NOT A LOT TO ALLOT: A REVIEW OF LEGISLATIVE, EXECUTIVE AND

JUDICIAL DECISIONS ON INTERNAL REVENUE ALLOTMENT (IRA)

"Not a Lot to Allot: A Review of Legislative, Executive, and Judicial Decisions on

Internal Revenue Allotment (IRA)" is a scholarly article written by Romeo Raymond C.

Santos. The article provides an in-depth examination and analysis of the legislative, executive,

and judicial decisions pertaining to the Internal Revenue Allotment (IRA).

The Internal Revenue Allotment (IRA) refers to the portion of national internal revenue

that is allocated to local government units (LGUs) in a country. The article focuses on the IRA

system and investigates the various decisions made by the legislative, executive, and judicial

branches of government that have influenced its implementation and distribution.

Through a comprehensive review, Santos explores the evolution of the IRA system,

tracing its historical development and significant milestones. The article delves into key

legislative measures, executive orders, and court rulings that have shaped the IRA framework.

Moreover, the article analyzes the impact of these decisions on the allocation and

utilization of funds by LGUs. It examines the issues and challenges faced in the distribution of

the IRA, including the criteria for allotment, revenue-sharing formulas, and the role of LGUs in

local governance.

Santos critically evaluates the effectiveness and efficiency of the IRA system,

highlighting its strengths, weaknesses, and potential areas for improvement. The article also

discusses the implications of recent developments in legislation, executive policies, and judicial

interpretations on the future of the IRA.

Overall, "Not a Lot to Allot: A Review of Legislative, Executive, and Judicial Decisions

on Internal Revenue Allotment (IRA)" provides a comprehensive analysis of the IRA system,

shedding light on the intricate interplay between legislative, executive, and judicial decisions

and their impact on the allocation of funds to local government units. Romeo Raymond C.
Santos' article examines the Internal Revenue Allotment (IRA) system and its relationship with

legislative, executive, and judicial decisions. The IRA is the allocation of national internal

revenue to local government units (LGUs). Santos provides a historical overview of the IRA's

development and analyzes the impact of various decisions on fund allocation and utilization by

LGUs. The article critically evaluates the strengths and weaknesses of the IRA system,

discussing criteria for allotment, revenue-sharing formulas, and the role of LGUs in local

governance. Santos also addresses recent developments and their implications for the future of

the IRA.

THE SEF, SOURCE OF FUNDS, UTILIZATION AND PERVADING ISSUES

The Special Education Fund (SEF) is a dedicated fund that aims to improve the quality

of education in local government units (LGUs). Its source of funds is diverse, consisting of

revenue streams such as real property taxes, local business taxes, and other forms of local

government income. These funding sources provide the financial basis for the SEF.

Regarding utilization, the SEF funds are allocated and utilized within the education

sector. This includes investments in infrastructure, the provision of educational materials,

LGUs. The SEF plays a vital role in supporting educational development at the local level.

However, the SEF also faces prevailing issues that need attention. These issues

encompass challenges related to transparency and accountability in the disbursement of funds,

ensuring equitable distribution among schools and LGUs, addressing potential inefficiencies or

mismanagement, and navigating legal and governance complexities. Understanding and

addressing these issues are crucial for optimizing the impact of the SEF.

In summary, the SEF's source of funds, utilization, and prevailing issues are key areas

of focus in this precis. By summarizing these aspects, readers gain a concise understanding of

the SEF's financial basis, how the funds are utilized, and the challenges it faces in terms of

transparency, equitable distribution, and effective management.

THE LOCAL GAD PLAN AND BUDGET AND THE 5% MINIMUM ALLOCATION

The Local GAD (Gender and Development) Plan and Budget refers to a framework

implemented by local government units (LGUs) to integrate gender perspectives and promote

gender equality in their programs, projects, and services. It serves as a strategic tool for

addressing gender issues and ensuring that the needs and concerns of different genders are

considered in local governance.

The 5% minimum allocation is a requirement within the Local GAD Plan and Budget

framework. It mandates that LGUs allocate a minimum of 5% of their total budget to fund

gender-responsive initiatives and activities. This allocation is intended to ensure that resources

are dedicated specifically to promoting gender equality and women's empowerment at the local

level.
 The 5% minimum allocation aims to provide financial support for various GAD

interventions, such as capacity building programs, gender-responsive infrastructure projects,

women's economic empowerment initiatives, and advocacy campaigns. By allocating a specific

percentage of the budget, LGUs demonstrate their commitment to gender equality and create

mechanisms to address gender gaps and inequalities within their jurisdictions.

Through the Local GAD Plan and Budget and the 5% minimum allocation, LGUs are

encouraged to mainstream gender perspectives into their policies, plans, and programs. This

framework promotes inclusive and equitable development by recognizing the unique needs and

contributions of different genders and working towards creating a more gender-responsive

society.

