P30B more in IRA dangled: LGUs rewarded for backing Glo

Local governments can expect a hefty P30 billion increase in their internal revenue allotments next year, President Arroyo promised late Wednesday.

In what some see as an apparent bid to court the continued loyalty of local officials, Arroyo told provincial governors gathered in Malacanang last Wednesday that she has increased the IRA in the 2006 budget from P130 billion to P160 billion.

The crucial support extended by local officials to Arroyo helped stave off a move to oust her from office on charges of poll fraud and corruption.

But shortly after the embattled president succeeded in having her allies in the House of Representatives kill an opposition bid to have her impeached, the same local officials who gave her crucial backing are now calling on her to shed more light on the controversy that has sparked the most serious crisis Arroyo has ever faced.

To counter that, Arroyo is now trying to entice them with greater shares from taxes, which can mean a more comprehensive and effective delivery of basic services.

Arroyo met with the governors just before flying to Cebu for a visit last Wednesday, a day after the House set a record for the longest continuous session to quash the impeachment bid.

Cebu Governor Gwendolyn Garcia, who was one of the governors at the meeting, confirmed the promise of Arroyo to raise the IRA of local governments.

The P30 billion increase will be shared equally among the 79 provinces in the country and the Metro Manila Development Authority.

Garcia said the increase in IRA will empower local governments to be more effective in providing the needed services to the people. " I believe this is the key to this nation's development, " Garcia said.

" She is truly empowering the local government units by helping us thru this increase in the IRA, " Garcia said.

But while Arroyo continues to court local officials, two of the country's most influential business groups are fighting over former president Corazon Aquino's role in the continuing protest actions calling for Arroyo to resign.

The Philippine Chamber of Commerce and Industry led by Donald Dee urged Aquino not to head mass actions against the president, saying it is bad for business.

But the Makati Business Club defended Aquino, citing her historical role in restoring democracy in the country.

" What is bad for business is this crisis. The root cause of this crisis happens to be the charges against the president, " MBC executive director Guillermo Luz said.

Luz went on to accuse the PCCI of being supportive of Arroyo, a reverse of its position at the time former president Joseph Estrada was ousted in a popular revolt in 2001.

During Estrada's short term as president, the PCCI expressed its preference for the deposed president as against being replaced by then vice president Arroyo. - with Philippine Star News Service