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Manila Bulletin devider Philippines devider National devider Salceda says local execs' RATA, per diem rates must be updated; cites inflation

Salceda says local execs' RATA, per diem rates must be updated; cites inflation

Published Dec 24, 2022 01:54 pm

The outdated representation and transportation allowance (RATA) and per diem rates of local government unit (LGUs) officials need to be revised.

Albay 2nd district Rep. Joey Salceda (Facebook)


Thus, said Albay 2nd district Rep. Joey Salceda, who directed the request to the Department of Budget and Management (DBM) and the Department of Interior and Local Government (DILG).

Salceda, in a statement, Saturday, Dec. 24, cited inflation as the biggest justification for such adjustment. According to him, the RATA was last updated in January 2013.

“From 2013 to 2022, the value of each peso has eroded to 74 centavos. It also no longer makes sense given that LGUs have increased local revenues from 107.98 billion to 256.21 billion last year. That’s a 137 percent growth rate," he said.

"Around the same period, national government revenues only grew by 75 percent. So, they’re actually doing a better job at improving revenue collection. They also have more resources as a result of the Mandanas-Garcia ruling. So, all in all, they are better placed to help the domestic tourism sector," he explained.

A former Albay governor, Salceda said LGUs also deserve the increase given their improved efforts in generating local revenues.

Based on inflation alone, Salceda says RATA for LGUs should be hiked by at least 35 percent.

“The increase should be sourced from LGU revenues, so that it does not affect our limited NG fiscal space. But it should be done," he said.

Salceda is also proposing to review the rates of the per diems allowed for travel of local officials.

He reminded DBM that “EO 77 s. 2019 prescribed the rates of expenses and allowances for travel. The same EO mandates a periodic review every three years based on a survey of lodging costs conducted by the DOT, and other economic indicators prescribed by the Philippine Statistics Authority (PSA)".

Depending on the cluster, the maximum daily travel expense for local officials is P1,500 to P1,800. “From 2019 to 2022, the value of each peso has eroded to 89 centavos. Proportionately, the DTE should now be adjusted to P1688 to P2026.”

Salceda is hoping that the increase will boost domestic tourism, which suffered “scarring effects” due to the Covid-19 pandemic.

“The increase in rates will help boost our Meetings, Incentives, Conferences, and Exhibitions or MICE scene, which suffered structural losses due to the pandemic,” Salceda said.

Related Tags

tourism Inflation outdated LGUs 122422 revised per diem rata joey salceda DILG DBM
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