The Uyugan Times

CY 2005 INTERNAL REVENUE ALLOTMENT FOR LGUs Annex-A
Initial Allocation LBM-No. 2004
IRA P141,000,000,000
(In P0.00 )

219.01

49.46
83.13
16.54
12.90
40.70
16.28

219.01

219.01

5,158,879.59

1,845,760.60
3,102,266.05
617,243.84
481,405.41
1,518,852.74
607,541.10

8,173,069.73

13,331,949.33

10,506,452.00

1,478,768.00
977,066.00
858,150.00
894,496.00
894,616.00
920,140.00

6,023,236.00

16,529,688.00

96,698,373.26

7,623,755.80
7,623,755.80
7,623,755.80
7,623,755.80
7,623,755.80
7,623,755.80

45,742,534.83

142,440,908.09

16,467

6,717
3,616
1,293
1,895
1,678
1,268

16,467

16,467

4,176,619.77

3,027,636.69
1,629,884.51
582,809.92
854,156.84
756,345.74
571,541.36

7,422,375.07

11,598,994.84

EQUAL
SHARING

APPROP.
2005

SHARE
BASED ON
LAND AREA

SHARE
BASED ON
POPULATION

POPULATION
CY 2000
CENSUS

LAND
(SQ.
KM.)

GUARANTEED
EQUIV. TO
ACTUAL COST
OF NAT'l/CITY-FUNDED AS OF DEC. 1992*

LGU

2005 IRA Allotment for LGUs
184 Million Pesos for Batanes

Basco
13,975,921
7.6%

Itbayat
13,332,972
7.3%

Ivana
9,681,960
5.3%

Mahatao
9,853,814
5.4%

Sabtang
10,793,570
5.9%

Uyugan
9,722,978
5.3%

Source: Department of Budget and Management
[See BATANES INFRASTRUCTURE]

Batanes
116,540,325
63.4%

Level of LGUs

Share Equivalent to 1992 Cost of Devolved Functions/City-Funded Hospitals, as of 31 Dec. 1992

Share Determined on the basis of Section 285 of R.A. No. 7160

Total IRA Shares

FY 2005 Internal Revenue Allotment (IRA) - This was the initial FY 2005 Internal Revenue Allotment (IRA) allocation used in the preparation of the FY 2005 local budgets. In the preparation of the FY 2005 budget of local governments, the final IRA for FY 2004 in the amount of P141.00 Billion was used as the initial IRA level for FY 2005.

Additional IRA for FY 2005 in compliance with Section 284 of Republic Act (R.A.) No. 7160, the Local Government Code of 1991, will be ascertained after December 31, 2004 upon the enactment and approval of the General Appropriations Act (GAA) for FY 2005.

This will consider changes in allocation due to modification in land area pursuant to Oversight Committee on Devolution Resolution No. 99-001 approved on April 26, 1999. The utilization of such additional IRA will be subject to the enactment of a supplemental appropriation ordinance by the local sangguniang.

LGUs were encouraged to include in the FY 2005 Annual Budget, programs and projects supportive of the following priority thrusts of the national government:

116,540,325.00

13,975,921.00
13,332,972.00
9,681,960.00
9,853,814.00
10,793,570.00
9,722,978.00

67,361,215.00

183,901,540.00

2,837.25
906.49
2,719.39

P 6,463.13

30,943.48
30,943.48
45,742.54
26,907.37

P 134,536.87

33,780.73
31,849.97
48,461.93
26,907.37

P141,000.00

The distribution of the initial P141.00 Billion IRA among the levels of the local government was as follows:

DISTRIBUTION OF THE INITIAL IRA
(In Million Pesos)

Provinces
Cities
Municipalities
Barangays

TOTAL

REGION: II
PROVINCE: Batanes

Provincial Share

MUNICIPALITIES
1. Basco
2. Itbayat
3. Ivana
4. Mahatao
5. Sabtang
6. Uyugan

Total Municipalities

TOTAL BATANES

* Guaranteed Share Equivalent to the Actual Cost of Devolved National Functions/City-Funded Hospitals
as of December 1992

The IRA Allocation for LGUs
184 million pesos for Batanes

USE OF THE IRA

Under Section 17 (g) of the Code, the IRA and other local resources shall first cover the cost of providing basic services and facilities, particularly those that have been devolved by the National Government, before applying the same for other purposes.

