Batangas Governor and Luzon RDCom Chairperson Hermilando I. Mandanas (middle) discussing the Supreme Court’s decision on the automatic release of Internal Revenue Allotment with NEDA Assistant Secretary Mercedita A. Sombilla (left) and DOF Undersecretary Bayani Agabin (right) during the Luzon RDCom meeting on July 12, 2018 at the University of Asia and the Pacific.

The Supreme Court (SC) on its July 3, 2018 decision, ordered the Department of Budget and Management (DBM) and the National Treasurer to automatically release the shares of local government units (LGUs) in the national taxes pursuant to the schedule provided by the Local Government Code, including the collections of the Bureau of Customs.

This was shared by Batangas Governor and Luzon Regional Development Committee (RDCom) Chairperson Hermilando I. Mandanas during the Luzon RDCom meeting on July 12 at the University of Asia and the Pacific, Pasig City.
According to Gov. Mandanas, the SC decision favoring the automatic release of the Internal Revenue Allotment (IRA) will cause amendment to the PHP3.75 trillion 2019 proposed National Budget. He added that national taxes should be included in the IRA computation which was not done by the DBM.

Further, to implement the SC decision, he suggested recasting the 2019 proposed budget by reducing the appropriation for regional line agencies intended for devolved services. By recasting the 2019 proposed National Budget, the national government need not to borrow money and simply cull out the funds from selected national government agencies budget for the IRA.

The increase of IRA among LGUs will help fund devolved basic services such as health, agriculture, education, disaster management, peace and order, and safety. This will enable LGUs to acquire ambulances, medicines, and construct health centers, hospitals, tourism facilities, and other services without requesting funds from the national government.

Mary Deemple D. Ariate, NEDA Region IV-A | July 23, 2018