IRA shares for LGUs jump by 37.5% in 2013

A January 9, 2013, press release from the Department of Budget and Management

Buoyed by higher revenue collections in 2010, the Department of Budget and Management (DBM) reported that the Internal Revenue Allotment (IRA) for 2013 jumped by 37.5 percent to P302.3 billion, up from the P219.9-billion figure posted in 2012.

Internal tax revenues generated in 2010 climbed to P822.6 billion, a notable increase over the P750.3 billion collected in 2009. Under Section 284 of the Local Government Code (LGC), LGUs shall have a share in national internal tax revenues based on collections posted three years before the current fiscal year.

“The energetic revenue collection efforts that marked the beginning of the Aquino administration helped generate higher revenues in 2010, which translates to higher budgetary support for our LGUs this year.

“With bigger IRA shares now available to them, our local governments will have more legroom to boost their operational efficiencies and improve the delivery of key goods and services to the public,” said  Secretary of Budget and Management Florencio B. Abad.

This year’s IRA will be distributed among 81 provinces, 143 cities, 1,479 municipalities, and 41,889 barangays. Furthermore, the list of local government units (LGUs) set to receive their IRA shares now includes the newly created cities of Ilagan, Isabela; Mabalacat, Pampanga; and Cabuyao, Laguna.

Meanwhile, Abad noted that the province of Dinagat Islands will now get its IRA share upon the legal resolution of its status as a province. On October 24, 2012, the Supreme Court issued an Entry of Judgment on its decision upholding the constitutionality of Republic Act 9355—the act creating the province—making it final and executory.

“With the finality of the Court’s decision, the local government of Dinagat Islands can finally jumpstart the development of the province and push for the prompt delivery of services to its constituents. The Administration’s goal has always been to institute rapid, inclusive, and sustainable growth for all Filipinos, and the people of Dinagat Islands are no exception to that,” Abad said.