AMENDING SECTION FOUR OF PRESIDENTIAL DECREE NO. 144, ENTITLED "REVISING THE PRESENT SYSTEM OF NATIONAL INTERNAL REVENUE ALLOTMENTS TO LOCAL GOVERNMENTS" AS AMENDED BY PRESIDENTIAL DECREE NO. 359 AND SECTION 22, PARAGRAPH (C), OF PRESIDENTIAL DECREE NO. 898.

• Number: Presidential Decree No. 937
• Sections: 5

Preamble

WHEREAS, the local governments depend largely upon the

internal revenue allotments they receive annually under the provisions

of Presidential Decree No. 144, as amended, to meet and maintain the

fund requirements of community development projects;

WHEREAS, some local governments, may be adversely affected

by the automatic rescission, beginning July 1, 1976 of the percentage

decrease limitation provided for in Section four of the aforesaid

Decree;

WHEREAS, it has become necessary to institute remedial

measures that will avert the financial dislocation of said local units

in order to avoid the impairment of essential projects and public

services in these localities;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Republic of the Philippines, by virtue of the powers vested in me by the

Constitution, do hereby decree and order, as part of the law of the

land, the following provisions:

Section 1

SECTION 1.—The allocation formula for determining the

individual shares of the local governments effective July 1, 1976 as

provided for in Sections 1, 2 and 3 in relation with Section 4 of

Presidential Decree No. 144, as amended by Presidential Decree No. 559

and Section 22, paragraph (c) of Presidential Decree No. 898, is hereby

modified and, for the purpose, Section 4 of Presidential Decree No. 144

is hereby amended to read in full as follows:

"4. (a) For the first three fiscal years of implementation of

this Decree (FYs 1974, 1975 and 1976) the annual allotment of any local

government shall not increase by more than fifteen per centum

(15%) nor decrease by more than fifty per centum (50%) of its

actual allotment during the fiscal year 1970-71.

"(b) For the six-month period from July 1, 1376 to December 31,

1976, the internal revenue allotment of any local government shall not

increase by more than twenty-five per centum (25%) of, nor be

less than, the allotment it actually received for the six-month period

from July 1, 1975 to December 31, 1975, as determined pursuant to

Sections 1, 2 and 3 hereof.

"(c) For the new fiscal year commencing on January 1, 1977 and

ending on December 31, 1977, the annual allotment of any local

government as determined pursuant to Sections 1, 2 and 3 hereof shall

not increase by more than twenty-five per centum (25%) of, nor be

less than, the annual allotment it shall actually receive for the

fiscal year from July 1, 1975 to June 30, 1976.

"(d) Thereafter, or beginning January 1, 1978, the annual

allotment shares of each local government shall be determined solely on

the basis of Sections 1, 2 and 3 hereof as read in relation with the

pertinent provisions of Presidential Decrees Nos. 559 and 898."

Section 2

SEC. 2.—The Secretary of Finance shall issue the rules and

regulations necessary for the proper implementation of this Decree.

Section 3

SEC. 3.—All laws, decrees, orders, and rules and

regulations or parts thereof, which are contrary to or inconsistent with

this Decree are hereby repealed, amended or modified accordingly.

Section 4

SEC. 4.—This Decree, except as otherwise provided for

herein, shall take effect immediately.

Done in the City of Manila, this 27th day of May, in the year of

Our Lord nineteen hundred and seventy-six.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

JACOBO C. CLAVE

Presidential Executive Assistant