DBM, DILG urged to update LGU RATA, per diem rates to boost local tourism

Albay Representative Joey Salceda on Saturday urged the Department of Budget and Management (DBM) and the Department of the Interior and Local Government (DILG) to update the rates of the daily travel allowance and the representation and transportation allowance (RATA) of local government officials to boost local tourism.

Salceda, who is also the House Ways and Means chair, emphasized that 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% growth rate. Around the same period, national government revenues only grew by 75%. So, they’re actually doing a better job at improving revenue collection,” Salceda said in a statement.

“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 added.

Salceda said they also deserve the increase due to the “improved efforts” in generating local revenues.

He said the RATA for LGUs should increase by at least 35% due to inflation.

“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 added.

Travel expenses

The Albay representative said he was also proposing to review the rates of the per diems allowed for travel of local officials.

He reminded the DBM, saying 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.”

Salceda said the maximum Daily Travel Expense for local officials is P1,500 to P1,800 depending on the cluster.

“From 2019 to 2022, the value of each peso has eroded to 89 centavos. Proportionately, the DTE should now be adjusted to P1,688 to P2,026,” he said.

The lawmaker said he 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,” he added. — DVM, GMA Integrated News