The Sangguniang Panlalawigan ng Albay (SPA) sought the release of the Internal Revenue Allotment (IRA) collectibles in the amount of more than P58 million, the share of Albay province from the P17.5 billion IRA for the years 2000 and 2001 that was reported to have remained unreleased at the time of the Ramos administration.

        In order to effect this move, Provincial Board Member Ramon “Dondon” Fernandez, Jr. Chairman of the Committee on Budget and Appropriations passed a resolution during the Sanggunian regular session that would authorize Gov. Fernando V. Gonzalez to participate in the claim for its provincial share from the unreleased P17.5 billion IRA.

        According to Board Member Fernandez, all LGUs have the power and authority to have a just share in national taxes which shall be automatically and directly released without need of any further action.

        He said the aggregate amount of P20 billion of the IRA was set aside under an unprogrammed fund in the General Appropriations Act for the years 2000 and 2001, further saying that only P2.5 billion was disbursed to the LGUs, leaving P17.5 billion to be unreleased.

        Fernandez explained that the Supreme Court ruled that the setting aside of the portion of the IRA either by the executive or the legislative department was unconstitutional, prompting the Secretary of Justice to declare that the unreleased P17.5 billion should be released to the affected LGUs.

        Based on this ruling, all LGU leagues in the country collectively executed a Memorandum of Understanding to reclaim the unreleased IRA from the national government through the Department of Budget of Management without the necessity of another appropriation in the national budget, Fernandez said.

        Conditions on the manner of collecting the P17.5 billion by the LGUs were devised either through lump sum to be collected with a ten percent (10%) discount or on equal instalments within a period of seven years based on the Notice of Payment Schedule (NPS) to be prepared by the DBM that will start in 2007, Fernandez explained.

        Acting on the LGUs’ MOU, President Gloria Macapagal-Arroyo issued Executive Order No. 494 directing DBM to compute the share of each LGU and set up other guidelines so as to expedite the monetization of the unreleased IRA worth P17.5 billion, Fernandez added.

        The unreleased IRA fund is to be managed and underwritten by two government banks, namely: Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP), Fernandez said.

        Fernandez said his Resolution No. 15-006 will empower Gov. Gonzalez to participate in the Monetization of the IRA Collectibles for Local Empowerment, otherwise known as “MIRACLE” program.