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MANILA - The Department of Budget and Management has released the fourth installment of the Internal Revenue Allotment of local government units.
Budget Secretary Florencio Abad said on Tuesday that the DBM has disbursed P1.8 billion to LGUs as part of the Monetization in IRA Collectibles for Local Empowerment 2, or Miracle 2.
Under Miracle 2, LGUs are set to receive IRA differentials from the re-enactment of General Appropriations Act during the fiscal years 2000 and 2003.
The re-enactment of the national budgets for those years resulted in unreleased IRAs for LGUs amounting to P12.57 billion, which has been released to LGUs in equal installments since 2009.
Of the P1.8 billion, P1.23 billion will be released through state-owned Development Bank of the Philippines, which acts as a trustee bank covering all LGUs enrolled in the Miracle 2 Program.
At least P939.3 million of this amount will be distributed to enrolled provinces, cities, and municipalities, while the P296.02 million will go to barangays.
The remaining P561.3 million will be directed to DBM regional offices to cover the share of LGUs that did not avail of the monetization program.
The said release will be charged against the allocation to LGU– Special Shares in the proceeds of national taxes under this year’s national budget.
With the release of the fourth installment, the three remaining Miracle 2 installments will be distributed to beneficiary LGUs every May until 2015, Abad said.
He also said that fund use will be governed by the same rules set for LGUs in the Local Government Code.
“We trust that our peers and colleagues in the local government will use these funds to serve their communities’ best interests. As our LGUs receive the funds due them, so should Filipinos receive the benefits brought about by efficient and effective local governance,” Abad said.
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