policy for the city to be self-sufficient when he was still mayor.

Also, he left a surplus of P1.5 billion when his term ended on June 30, 2010.

Osmeña said Cebu City can afford to lose P52 million.  He said the amount was nothing compared to the  P300 million that the city may lose after it lost two expropriation cases (see story below).

Rama said Cebu City will “continue with efficiency of our collection and adopt more projects.”

Rama said with  this kind of mentality, “at the end of the day you won’t feel losing P52 million.”

Radaza said some  projects may be hampered due to the cost cutting and some employees will be laid off.

“We would really be affected because the amount that they will cut is too much and would have funded many things.”

But she said they will look for other alternatives to raise funds.

Part of the solution is for the city government to intensify the promotion of tourism and collection of taxes, she said.

Cortes said Mandaue’s  full-automation project to improve tax collection is timely and will somehow compensate for lost IRA. /Carmel Loise Matus, Doris C. Bongcac and Jucell Marie P. Cuyos