BUSINESS GROUP WANTS 10% OF LGUS’ IRA EARMARKED FOR AGRICULTURE

The Philippine Chamber of Agriculture and Food Inc. (PCAFI) ha urged President Duterte to issue an executive order that will mandate local government units (LGUs) to allocate 10 percent of their internal revenue allotment (IRA) to agriculture.

This is to ensure that rural development and food security will not be sidelined once some executive functions are transferred to LGUs next year, which would also effectively raise their IRA shares.

In an online briefing, the PCAF said an EO would be instrumental in ensuring farmers’ welfare once national government functions were devolved, particularly those of the Department of Agriculture.

The IRA represents local governments’ share in the national government’s revenue.

According to the Department of Budget and ManageNow, ment, LGUs are projected to receive P1.8 trillion in IRA next year, up 27.6 percent from current level.

Danny Fausto, president of PCAFI, said they had gathered the support of lawmakers from the Senate and the House to push for the issuance of an EO.

He said this was the fastest legal route to direct local governments to allocate 10 percent of their respective IRAs to agriculture.

“There is a need to create this fiscal space ... LGUs can use this money to invest in post-harvest facilities,” he said.

While under the law, no less than 20 percent of local governments IRA must be earmarked for development projects, national scientist Emil Javier said this was usually used to construct farm-to-market roads and other projects.

A separate allotment for agricultural development is needed to reverse the poor performance of the industry, he added.