DBM allocates Php 1.8-B IRA for LGUs

The Department of Budget and Management has announced the release of Php 1.8 billion in Internal Revenue Allotment funds to local government units, marking the fourth installment of the IRA differentials due to LGUs under the Monetization in IRA Collectibles for Local Empowerment 2, according to a press release by DBM.

"The Php 1.8-billion release for LGUs is representative of the Administration's commitment to ensure sufficient and timely budgetary support to local governments and the communities they serve," Budget and Management Secretary Florencio B. Abad said.

Under MIRACLE2, LGUs are set to receive IRA differentials from the reenactment of the FYs 2000 and 2003 General Appropriations Act in FYs 2001 and 2004, respectively. The reenactments resulted in unreleased IRAs for LGUs amounting to Php 12.57 billion, which has been released to LGUs in equal installments since FY 2009.

Of the Php 1.8-billion representing the fourth installment, Php 1.23 billion will be released to the Development Bank of the Philippines, which acts as a Trustee Bank covering all LGUs enrolled in the DBP MIRACLE 2 Program. At least Php 939.3 million of this amount will be distributed to enrolled provinces, cities, and municipalities, while Php 296.02 million will go to barangays.

Meanwhile, the remaining Php 561.3 million will be directed to DBM Regional Offices to cover the shares of LGUs that did not avail of the monetization program.

The fourth installment will be charged against the Allocation to Local Government Units – Special Shares of LGUs in the Proceeds of National Taxes under the 2012 GAA.

Abad confirmed that the three remaining MIRACLE 2 installments will be distributed to beneficiary LGUs every May until 2015. He also said that fund utilization will be governed by the same rules set for LGUs in the Local Government Code.

"We trust that our peers and colleagues in the local government will use these funds to serve their communities' best interests. As our LGUs receive the funds due them, so should Filipinos receive the benefits brought about by efficient and effective local governance," Abad said. - PIA — ARA