Internal Revenue Allotment (IRA)

    • Section 284 of RA No. 7160 or the Local Government Code of 1991, which provides that LGUs shall have a 40% share from the national internal revenue taxes on collection of the third (3rd) fiscal year preceding the current fiscal year; and Section 285 which provides the manner of allocation to the LGUs.
    • Section 286 of RA No. 7160 provides that the share of each local government units shall be released without need of any further action, directly to the provincial, city, municipal or barangay treasurer, as the case may be, on a quarterly basis within five (5) days after the end of each quarter, and which shall not be subject to any lien or holdback that may be imposed by the national government for whatever purpose (actually, the allotment for IRA is released comprehensively but cash allocation is released monthly, 80% of IRA share ofLGUs on or before the 8th day of the month and the remaining 20% on or before the 24th day of every month).
    • Section 4 of RA No. 9358 or the Supplemental Appropriation for FY 2006 provides that future local government share in the national internal revenue taxes or IRA shall henceforth be automatically appropriated.
    LGUs % Allocation
    Provinces 23%
    Cities 23%
    Municipalities 34%
    Barangays 20%
    Total 100%

    The distribution of shares of individual provinces, cities and municipalities shall be made on the basis of the following formula:

    Factor Percentage Source Document
    Population 50% National Statistics Office (NSO) Proclamation Order
    Land Area 25% Lands Management Bureau (LMB) Official Masterlist of Land Area
    Equal Sharing 25%
    Total 100%

    The share of each barangay is computed as follows:

    • Php 80,000 for each barangay with a population of not less than one hundred (100) inhabitants.
    • The balance is allocated as follows:
      Population 60%
      Equal Sharing 40%
      Total 100%
    • To fund basic services and facilities pursuant to Section 17 of the Local Government Code of 1991 particularly those which have been devolved by the National Government.
    • To fund development projects as identified in the LGUs Annual Investment Plan (Section 287 of the LGCdirects LGUs to set aside not less than 20% of their IRA for development projects).
    • BIR submits to DBM certification of collections made and 40% share of LGUs.
    • DBM verifies with BTr collections remitted and computes the share of LGUs based on codal formula as provided under Section 285 of RA No. 7160, the Local Government Code.
    • DBM Central Office (CO) programs the amount and releases the allotment comprehensively to the DBM Regional Office (RO) at the start of the year.
    • DBM CO issues the Notice of Cash Allocation (NCA) monthly for deposit with the Government Servicing Banks of DBM ROs.  Subsequently, the DBM RO issues the funding check for credit of IRA share to the individual bank account of the LGUs.

As posted on the DBM Website


2012 IRA – Province, Cities, Municipalities (PCM) and Barangays
2013 IRA – Province, Cities, Municipalities (PCM) and Barangays
2014 IRA – Province, Cities, Municipalities (PCM) and Barangays
2015 IRA – Province, Cities, Municipalities (PCM) and Barangays
2016 IRA – Province, Cities, Municipalities (PCM) and Barangays