LGUs to get higher IRA share

LOCAL GOVERNMENT UNITS (LGUs) will receive P389.869 billion in internal revenue allotment (IRA) shares from the national government next year, higher than the level set for 2014, the Department of Budget and Management (DBM) said in a memorandum.

Based on Local Budget Memorandum No. 68, the IRA level for 2015 is 14.15% higher than the P341.545 billion set for this year.

This year’s share is based on national internal revenue taxes collected in 2012.

The Bureau of Internal Revenue (BIR) raked in P1.058 trillion in taxes in 2012, up 14.48% from a the P924.1 billion collected in 2011 but P8 billion short of that year’s P1.066-trillion goal.

Broken down, provinces will get P91.02 billion in IRA while cities will receive P89.21 billion.

Meanwhile, municipalities have been allocated P132.95 billion, while barangays will receive P76.68 billion.

By region, local governments from Calabarzon (4-A) will receive the highest allocation at P43.03 million, followed by Central Luzon (P37.06 billion) and Western Visayas (P31.73 billion).

“The LGUs shall be notified of their IRA allocation by the DBM Regional Offices (ROs) concerned,” the memorandum read.

The DBM said LGUs should align their programs, activities and projects to five priority areas based on Executive Order no. 43, series of 2011.

Priority areas include anti-corruption, poverty reduction and empowerment of the poor, inclusive growth, just and lasting peace of the rule of law and integrity of the environment and climate change adaptation and mitigation.

IRA shares, the DBM said, should first be allocated to basic services before use for other purposes.

At least 20% of IRA shares should likewise be allocated to development projects. Further, at least 5% of LGUs’ estimated revenues should be set aside for disaster risk management.

“The disbursement of funds shall be in accordance with pertinent budgeting, accounting and auditing rules and regulations,” the DBM said.

Under the Local Government Code, local governments are allotted 40% of the internal revenue taxes from the collections of the third fiscal year prior to the current fiscal year.

Of the IRA shares, provinces and cities get 23%, municipalities receive 34% while the remaining 20% goes to barangays. -- M.F.E. Flores
 
source:  Businessworld