The Negros Occidental provincial government, and its 13 cities and 19 towns are faced with a P940,585,592 Internal Revenue Allotment cut next year because of poor tax collections during the Arroyo administration three years ago, Provincial Budget Officer Jose Percival Salado Jr. said yesterday.
That means that the total IRA allotment of P8,974,699,314 this year, will drop to P8,034,113,722 in 2012.
Salado said the Department of Budget and Management released a report on the IRA rates for 2012 to enable local governments to adjust their corresponding budgets.
The IRA shares of local governments for an upcoming year are based on tax collections made three years earlier, he explained.
It is hoped that in succeeding years IRA shares will increase with taxes collected in 2010 having increased, he said.
The DBM report shows that the Negros Occidental provincial government will face an P82.7 million or 4.66 percent cut in its budget in 2012 compared to this year.
The current IRA share of the provincial government is P1.77 billion and this will drop to P1.69 billion next year.
The food security and infrastructure projects of the provincial government will be among those affected by the cut, Salado said
The 13 cities of the province face much larger cuts because their IRA shares were further slashed by the recent creation of 16 new cities nationwide.
That means more local governments dividing the IRA share for cities.
The report showed that the 13 cities of Negros Occidental will suffer an P814 million or 14.26 percent cut, from a share of P5.7 billion this year to P4.8 billion in 2012.
Kabankalan will suffer the biggest cut at P98.8 million, followed by Cadiz City with P81.6 million and Bacolod City with P77.9 million.
The budget cuts of the towns will be smaller because they are now less nationwide, with the conversion of 16 of them to cities, Salado said.
The 19 towns of Negros Occidental will suffer from a P43,087,584 or a 2.90 percent cut in their IRA from P1,485,819,212 this year to P1,442,731,628 in 2012.
The town that will suffer the biggest cut is Cauayan at P3.9 million followed by Calatrava at P3.6 million and Murcia at P2.89 million.
The following is the list of allocations for the local governments in Negros Occidental: