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MANILA, Philippines - The Aquino administration has released P767.2 million to local government units as part of their 40-percent share in energy revenue collections.
Budget Secretary Florencio Abad said the amount will be used to help cut energy costs and ease the burden of high electric rates in several regions.
The fund was sourced from revenues generated from coal, petroleum, geothermal, and hydrothermal operations in the LGUs’ respective localities in 2011.
It was charged against the P2.45-billion allocation for LGUs as special shares 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,” 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 can be used to support local development and livelihood initiatives in localities covered by beneficiary-LGUs.
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