THE BUDGET department has fully released local government units’ (LGUs) share in national government taxes as of mid-April.
According to the Department of Budget and Management (DBM), P522.75 billion were given to LGUs, 7.37% higher from last year’s P486.89 billion.
“As of April 16, 2018, the Department of Budget and Management has released 99.99% of the FY (Fiscal Year) 2018 IRA (Internal Revenue Allotment),” the DBM said in a report released on Friday.
IRAs are automatically-earmarked shares equivalent to 40% of national taxes collected three years prior to the planned fiscal year, as mandated by Republic Act No, 7160, or the Local Government Code of 1991.
Each LGUs’ share is determined by its population, and land area, as well as the principle of “equal sharing.”
“An increased IRA means an increase in the local government unit’s capacity to provide social services and local infrastructure projects for their communities,” the report read. — Elijah Joseph C. Tubayan