Poro mayor gets ok to borrow P1.8 M in IRA differentials

CEBU - The municipal council of Poro, Camotes, has authorized Mayor Edgar Rama to borrow the town’s P1.8 million Internal Revenue Allotment differentials for 2001 and 2004 to fund additional expenses of the town. 

The Supreme Court recently ordered the national government to pay certain cities and towns their share of IRA for 2001 and 2004 amounting to P61.5 billion. These were the cities and towns whose budget Congress failed to pass during these years.

Through Executive Order 732, President Gloria Arroyo authorized the Department of Budget and Management to release P12.5 billion for the IRA differential allotment to all LGUs across the country.

DBM then gave the LGUs an option to receive their shares either through installment for seven years starting 2009 or through a loan with LBP with interest.

Poro chose to acquire its P1.8 million share of the loan scheme with LBP. It will be secured by the Notice of Payment Schedule for the 2001 and 2004 IRA receivables.

When the Supreme Court ordered the payment of the LGUs IRA share for 2001 and 2004, the national government gave the share to the cities in installments, due to lack of funds. The loan scheme was offered to other LGUs.

The IRA deferential can be collected by the town based on the National Expenditure Program in 2000 and 2003, which was reenacted in 2001 and 2004, thus resulting to the same level of IRA allocation for all local government units for two consecutive years. — Garry B. Lao/JMO (THE FREEMAN)