Section 88. Allocation for Local Government Units. —
The Internal Revenue Allotment (IRA) shall be apportioned among LGUs, including provinces, cities, and municipalities created, approved, and ratified in 2008, in accordance with the allocation formula prescribed under Section 285 of the Code after taking into consideration the following:
The land area shall be based on the FY 2001 Land Management Bureau (LMB) certified Masterlist of Land Area unless the FYs 2004 and 2007 LMB certified Masterlist of Land Area has been validated by the DILG, NAMRIA and representatives of the Leagues of Provinces, Cities and Municipalities, and endorsed by the Secretary of DENR and the Regional Secretary of the ARMM to DBM on or before December 31, 2008; and
The population shall be based on the FY 2007 Presidential Proclamation on the Official Population Count of the Philippines by Province, City, Municipality and Barangay. For the purpose of IRA computation, any adjustment in population shall be supported by an amendment to such Proclamation as of December 31, 2008.
The IRA to be apportioned shall also consider the total actual cost of devolution and the cost of city-funded hospitals as of December 31, 1992, which shall be earmarked directly to fund the devolved programs, projects, and activities. Member-municipalities may also charge their share in the capitalization of the Partido Development Administration pursuant to R.A. No. 7820 against their respective IRA.
Enforcement of Sections 325 (a) and 331 (b) of R.A. No. 7160 shall be waived to enable local governments to (i) absorb the cost due to the transfer of national government personnel on account of devolution; (ii) in the case of newly created cities, absorb the cost of hospital services transferred from provinces; (iii) create the mandatory positions specified in R.A. No. 7160; (iv) continue the implementation of R.A. No. 6758, as amended, R.A. No. 7160, and as provided under existing standards, guidelines, rules and regulations; (v) cash gifts for barangay officials; (vi) pay the Magna Carta benefits of public health workers; (vii) pay retirement gratuity and terminal leave benefits; and (viii) pay the monetization of leave credits of employees.