Question & AnswerQ&A (Act No. 1695)
The main purpose of Act No. 1695 is to amend the Internal Revenue Law of 1904 by allocating a portion of the revenues to provincial road and bridge funds and to free public primary schools in municipalities.
Ten percent (10%) of the revenues accruing to the Insular Treasury are set aside for the benefit of provincial governments for general provincial purposes.
Twenty percent (20%) of the internal revenues are set apart for municipal governments for general municipal purposes and for school purposes.
The city of Manila is considered both a province and a municipality and receives the apportionment pertaining to both.
An additional ten percent (10%) of the internal revenues is allotted to the 'Road and bridge funds' of such provinces for construction, repair, and maintenance of roads and bridges.
Funds may be used first for repair and maintenance of improved roads, second for improvement of existing roads and bridges, and third for construction, repair, improvement, and maintenance of new roads and bridges.
They are apportioned in proportion to their respective populations based on the last official census before the apportionment.
One-half of the twenty percent (i.e., ten percent of the total revenues) is utilized solely for the maintenance of free public primary schools.
The amounts apportioned for the Moro Province and its municipalities accrue to its treasury without division and are spent at the discretion of its legislative council for provincial, district, and municipal purposes.
A portion of the municipal internal revenue proportionate to the number of non-Christian inhabitants is set aside in a 'Non-Christian inhabitants' fund to be used for their benefit upon approval by the Secretary of the Interior.
It is a fund set aside in provinces organized under the Special Provincial Government Act, allocated from municipal revenue shares and used for municipalities, townships, and settlements upon approval of the Secretary of the Interior.
The Act took effect upon its passage on August 20, 1907.
Section sixteen of Act Numbered Twelve hundred and eighty-three and section one of Act Numbered Fourteen hundred and twenty-six were repealed.