DBM orders LGUs to align bigger 2021 IRA to COVID-19 response

Internal revenue allotment (IRA) shares to be disbursed by the Department of Budget and Management (DBM) in 2021 will rise to P695.5 billion for 43,647 local government units (LGUs), which were ordered to align their 2021 spending plans to the national government’s COVID-19 response.

Under Local Budget Memorandum No. 80 issued by Budget Secretary Wendel E. Avisado last Monday (May 19), the country’s 82 provinces will divide among themselves P159.9 billion in IRA shares in 2021.

The 146 cities will also receive IRA worth P159.9 billion, while 1,488 municipalities will get a larger P236.5 billion under the proposed P4.18-trillion 2021 cash-based national budget.

Among 41,913 barangays, their combined IRA shares for next year was P139.1 billion.

Next year’s total IRA shares will be 7.2-percent higher than this year’s P648.9 billion.

The indicative IRA shares for fiscal year 2021 were based on the computation of LGUs’ shares from the Bureau of Internal Revenue’s actual collection of national internal revenue taxes in 2018.

The DBM noted that under the law, IRA funds must “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 Department of Environment and Natural Resources, as well as other agencies of the national government, before applying the same for other purposes.”

Also, LGUs should appropriate in their yearly budget no less than one-fifth of their IRA for development projects; at least 5 percent for their local disaster risk reduction and management funds; and one-tenth of barangays’ general fund for the Sangguniang Kabataan.

Avisado said “LGUs are advised to align their development plans, investment programs, and budgets to the economic and social recovery plans that may be adopted by the national government in relation to or after the coronavirus disease/COVID-19 pandemic.”

Also, Avisado said LGUs were urged to “align their programs, projects and activities with the priorities of the national government, specifically those embodied under the Philippine Development Plan and Public Investment Program for 2017-2022,” referring to the Duterte administration’s medium-term socioeconomic and infrastructure blueprints.

Edited by TSB