Mayors agree to IRA hike moratorium

The Metro Mayors Council (MMC) agreed to a "win-win" solution yesterday in support of the proposed two-year moratorium on any increase in their Internal Revenue Allotment (IRA).

Metropolitan Manila Development Authority (MMDA) Chairman Bayani Fernando said eight mayors and representatives of other chief executives in Metro Manila agreed to the proposal of Albay Rep. Joey Salceda to freeze IRA increases from year 2005 to 2006.

During a meeting last week, city officials agreed to a "no increase, no decrease" proposal for their IRA. Yesterday, they approved a two year period instead of one.

"Congressman Salceda presented a scheme wherein the end of a two-year sacrifice would redound for more benefits for the local government units. It is simply like the national government would borrow the IRA increase from the LGUs and return them after two years," Fernando said.

Fernando said the national government would sustain an allocation of P145 billion to LGUs nationwide for the years 2005 to 2006. But by year 2007, the LGUs would enjoy an 18 percent increase, or P21 billion, in their IRA from P145 billion to P166 billion.

If the mayors agree to a freeze in their IRA, they would be able to achieve the designed fiscal roadmap. Under cost-cutting measures, the national government could save P10 billion in 2005; P16 billion in 2006 and P21 billion in 2007.

Valenzuela Mayor Sherwin Gatchalian said the two years suspension was a good proposition.

"We are all in the same boat. We will have to do our share for the sake of the constituency," Gatchalian said.

The four-hour meeting was attended by Gatchalian, Feliciano Belmonte Jr. of Quezon City, Canuto Oreta of Malabon, Mel Aguilar of Las Piñas, and Florencio Bernabe Jr., of Parañaque, Toby Tiangco of Navotas, Rosendo Capco of Pateros and Jose Victor Ejercito of San Juan.