Arroyo bats for fiscal autonomy for LGUs

President Arroyo said yesterday she will promote "fiscal autonomy" for local government units (LGUs) by giving them a free hand in utilizing their annual internal revenue allotments (IRAs).

IRAs, she said, was used by the former administration to force local executives to kowtow to its whims.

The President told members of the League of Municipalities of the Philippines (LMP) during their 11th national convention yesterday that their respective IRAs will be released in full because she had scrapped the Local Government Service Equalization Fund under the proposed 2002 national budget.

"Masakit sa akin yon kasi hindi na kayo pupunta sa akin para magsipsip kagaya ng ginagawa ng nakaraang administrasyon (It pains me because you will no longer go to me to suck up to me like what the previous administration did)," she said. The mayors applauded.

"That’s not fiscal autonomy. What you need is justice and not palakasan. Henceforth, you will get 100 percent release of your allocations," she added.

The President also told the LMP members that the proposed 2002 national budget provides the "automatic release" of IRAs to LGUs.

"The essence of fiscal autonomy is that IRAs should be whole, with no deductions," she said.

She earlier repealed two executive orders which required LGUs to submit their annual investment plans to the budget department and for the latter to remit the LGUs’ contributions and remittances directly to national agencies.