IRA of LGUs hiked to P575.5 billion this year

MANILA, Philippines — The Department of Budget and Management (DBM) has adjusted the internal revenue allotment (IRA) of local government units (LGUs) with the creation of 15 new barangays.

For this year, the total IRA of LGUs is P575.52 billion, an increase of 10 percent compared to last year’s figure.

The IRA is automatically appropriated among provinces, cities and municipalities in accordance with the allocation formula prescribed under Section 285 of Republic Act 7160 or the Local Government Code.

The DBM said among the  new barangays that were created are North Bay Boulevard South Proper, NBBS Kaunlaran, NBBS Dagat-Dagatan, Tangos North, Tangos South, Tanza 1 and Tanza 2 in Navotas City.

Also newly created are Barangays Kalaw, Cabaritan and Quibel in Dumalneg, Ilocos Norte; Liwon in Asipulo, Ifugao; Pudo, Natonin, Mountain Province; Poblacion 3, Villanueva, Misamis Oriental; Upper Pugaan, Ditsaan-Ramain, Lanao del Sur; and Poblacion 2, Villanueva, Misamis Oriental.

The DBM said the cost of devolved functions would no longer be deducted prior to the allocation of the IRA and would instead be redistributed to recipient LGUs in accordance with Section 284 of RA 7160.

With these changes, P132.37 billion of the total IRA will go to 82 provinces, P132.37 billion to 145 cities, P195.68 billion to 1,478 municipalities and P115.10 billion to 41,913 barangays.

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

The DBM said IRA shares for this 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 than the P1.44 trillion collected in 2015.