LGUs to get P342-B IRA next year

MANILA, Philippines - The more than 43,000 local government units (LGUs) will receive nearly P342 billion in internal revenue allotments (IRA), which represents their share from national internal revenues, in 2014.

Budget Secretary Florencio Abad issued a memorandum informing local officials of their LGUs’ IRA in preparation for their budgets for next year.

Based on the memorandum, the 81 provinces will get P80 billion, or an average of nearly P1 billion each, while the 143 cities will receive P78.1 billion. The 1,479 towns will be allocated P116.5 billion, while the 41,889 barangays will be allotted P67 billion.

The total LGUs’ IRA funds will come up to P341.543 billion.

Abad said the amount was based on the Bureau of Internal Revenue’s certification on the actual amount of internal tax collections in 2011, which under the law is the base year for computing the IRA.

He said the 2014 total is P39.241 billion or 12.98 percent higher than the 2013 IRA level.

He also said that certain LGUs have “special shares” from certain national taxes like tobacco levies, which the national government shares with tobacco-producing provinces, in addition to their IRA.

The budget chief also reminded local officials that in preparing their budgets for next year, Executive Order No. 43 encourages them to align their projects, programs and activities to five priorities: good governance, poverty reduction, inclusive and sustained economic growth, just and lasting peace and the rule of law, and protection of the environment.

Local officials, their treasurers and budget officers are also advised to coordinate with regional offices of the Department of Budget and Management for technical assistance in preparing their budgets.

“All procurements shall be made in accordance with the Government Procurement Reform Act and its implementing rules and regulations. Disbursement of funds shall be subject to pertinent budgeting, accounting and auditing rules,” Abad added.