The internal revenue allotment (IRA) for local government units (LGUs) this year grew 37.5 percent to P302.3 billion, boosted by higher revenue collections in 2010, The Department of Budget and Management said Wednesday.
Internal tax revenues generated in 2010 to P822.6 billion, up 9.6 percent from the P750.3 billion collected in 2009.
The IRA is based on collections of national internal revenue in the three years before the current fiscal year, according to Section 284 of the Local Government Code (LGC), which mandates the share of LGUs from the collections.
"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,” said Budget and Management secretary Florencio B. Abad.
“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," Abad added.
The 2013 IRA will be distributed to 81 provinces, 143 cities, 1,479 municipalities, and 41,889 barangays, including the newly created cities of Ilagan in Isabela, Mabalacat in Pampanga, and Cabuyao in Laguna.
The province of Dinagat Islands will also get its IRA after the legal resolution of its status as a province, the Budget chief noted.
On Oct. 24, 2012, the Supreme Court upheld the constitutionality of Republic Act 9355 which created the province.
"With the finality of the court's decision, the local government of Dinagat Islands can finally jump-start 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. — VS, GMA News