LOCAL government units (LGUs) are set to receive higher internal revenue allotment shares for 2021 as the total IRA level next year increased to P695.49 billion.
According to Local Budget Memorandum 80 issued by the Department of Budget and Management (DBM), the 2021 IRA level is 7.18 percent higher than P648.92 billion allotted this year.
Broken down, the bulk of IRA, or 34 percent (P236.47 billion), will go to 1,488 municipalities, 23 percent, or P159.96 billion, will be allotted to 82 provinces, 23 percent or P159.96 billion, will go to 146 cities and the remaining 20 percent, or P139.1 billion will go to 41,931 barangays, according to the May 18 document signed by Budget Secretary Wendel E. Avisado.
Citing the provision under the Republic Act 7160 or the Local Government Code, the DBM also reminded LGUs that the IRA and other local resources shall first cover the cost of providing basic services and facilities, particularly those devolved by the Department of Health, Department of Social Welfare and Development, Department of Agriculture, and Department of Environment and Natural Resources, as well as other agencies of the national government, before applying the same for other purposes.
Each LGU shall also appropriate in its annual budget no less than 20 percent of its IRA for development projects, which is commonly known as the 20-percent Development Fund.
Given the uncertainty as to when the Covid-19 pandemic will finally be over, the budget department also encouraged LGUs to continue to provide funds for Covid-19 related programs, projects, activities (PPAs) and expenses, as may be necessary.
“The Covid-19 related PPAs and expenses that may be funded by the LGUs may include those that are related to the prevention of the spread of Covid-19, and the provision of basic services to the affected population, including the necessary support to frontline workers,” the DBM said.
In addition to the IRA, some LGUs are entitled to special shares in the proceeds of national taxes.
These include share in the proceeds from the utilization and development of national wealth within their territorial jurisdiction; excise tax on Virginia tobacco cigarettes, excise tax on Burley and Native tobacco products; gross income taxes paid by all businesses and enterprises within the ecozones; value-added taxes and share in fire code fees.
1 comment