MANILA, Philippines - Outgoing President Arroyo was hailed as the most “LGU-friendly” (local government unit-friendly) Chief Executive on account of her policies that infused massive government funds – specifically the Internal Revenue Allotments or IRA – directly to the countryside.
In statements aired yesterday, Eastern Samar Gov. Ben Evardone, secretary- general of the 80-member League of Governors of the Philippines, also praised Mrs. Arroyo’s “consultative approach towards LGUs during her rural visits that firmed up national support to the local governments.”
Evardone, outgoing governor and the congressman-elect of the province, said IRA releases during the Arroyo years have been noted to be substantial and delivered with ease and without delay to the LGUs because of the move in 2006 of the President to consider as automatic appropriations the IRA and other funds due to the local governments.
“The automatic process was facilitated by the transfer to the municipal finance corporations of all projects assistance to the LGUs,” he said.
Evardone said that the automatic or direct mode of releases to LGUs and the yearly increasing IRA due to the corresponding increase in annual national revenues, provided enormous and unprecedented amounts of human capital for the countryside.
IRA is the share of local governments from the national tax collections.
A law – Republic Act 7160 or the Local Government Code – mandates that 40 percent of the yearly tax revenues would go to the LGUs, with the remaining 60 percent to the national government.