MANILA, Philippines - Local government units (LGU) will get a bigger share of internal tax revenues this year.
The Department of Budget and Management (DBM) said the Internal Revenue Allotment (IRA) for this year jumped by 37.5% to P302.3 billion, up from P219.9 billion in 2012.
The increase is attributed to the higher internal tax revenues generated in 2010, which reached P822.6 billion.
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.p />
"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," Budget and Management Secretary Florencio B. Abad said in a statement.
For this year, the IRA is divided among 81 provinces, 143 cities, 1,479 municipalities and 41,889 barangays.
Newly created cities that are set to receive their IRA shares include Ilagan, Isabela; Mabalacat, Pampanga; and Cabuyao, Laguna.
Abad said the province of Dinagat Islands will also get its IRA share after the resolution of its legal status as a province.