Transcript COORDINATION COMMITTEE ON DECENTRALIZATION (CCD) POLICY UPDATES As of 9th CCD Meeting held last July 18, 2011

COORDINATION
COMMITTEE ON
DECENTRALIZATION
(CCD)
POLICY UPDATES
As of 9th CCD Meeting held last July 18, 2011
ADVISORY TO LGU ON THE DECREASE
ON IRA FOR 2012
Background


The internal revenue allotments (IRA) in 2012 (and
also 2013 and possibly 2014) will fall by 4.8% in
nominal term or more than 10 % in real terms due to
the significant decline in internal revenue collection in
2009 (by more than 1.4 percentage points of GDP
relative to 2008).
This significant decline will likely to affect the fiscal
position of many poor local government units, which
rely heavily on the IRA for their spending needs and
may have impact on local development.
DBM LOCAL BUDGET MEMORANDUM
(LBM) NO.65, DATED JUNE 27, 2011

LGUs are informed on that IRA for 2012


P273.310B which is P13.635B or 4.8% lower than the
FY 2011 IRA level
LGUs are encouraged to align their PPAs to the
following priority areas under EO 43 dated May 13,
2011:





Anti-corruption,
Accountable
and
Participatory
Governance
Poverty Reduction and Empowerment of the Poor and
Vulnerable
Rapid, inclusive and Sustained Economic Growth
Just and Lasting Peace and the Rule of Law
Integrity of the Environment and Climate Change
Adaptation and Mitigation
DBM LOCAL BUDGET MEMORANDUM
(LBM) NO.65, DATED JUNE 27, 2011
IRA Computation for 2012 took into consideration the
following:




FY 2007 NSO Census of Population per Proclamation Order
No.."1489 dated April 16, 2008.
Continued adoption of the FY 2001 Master list of Land Area
submitted by the Department of Environment and Natural
Resources- Land Management Bureau pursuant to the Oversight
Committee on Devolution Resolution No.1, s.2005 dated
September 12, 2005.
Abolition of the Dinagat Islands as a province pending the
issuance of an entry of judgment by the Supreme Court (SC) in
G.R. No. 180050 dated April12, 201
Reversion of the sixteen (16) cities to Municipalities pending the
issuance of an entry of judgment by the Supreme Court in the
consolidated cases in G.R. Nos. 176951, 177499 and 17805
APPROPRIATION AND UTILIZATION OF
20% OF IRA FOR DEVELOPMENT
PROJECTS
Background




Section 287 of the Local Government Code, which provides that
each LGU should appropriate in its annual budget no less than
20% of its Internal Revenue Allotment (IRA) specifically for
development projects
DILG-DBM JMC is meant to inform and enlighten the public
and local officials on the proper use of their 20% development
funds derived from their IRA
DILG-DBM JMC is in response to reports we received from
COA on the misuse of the 20% development funds for LGUs
DILG-DBM JMC get not very positive reaction from Cavite
Mayor Strike Revilla, the president of the League of
Municipalities of the Philippines
APPROPRIATION AND UTILIZATION OF
20% OF IRA FOR DEVELOPMENT
PROJECTS

Revision in the policy include following amendments:
Inclusion of the definition of development projects;
 General Policies in the use of the 20% of the IRA for
development projects along 3 sectors/areas:

social development,
 economic development and
 environmental management.


Inclusion of a catch all phrase for the projects allowed to
be funded in each of the sector
APPROPRIATION AND UTILIZATION OF
SPECIAL EDUCATION FUND (SEF)
Background

SEF Guidelines was issued to address the dire
state of basic education, and the need to ensure
that all sources of financing for the sector are used
efficiently and effectively to improve education
outcomes
APPROPRIATION AND UTILIZATION OF
SPECIAL EDUCATION FUND (SEF)

In the revised guidelines, the DepEd seeks inclusion
of the following to be allowed to be under SEF:

Payment of salaries/ wages and other authorized
allowances of school teachers hired in connection with
the conduct of extension classes and those assigned to
public elementary and secondary schools

Payment of salaries/ wages of utility workers and
security guards which are deemed necessary for the
proper functioning of public elementary and secondary
schools subject to DBM staffing standards;

School-based feeding program in schools with high
incidence of malnutrition.