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Dumaguete City, PhilippinesWednesday, April 25, 2012
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DBM releases
P767.2 million to LGUs
IN ENERGY REVENUE SHARES

In a move to help cut energy costs and ease the burden of high electric rates in several regions, the Department of Budget and Management yesterday announced the release of P767.2 million in funds to local government units as part of their 40-percent share in energy revenue collections from the National Government, a DBM website press release said.

The collections were sourced from revenues generated from coal, petroleum, geothermal, and hydrothermal operations in the LGUs' respective localities in FY 2011. The release was charged against the P2.45 billion fund under Purpose A.3 of the Allocations to Local Government Units-Special Shares of LGUs in the Proceeds of National Taxes, of which P1.8 billion has been devoted to programmed expenditures for energy resources.

“The P767.2-million fund release will not only allow LGUs to fulfill their role in implementing critical programs and projects in their own communities—it will also give local governments enough legroom to lower the cost of electricity across their localities. This is particularly timely, given that energy usage tends to spike during the summer,” Budget and Management Secretary Florencio B. Abad said.

Section 294 of the Local Government Code specifically states that at least 80 percent of the proceeds culled from the development and utilization of energy sources should be used solely to lower the cost of electricity in concerned LGUs. The remaining 20 percent, however, can be used to support local development and livelihood initiatives in localities covered by beneficiary-LGUs.

Of the total amount, P646 million was released to LGUs in Region VI, while Region IV-B received a P57.7-million share from the fund. Another P49 million has been directed to Region VIII, while P7.5 million and P5.1 million have been released to Region XII and Region VII, respectively.

Region V also received funds amounting to P737,575.46, while Region IX received P452,991.50. A total of P241,779.43 has likewise been given to Region X, and another P208,645.75 has been set for the CARAGA Region.

“The Aquino administration is committed to seeking viable solutions for energy issues in the country. We trust that this release will empower our LGUs and allow them to manage electricity costs in their assigned localities, and in the end, bring direct, immediate, and sustainable benefits to the communities they serve,” Abad said.*DBM

 

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