15% IRA allocation for health services hurdles House panel

MANILA – A House of Representatives panel on Wednesday approved a proposal mandating all provinces, cities, municipalities, and barangays to appropriate no less than 10 percent of their internal revenue allotment (IRA) for health services.

The House Committee on Local Government approved the watered-down version of House Bill 9204, or the “Lokal na Pamahalaan Kabalikatan sa Pag-Abot ng Kalusugang Pangkalahatan Act”, which originally proposed 15 percent.

In sponsoring the bill, Quezon Rep. Angelina Tan said along with local development initiatives, the provision of quality, accessible, and relevant health services is enormously important, especially amid the coronavirus disease (Covid-19) pandemic.

“Based on my initial talks with the Department of Health, the plan really is to push for the renationalization of the country’s healthcare system. But here comes the Mandanas-Garcia Ruling where the Supreme Court says that the ‘just share’ of local government units (LGUs) includes all national taxes and not just the national internal revenue taxes, but also customs duties and others. By virtue of this development, LGUs IRA are expected to increase starting next year,” Tan said.

The bill seeks to amend Section 287 of the Local Government Code (LGC) of 1991 to ensure the appropriation of at least 10 percent of IRA for health services in all LGUs in as much as they must now undertake necessary action to prepare for the greater role and responsibilities of providing health services that they are expected to assume in the context of the Mandanas-Garcia ruling.

The proposed appropriation shall be on top of whatever is allotted for health services under the existing development projects as provided under the LGC and the Special Health Fund (SHF), a component of the Universal Health Care Act (UHC).

Tan said the proposal is grounded on the fundamental policies outlined under Republic Act No. 11223 or the UHC law, which adopts an integrated and comprehensive approach to ensure that all Filipinos are health literate, provided with healthy living conditions, and protected from hazards and risks that could affect their health.

“The pandemic has underscored the important lesson that LGUs must be at the front lines of UHC implementation inasmuch as the law ‘requires local leaders who recognize that health is not just one of their concerns but is in fact a strategic concern that has wide-reaching impact on stubborn societal issue’,” she said.