QuestionsQuestions (PRESIDENTIAL DECREE NO. 144)
To revise the system of national internal revenue allotments to local governments to achieve a more equitable distribution of funds and introduce a developmental concept in allocating public resources.
Twenty percent (20%) of collections from national internal revenue taxes not otherwise accruing to special funds and special accounts in the general fund.
They are computed based on the collections of the third fiscal year preceding the current fiscal year.
Thirty percent (30%) to provinces; Forty-five percent (45%) to municipalities; and Twenty-five percent (25%) to cities.
Seventy percent (70%) based on Population; Twenty percent (20%) based on Land Area; and Ten percent (10%) for Equal Sharing.
For FY 1974, 1975, and 1976, any local government’s annual allotment shall not increase by more than 15% nor decrease by more than 50% of its actual allotment during FY 1970-71.
Thereafter, the shares of each local government shall be determined solely on the basis of the formula in PD No. 144 (Population, Land Area, Equal Sharing), as reflected in its Sections 1, 2, and 3.
It is constituted of (1) the ten percent shares of the barrios in real estate tax collections under Republic Act No. 3590, and (2) annual contributions from each province, city, and municipality in an amount not exceeding P500 per barrio.
Solely for community development projects that meet requirements set by the Secretary of Local Government and Community Development.
The Provincial Treasurer is the custodian and maintains a special account. Releases are made through the Municipal Treasurer concerned, who is responsible for proper disbursement and accounting.
Each province, city, and municipality must appropriate in its annual general fund budget no less than twenty percent (20%) of its annual allotment for development projects.
The Secretary of Local Government and Community Development, who issues necessary guidelines for the purpose.
A fund equivalent to five percent (5%) of collections from national internal revenue taxes not otherwise accruing to special funds and special accounts in the general fund, to be released by the President as financial aid or for local government projects.
July 1, 1973.
To issue the necessary rules and regulations for the prompt and effective implementation of the decree.
All laws or parts of law inconsistent herewith are revoked or modified accordingly.