Mandanas hurdles

The Mandanas-Garcia Supreme Court ruling provided local governments an unprecedented advantage by defining the Constitutional provision that entitles local government units (LGU) to the tax collected by the national government to be shared equally, aside from the Internal Revenue Allotment (IRA) that LGUs receive.

The problem shared by most local executives is the poor absorption capacity of the downloaded funds as a result of the ruling, Palawan Governor Victorino Dennis Socrates said in a roundtable interview with DAILY TRIBUNE editors.

Due to the SC ruling, the provincial government’s budget rose from P3.1 billion in 2021 to P4.3 billion this year, after the National Tax Allocation (NTA), which was formerly known as the IRA, was increased.

Due to the economic decline in 2020 brought about by the COVID-19 pandemic, the NTA for 2023 was slashed by around P600 million, bringing it down to P3.7 billion, and the Palawan government’s budget also decreased from P4.8 billion to P4.29 billion.

“Most of the local government budget from the increased NTA are underutilized,” he explained.

While the SC ruling devolved several national government services and revenues, Socrates said “most local government units are not equipped for the complicated requirements that go with it.”

He cited for instance the strict requirements on bidding of contracts devolved from national agencies, he said.

Socrates is hoping that local governments can continue with the development projects for Palawan through the NTA allocations.

Former governor Jose C. Alvarez built 16 hospitals, more than 60 water systems, and around 200 infrastructure projects, including more than 1,000 kilometers of roads.

(IRA) that LGUs receive.

The problem shared by most local executives is the poor absorption capacity of the downloaded funds as a result of the ruling, Palawan Governor Victorino Dennis Socrates said in a roundtable interview with DAILY TRIBUNE editors.

Due to the SC ruling, the provincial government’s budget rose from P3.1 billion in 2021 to P4.3 billion this year, after the National Tax Allocation (NTA), which was formerly known as the IRA, was increased.

Due to the economic decline in 2020 brought about by the Covid-19 pandemic, the NTA for 2023 was slashed by around P600 million, bringing it down to P3.7 billion, and the Palawan government’s budget also decreased from P4.8 billion to P4.29 billion.

“Most of the local government budget from the increased NTA are underutilized,” he explained.

While the SC ruling devolved several national government services and revenues, Socrates said “most local government units are not equipped for the complicated requirements that go with it.”

He cited for instance the strict requirements on bidding of contracts devolved from national agencies, he said.

Socrates is hoping that local governments can continue with the development projects for Palawan through the NTA allocations.

Former governor Jose C. Alvarez built 16 hospitals, more than 60 water systems, and around 200 infrastructure projects, including more than 1,000 kilometers of roads.