The Department of Budget and Management announced yesterday the release of P1.8 billion in Internal Revenue Allotment funds to local government units under the Monetization in IRA Collectibles for Local Empowerment 2 program, a press release from the DBM said.

The release marked the fourth installment of the IRA differentials due the LGUs. It will be charged against the allocation and special shares of LGUs in the proceeds of national taxes under the 2012 GAA, Secretary Florencio Abad of the DBM said.

In MIRACLE 2, LGUs will receive IRA differentials from the reenactment of the FYs 2000 and 2003 General Appropriations Act in FYs 2001 and 2004, respectively. The reenactments resulted in unreleased IRAs for LGUs amounting to P12.57 billion, which has been released to LGUs in equal installments since FY 2009, the press release said.

Of the P1.8B, about P1.23 billion will be released to the Development Bank of the Philippines, that acts as a trustee bank covering all LGUs enrolled in the DBP MIRACLE 2 program. At least P939.3 million will be distributed to enrolled provinces, cities, and towns; while P296.02 million will go to barangays, the DBM press release also said.

The remaining P561.3 million will be directed to DBM regional offices to cover the shares of LGUs that did not avail of the monetization program. Abad said the three remaining MIRACLE 2 installments will be distributed to beneficiary LGUs every May until 2015, the press release added.*

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