By GENALYN KABILING

Local government units (LGUs) will get a whopping P290.6 billion as their share from the proceeds of national government resources once the 2010 national budget is approved, the Department of Budget and Management announced on Tuesday.

Under the proposed P1.541 trillion national budget for 2010, Budget Secretary Rolando Andaya Jr. said the government proposed an increase by P14.6 billion from this year’s level of P276 billion in “revenue plowbacks” to local governments.

Of the amount set aside for LGUs, Andaya said at least P265.8 billion will go to the Internal Revenue Allotment, which represents the 40 percent

LGU share of internal revenues three years before. He said they increased the next year’s IRA by P15.8 billion due to huge collections from the 12 percent value added tax on goods and services.

Apart from IRA, the government also proposed an increase to P13.86 billion in 2010 from P11 billion this year the “shares of LGUs in the proceeds of other national taxes.” Included in this outlay are P4.08 billion from tobacco excise tax collection; P1.25 billion in so-called “national wealth” taxes, mostly from taxes and royalties from mining and logging; P1.87 billion from VAT collection as mandated by Republic Act No. 7643 RA 7643 provides that selected LGUs will receive “20 percent of 50 percent” of the incremental collection from VAT, on top of the main “rebate” granted through IRA. Incremental collection from VAT meant the excess in the annual increase in actual VAT collection in the immediately preceding year over the annual increase in the second preceding year, according to Andaya.

Andaya said the LGUs will also get their “special shares” from the excise tax collection on burley and native tobacco from tobacco growing provinces (P865.4 million) and tax payments of economic zones (P133.7 million).

In addition, he said the government also set aside P5.63 billion to settle the national government’s “prior years’” obligations to LGUs. At least P5 billion will be allocated in ALGU for the premium subsidy for 4.67 million poor households using PhilHeath.

Other recipients in the ALGU pie are the Metropolitan Manila Development Authority with a proposed allocation of P1.35 billion ; Pasig River Rehabilitation Commission (P1.18 billion from P770 million this year); Barangay Officials Death Benefits Fund (P50 million ); Municipal Development Fund (P1.37 billion).

At least P1 billion was allocated for the Kalayaan Barangay to bankroll social and infrastructure projects in dissident-threatened areas and another one billion for the Kilos Asenso to implement economic and livelihood projects in provinces.