Reversion of three towns from cityhood in EV is boon and bane - NEDA
By MELANIE L. BINGCO, ABS-CBN Tacloban | 11/20/2008 2:30 AM
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PALO, LEYTE – Catbalogan in Samar, Baybay in Leyte and Borongan in Eastern Samar were among the 16 towns that the Supreme Court (SC) ruled were converted into cities “unconstitutionally”.
National Economic Development Authority (NEDA) regional director Buenaventura Go-Soco said the SC decision would have a good and bad effect in the development of the localities themselves and in existing cities in the region. He said however it will not have much effect to the economy of Eastern Visayas.
“It will be an advantage to cities like Tacloban, Ormoc, Maasin and Calbayog because they will be receiving the IRA [Internal revenue Allotment] share that they are supposed to receive had these three towns not changed their status, “he said.
However, the three areas might find a problem if they have already set programs and projects based from their bigger IRA share.
“In this case, they might as well set out on planning strategies based on lesser resources, “he said.
The SC said that the conversions into cityhood of the 16 towns were unconstitutional. The high court said they were not exempted from Republic Act 9009 which took effect six years before the conversion and which requires P100 million annual income for a town to be converted into a city and not P20 million.
