The central government must subsidized the fiscal gap left by the decreased in the allocation of the IRA to LGUs in light of the hundreds of billions in savings the Palace has accumulated in the past months.
The projected decline in the IRA releases for 2012 should be cushioned by the government in order to avoid disruption in the delivery of social and basic services to the people, said Escudero.
The proposed IRA for fiscal year 2012 is P273 billion, down from P287 billion in 2011. The slash, Budget Secretary Butch Abad said, is due to the "sharp decrease in revenues in 2009 as a result of the global economic crisis and revenue-eroding measures passed at that time."
The P13-billion gap should be subsidized by the government and source the subsidy from savings and allocated budget for unprogrammed funds for 2012, suggested Escudero. The government’s economic managers admitted that the state has an unspent P1.12 trillion in the national budget for the current fiscal year. /MP
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