MANILA, Philippines - The Department of Budget and Management (DBM) announced yesterday the release of P1.8 billion in Internal Revenue Allotment (IRA) funds to local government units, marking the fourth installment of the IRA differentials for the LGUs under the Monetization in IRA Collectibles for Local Empowerment 2 (MIRACLE 2).
“The P1.8-billion release for LGUs is representative of the administration’s commitment to ensure sufficient and timely budgetary support to local governments and the communities they serve,” DBM Secretary Florencio Abad said.
Under MIRACLE 2, LGUs are set to receive IRA differentials from the reenactment of the fiscal years 2000 and 2003 General Appropriations Act (GAA) in fiscal years 2001 and 2004, respectively.
The reenactments resulted in unreleased IRAs for LGUs amounting to P12.57 billion, which had been released to LGUs in equal installments since fiscal year 2009.
Of the P1.8 billion representing the fourth installment, P1.23 billion will be released to the Development Bank of the Philippines (DBP), which acts as a trustee bank covering all LGUs enrolled in the DBP MIRACLE 2 program.
At least P939.3 million of this amount will be distributed to enrolled provinces, cities, and municipalities, while P296.02 million will go to barangays.
Meanwhile, the remaining P561.3 million will be directed to DBM regional offices to cover the shares of LGUs that did not avail themselves of the monetization program.
The fourth installment will be charged against the Allocation to Local Government Units-Special Shares of LGUs in the Proceeds of National Taxes under the 2012 GAA.
Abad confirmed that the three remaining MIRACLE 2 installments would be distributed to beneficiary LGUs every May until 2015.
He added that fund utilization would 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. - By Aurea Calica