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DBM: SC ruling that the IRA will cost the government the P160-B the next year
[MANUA, Philippines] – The landmark decision of the Supreme Court ordering the immediate release of a larger share of state revenue to local governments would cost about 160 billion pesos next year, announced Wednesday the Secretary of State. State Benjamin Diokno. page decision released Monday, the high court said that the "fair share" of LGUs should be calculated and derived from all national taxes, not just the collection of internal revenue. The implementation of the court's decision is prospective
The SC also ordered the "automatic" release of increased transfers from the plant to local government units "without the need for any other measures", adding that the adjustments to LGU's internal revenue distribution At a breakfast forum, Diokno said policymakers feared that the implementation of the CS's decision in fiscal year 2019 would disrupt the government funding priorities, as the decision could
He also stated that the Ministry of Budget and Management had sought the assistance of the Office of the Solicitor General to appeal the decision of the court
" Given the importance of the impact of the decision, we are waiting for the bench Supreme Court to take its time to meticulously examine the issues and reconsider its decision, "said Mr. Diokno. 659004] "Nevertheless, DBM will faithfully adhere to the decision of the Supreme Court once it has become final and binding," he added.
Two of the so-called "Big Three", Fitch Ratings and Moody's Investor Service, earlier cautioned against the budget risk of the SC's decision. The inter-agency development budget coordination committee, meanwhile, will deliberate on the next steps of the government following the decision of the SC
Secretary of Finance Carlos Dominguez III, said that the prospective application of the CS's decision would be manageable for the national government, as IRA arrears could reach $ 1 trillion to $ 1.5 trillion if the decision is applied retroactively.
Dominguez also stated that the Ministry of Finance is open to delegate certain functions of the national government to LGUs to comply with the SC's decision. 19659004] President Rodrigo Duterte presented Monday in the House of Representatives draft budget of 3,757 trillion pesos for 2019, the first to be based on liquidity, after delivering his speech on the state of the nation
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