1

Eddie Albert A. Cruz

Department of Budget & Management Regional Office IX

Internal Revenue Allotment

A Local Government Units (LGUs) share of

revenues from the Philippine national government.

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

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

In the computation of the 2014 IRA allocation of

LGUs, the following considerations are taken into account:

The FY 2010 NSO Census of Population per Proclamation Order No. 362 dated March 30, 2012; Continued adoption of the FY 2001 Masterlist of Land Area submitted by the DENR- Land Management Bureau pursuant to Oversight Committee on Devolution Resolution No. 1 s. 2005 dated September 12, 2005

 The IRA shares of LGUs shall be P341.545B per the

certification of the BIR on the actual national internal revenue taxes collected in FY 2011, which is P39.241B or 12.98% higher than the FY 2013 IRA level
Share of LGUs in the IRA shall be allocated in the

following manner: Provinces Cities Municipalities Barangays

23% 23% 34% 20%

 Enforcement of Sec. 325(a) and 331(b) of RA 7160

shall be waived to enable LGUs to:

(i) absorb the cost of hospital services transferred from provinces 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 the punong barangay and P600 for other mandatory barangay officials and their cash gifts; and
(iv) pay the retirement and terminal leave of employees.

Use of the IRA

Shall be used in accordance with Sec. 17(g) and 287 of RA 7160 i.e. Provide basic services and facilities before applying the same for other purposes. LGUs shall appropriate not less than 20% of its annual IRA for development projects. This shall be utilized in accordance with DILG-DBM Joint Memorandum Circular No. 2011-1 dated April 13, 2011. Not less than 5% of the estimated revenue from regular sources shall be set aside as Local Disaster Risk Reduction and Management Fund which shall be utilized in accordance with pertinent provisions of laws, rules and regulations.

FY 2014 Internal Revenue Allotment

(LBM No. 67 and 67A)
LGU NO. Cost of Devolved Functions/City Funded Hosp.
2,845,490,826 1,028,782,874 2,602,125,420

Share pursuant to Sec. 285 of RA 7160

77,065,715,182 77,065,715,183 113,923,231,138

TOTAL

PROVINCES CITIES MUNICIPALITIES

81 144 1,478

79.911,206,008 78,094,498,057 116,525,356,558

BARANGAYS
TOTAL

41,889
43,592

67,013,665,377
P6,476,399,120 P335,068,326,880

67,013,665,377
P341,544,726,00

Computation of share of each Barangay

Guaranteed share of P80,000 for each barangay

with a population of not less than 100 inhabitants

Balance to be allocated on the basis of the

following formula: Population Equal Sharing

60% 40%

Computation:
41,815 barangays with more than 100 inhabitants (41,815 x 80,000) = Balance of (67,013,665,377-3,345,200,001) 60% share for population (.60 x 63,668,465,336) 40% for equal sharing Total

3,345,200,001
63,668,465,376 38,201,079,226

25,467,386,150 67,013,665,377

Sample Computation of IRA for the Barangay Mambulo Nuevo, Municipality of Libmanan, Camarines Sur with a population of 4,788

Guaranteed share (with 100 or more inhabitants) Share Based on Population: = Population of the specific brgy Total population of brgys nationwide 4,788 91,606,078 1,996,666.00

Php80,000.00

Share of Brgys based on population

Php 38,201,079,226.00

= Php

Equal Sharing: = Share of brgys based on equal sharing Total number of barangays 25,467,386,150 41,889 607,973.12

= Php

= Php

IRA Share of Brgy. Mambulo Nuevo, Mun. of Libmanan, Camarines Sur Guaranteed share of barangays with 100 or more inhabitants Based on population Based on equal sharing

Php

80,000.00 1,996,666.00 607,973.00

Total IRA of Brgy. Mambulo Nuevo, Mun. of Libmanan, Camarines Sur Php

2,684,639.00

14