A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
the
Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 1741
|
PRESIDENTIAL DECREE NO. 1741
- GOVERNING THE COMPUTATION OF NATIONAL INTERNAL REVENUE
ALLOTMENTS TO LOCAL GOVERNMENT UNITS
|
chanroblesvirtualawlibrary
WHEREAS,
internal revenue allotments are apportioned among local
government units on the basis of the Tax Code, P.D. No. 144 (as
amended) and various other laws; chanroblesvirtualawlibrary
WHEREAS, it is necessary to rationalize the system of national revenue
allotments to local government units, in the light of the
termination of P.D. No. 1231 on December 31, 1980 and the various
forms in which national assistance is presently extended to
local government units;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do
hereby Order and Decree:cralaw:red
Section 1. Statement of Policy. — It shall be the
policy of the State to strengthen the fiscal operations of local
government units, consistent with the principle of
decentralization in government operations. Part of the
collections of the national government obtained from internal
revenue sources shall accrue to local government units,
comprising national assistance to the said local government
units. The amount of assistance shall be determined, taking into
account local requirements and available national funds,
particularly as determined by the cost of implementing the
national development plan. chanroblesvirtualawlibrary
Section 2. Magnitude of Assistance. — A maximum
of twenty per cent (20%) of national internal revenue taxes shall
be available for national assistance to local government units:
Provided, That the national revenue used as basis in computation
shall exclude receipts accruing to Special or Fiduciary Funds and
to Special Accounts in the General Fund, amounts authorized by law to
be used by the collecting agency, and amounts recorded as income of the
General Fund but which are charged to appropriations in the
General or other Appropriations Laws. chanroblesvirtualawlibrary
The amount of assistance shall be computed on the basis of
collections received by the national government during the third
fiscal year preceding the fiscal year during which the assistance
is distributed. Compliance shall be reckoned taking into account
general budgetary assistance and assistance specifically intended
for local schools, reforestation projects, or other priority
local activities supported by the national government.
Section 3. Allocation. — The total amount available
shall be allocated among local government units as follows:
provinces — thirty per cent (30%); municipalities — forty-five per cent
(45%); and cities — twenty-five per cent (25%).
The share of each local government unit shall be determined on
the basis of population — seventy per centum (70%); land area — twenty
per centum (20%); and equal sharing — ten per centum (10%).
Section 4. Rate of Change. — The annual allotment of
any local government unit shall not increase by more than
twenty-five per cent (25%) of, nor shall be less than, its actual
allocation for the preceding year, except when otherwise approved
by the President (Prime Minister) upon recommendation of the
Ministry of the Budget and the Minister of Local Government and
Community Development.
Section 5. Development Fund. — No less than twenty
per cent (20%) of the allotments received by a local government
unit under this Act shall be appropriated and used by the
recipient local government unit for development projects, except as may
be otherwise approved by the Minister of the Budget. The nature
and cost of the programs, projects and activities supported by
the Development Fund shall be determined by the local government unit
following such policies and guidelines jointly issued by the
Minister of Local Government and Community Development and
the Minister of the Budget.
Section 6. Rules and Regulations. — The Minister of
the Budget shall issue the necessary rules and regulations for
the prompt and effective implementation of this Decree.
Section 7. Repealing Clause. — All laws or parts of
law inconsistent herewith, particularly P.D. No. 144 and 1231, are
hereby revoked or modified accordingly.
Done in the City of Manila,
this 31st day of October, in the year of Our Lord, nineteen hundred and
eighty.
|
Back
to Home
- Back
to Main
chanroblesvirtuallawlibrary
Since 19.07.98
|
