Aquino turns down mayors’ plea to hike LGU funds

Natashya Gutierrez

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Aquino turns down mayors’ plea to hike LGU funds
Aquino says that although he wants to increase the pie for those doing well, it is not as easy of a choice for local governments that don’t deliver

MANILA, Philippines – In front of hundreds of mayors from across the country, President Benigno Aquino III turned down the request of the League of Municipalities of the Philippines (LMP) to certify as urgent a bill that would increase local governments’ share from the national government’s tax revenues.

The “Bigger Pie, Bigger Slice” bill seeks to increase the shares of local government units (LGUs) in the national taxes from 40% to 50% of the pie.

On Wednesday, April 15, Aquino, speaking at the LMP’s general assembly at the Manila Hotel, said the slice received by LGUs has already increased even without a bill.

“In 2010, the share of the IRA (Internal Revenue Allotment) from the national budget was P265.8 billion. In 2015, it is P389.86 billion,” the President said, citing the increase in tax collection during his administration.

Aquino then said that although he wants to increase the pie for LGUs that are doing well, it is not an easy choice for local governments that don’t deliver. He said that those who are performing well be more likely to receive funding – in accordance with the government’s Performance Challenge Fund under the Seal of Good Housekeeping program of the national government which is awarded to performing LGUs.

The President did give the mayors the assurance however, that the national government sees “the problems you are facing.”

“If there are problems you can’t face, I assure you the national government is here to help you,” he said.

Before Aquino spoke, LMP President Mayor Leonardo Javier Jr, in his speech, asked that the President certify as urgent the “Bigger Pie, Bigger Slice” bill, saying he would even “get on my knees,” eliciting applause among the mayors.

The bill however, faces opposition as corruption in local governments remains to be a problem. In a report by the Office of the Ombudsman, it said that LGUs top the list of the most number of Ombudsman cases filed against their officials for 4 consecutive years. – Rappler.com

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Natashya Gutierrez

Natashya is President of Rappler. Among the pioneers of Rappler, she is an award-winning multimedia journalist and was also former editor-in-chief of Vice News Asia-Pacific. Gutierrez was named one of the World Economic Forum’s Young Global Leaders for 2023.