BUDGET Secretary Florencio B. Abad admitted that newly created municipalities in the Bangsamoro entity are not entitled to get their respective Internal Revenue Allotment (IRA) without compliance to the local government code.
At least seven municipalities in Mindanao face losing IRA funding, as the Bangsamoro entity is set to replace the Autonomous Region in Muslim Mindanao next year following the implementation of the peace agreement in Mindanao.
The budget chief pointed the need for newly created municipalities to comply with the local government code to qualify for the IRA funds at the Senate budget hearing on Tuesday.
“The creation of new barangays or municipalities will not mean they will get [automatic] IRA funds,” said Abad in an interview on Tuesday.
“If these municipalities did not follow the local code, they have to source their money from the regional budget,” Abad said.