Press Release 

23 August 2023

A barangay may be the basic government unit but together they occupy a big budgetary footprint, bigger than what is spent for public hospitals and colleges, House Deputy Speaker Ralph Recto said.

For 2024, the Internal Revenue Allotment (IRA) of 41,953 barangays will reach P174.27 billion, Recto said, citing 2024 national budget documents. 

The IRA, now booked as National Tax Allotment in general appropriations documents, represents the 40 percent share of local governments from “national internal revenue taxes” collected three years before.

That 40 percent is further divided among LGUs, with 23 percent going to provinces, 34 percent to municipalities, 23 percent to cities, and 20 percent to barangays.

Recto said the barangays’ IRA for 2024 is bigger than the proposed P105.6 billion budget of 114 state universities and colleges.

“It is six times bigger than the P28 billion earmarked in the proposed DOH budget for medicine and vaccines. Mas mataas din sa budget ng lahat ng DOH-run hospitals,” he said.

“Halos pumantay sa P181.35 billion budget ng DA cluster sa susunod na taon. Pero kung DA proper lang, hindi kasama ang attached agencies na classified as government corporations, mas mataas ang barangay IRA kesa sa P108.5 billion na nakalaan para sa DA proper, “ Recto said. 

“If you combine what the government will spend for new classrooms, new computers, new chairs, new books, new teachers, this will not be even half of what barangays will be getting in IRA,” Recto said.

Recto said his purpose of disclosing the IRA of barangays is to encourage voters to give greater attention to the October 30 barangay and Sangguniang Kabataan elections.

He said funds barangays are getting should be an essential part of voters’ education.

“There are 175 billion reasons as to why the electorate should choose their village leaders well,” he said.

“Huwag po nating ismolin ang barangay kasi frontline government agency na mahalaga ang katungkulan na ginagampanan,” he said.

“They are the true first responders. Whether it is bag snatching, fire, garbage, loose pets, loud videoke noise,” he said.

“Pag nag-away ang magkapitbahay o kung may rambulan sa basketball, hindi naman sa pulis o piskalya yan tatakbo, kundi sa barangay,” he said. 

“Sabi nga sa isang kanta, ‘When something’s wrong in the neighborhood, who you gonna call? The barangay chairman!’”

Also under the law, the SK is entitled to 10 percent of barangay funds, “so that will be P17 billion nationwide a year that will be apportioned among them.”