The Commission of Revenue Allocation (CRA) has finalized and submitted the proposed third (3rd) generation formula to Senate for consideration. As required by the constitution, the Senate has invited public input and comments in its ongoing public consultations on the formula. We made a submission attached here.
Our review indicates that the proposed third-generation formula is comparatively aligned to functions compared to its predecessors – first and second basis. The commission has made great steps towards a greater objective, rational and transparent resource sharing criterion in efforts to ensure local governments are commensurately resourced to deliver on their respective mandates, but also held accountable for its obligations.
As the Senate consider approving the recommendations, we take this opportunity to share our observations, comments and input for consideration. The comments, reviews and input in this document applies to selective parts of the formula and builds from similar submission we made earlier to the commission. Read a simplified version of the formula here while you can access the complete formula here