Local government uinits and the internal revenue allotment: an empirical analysis of the IRA effect on 30 randomly selected municipalities in the post local government code setting
Date
2004-01
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Abstract
The Local Government Code of 1991 is the most radical policy that transformed the government structure of the Philippines. It has swept the country by transforming the intergovernmental relationship of the national and local governments. It has transferred governance and authority from the national government to local government units (LGUs). Along with the new decentralized setup came the Internal Revenue Allotment (IRA). The IRA has provided a new scheme of resource granting to province, city, and municipality LGUs in order for them to finance the added responsibilities assigned to them. The IRA has given the local governments the opportunity to maximize their fiscal capabilities in the provision of economic services and local administration. The IRA has also been a stimulant to local revenue generation and mobilization of municipalities and other LGUs. The Code has given local governments the chance to exercise their autonomy in handling fiscal matters and practicing greater fiscal federalism in terms of revenue responsibilities and independence from national government funding.
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Keywords
Local government unit, LGU, Local government code, Internal revenue, Internal revenue allotment, IRA