LGUs to get higher shares from national revenues

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June 25, 2026 | 12:00am

MANILA, Philippines — The share of local government units from national taxes will increase to P1.32 trillion in 2027 from this year’s P1.19 trillion, Executive Secretary Ralph Recto announced yesterday, noting the administration’s pivot to LGUs as partners in nation-building.

President Marcos will highlight the “non-partisan, formula-based” system in the disbursement of the National Tax Allotments or NTA during his fifth and penultimate State of the Nation Address on July 27, Recto said.

The amount of LGUs’ shares for 2027 is based on the 2024 internal revenue collections, or three years prior, as mandated by law.

He said this would become “one of the largest ticket items” in the proposed national budget for next year that the Department of Budget and Management (DBM)is finalizing.

Under the established formula in NTA allocations, 83 provinces will share among themselves P303.6 billion; 149 cities, P303.6 billion; 1,491 towns, P448.7 billion, and 41,912 barangays, P264 billion, according to a memorandum from the DBM.

An LGU’s share will be determined by its population and land area.

Among cities, Davao received the largest allocation of P10.1 billion this year, or almost 15 percent higher than in 2025.

In Metro Manila, the biggest recipients are Quezon City, Manila, Caloocan, Taguig and Pasig.