SOUND DISPOSITION OF DRRM FUND OF LGUS

The sound disposition of the Disaster Risk Reduction and Management (DRRM) Fund

of Local Government Units (LGUs) refers to the responsible and effective management and

utilization of this dedicated fund. The DRRM Fund is specifically allocated to support disaster

preparedness, response, recovery, and risk reduction efforts at the local level

Ensuring a sound disposition of the DRRM Fund involves several key components.

First, it entails proper planning and budgeting, which includes conducting risk assessments,

identifying priority areas, and allocating resources accordingly. This allows LGUs to

proactively address potential disasters and allocate funds strategically.

Additionally, sound disposition requires transparent financial management. This

involves implementing accountable and transparent procurement processes, adhering to

financial regulations and guidelines, and ensuring that funds are used for their intended

purpose. Effective monitoring and evaluation mechanisms are also crucial to assess the impact

and efficiency of DRRM interventions funded by the DRRM Fund.

benefits. These include improved disaster resilience, as funds are used to invest in

infrastructure, early warning systems, and community preparedness initiatives. It also enables

timely and effective response during disasters, providing necessary resources for rescue, relief,

and rehabilitation efforts. Overall, sound disposition contributes to the reduction of disaster

risks and vulnerabilities, safeguarding the welfare and well-being of communities.

In summary, the sound disposition of the DRRM Fund of LGUs encompasses

responsible and effective management and utilization of the fund through proper planning,

transparent financial management, and monitoring and evaluation. This ensures that the fund is

allocated strategically to enhance disaster preparedness, response, recovery, and risk reduction

efforts, ultimately benefiting the communities and reducing the impact of disasters.
 THE IMPACT OF MANDANAS-GARCIA RULING OF THE SUPREME COURT

The Mandanas-Garcia ruling of the Supreme Court has had a significant impact on the

fiscal autonomy and resource allocation of local government units (LGUs) in the Philippines.

The ruling, issued on July 3, 2018, affirmed the interpretation of the term "national taxes" as

stipulated in the Constitution, specifically Article X, Section 6, which pertains to the share of

LGUs in the national revenue.

The impact of the Mandanas-Garcia ruling is primarily centered around the Internal

Revenue Allotment (IRA), which is the share of LGUs in the national taxes collected by the

national government. The ruling expanded the definition of "national taxes" to include not only

national internal revenue taxes but also all other taxes, fees, and charges collected by the

national government. This interpretation significantly increased the base of the IRA, leading to

a substantial augmentation of funds received by LGUs.

As a result, LGUs experienced a significant boost in their financial resources, allowing

them to have more autonomy in planning and implementing development programs and

projects. The ruling empowered LGUs to exercise greater control over their fiscal affairs and

address the specific needs and priorities of their respective jurisdictions.

Furthermore, the ruling also had implications for the calculation and distribution of the

IRA among LGUs. The formula for determining the IRA shares was adjusted to reflect the

expanded base of "national taxes." This resulted in a more equitable distribution of funds

among LGUs, ensuring that they receive a fair share based on their actual revenue

contributions to the national government.

impact on the fiscal autonomy and resource allocation of LGUs. It has empowered LGUs with

increased financial resources and greater control over their own development, ultimately

contributing to more effective and responsive governance at the local level.

THE DEVOLUTION TRANSITION PLAN (DTP)

The Devolution Transition Plan (DTP) is a strategic framework that outlines the process

and timeline for the transfer of functions, powers, and resources from the central government to
local government units (LGUs) in the Philippines. It is a key component of the government's

decentralization efforts, aimed at empowering LGUs and promoting local autonomy.

The DTP provides a structured approach to the devolution process, detailing the

specific functions and responsibilities that will be transferred to LGUs. It includes a

comprehensive timeline, highlighting the sequence and phases of devolution for different

sectors, such as health, agriculture, social welfare, and infrastructure.

One of the main objectives of the DTP is to strengthen local governance and enhance

service delivery at the local level. It recognizes that LGUs are better positioned to understand

and address the unique needs and aspirations of their communities. By devolving functions, the

DTP aims to promote responsive and effective decision-making at the local level.

The plan also emphasizes the importance of capacity-building and support for LGUs

during the transition period. It includes provisions for training programs, resource allocation,

and technical assistance to ensure that LGUs are equipped to assume the devolved functions.

Collaboration and coordination between the central government and LGUs are emphasized to

facilitate a smooth transition and address any challenges that may arise.

Ultimately, the Devolution Transition Plan aims to promote participatory and

accountable governance, improve service delivery, and foster local economic development. It

recognizes the crucial role of LGUs in driving inclusive and sustainable development at the

grassroots level.

By providing a clear roadmap and guidelines for devolution, the DTP serves as a

valuable tool for the effective and efficient transfer of functions and powers from the central

government to LGUs, contributing to the overall decentralization process in the Philippines.