LGUs get P1.2 trillion share from national tax revenue

January 28, 2026 | 12:00am

MANILA, Philippines — Local government units (LGUs) have received a P1.19-trillion share from tax collection, giving them the capital they need to roll out infrastructure and welfare projects without delay.

The Department of Budget and Management (DBM) yesterday said it has issued the national tax allotment (NTA) for LGUs amounting to P1.19 trillion for 2026.

Budget Secretary Rolando Toledo approved the issuance of the NTA through a special allotment release order, corresponded by notices of cash allocation, to ensure that local governments can pursue programs and projects on time.

“The timely release of the 2026 NTA ensures that local governments have the resources that they need to deliver services without delay. This is how the 2026 budget works for the people; it is by making sure funds reach communities when they are needed most,” Toledo said.

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

As such, Toledo said it is important that local governments gain access to their share in the NTA as soon as possible to avert, if not minimize, interruptions in service delivery.

“By releasing the NTA in full and on time, we are enabling local governments to act decisively, respond to local needs and bring immediate benefits to their constituents,” Toledo said.

Moreover, Toledo said the immediate release of the NTA underscores the government’s sincerity in strengthening local capacity by providing for their fiscal requirements.

Under the Constitution and the Local Government Code, the NTA is the automatic appropriation received by local governments annually. The NTA is distributed to provinces (23 percent), cities (23 percent), municipalities (34 percent) and barangays (20 percent).

The amount is computed based on several factors, including the population census and land area. Since the Supreme Court’s Mandanas ruling was implemented in 2022, local government share in revenue collection has increased.

With higher revenue gains, the Mandanas Ruling devolved the task of maintaining infrastructure projects and social services to local governments.

Toledo reminded local leaders to spend their NTA share solely on authorized purposes, as he also asked them to comply with reporting requirements for accountability and transparency.

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