MALOLOS CITY – Despite questions of legality, the Bulacan Provincial Board voted 9-2 on Friday night to monetize P66-million worth of Internal Revenue Allotment differential from 2001 and 2004.
Board Member Christian Natividad, the proponent of the resolution authorizing Governor Joselito Mendoza to monetize 2001 and 2004 IRA differentials of the province can now benefit from it.
The said IRA will be used for construction of school buildings, health programs and other projects of the provincial government.
“It’s a judgment call for us,” Natividad told The STAR after the lengthy special session of the Provincial Board on Friday night. He said that the questions raised by other members of the board were valid, but he said it will take a while for the provincial government to use the funds for its proposed projects.
“We can have the IRA differentials now and ask the Supreme Court on its legality,” he said.
During the special session of the Sangguniang Panglalawigan on Friday that dragged into the night, Vice governor Willy Alvarado said that the monetization of the IRA differentials is illegal citing constitutional provisions and earlier Supreme Court rulings.
The IRA monetization program is based on President Arroyo’s EO 723 that allowed the release of P12.7-billion for the IRA differentials due to the re-enactment of the General Appropriations Act in 2001 and 2004.
Based on the programs, local government units have three options to acquire unreleased IRA to them on the said fiscal years, namely; installment, discounted monetization, and as collateral.