Section 844
SEC. 844. Disposition of national internal revenue—(a) In general,—"National Internal Revenue collected and not applied as hereinabove provided or otherwise specially disposed of -by law shall accrue to the National Treasury and shall be available for the general purposes of the Government, with the exception of the amounts set apart by way of allotment under the next succeeding section. (b) Shares of local governments.—Twenty per centum of the collections from the national internal revenue taxes shall accrue to local governments to be computed on the fcasis of the collections of the third fiscal year preceding the current fiscal year. This allotment shall be distributed as follows: Thirty per centum (30%) to provinces; forty-five per centum (45%) to municipalities; twenty-five per centum (25%) to cities and, sixty-five million pesos (P65M) fo the barangays. The share of each province, city and Municipality shall be determined on the basis of the following formulae: seventy (70%) per centum—population; (20%) per centum—land area; and, ten per centum equal sharing. For the new fiscal year commencing on January 1, 1977 and ending on December 31, 1977, the annual allotment of any local government as determined under this paragraph, shall not increase by more than twenty-five per centum (25%), of, not less than, the annual allotment it shall actually receive for the fiscal year from July 1, 1975 to June 30, 1976. Thereafter, or beginning- January 1, 1978, the annual allotment shares of each local government shall be determined solely on the basis of this paragraph. In addition, five per centum (5%) of the collections from national internal revenue taxes not otherwise accruing to special funds and special accounts in the general fund shall accrue to a local government fund which shall be released hy the President as financial aid to local governments or to projects.