LGUs to get P575.52 billion IRA next year

MANILA, Philippines — Local government units (LGUs) will receive their internal revenue allotment (IRA) amounting to P575.52 billion in 2019, according to the Department of Budget and Management (DBM).

The amount is 10.10 percent higher than this year’s P522.75 billion.

According to a memorandum signed by Budget Secretary Benjamin Diokno on May 15, municipalities will get P196.07 billion; provinces, P133.73 billion; cities, P131.91 billion, and barangays, P113.81 billion.

The IRA represents national government revenues that accrue to local governments.

The DBM said IRA shares for next year are based on taxes collected by the Bureau of Internal Revenue (BIR) in 2016.

The BIR collected P1.58 trillion in 2016, which is 9.31 percent higher the P1.44 trillion in 2015. However, the amount is short of the P1.62 trillion target for the year.

 The DBM said some LGUs are also entitled to special shares in the proceeds of national taxes. These include shares in excise tax on Virginia tobacco, burly and native tobacco, value-added tax, proceeds from the utilization and development of national wealth, gross income tax paid by enterprises within economic zones and Fire Code fees.

The IRA and other local resources should be used to provide basic services and facilities, particularly those devolved from national government agencies, according to the DBM.

At least 20 percent of the IRA should be used for development projects as mandated under Section 297 of Republic Act 7160 or the Local Government Code, the DBM said.

Not less than five percent of the estimated revenues of LGUs from regular sources should be set aside as Local Disaster Risk Reduction and Management Fund, it added.

The DBM urged LGUs to formulate their budget in accordance with national development plans, goals and strategies.

Local governments are also encouraged to provide funds to address illegal drugs, including rehabilitation of drug users, establishment of drug education centers and strengthening of the criminal justice system.