Legal basis and policy intent
- The Circular is issued in consonance with the Local Government Code of 1991 under Section 1.1.
- The quarterly IRA releases must be issued as provided under the Local Government Code framework governing LGU allotments.
Scope and LGUs covered
- The Circular covers all provinces, cities, municipalities, and barangays, including those in the National Capital Region (NCR) under Section 2.1.
- IRA releases are covered for each LGU category: provinces, cities, municipalities, and barangays under Section 2.1 and Section 3.1.1–3.1.2.
Delegation: who issues IRA AA
- Effective FY 1992, the DBM Regional Offices (DBM-ROs) release the IRA of provinces, cities, and municipalities within their respective regional coverage under Section 3.1.
- Effective FY 1992, the Budget Operations Bureau (BOB) of DBM (BOB-BOB-A) releases the shares of LGUs within the NCR under Section 3.1.
- The delegated authority applies to the issuance of the Advice of Allotment (AA) covering the IRA under Section 1.1 and Section 3.1.1.
IRA release rules and AA coverage
- The DBM-ROs/BOB-A must issue an Advice of Allotment (AA) on a quarterly basis for the comprehensive release of the IRA of provinces, cities, municipalities, and barangays within their respective regional coverage under Section 3.1.1.
- The Advice of Allotment covering the IRA of barangays must be comprehensively released to their respective cities/municipalities under Section 3.1.2.
- The comprehensive release for barangays must use the authorized city/municipality code based on the Standard Unit Coding System for Local Governments, with an assigned reference sub-code for each barangay under Section 3.1.3.
- The releases for each barangay must be indicated on the face of the Advice of Allotment under its assigned reference sub-code under Section 3.1.4.
Additional IRA adjustments for devolved functions
- Any additional release or adjustment on IRA intended for devolved functions from national government agencies must be governed by pertinent rules and guidelines issued on the matter under Section 3.1.5.
Transmittal letters and notice of cash allocation
- The DBM-ROs/BOB-A must issue transmittal letters to provinces, cities, municipalities, and barangays for the release of their IRA under Section 3.2.
- The transmittal letters must be copy furnished to the City/Municipal Mayor for releases to the barangays under Section 3.2.
- The Notice of Cash Allocation (NCA) must be released by the Accounting and Finance Bureau of DBM (Accounting and Finance Bureau-AA) without any lien or holdback as provided for under Section 286, Chapter I, Title III, Book II of the Local Government Code under Section 3.3.