As new cities rise, Malaybalay to lose P100M in IRA next year

MALAYBALAY CITY (MindaNews/11 July) — The city will lose P100 million in Internal Revenue Allotment next year owing to the conversion of 16 more towns into cities and lesser national revenue in 2009 which is the base year for the computation of the 2012 budget, city administrator Herculano Ronolo today said.

This year the city received an IRA of P600 million, he said.

Ronolo said in a telephone interview the reduction was announced in City Hall’s convocation program today.

He said using the 2009 as base year will mean P40 million less of the IRA next year, a development announced by Interior and Local Government Sec. Jessie Robredo to local chief executives in Northern Mindanao in a meeting on June 16.

He added P60 million more will be slashed from the city’s revenue share because of the entry of 16 new cities.

The Supreme Court, reversing its earlier decision, had upheld the constitutionality of the laws creating the new cities.

Six of the new cities are in Mindanao namely, Lamitan in Basilan, Tandag in Surigao del Sur, Bayugan in Agusan del Sur, Cabadbaran in Agusan del Norte, Mati in Davao Oriental, and El Salvador in Misamis Oriental.

The others are Bogo, Carcar and Naga in Cebu, Baybay in Leyte, Catbalogan in Samar, Borongan in Samar, Tayabas in Quezon, Tabuk in Kalinga, Batac in Ilocos Norte, and Guihulngan in Negros Oriental.

Ronolo, formerly the city planning and development coordinator, said the P100-million cut is a big blow to the city government.

“It will cause belt-tightening for 2012,” he added.

But Ronolo clarified that the reduction will not affect basic social services.

He added the budget cut would primarily affect the 1,600 job order employees. He said some of them particularly those who did not fare well in the performance evaluation may have to go.

Ronolo said allocations for travels, trainings, maintenance and other operating expenses may also be cut. (Walter I. Balane/MindaNews)