PROPOSED RESOLUTION

TO URGE CONGRESS TO AMEND SECTIONS 284 AND 285 OF BOOK II OF

THE LOCAL GOVERNMENT CODE TO INCREASE THE SHARE OF LOCAL GOVERNMENT UNITS (LGUS) IN THE INTERNAL REVENUE ALLOTMENT (IRA) AND INCREASE THE SHARE OF CITIES IN THE ALLOTMENT OF IRA AMONG LGUS

WHEREAS, it is the declared policy of the State to “provide for a more responsive and accountable local government structure instituted through a system of decentralization whereby local government units shall be given more powers, authority, responsibilities, and resources;”

WHEREAS, it is also the policy of the State that the “vesting of duty, responsibility, and accountability in local government units shall be accompanied with provision for reasonably adequate resources” and “the right to a just share in national taxes and an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas;”

WHEREAS, because of the devolution of powers and functions to local government units and enhanced responsibility in the delivery of public services due to increase in population, there is a need to increase the share of the local governments in the collection of national taxes;

WHEREAS, from its current 40 percent share, there is a need to increase such share reasonably to empower local government units and make it more responsive and accountable;

WHEREAS, among local government units, there is a need to increase the allotment for Cities considering that most of the people now live in urban centers compared to rural areas, and there had been a tremendous increase in the number of cities from 61 in 1977 to 136 todate, and the consequent reduction in the number of municipalities;

WHEREAS, from its current 23 percent share, there is a need to increase such share of cities accordingly to meet growing demands for more services as they play the vital role as key centers of the population.

WHEREFORE, premises considered, be it resolved, as it is hereby resolved, to urge Congress to amend Sections 284 and 285 of Book II of the Local Government Code to increase the share of local government units in the Internal Revenue Allotment (IRA) and increase the share of Cities in the allotment of IRS among LGUs;

RESOLVED further that copies of this Resolution be furnished the House of Representatives, the three Representatives of Davao City to Congress, the Senate of the Philippines, the City Mayor, the Department of Interior & Local Government, the Department of Finance, the Department of Budget & Management, the League of Cities of the Philippines, and all others interested for their information and support.

Hon. Peter T. Laviña                                     Hon. Myrna D. Ortiz

Proponent                                                    Co-Author

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