In addition, full provision must first be made for Magna Carta benefits under R.A. No. 7305 in their respective local budgets, before they can provide for non-mandatory PS items such as adoption of the salary schedule for higher class LGUs. LGUs shall also provide for commitments covered by duly approved contracts.

In addition to the IRA, some LGUs are entitled to the following revenue shares:

1. Share in the proceeds from the utilization and development of national wealth within their
    territorial jurisdiction pursuant to Article 409 of the Implementing Rules and Regulations of
R.A. No. 7160;

2. Excise tax on Virginia Tobacco pursuant to R.A. No. 7171;

3. Gross income taxes paid by all businesses and enterprises within the ECOZONES
    pursuant to R.A. No. 7227;

4. Value Added Tax pursuant to R.A. No. 7643; and

5. Franchise Tax pursuant to R.A. Nos. 7953 and 8407.

PREPARATION OF LOCAL BUDGETS

The FY 2005 Annual Budgets of LGUs shall be prepared in accordance with the forms, procedures and schedules prescribed under the Budget Operations Manual for LGUs issued under DBM-COA Joint Circular No. 93-2 dated June 8, 1993 pursuant to Section 354 of the Code. The expenditure and income accounts to be used shall be consistent with the NGAS.

Whenever possible, the budget proposal shall incorporate indicative budget levels for FYs 2006 and 2007, consistent with a medium-term budget framework.

To supplement the information provided in the prescribed forms, local chief executives shall include the following features in budget preparation directives or budget calls to their respective departments and offices:

1. the physical accomplishments of LGUs taking into account clear and measurable
    performance indicators for each of their programs to ensure that these contribute to their
    established medium-term and long-range goals;

2. the income sources that will finance the proposal with emphasis on new and/or locally
    initiated revenue or income-generating measures;

3. the allocation of the proposed FY 2005 Annual Budget, including various levels of
    disaggregation, as follows:

    a. by sector;
    b. by object class of expenditure (PS, MOOE & CO);
    c. by department/office;
    d. in terms of mandatory expenditures vis-à-vis expenditure for investment and/or
        expansion of existing service delivery;
    e. budget per capita.

4. the staffing and compensation profile of the LGU.

Appropriations for "Prior Year's Obligations" which are to be included in the FY 2005 Annual Budgets shall be in accordance with the NGAS.

Pursuant to R.A. No. 7192, LGUs shall mainstream Gender and Development (GAD) in their respective programs, activities and projects.

The FY 2005 budget shall likewise consider the following:

1. plans, programs, project, activities and services that will address the needs of older
    persons and those with disabilities pursuant to the provisions of Section 29 of the
    FY 2003 GAA and R.A. Nos. 7432, 7876 and 7277.

2. facilities that will enhance the mobility, safety and welfare of differently abled persons,
    pursuant to R.A. No. 7277 and Batas Pambansa Blg. 344.

The general limitations under Section 325 of the Code particularly paragraph (a) shall be strictly adhered to. In particular, Local Budget Circular No. 75 dated July 12, 2002, pertaining to the determination of items falling under the 45% - 55% Personal Services (PS) limitations shall be strictly observed.

SUBMISSION OF BUDGET SUMMARIES

Special, highly-urbanized and independent component cities, provinces as well as municipalities in Metro Manila shall submit to the Department of Budget and Management (DBM), through the DBM Regional Offices concerned, a comparative statement of income and expenditures for FY 2003 (actual), FY 2004 (current program) and FY 2005 (proposed program) using the prescribed form. The budget summary that will be submitted by the province shall contain the consolidated budgets of cities and municipalities within its geographical coverage. In the same manner, the budget summary that will be submitted by the cities and municipalities to their respective province shall contain the consolidated budgets of the barangays within their geographical coverage.

PROVISION OF TECHNICAL ASSISTANCE

Technical assistance in the preparation of the FY 2005 Annual Budget may be requested from the DBM Regional Offices concerned.
_________________________
tut - vbc, December 2004

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