THE total internal revenue allotment (IRA) shares of 43,647 local government units (LGUs) in 2021 will amount to P695.49 billion, the Department of Budget and Management (DBM) said through a memorandum posted in its website yesterday.
The DBM, through local budget memorandum No. 80 dated May 18, informed LGUs of their indicative IRA shares for 2021, based on the computation of the share of LGUs from the actual collection of national internal revenue taxes in 2018, pursuant to the Local Government Code of 1991.
The budget agency also prescribed the guidelines on the preparation of the 2021 annual budgets of LGUs.
The DBM said the 2021 IRA will be 7.18 percent higher compared to this year’s level.
Broken down, 82 provinces will receive a total of P159.96 billion; 146 cities, another P159.96 billion; 1,488 municipalities, P236.47 billion; and 41,931 barangays, P139.1 billion.
“In addition to the IRA, some LGUs are entitled to special shares (indicated in the memo) in the proceeds of national taxes,” the DBM said.
“Local budget plans and goals shall, as far as practicable, be harmonized with national development plans, goals, and strategies in order to optimize the utilization of resources and to avoid duplication in the use of fiscal and physical resources,” it added.
The DBM also said LGUs are advised to align their development plans, investment programs and budgets to the economic and social recovery plans that may be adopted by the national government in relation to or after the coronavirus pandemic.
