MANILA – