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EXECUTIVE ORDER NO. 9 - REPEALING EXECUTIVE ORDER NO. 189, S. 1999, AS AMENDED BY EO NO. 250, S. 2000, AND EXECUTIVE ORDER NO. 190, S. 1999
it is the declared policy of the State that its territorial and
political subdivisions shall enjoy genuine and meaningful local
autonomy to enable them to attain their fullest development as
self-reliant communities and make them more effective partners in the
attainment of national goals;
WHEREAS, the issuance of Executive Order (EO) No. 189, series of 1999, as amended by EO No. 250, series of 2000, and EO No. 190, series of 1999, has been viewed as undermining the fiscal autonomy of local government units (LGUs);
WHEREAS, EO No. 189, as amended, tends to limit the fibility of LGUs by requiring them to set aside 20% of their Internal Revenue Allotment (IRA) share for development projects on specific sectoral programs, projects and activities;
WHEREAS, EO No. 190, on the other hand, has effectively encroached on the fiscal autonomy of local governments to allocate their resources in accordance with their own priorities by directing the holdback of a certain portion of the IRA for specific purposes identified by the national government; and
WHEREAS, there is a need to repeal the foregoing executive issuances consistent with the declared policy of local autonomy.
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order the following:
The release of the 20% Development Fund shall be in accordance with the procedures and guidelines issued by the DBM for the speedy and effective enforcement of the provisions of Sec. 288 of RA 7160 and its implementing rules and regulations. The IRA shall not be subject to any lien or holdback that may be imposed by the national government for whatever purpose.
Done in the City of Manila, this 29th day of March in the year of Our Lord, Two Thousand and One.
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