Olongapo SubicBay BatangGapo Newscenter

Thursday, October 19, 2006

DBM releases P54.3 M as shares of LGUs contiguous to Clark, Subic ecozones

The Department of Budget and Management has released recently some P54.3 million for the "Gross Income Earned (GIE)" shares of various local government units within the contiguous areas of two economic zones in Central Luzon for the year 2005.

The amount is part of the special shares of LGUs from the one percent of the five percent gross income earnings of locators of Clark Special Economic Zone in Pampanga and Subic Bay Freeport Zone in Zambales.

Under R.A. 7227, a five percent fee is levied on the Gross Income Earned (GIE) of locator firms in the Clark Special Economic Zone (CSEZ). Pursuant to Section 12 (c) of said law, the five percent fee shall be provided and shall accrue to the following: three percent to the National Government, one percent to the four contiguous Local Government Units (LGUs) and one percent to a Development Fund.

The regular release of the GIE shares directly to the affected towns of the economic zones, especially those affected at the CSEZ, was due to the consistent follow up made by the Metro Clark Advisory Council (MCAC) at the DBM for the necessary funding of various projects of the affected towns.

The shares for the LGUs are provided for under Republic Act 7227 after the two US former bases in Clark Air Base and Subic Naval Base were transformed into economic zones following the eruption of Mt. Pinatubo and the eventual pull out the Americans in the two former US facility.

In a DBM report released to Clark Development Corporation, Clark beneficiaries are Angeles City who received a share of P3.1 million; Porac town, P2.1 million; Mabalacat town, P2.3 million; Capas, Tarlac, P2.4 million; and Bamban, Tarlac, P1.6 million.

Towns directly affected by the ecozone in Subic Freeport zone are Hermosa, Bataan which received the amount of P3.5 million; Moron, Bataan, P3 million; Subic, Zambales, P4.8 million; and Olongapo City, P8.6 million.

Those contiguous to the ecozone such as Dinalupihan, Bataan received some P5.3 million; San Marcelino, Zambales P3.9 million; Castillejos, Zambales, P3.1 million; Morong, Bataan, P4.1; and San Antonio, Zambales, P3.4 million.

Last year, the DBM has released the amount of P45.7 million as special shares of the same LGUs near Clark and Subic ecozones while some P46.6 million were released to the same LGUs in 2003. The notable increase in the GIE of various LGUs was due to the increased income generated by the two economic zones in 2005.

From year 2000 to the present, those surrounding Clark Special Economic Zone, the current GIE shares are being remitted directly to LGU's treasuries. The past obligations of the National Government (totaling PhP 65,294,468.30 --for the period 1994-1998 for the MCAC member LGUs) as certified by the Bureau of Internal Revenue (BIR), are yet to be received by the LGUs. (PNA)


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