More funds for LGUs

LOCAL GOVERNMENT units (LGUs) have been given increased budgetary support in this year’s budget given a revenue collection improvement during the start of the Aquino administration.

The Budget department, in a statement, yesterday said the P302.3-billion total internal revenue allotment (IRA) share for LGUs in this year’s P2.006-trillion budget was up 37.5% from 2012.

“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,” Budget Secretary Florencio B. Abad said.

A total of P822.6 billion in internal tax revenues was said to have been shored up in 2010, 9.64% higher than the P750.3 billion recorded the previous year. The Aquino government took office during the middle of the year.

Under the Local Governments Code, the IRA share for a particular year is based on collections posted by the national government three years prior.

“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,” Mr. Abad said.

This year’s IRA appropriations will be distributed among 81 provinces, 143 cities, 1,479 municipalities and 41,889 barangays.

Local Budget Memorandum 66-A, dated Dec. 28, 2012 and published in a newspaper yesterday, reallocates the authorized IRA share for this year to include the province of Dinagat Islands and also the new cities of Ilagan, Isabela; Mabalacat, Pampanga; and Cabuyao, Laguna.

“The LGUs shall be notified of their adjusted IRA allocation by the concerned Department of Budget and Management Regional Offices,” the Budget department said. –Bettina Faye V. Roc, Reporter, Businessworld