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Reyes opposes cutting LGUs' share.

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| August 01, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Philippine Daily Inquirer)

DAVAO CITY-Interior Secretary Angelo Reyes is for keeping the entire Internal Revenue Allotment (IRA) of local government units intact.

Reducing it, as is being proposed by some groups, would be "counter-development" as would affect the delivery of basic services by the LGUs, Reyes told the Maguindanao Conference on Civilian Oversight at the Waterfront Insular Hotel here on Friday.

"It would lessen the capability of the local chief executives to do what the President would want them to do," he said.

Some legislators have proposed that the IRA, which goes to provincial and municipal administrations, be reduced by at least 15 percent to help lessen the country's burgeoning fiscal deficit, a big factor in the country's worsening economic situation.

But Reyes said slashing the IRA would only complicate the situation as it would directly threaten the grassroots.

This was why local chief executives had strongly objected to the proposed cuts, he said.

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