DBM: LGUs’ IRA allotments up to P648.9 billion for 2020

MANILA, Philippines — The internal revenue allotment (IRA) shares to be disbursed by the Department of Budget and Management (DBM) next year will increase to P648.9 billion across 43,618 local government units (LGUs).

Under Local Budget Memorandum No. 78 issued by DBM Officer-in-Charge Janet B. Abuel on May 15, the country’s 82 provinces will get a combined P149.3 billion in IRA shares in 2020.

The 145 cities, meanwhile, cornered a similar P149.3 billion in IRA for next year.

A total of 1,478 municipalities will be granted a bigger P220.6 billion in IRA shares under the proposed P4.1-trillion cash-based national budget for 2020.

Across 41,913 barangays, their combined IRA shares for next year was P129.8 billion.

On a per region basis, the biggest recipients of IRA will be Calabarzon (P74.3 billion); Central Luzon (P62.1 billion); and Western Visayas (P51.9 billion).

The National Capital Region or Metro Manila will be allocated P40.4 billion in IRA next year.

The indicative IRA shares for fiscal year 2020 were based on the computation of LGUs’ shares from the Bureau of Internal Revenue’s (BIR) actual collection of national internal revenue taxes in 2017, as mandated under Republic Act (RA) No. 7160 or the Local Government Code of 1991.

The DBM noted that under RA 7160, IRA funds must “first cover the cost of providing basic services and facilities… particularly those devolved by the Department of Health (DOH), Department of Social Welfare and Development (DSWD), Department of Agriculture (DA) and the Department of Environment and Natural Resources (DENR), as well as other agencies of the national government, before applying the same for other purposes.”

Also, LGUs must allocate in its yearly budget no less than a fifth of its IRA for development projects; a tenth to the general fund of barangays’ general fund for the Sangguniang Kabataan (SK); while at least 5 percent must go to LGUs’ local disaster risk reductions and management fund.

“To this end, the LGUs are enjoined to align their programs, projects and activities with the priorities of the national government, specifically those embodied under the Philippine Development Plan (PDP) and Public Investment Program (PIP) for 2017-2022,” the DBM said, referring to the Duterte administration’s medium-term socioeconomic and infrastructure blueprints, respectively.

This year, total IRA shares amounted P575.5 billion—P132.4 billion each for the provinces and cities; P195.7 billion for municipalities; and P115.1 billion for barangays. (Editor: Cenon B. Bibe Jr.)