According to Section 284 of the Local Government Code of the Philippines (RA 7160), Internal Revenue Allotment (IRA) is a local government’s share of revenues from the national government. It is largely based on land area and population. LGUs also derive revenues from local sources.
Typically, the IRA for municipalities account for 90% of total revenues. Since cities have more sources of local revenues, their IRA ranges from 50% to 70% of the total