Senatorial candidate Jejomar Binay on Monday said the Local Government Code must be amended to further empower local government units.
“It is time to go back and amend the Local Government Code. There are provisions here that I think need to be replaced,” said Binay.
“This is to further advance the purpose of the law to strengthen and stabilize our local governments,” he added.
Binay, who served as mayor of Makati City from 1986 to 1998, and from 2001 to 2010 before being elected as the country’s vice president, said the pandemic has shown that local governments are in the best position to respond to the needs of their constituents.
“Local governments are closer to the people and they know the needs of their constituents. They are in the best position to respond in times of emergencies. But they need fiscal stability and flexibility,” he said.
Binay said one provision that needs to be re-examined is the existing criteria for determining the LGUs’ share of the Internal Revenue Allotment (IRA).
“Many local executives have pointed out that this provision discriminates against smaller localities, which are usually localities with little or no internally generated sources of revenue,” he said.
“I agree with their observation. Perhaps it is time to work on new criteria that balances the needs and interests of all local governments,” Binay added.
Binay also said LGUs can now be expected to further expand and improve services with the Supreme Court ruling on the so-called Mandanas case.
The high tribunal, acting on a petition filed by former congressman and now Batangas Governor Hermilando Mandanas, ruled that LGUs are entitled to a “just share” on all national taxes.
The ruling is set to be implemented this year, and the IRA of LGUs is projected to increase by 27.61 per cent.
“The Mandanas Ruling is a landmark decision that can significantly improve the capacities of LGUs to fully deliver services and programs to their constituencies,” Binay said.
“But more than that, the Mandanas ruling rectifies an injustice that has deprived local governments of the means to fulfill their mandate and fully serve their constituents,” he added.
Binay is running for senator in the May 9 elections under the United Nationalist Alliance (UNA), where he serves as party chairman.
