Local government units (LGUs) across the Philippines have received a record P1.32 trillion in their national tax allotment, marking a significant increase in funding for local development.
The National Tax Allotment (NTA) is the share of national taxes that goes to LGUs under the Supreme Court-mandated Mandanas ruling. This year's allocation is the highest ever, representing a 10% increase from the previous year.
The Department of Budget and Management confirmed that all provinces, cities, and municipalities have received their respective shares, enabling them to fund local projects and services.
Budget Secretary Amenah Pangandaman stated, "This is a significant milestone in our commitment to fiscal decentralization. With this record allocation, LGUs have more resources to improve public services, infrastructure, and livelihood programs for their constituents."
Local officials have welcomed the increase, noting that it will boost their capacity to deliver basic services without relying heavily on the national government.
The Mandanas ruling, which expanded the LGUs' share from internal revenue taxes to all national taxes, was a landmark decision that enhanced local autonomy. The record P1.32 trillion NTA is expected to further accelerate development at the grassroots level.