Adjusted FY 2016 Internal Revenue Allotment (IRA) Shares of Local Government Units (LGUs)

December 29, 2015 DBM LOCAL BUDGET MEMORANDUM NO. 070-A-15 TO : The Local Chief Executives, Members of the Local Sanggunian, Local Budget Officers, Local Treasurers, Local Development and Planning Officers, Local Accountants, and All Others Concerned SUBJECT : Adjusted FY 2016 Internal Revenue Allotment (IRA) Shares of Local Government Units (LGUs) 1.0 By virtue of Republic Act (RA) No. 10675 1 enacted on August 19, 2015, the Municipality of General Trias of the Province of Cavite was converted into a component city of the same Province. The conversion was ratified and approved through a Plebiscite conducted by the Commission on Elections on December 12, 2015. 2.0 Anent thereto, Section 93 of the General Provisions of the FY 2016 General Appropriations Act (GAA), RA No. 10717 provides the following: "Sec. 93. Internal Revenue Allotment for LGUs. The IRA, which is automatically appropriated, shall be apportioned among LGUs, including provinces, cities, and municipalities created, approved, and ratified in 2015 in accordance with the allocation formula prescribed under Section 285 of R.A. No. 7160, taking into consideration the following: (a) The land area shall be based on the FY 2001 Land Management Bureau (LMB) certified Masterlist of Land Area unless the FYs 2004 and 2007 LMB certified Masterlist of Land Area has been validated by the DILG, NAMRIA and representatives of the Leagues of Provinces, Cities and Municipalities, and endorsed by the Secretary of DENR and the Regional Secretary of the ARMM to DBM on or before December 31, 2015; and (b) The population shall be based on the FY 2010 Presidential Proclamation on the Official Population Count of the Philippines by Province, City, Municipality and Barangay. All valid adjustments, changes, modifications, or alterations in any of the factors affecting the computation of IRA that occurred or happened, including final and executory court decisions made effective, during the current fiscal year, shall only be considered and implemented by the DBM in the subsequent fiscal year from receipt by the DBM of the notice of said change. LGUs shall include in their budgets income both from local and external sources, and receipts from borrowings, including the amount of their IRA, as identified by the DBM, which shall be approved by their respective sanggunian. Member-municipalities of the Partido Development Administration may charge the capitalization requirement under R.A. No. 7820 against their respective IRA. Enforcement of the Personnel Services limitations under Sections 325 (a) and 331 (b) of R.A. No. 7160 shall be waived to enable LGUs to: (i) absorb the cost of hospital services transferred from province to newly created cities; (ii) fund the initial requirements for newly created mandatory positions in the LGUs, as confirmed by DBM; (iii) pay the CNA incentives of their employees upon compliance with the rules and regulations issued by the DBM; (iv) pay the retirement and terminal leave benefits of their employees; and (v) pay the minimum year-end bonus of One Thousand Pesos (P1,000) for the punong barangay and Six Hundred Pesos (P600) for other mandatory barangay officials, and their cash gifts. The IRA and all LGU shares appropriated herein shall be released directly by the BTr to the LGU beneficiaries only through authorized government servicing banks. " (emphasis supplied) 3.0 In view of the foregoing, the FY 2016 IRA shares of LGUs pursuant to Local Budget Memorandum (LBM) No. 70 2 dated June 15, 2015 are hereby adjusted as follows: Share Equivalent to the Cost of Share Level of Devolved Determined on LGU No. of LGUs Functions/City- the Basis of Total IRA Shares Funded Hospitals, Section 285 of as of December RA No. 7160 31, 1992 Provinces 82 2,845,490,826 97,092,917,343 99,938,408,169 Cities 145 1,031,550,030 97,092,917,343 98,124,467,373 Municipalities 1,477 2,599,358,264 143,528,660,419 146,128,018,683 Barangays 41,889 - 84,428,623,775 84,428,623,775 Total 43,593 6,476,399,120 422,143,118,880 428,619,518,000 ======== ============ ============= ============ 4.0 The details by region and by level of LGU are provided in the attached Annex A. The LGUs shall be notified of their adjusted IRA shares by the DBM Regional Offices concerned. 5.0 The IRA shall be released directly by the Bureau of the Treasury to the LGU beneficiaries in accordance with Section 93 of the General Provisions, and Section 1 of the Special Provisions for the Special Shares of LGUs in the Proceeds of National Taxes under the Allocations to LGUs, under the FY 2016 GAA, RA No. 10717. 6.0 All other provisions of LBM No. 70 dated June 15, 2015 which are not inconsistent herewith shall remain in full force and effect. 7.0 Please be guided accordingly. (SGD.) FLORENCIO B. ABAD Secretary ANNEX A CY 2016 Internal Revenue Allotment for LGUs IRA P428,619,518,000 (In P0.00) Total Share Local Government Units Grand Total Total Share Total IRA Province City Municipality P/C/M Barangay National Capital Region 342,048,708 18,858,626,075 114,981,390 19,315,656,173 7,549,727,615 26,865,383,788 Cordillera Administrative Region 4,255,216,146 1,364,800,325 5,738,888,399 11,358,904,870 1,853,334,063 13,212,238,933 Regional Office No. I 5,582,916,766 3,351,366,909 9,449,421,892 18,383,705,567 5,309,527,478 23,693,233,045 Regional Office No. II 5,982,711,825 3,155,956,378 9,241,707,540 18,380,375,743 3,688,676,810 22,069,052,553 Regional Office No. III 10,460,292,570 7,468,731,996 14,818,263,758 32,747,288,324 7,992,768,907 40,740,057,231 Regional Office No. IV.A 11,375,021,229 11,678,218,611 14,324,694,628 37,377,934,468 10,104,170,674 47,482,105,142 Regional Office No. IV.B 5,375,700,189 2,427,554,726 8,210,989,943 16,014,244,858 2,698,291,370 18,712,536,228 Regional Office No. V 6,922,717,161 3,168,703,638 10,727,696,029 20,819,116,828 5,837,023,291 26,656,140,119 Regional Office No. VI 7,761,133,860 8,925,314,698 10,937,353,996 27,623,802,554 7,226,407,177 34,850,209,731 Regional Office No. VII 6,111,351,823 8,458,482,746 9,608,023,501 24,177,858,070 6,174,056,117 30,351,914,187 Regional Office No. VIII 6,231,998,911 4,353,983,586 10,068,274,617 20,654,257,114 5,926,288,058 26,580,545,172 Regional Office No. IX inc. ARMM 6,339,338,237 4,624,679,724 9,653,462,713 20,617,480,674 4,862,588,854 25,480,069,528 Regional Office No. X 5,323,963,441 6,242,223,580 7,550,969,292 19,117,156,313 3,978,296,495 23,095,452,808 Regional Office No. XI 4,796,618,089 6,559,671,794 5,989,303,064 17,345,592,947 3,299,128,490 20,644,721,437 Regional Office No. XII inc. ARMM 8,468,939,889 3,785,834,902 13,528,686,081 25,783,460,872 5,535,507,720 31,318,968,592 Regional Office No. XIII (CARAGA) 4,608,439,325 3,700,317,685 6,165,301,840 14,474,058,850 2,392,830,657 16,866,889,507 Grand Total 99,938,408,169 98,124,467,373 146,128,018,683 344,190,894,225 84,428,623,775 428,619,518,000 ============= ============= ============= ============= ============= ============= Footnotes 1. An Act Converting the Municipality of General Trias in the Province of Cavite into a Component City to be Known as the City of General Trias. 2. FY 2016 IRA Level and Other Local Budget Preparation Matters.