The Internal Revenue Allotment (IRA) is a
local government unit
Local government is a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically-l ...
’s (LGU) share of revenues from the
Philippine national government
The Government of the Philippines ( fil, Pamahalaan ng Pilipinas) has three interdependent branches: the legislative, executive, and judicial branches. The Philippines is governed as a unitary state under a presidential representative and d ...
.
Provinces
A province is almost always an administrative division within a country or state. The term derives from the ancient Roman '' provincia'', which was the major territorial and administrative unit of the Roman Empire's territorial possessions ou ...
, independent
cities
A city is a human settlement of notable size.Goodall, B. (1987) ''The Penguin Dictionary of Human Geography''. London: Penguin.Kuper, A. and Kuper, J., eds (1996) ''The Social Science Encyclopedia''. 2nd edition. London: Routledge. It can be def ...
, component cities,
municipalities
A municipality is usually a single administrative division having corporate status and powers of self-government or jurisdiction as granted by national and regional laws to which it is subordinate.
The term ''municipality'' may also mean the go ...
, and
barangay
A barangay (; abbreviated as Brgy. or Bgy.), historically referred to as barrio (abbreviated as Bo.), is the smallest administrative division in the Philippines and is the native Filipino term for a village, district, or ward. In metropolitan ...
s each get a separate allotment.
The allotment is largely based upon the type of government they are and a formula based upon their land area and population. Section 284 of the
Local Government Code
Codification of laws is a common practice in the Philippines. Many general areas of substantive law, such as criminal law, civil law and labor law are governed by legal codes.
Tradition of codification
Codification is predominant in countr ...
of the
Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
(RA 7160) sets up the formula for the distribution of the allotment.
All or nearly all of the revenue that a local government has to spend comes from their IRA, though some local governments also have additional local sources of revenue such as
property taxes and government fees. Typically for municipalities, the IRA accounts for 90% of total revenues. Since cities have more sources of local revenues, their IRA ranges from 50% to 70% of their total budget.
A portion of each local government unit's allotment is set aside their
Sangguniang Kabataan
Sangguniang Kabataan (abbreviated as SK; ) is a council meant to represent the youth in each barangay in the Philippines. It was put "on hold", but not quite abolished, prior to the 2013 barangay elections. In January 2016, the Sangguniang ...
(SK) or youth council.
The IRA is automatically released to each local government unit and may not be held back by the national government for any reason, except in the extreme case of an "unmanageable public sector deficit", in which case the allotment may be adjusted but provided it not be set to "be less than thirty percent (30%) of the collection of national internal revenue taxes of the third fiscal year preceding the current fiscal year".
References
External links
DILG - Local Government Code
Local government in the Philippines
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