Lawmaker wants IRA granted to barangays created by ‘Sanggunian’

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Monday, May 26, 2014

A MINDANAO lady lawmaker has proposed the granting of internal revenue allotment (IRA) to barangays created by local Sanggunians (councils) to enable them to continue the delivery of government socials services and projects.

Representative Juliette Uy (2nd District, Misamis Oriental) said her proposal embodied in House Bill 4109 aims to correct the lopsided, if not unjust distribution of funds among local government units (LGUs) and arrive at an equitable distribution of LGU shares from national taxes and the utilization and development of the national wealth.

Uy said the last paragraph of Section 285 of Republic Act No. 7160 otherwise known as the Local Government Code of 1991 states that "the financial requirements of barangays created by local government units after the effectivity of this Code shall be the responsibility of the local government unit concerned."


"It practically excludes barangays created after the Code's effectivity from receiving their just shares of the Internal Revenue Allotment (IRA), practically negating the constitutional provisions on local government autonomy," Uy said.

In filing the measure, Uy cited the declared policy of the State which promotes autonomy in local governments.

She said Article II, Section 25 of the Constitution provides that "The State shall ensure the autonomy of local governments."

Uy further cited Article X, Section 6 which states that "Local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them."

"The continued exclusion of such barangays from the IRA severely impairs implementation of basic social services and projects," Uy stressed.

Uy said Section 7 of the Constitution provides that "Local governments shall be entitled to an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas, in the manner provided by law, including sharing the same with the inhabitants by way of direct benefits."

Uy said the bill shall also engender strict LGU compliance with the requirements on the creation of barangays.

"These shall all help in ending the financial deprivation of non-IRA barangays and make local government autonomy a reality for the same," Uy said.

The bill seeks the amendment of Section 6, of Republic Act 7160, as amended, on the Authority to Create Local Government Units and Section 7 on the Creation of Conversion.

Also, the bill seeks to amend Section 285 on the Allocation to Local Government Units.

The Department of Finance (DOF) in close coordination with the Department of Budget and Management (DBM) and the Department of Interior and Local Government (DILG) and the leagues of local government units shall issue the necessary implementing rules and regulations.

Published in the Sun.Star Cagayan de Oro newspaper on May 26, 2014.

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