P200-million cut in city’s NTA share

By John Noel E. Herrera

The Iloilo City Government’s National Tax Allotment (NTA) share, formerly known as Internal Revenue Allotment (IRA), will decrease by 14 percent or around P200 million in 2023 and this cut will result in lower projected income for the city next year.

As an effect, there would also be limited fiscal space for all the identified projects, programs, and other activities of the city.

Iloilo City Budget Officer Viminale A. Capulso said that because of the budget cut, the city will just prioritize the funding of developed functions and projects, and in addressing the WHEELS (Welfare, Health, Education, Environment, Livelihood, Sustainability) Program of Mayor Jerry P. Trenas.

“Allowances for national government employees are among those affected and will be adjusted to lower rates per month as the grant of the same is subject to availability of funds. However, the city mayor instructed that the rates will be reverted once the economic setbacks of the COVID-19 pandemic are addressed,” Capulso added.

Trenas also said that with the lower NTA share, some of the appropriations by the city government will be affected.

“One probably is the allowances for national government agency employees and officials as among the first to be affected,” the mayor said.

The city’s NTA share this year as contained in its 2022 Executive Budget is estimated at P1,607,980,950 or an increase of 14 percent compared to the 2021 projection of P1,217,209,871.

Meanwhile, the Province of Iloilo is also expecting a P600-million cut in its NTA share.

Iloilo Governor Arthur Defensor said he received information from the finance committee and the DBM that the province’s share of the national revenue would be decreased next year.

They are also examining all the adjustments that they can make to the province’s budget as the finance committee assured him that the effects of the budget cut on the operations of the provincial government will be manageable.

Section 284 of the Local Government Code mandates that the share of local government units (LGUs) in the national internal revenue taxes is based on the collection of the third fiscal year, preceding the current fiscal year.