LGU share of national taxes climbs to P1.32 trillion

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June 13, 2026 | 12:00am

MANILA, Philippines — Local government units (LGUs) will get a higher national tax allotment (NTA) next year amounting to P1.32 trillion, giving them the budget to bankroll infrastructure and welfare projects, according to the Department of Budget and Management (DBM).

In Local Budget Memorandum 94, signed by newly appointed Budget Secretary Kim Robert de Leon, the LGUs’ share rose by 10.9 percent from P1.19 trillion in 2026.

The NTA is utilized by local governments to sustain, if not expand, priority programs. It funds disaster preparation, education support, health care and local infrastructure, among others.

The computation was based on the certifications of the Bureau of Internal Revenue (P990.68 billion), the Bureau of Customs (P392.09 billion) and the Bureau of the Treasury (P63.6 billion) on the actual collections of national taxes in 2024. 

It also considered the 2024 census of population by province, city, municipality and barangay.

This allocation will be divided among municipalities, which will corner the largest share at P448.74 billion, followed by cities and provinces with P303.56 billion and barangays with P263.97 billion.

Region IV-A or Calabarzon topped the regional allocation at P158.2 billion, followed by Region III with P129.52 billion. The Cordillera Administrative Region will receive the smallest share at P39.22 billion.

The DBM reminded LGUs to earmark at least 20 percent of their NTA for development projects under the 20 percent Development Fund. 

Barangays must also set aside 10 percent of their general fund for the Sangguniang Kabataan.

Annual budgets should integrate programs for gender and development, senior citizens, persons with disabilities, HIV/AIDS prevention and child protection councils, it said.

The DBM added that LGUs are directed to cooperate with oversight and national agencies in implementing a results-oriented monitoring and evaluation system to track their delivery of devolved functions and services.

“The responsibility and accountability in the disbursement of funds shall rest upon the local chief executives and other local officials concerned,” it said.

Based on the Local Government Code, LGUs must have a 40 percent share in all national taxes based on the collection of the third fiscal year preceding the current fiscal year.

The 2019 Mandanas-Garcia ruling of the Supreme Court, which took effect in 2022, increased the NTA shares of LGUs to 40 percent of all national taxes.