DBM to appeal Supreme Court ruling on IRA

MANILA, Philippines — The Department of Budget and Management (DBM) will ask the Supreme Court (SC) to reconsider its ruling increasing the internal revenue allotment (IRA) of local government units (LGUs).

“The DBM, in coordination with the OSG (Office of the Solicitor General), will file a motion for reconsideration within 15 days from the receipt of the decision. As of yesterday, we have not received the (SC) decision,” Budget Secretary Benjamin Diokno said at yesterday’s Kapihan sa Manila Bay.

Diokno said the high court ruling, though prospective, would cost the government another P160 billion if implemented next year.

He said the allocation for IRA next year could reach P735.52 billion, noting that P575.52 billion was earmarked under the national budget for 2019.

To cover the increase, Diokno said some national government programs and projects, such as barangay roads, provincial roads and communal irrigation, might be devolved to LGUs.

He said some health programs and the conditional cash transfer should also be handled by local governments.

Diokno said LGUs might also take over the collection of certain taxes.

Since the SC ruling came after President Duterte submitted the proposed 2019 budget to Congress, Diokno said it is up to Congress to make adjustments on the budget for next year to comply with the SC ruling.

“Congress may replace but not increase the budget as submitted,” Diokno said.

The SC decision includes national taxes in the computation of the “just share” of LGUs.

These include tariffs and duties collected by the Bureau of Customs, 50 percent of the value-added tax, 30 percent of national taxes collected in the Autonomous Region in Muslim Mindanao, 60 percent of national taxes collected from the exploitation and development of national wealth and 85 percent of excise taxes from tobacco products. – With Christina Mendez