Internal Revenue Allotment-ALBERT

8/12/2019 Internal Revenue Allotment-ALBERT

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Eddie Albert A. CruzDepartment of Budget & Management

Regional Office IX


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Internal Revenue Allotment

A Local Government Units (LGUs) share ofrevenues from the Philippine nationalgovernment.

Provinces, cities, municipalities and

barangays each get a separate allotment

Section 285 of RA 7160 provides for the

formula for the distributions of the allotment


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Sec. 2.0 of LBM No. 67 dated June 28, 2013

In the computation of the 2014 IRA allocation ofLGUs, the following considerations are taken intoaccount:

The FY 2010 NSO Census of Population perProclamation Order No. 362 dated March 30, 2012;

Continued adoption of the FY 2001 Masterlist of LandArea submitted by the DENR- Land Management

Bureau pursuant to Oversight Committee onDevolution Resolution No. 1 s. 2005 dated September12, 2005


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The IRA shares of LGUs shall be P341.545B per thecertification of the BIR on the actual national

internal revenue taxes collected in FY 2011, whichis P39.241B or 12.98% higher than the FY 2013IRA level

Share of LGUs in the IRA shall be allocated in thefollowing manner:

Provinces - 23%

Cities - 23%Municipalities - 34%

Barangays - 20%


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Enforcement of Sec. 325(a) and 331(b) of RA 7160shall be waived to enable LGUs to:

(i) absorb the cost of hospital services transferred fromprovinces to newly created cities

(ii) fund the initial requirement of newly created

mandatory positions in LGUs

(iii) pay the minimum year-end bonus of P1,000 for thepunong barangay and P600 for other mandatory

barangay officials and their cash gifts; and

(iv) pay the retirement and terminal leave ofemployees.


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Use of the IRA

Shall be used in accordance with Sec. 17(g) and 287 of RA7160 i.e.

Provide basic services and facilities before applying thesame for other purposes.

LGUs shall appropriate not less than 20% of its annualIRA for development projects. This shall be utilized inaccordance with DILG-DBM Joint Memorandum CircularNo. 2011-1 dated April 13, 2011.

Not less than 5% of the estimated revenue from regularsources shall be set aside as Local Disaster RiskReduction and Management Fund which shall be utilizedin accordance with pertinent provisions of laws, rules and

regulations.


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FY 2014 Internal Revenue Allotment

(LBM No. 67 and 67A)

LGU NO.

Cost ofDevolved

Functions/CityFunded Hosp.

Sharepursuant to

Sec. 285 of RA7160

TOTAL

PROVINCES 81 2,845,490,826 77,065,715,182 79.911,206,008

CITIES 144 1,028,782,874 77,065,715,183 78,094,498,057

MUNICIPALITIES 1,478 2,602,125,420 113,923,231,138 116,525,356,558

BARANGAYS 41,889 67,013,665,377 67,013,665,377

TOTAL 43,592 P6,476,399,120 P335,068,326,880 P341,544,726,00


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Computation of share of each Barangay

Guaranteed share of P80,000 for each barangaywith a population of not less than 100 inhabitants

Balance to be allocated on the basis of thefollowing formula:

Population - 60%

Equal Sharing - 40%


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Computation:

41,815 barangays with more than

100 inhabitants (41,815 x 80,000) = 3,345,200,001

Balance of 63,668,465,376(67,013,665,377-3,345,200,001)

60% share for population 38,201,079,226

(.60 x 63,668,465,336)40% for equal sharing 25,467,386,150

Total 67,013,665,377


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Sample Compu tat ion of IRA for the

Barangay Mambulo Nuevo,

Municipality of Libmanan, Camarines

Sur with a population of 4,788


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Php80,000.00

= Population of thespecific brgy

Total population of

brgys nationwide

= 4,788

91,606,078

= 1,996,666.00Php

X 38,201,079,226.00Php

Share Based on Population:

Share of Brgys based on

population

Guaranteed share (with 100 ormore inhabitants)

X


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=

= Php 25,467,386,150

41,889

= 607,973.12Php

Equal Sharing:

Share of brgys based on equal sharing

Total number of barangays


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Guaranteed share of barangays with 100

or more inhabitants 80,000.00PhpBased on population 1,996,666.00

Based on equal sharing 607,973.00

2,684,639.00Php

Total IRA of Brgy. Mambulo Nuevo, Mun.

of Libmanan, Camarines Sur

IRA Share of Brgy. Mambulo Nuevo, Mun. of Libmanan,

Camarines Sur


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Internal Revenue Allotment-ALBERT