The country’s more than 42,000 barangays have a total of P51-billion in Internal Revenue Allotment (IRA) at their disposal for development programs and projects at the grassroots level this year, according to the Department of the Interior and Local Government (DILG).
Citing reports from the National Barangay Operations Office (NBOO), DILG Secretary Jesse M. Robredo said that based on the National Summary of IRA for Barangays, a total of P51,865,195,577.00 has been allocated for 42,025 barangays nationwide this year.
The Local Government Code defines the IRA as the share of local government units (LGUs) from the national internal revenue taxes, 60 percent of which goes to the national government and 40 percent is allocated to LGUs as IRA. Barangays get a share of 20 percent of the IRA, while provinces and cities receive 23% each, and municipalities, 34%.
Section 286 of the Code also provides that the share of each LGU shall be released, without need of any further action, directly to the provincial, city, municipal or barangay treasurer on a quarterly basis.
Robredo said punong barangays have a great responsibility and accountability to ensure that their IRA is fully utilized to support local development projects.
“They should make sure that barangay funds and the IRA up to last centavo are channeled to projects that will somehow better the lives of their constituents,” he said.
Based on the same NBOO report, barangays in Calabarzon got the highest total IRA with P6,051,123,993.00; followed by Central Luzon with P4,868,985,120.00; the National Capital Region with P4,706,042,169.00; Western Visayas with P4,459,770,152.00; and Eastern Visayas with P3,676,933,919.00.
The DILG Chief stressed that “barangays must not be dependent on IRA,” and should exercise their taxing power to generate more revenues to fund their development projects.
“Barangay officials have an obligation to judiciously utilize their resources, including IRA, and report the same to their constituents,” he said.
In a related development, Robredo said that the Department will propose to Congress several legislative measures to provide LGUs greater flexibility in revenue generation and to raise their fiscal and financial resources.
One of these proposed legislations involves the provision of a five percent adjustment fund for LGUs with a negative transfer or where their current IRA does not cover the cost of devolved services, and another five percent performance-based grant to support LGUs which exhibit good performance in fiscal management and local service delivery. (DILG-CAR)