| Note: If the barangay has a population of not less than 100 the share should not be less than P80,000 per annum. The amount shall be chargeable against the 20% share of the barangays from the total IRA, and the balance to be allocated on the basis of the formula. |
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| The National Internal Revenue Taxes used for the computation of IRA: 1. Income tax 2. Estate tax and donor"s tax 3. Value-added tax 4. Other percentage taxes 5.Taxes imposed by special laws, such as travel tax Barangays get 20% of the total IRA which is divided among each one of the 41,882 barangays based on the following fomula: a. Population - 60% b. Equal Sharing - 40% |
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| 2004 IRA for Barangays 11.9 Million Pesos for Batanes |
| Basco 3,076,461 25.8% |
| Itbayat 2,196,093 18.5% |
| Ivana 1,460,066 12.3% |
| Mahatao 1,571,755 13.2% |
| Sabtang 2,141,583 18.0% |
| Uyugan 1,455,426 12.2% |
| Source: Department of Budget and Management [See THE IRA ALLOCATION FOR LGUs] |
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| DBM-ROCS 1. Prepares the SARO, NCA and Schedule of Releases. 2. Prepares funding checks and Advice of Checks Issued and Cancelled (ACIC) for transmission to the bank and notifies the BTr. |
| DBM Regional Office Prepares Notice of Funding Checks Issued (NFCIs) for transmission to barangays |
| Gov't Servicing Bank Receives Funding Checks for credit to the account of the barangays |
| Punong Barangay/ Barangay Treasurer Withdraws cash from the Bank |
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| Share per LGU: Provinces (23%) Cities (23%) Municipalities (34%) 34.081B Barangays (20%) Total |
| 1997 National Internal Revenue Tax Collection as certified by the Bureau of Internal Revenue (BIR) IRA for CY 2000 Less: Actual Cost of Devolved Functions & City-funded hospitals Unprogrammed Amount Local Government Service Equalization Fund Sub-total Net IRA |
| Process Flow: Release of IRA |
| P 23.055B 23.055B 34.081B 20.048B P 100.239 B |
P 304.440B x 40% P 121.778B 6.539B 10.000B 5.000B 21.539B P 100.239B |
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| The realist sees the evil in all of us which is the Devil and the real world which is Hell. |
| The idealist sees the good in all of us which is God and the ideal world which is Heaven. |
| BEHIND THE NEWS |
| OTHER STORIES |
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| 2004 IRA released to barangays 12 million pesos for Batanes |
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| The Internal Revenue Allotment - The Internal Revenue Allotment (IRA) is the annual share of local governments out of the proceeds from national internal revenue taxes. It is estimated at forty percent (40%) of the actual collections of national internal revenue taxes during the third fiscal year preceding the current year, as certified by the Bureau of Internal Revenue (BIR). - Local Government Code or Republic Act 7160. |
| CY 2004 INTERNAL REVENUE ALLOTMENT FOR BARANGAYS Annex-A Re-enacted Budget P141,000,000,000 LBM-No. 43 REGION II PROVINCE OF BATANES (In P0.00 ) |
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| COMPUTATION OF THE FY 2004 INTERNAL REVENUE ALLOTMENT TOTAL (ROUNDED) |
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EQUAL SHARING |
SHARE BASED ON POPULATION |
P80,000 FOR BRGYS. W/ 100+ POPULATION |
POPULATION CY 2000 CENSUS |
MUNICIPALITY/ BARANGAY |
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225,044.51 225,044.51 225,044.51 225,044.51 225,044.51 225,044.51 1,350,267.07 225,044.51 225,044.51 225,044.51 225,044.51 225,044.51 1,125,222.56 225,044.51 225,044.51 225,044.51 225,044.51 900,178.05 225,044.51 225,044.51 225,044.51 225,044.51 900,178.05 225,044.51 225,044.51 225,044.51 225,044.51 225,044.51 225,044.51 1,350,267.07 225,044.51 225,044.51 225,044.51 225,044.51 900,178.05 6,526,290.84 |
367,011.00 586,491.00 559,589.00 625,823.00 573,504.00 364,043.00 3,076,461.00 394,098.00 444,933.00 441,779.00 416,547.00 498,736.00 2,196,093.00 376,287.00 374,989.00 342,707.00 366,083.00 1,460,066.00 386,863.00 398,551.00 406,529.00 379,812.00 1,571,755.00 338,440.00 357,920.00 328,421.00 344,005.00 402,632.00 370,165.00 2,141,583.00 329,163.00 394,840.00 359,960.00 371,463.00 1,455,426.00 11,901,384.00 |
61,966.46 281,446.48 254,544.87 320,778.49 268,459.50 58,998.01 1,246,193.82 89,053.60 139,888.36 136,734.38 111,502.53 193,691.58 670,870.45 71,242.88 69,944.18 37,662.25 61,038.82 239,888.14 81,818.00 93,506.28 101,484.00 74,767.92 351,576.19 33,395.10 52,875.58 23,376.57 38,960.95 97,587.90 65,120.45 311,316.54 24,118.68 89,795.71 54,916.39 66,419.14 235,249.93 3,055,095.07 |
80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 480,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 400,000.00 80,000.00 80,000.00 80,000.00 80,000.00 320,000.00 80,000.00 80,000.00 80,000.00 80,000.00 320,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 480,000.00 80,000.00 80,000.00 80,000.00 80,000.00 320,000.00 2,320,000.00 |
334 1,517 1,372 1,729 1,447 318 6,717 480 754 737 601 1044 3,616 384 377 203 329 1,293 441 504 547 403 1,895 180 285 126 210 526 351 1,678 130 484 296 358 1,268 16,467 |
| MUN. OF BASCO (CAPITAL) 1 Chanarian 2 Kaychanarianan 3 Kayhuvokan 4 Kayvaluganan 5 San Antonio 6 San Joaquin Total MUNICIPALITY OF ITBAYAT 1 Raele 2 San Rafael (Idiang) 3 Santa Lucia (Kauhauhasan) 4 Santa Maria (Marapuy) 5 Santa Rosa (Kaynatuan) Total MUNICIPALITY OF IVANA 1 Radiwan 2 Salagao 3 San Vicente (Igang) 4 Tuhel (Pob.) Total MUNICIPALITY OF MAHATAO 1 Hanib 2 Kaumbakan 3 Panatayan 4 Uvoy (Pob.) Total MUNICIPALITY OF SABTANG 1 Chavayan 2 Malakdang (Pob.) 3 Nakanmuan 4 Savidug 5 Sinakan (Pob.) 6 Sumnanga Total MUNICIPALITY OF UYUGAN 1 Imnajbu 2 Itbud 3 Kayuganan (Pob.) 4 Kayvaluganan (Pob.) Total TOTAL, PROV. OF BATANES |
