LGUs to receive P522.75-B IRA in 2018

MANILA, Philippines -  Local government units (LGUs) will receive P522.75 billion in total internal revenue allotments (IRA) in 2018, the Department of Budget and Management said.

Budget Secretary Benjamin Diokno, through Local Budget Memorandum 75, informed all LGUs that their total IRA shares will amount to P522.75 billion in 2018, up 7.37 percent from the P486.89 billion allotted for this year.

IRA, or the LGUs’ revenue share from the national government, corresponds to 40 percent of the national internal revenue collection three years preceding the current fiscal year.

“For the purpose of preparing the FY 2018 annual budgets, the total IRA shares of LGUs shall be P522.748 billion per certification of the BIR (Bureau of Internal Revenue) on the actual national revenue taxes collected in FY 2015,” the memo read.

Of the amount, P121.59 billion will go to provincial governments, P119.77 billion to cities, P178.13 billion to municipalities and P103.25 billion to barangays.

Region 4A or the CALABARZON region, will receive the highest IRA share during the period at P59.67 billion.

This is followed by Region 3 with P50.04 billion, Region 6 with P41.84 billion, Region 12 (including ARMM) with P38.85 billion, and Region 7 with P36.89 billion, and the National Capital Region with P32.50 billion.

Other regions’ share are as follows: Region 8 P32.23 billion; Region 5, P32.12 billion; Region 9, (including ARMM) P30.96 billion; Region 1, P28.41 billion; Region 10, P28.12 billion; Region 2 P26.69 billion; Region 11, P25.36 billion; Region 4B ,P22.71 billion; Region 13, P20.39 billion; and the Cordillera Administrative Region, P15.96 billion.

The DBM said the IRA should first cover the cost of providing basic services and facilities, particularly those devolved by the Department of Health, Department of Social Welfare and Development, Department of Agriculture and the Department of Environment and Natural Resources, and other government agencies before being used for other purposes.

Twenty percent of each LGUs IRA should also be allocated for development projects.

Not less than five percent of LGUs’ revenues from regular sources, including the IRA, should also be set aside as Local Disaster Risk Reduction and Management Fund.

The agency reminded the LGUs to align their budget plans, programs and projects in 2018 to national development plans, goals and strategies to optimize the utilization of resources.

LGUs were also encouraged to provide funds in their annual budgets for programs that are in line with the Duterte administration’s priority to eradicate the problem of illegal drugs in the country, including  barangay clearing operations and rehabilitation of drug dependents.