Unlike before the 1991 Local Government Code (R.A. 7160), local government units (LGUs) nowadays have an automatic budget allocation called the internal revenue allotment popularly known as IRA. According to Section 285 of the LGC, the share of each LGU on the IRA is determined by the following formula:
a. Population – Fifty percent (50%);
b. Land Area – Twenty-five percent (25%); and
c. Equal sharing – Twenty-five percent (25%)
Between fiscal years (FYs) 2001 and 2008, Bicol provinces have noted an increasing share of IRA the highest of which is consistently displayed by the province of Camarines Sur. This is not surprising because ever since, Camarines Sur not only has the largest population but it also has the largest land area among the six provinces in the Bicol Region. Albay ranks second followed by Masbate, Sorsogon, Camarines Norte and Catanduanes.
