By Bernadette D. Nicolas, May 21 2019; Business Mirror

https://businessmirror.com.ph/2019/05/21/lgus-2020-ira-share-up-12-75/

Image Credit to Business Mirror

LOCAL government units (LGUs) are set to receive higher internal revenue allotment (IRA) shares for 2020.

The Department of Budget and Management (DBM) said the total IRA shares of LGUs for next year shall be P648.92 billion, per certification of the Bureau of Internal Revenue on the actual internal revenue taxes collected in FY 2017.

The FY 2020 IRA level is 12.75 percent, or P73.4 billion higher than the FY 2019 IRA level at P575.52 billion, according to a Local Budget Memorandum 78 uploaded by DBM on its web site on Monday.

Broken down per level of LGU, a total of P220.63 billion or 34 percent of the P648.92 billion will be shared by 1,478 municipalities, while 82 provinces and 145 cities will partake from the allocated total of P149.25 billion each (23 percent each) for both levels of LGUs.

Meanwhile, 41,913 barangays will get their part from P129.78 billion or a fifth of the total IRA.

Top regions

Leading the top 5 regions in terms of IRA share is Region 4A, which is set to enjoy the highest share at P74.30 billion, followed by Region 3 (P62.11 billion), Region 6 (P51.86 billion), Region 12 including ARMM (P48.49 billion) and Region 7 (P45.74 billion).

The lowest IRA share will go to Cordillera Administrative Region at P19.70 billion.

The DBM explained in its memorandum that the computation of IRA allocation of LGUs was based on the FY 2015 Census of Population by level of LGU, as well as the FY 2001 Master List of Land Area certified by the Land Management Bureau.

The DBM also noted that the IRA was computed based on the list of existing LGUs as of December 31, 2018.

However, the IRA shares of some LGUs concerned are still subject to change.

Since some municipalities in Maguindanao were converted into regular municipalities because of the Bangsamoro Organic Law, the DBM said these municipalities shall be included in the allocation of FY 2020 IRA shares of LGUs once the DBM receives from the relevant government agencies the documents that will serve as the basis in computing their respective IRA shares.

Moreover, LGUs that may be created/converted by Congress and approved by the President—and the corporate existence of which will commence in FY 2019—shall likewise be included in the allocation of the FY 2019 IRA shares of LGUs.

The DBM will inform concerned LGUs of the resulting adjustments in the computation of their respective FY 2020 IRA shares through a subsequent Local Budget Memorandum that DBM will issue in December 2019, inasmuch as the authorized adjustment to the IRA covers factors that occurred or happened within FY 2019.

“Given the foregoing, LGUs, especially the municipalities and barangays, are advised to anticipate the said the possible adjustments in their respective indicative FY 2020 IRA shares as initially computed under this LBM,” the DBM memorandum read.

In addition to the IRA, other LGUs are also entitled to Special Shares in the Proceeds of National Taxes.

This includes shares 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 economic zones, value-added tax, value-added tax in lieu of franchise tax, and share in fire code fees.