Mayors maintain status quo on IRA

The Metro Mayors’ Council (MMC) would be maintaining a status quo stand on the Internal Revenue Allotment (IRA) issue and would not ask for any "decrease or increase" of the budget share.

This was decided by mayors and representatives of the 17 mayors in Metro Manila during an emergency meeting at the Metropolitan Manila Development Authority (MMDA) office yesterday. The objective of the meeting was to come out with a common stand on the proposed cut on the local government units’ IRA for 18 months.

President Arroyo called for the implementation of austerity measures after admitting that the country was in the brink of a fiscal crisis.

MMDA Chairman Bayani Fernando said local chief executives have yet to sign a final resolution, but none of them are in favor of having their IRA either cut or suspended.

"Their initial reaction was concern over the delivery of services. It ended with a positive note that they would look for ways on how the local and national governments can help each other," he added.

Pateros Mayor Rosendo Capco said that instead of focusing on the LGUs as the solution to the country’s woes, the government should improve their tax collection.

Of all the 17 LGUs in the metropolis, Pateros would be the most affected because of its reliance on the IRA. If stripped of support from the national government, "di lang kami mahihirapan, babagsak ang Pateros."

Capco admitted they are dependent on the IRA. They generate an income of P25 million and receive P36 million IRA annually.