BY GILBERT P. BAYORAN
Negros Occidental local government units have to tighten their belts as the reduction of their shares from all national tax collections, will not only be next year, but also up to 2024, according to Governor Eugenio Jose Lacson.
Lacson said there will be a cut of the National Tax Allocation (NTA) by more than P700 million next year for the provincial government of Negros Occidental.
The budget cut maybe more than P2 billion, including that of various local government units of Negros Occidental, he added
Because of COVID-19 pandemic that started in 2020, government revenue agencies collection has been bad, Lacson said.
The LGUs’ 2022 NTA was based on all tax collections in 2019.
During a meeting of the League of Provinces of the Philippines, Lacson said they were told that NTA budget cuts may last until 2024, although the collections of revenue agencies may be better in 2021.
Under Local Budget Memorandum 85, the Department of Budget and Management said the NTA for LGUs would be reduced by 138.77 billion, from P959 billion this year to P820.27 billion the following year.
“P700 million reduction is big. We really have to tighten our belt,” he said.
Lacson also stressed the need to improve locally generated revenues of the province, to help cushion the impact of NTA budgetary cuts.
Because of this, the MOOE (Maintenance and Other Operating Expenses) of the province will be affected, and various Capitol department heads have already been alerted, he added.
With the strengthening of the US dollar against the Philippine peso, Lacson said “it will be difficult for us since we are an importing country,” noting that prices of commodities are also increasing, particularly fuel.
It will be very challenging and hard times ahead, Lacson warned.*
