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LGUs to get lower IRA share in 2012



The Department of Budget and Management on Friday said the internal revenue allotment share of local government units would decrease to P273 billion in 2012 compared to P287 billion this year.

In a statement, Budget Secretary Florencio Abad attributed the lower IRA share of LGUs to the sharp decrease in revenues in 2009 as a result of the global economic crisis and “revenue-eroding measures passed at that time.”

“Year after year, we in the Department of Budget and Management have followed the provisions of the Local Government Code on the share of LGUs in national internal revenue taxes, with no exception,” Abad said.

“It is unfortunate that revenues in 2009 declined, but that is the legally-mandated base year for computing the IRA for fiscal year 2012,” he added.

According to the Local Government Code, the IRA share of LGUs should be computed as 40 percent of the national internal revenue taxes collected in the third fiscal year before the current fiscal year.

Based on this formula, the DBM said the IRA share of LGUs would decrease by P13.635 billion or 4.8 percent to P273.31 billion in 2012 from P286.94 billion in 2011.

Abad also said the IRA’s sources only include taxes collected by the Bureau of Internal Revenue and do not include tariffs and customs duties.

He said the National Internal Revenue Code of the Philippines has identified the national internal revenue taxes that are sources of IRA. These are income tax; estate and donors’ tax; value-added tax; other percentage taxes; excise taxes; documentary stamp taxes; and such other taxes that may be imposed and collected by the BIR. Norman Bordadora


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Tags: DBM , Department of Budget and Management , Government , LGU , Local government unit , State Budget and Taxes


  • http://pulse.yahoo.com/_JY5Y7MAC3T3VA2DKLZHATJU6N4 Macario

    Dapat siguro tanggalin na ang tinatawag na revenue allotment o share ng LGU sa national government revenues at ikamada ang gobyerno ayon sa espiritu ng Local Government Code.  Gawin na lang specific ang responsibility at source ng pondo na gagamitin.  Halimbawa, lahat ng income tax at customs duties ay para sa national government na gagamitin naman para sa national defence, support ng state colleges at universities, infrastructure katulad ng national highways, ports and airports.  Sa LGUs naman, pupunta lahat ng real estate tax, business permits and licenses, inheritance tax, at gagastusin naman para sa public schools, health and sanitation, local infrastructures tulad ng roads and bridges, irrigation and dams.  Sa ganitong paraan, hindi na kailangan magpalakasan sa paghingi ng pondo sa national government.  Kanya-kanyang diskarte ang mga LGUs, at makakakonsentreyt ang national government sa mga bagay na walang kinalaman sa trabaho ng LGUs.

  • http://twitter.com/boymatiao isko daya

    Sec. Abad should explain the planned increase of the CCT program from P17Billion to P39Billion, yes, P39B, what’s really behind it, does it generate permanent jobs or not, or it just cultivates the culture of mendicancy?

    The sharp decrease of revenue is not the reason for the decrease of the LGU IRA, it is the CCT! I repeat, CCT!

    And the CCT is ensnarled with the PORK BARREL. If Noynoy, the President, would push for the gargantuan increase of his pet CCT to 229% (from P17B to P39B), he certainly must be generous to Congress through their PORK BARREL, an alleged large source of jobbery.

    Dignity and principles of good governance are jettisoned to pursue a pet project though how extravagant, faltering and insidious it may be. The culture of mendicancy is what CCT cultivates and not the culture of industry and perseverance. There is no clear good return of investment in CCT but just an effective influencing cover for hunger survey results.

    The poor needs JOBS and not dole-outs. That is what they say. Why can”t Noynoy, the President, listen carefully and study possibilities and means to generate jobs especially in rural areas? Most CCT funds are squandered in squatters areas. Yes, the poor needs help but same should be the sustainable and progressive.

    You keep on feeding them, they will remain poor. With jobs, they can buy their own food, loan to construct a house, and stand on their own feet without any help. Common sense!

    Not only this, soldiers are being butchered by the terrorists. Is there no plan to upgrade their arms and gadgets to provide advantage during combat? Every soldier’s life lost emboldens the savage murderers to continue their carnage.

    CCT must be bringing goodies to its brain and executioner.

  • http://pulse.yahoo.com/_OHOD5EA75DBBUH53UKLRXRK764 Mang Teban

    Our government has a string of unbelievable assumptions in making a budget. Why base a budget for the IRA on revenues collected three years ago?

    How come our legislators get a PORK BARREL when they should ONLY be MAKING LAWS and not act like administrators to provide direct public services to the people? Does this mean that we are providing the Legislative Branch of the government money to spend for whatever each legislator wants to do with it?

    How is the pork barrel computed in relation to total revenues? Is the pork barrel fixed? If yes,how come when LGUs get proportionate share based on moving total national revenues?

    Questions that should have been answered NOW that the practice of giving out pork barrels to both chambers of Congress has only worked to institutionalize “PRIVILEGED CORRUPTION”. Untouchable as they seem to be with what is called “Immunity from suit”, this has gone far enough that the units of the Executive Branch called the LGUs are under the mercy of the Legislative Branch who makes the rules how money should be spent but dip its “dirty fingers” as well on the honey jar.

    The losers in this entire system of government spending are none other than the taxpayers themselves or the helpless citizens who shell out every peso from their hard-earned money to fund the budget for Privileged Corruption of the Legislative Branch. Grabe na po talaga..tama na…sobra na …katakawan ninyong mga mambabatas (mamgagatas sa wastong paglalarawan).



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