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Chasing the Wind: Assessing Philippine Democracy
Internal Revenue Allotment (IRA) was set in place. This section takes on some
of the indicators that decentralization has gone well.
Fiscally endowed local governments
For one, the IRA, an unconditional grant that constitutes 40% of national
revenues, endowed all local government units, from the barangay to the
provinces, with the resources required to deliver the services that had been
devolved to them. In simple terms, LGUs had more money than they used to
have. Table 5 shows the total amount of IRA relative to the total national
budget while Figure 5 shows the annual percentage change in IRA. The
proportion of the IRA to the total budget stabilized at an average of 17% in the
second decade (2002 to 2011) compared to an average of close to 14% in the first
decade of decentralization (as Figure 5 indicates, the annual average increase of
IRA from 1993 to 2011 is at 15.9%).
Table 5. Total IRA, National Budget and % of IRA to Total Budget (in
billions PHP and %) 1992-201112
YEAR
IRA
(in billions
PHP)
Total
Budget (in
billions
PHP)
IRA to
Total
Budget in
%
YEAR
IRA
(in billions
PHP)
Total
Budget (in
billions
PHP)
IRA to
Total
Budget in
%
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
20.3
36.12
46.13
52.04
56.59
71.04
80.99
96.78
111.77
111.77
295.2
331.7
369
372.1
445.1
491.8
537.4
593.6
651
669.88
6.88
10.89
12.5
13.99
12.71
14.44
15.07
16.03
17.17
16.69
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
134.42
141
141
151.6
166
183.94
210.73
249.99
265.8
286.9
780.8
804
861.6
907.6
907.6
1126
1149
1489
1541
1645
17.22
17.54
16.36
16.7
18.29
16.34
18.34
16.79
17.25
17.25
Figure 5. Annual Increase of Internal Revenue Allotment 1994 to 2011
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