| Illustrative example of how the IRA is computed (for CY 2000): Step 1: Compute the Net IRA - Step 2: Allocate the Net IRA (P100.239 B) per Section 285 of R.A. No. 7160 Step 3: Allocate the aggregate barangay share of P20.048B to all barangays based on population (60%) and equal sharing (40%). Equal Sharing = (P20.048B x 40%) divided by total no. of barangays Population = (P20.048B x 60%) x the ratio of a barangay population to total Phil. Population Hence, the IRA share of a barangay is the sum of the following: 1. Share based on equal sharing; and 2. Share based on population. The latest census which is updated every 5 years by the NSO shall be used as the basis for IRA computation. The figures as certified by the NSO are considered final. Pursuant to Section 295 of the Local Government Code of 1991, a barangay shall derive its income from the parent LGU. However, the creation of a barangay must take into consideration the economic and financial viability of the barangay to be created. Section 284 of the Local Government Code of 1991 prescribes the amount of IRA to be allocated during a given year, i.e., 40% of the national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year. The causes of changes between the final and the tentative IRA shares of barangays are due to the following: 1. adoption of the new policy on land area every three (3) years; 2. adoption of the most recent population count conducted by the National Statistics Office every five (5) years; 3. conversion of municipalities into component cities after having been ratified in a plebiscite pursuant to Section 10 of the Local Government Code of 1991 (R.A. No. 7160); 4. creation of municipalities under existing laws; 5. official list of barangays submitted by the National Barangay Operations Office of the DILG; and 6. the allocation of Local Government Service Equalization Fund (LGSEF) for the funding requirements of projects and activities arising from the full and efficient implementation of devolved functions and services of LGUs pursuant to R.A. No. 7160. Sources of income of the barangay Barangays are authorized to generate income from taxes on stores or retailers with fixed business establishments and gross sales or receipts in the preceding year of P50,000 or less in cities and P30,000 or less in municipalities at the rate not exceeding one percent (1%) on such gross sales or receipts. A barangay can also collect income from the following: 1. Service fees or charges for the use of barangay property or facilities; 2. Barangay clearance fees; 3. Fees or charges for the commercial breeding of fighting cocks and on cockpits and cockfights; 4. Fees or charges on places of recreation with admission fees; 5. Fees or charges for billboards, sign boards, neon signs and other outdoor advertisements; 6. Toll fees or charges for the use of any public road, pier or wharf, waterway, bridge, ferry, or telecommunications system funded and constructed by the barangay; 7. Revenues from the operation of public utilities and barangay enterprises (markets, slaughterhouses, etc.); 8. Fines (not exceeding P1,000) for the violation of barangay ordinances; and, 9. Proceeds from the sale or lease of barangay property or from loans and grants secured by the barangay government. Under Section 187 of the Local Government Code of 1991 (RA No. 7160), public hearing shall be conducted before a new revenue measure/tax ordinance is enacted. A barangay is entitled to a share from the following revenues: 1. Real property tax (RPT) collections of the province and city; 2. Community tax collections when collected by the barangay; 3. Internal revenue collections; 4. The development and utilization of the national wealth; 5. The proceeds of tax on sand, gravel, and other quarry sources; and, 6. Tobacco excise tax pursuant to RA No. 7171. A barangay is entitled to a mandatory financial aid of not less than P1,000.00 from the provincial and city/municipal governments where the barangay is located. Likewise, a barangay is also entitled to receive voluntary donations, grants or aids from any public or private entity. However, the amount of donations, grants or aids received shall not be included in the budget. Disbursement therefrom shall not be made except for the purposes from which they are intended. The share of a barangay out of the proceeds from real property tax (RPT) - 1. In the case of provinces, twenty-five percent (25%) of the proceeds from RPT collections of the province shall accrue to the barangay where the property is located. 2. In the case of cities and municipalities within the Metropolitan Manila Area, thirty percent (30%) of the proceeds shall be distributed among the component barangays within the city/municipality where the property is located, as follows: a. 50% to the barangay where the property is located; and, b. 50% to be distributed equally among all component barangays of the city/municipality. A barangay is entitled to thirty-five percent (35%) of the forty percent (40%) share of the province or highly urbanized or independent component city where it belongs. If the natural resources are located in two (2) or more barangays, their respective shares should be computed on the basis of: a. Population - Seventy percent (70%) b. Land area - Thirty percent (30%) Pursuant to RA No. 7160, the City or Municipal Treasurer shall deputize the Barangay Treasurer to collect the community tax in their respective jurisdiction, provided that said Barangay Treasurer is bonded. All financial institutions can grant loans to barangays, subject to their existing guidelines and requirements. _________________________ tut - vbc, December 2004 |
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