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The Supreme Court ruled in 2019 that the computation of the Internal Revenue Allotment (IRA) for local government units (LGUs) was unconstitutional. As a result, the IRA will increase substantially in 2022. This paper discusses options for ensuring fiscal sustainability while complying with the ruling. It is proposed that the IRA increase be funded by "unfunding" certain programs, activities, and projects (PAPs) in national agency budgets that duplicate LGU functions. The impact on vertical and horizontal f

Author

JS Naz

Language

EN