Support to local government units

The local government units will play a critical role in our development efforts next year. With an allocation of P147.2 billion or 18.3 percent of the total national budget, LGUs must demonstrate, through their development programs and projects, that local autonomy has not been in vain.

In 2003, we have set aside P141.6 billion for the Internal Revenue Allotment of LGUs, the largest nominal increase in any appropriation item in the annual General Appropriations proposal.

To give LGUs more elbowroom to manage their fiscal affairs with greater creativity and discipline, there are no earmarked provisions on the IRA starting this year. No condition is likewise imposed on the release of the IRA except as may be otherwise provided by law.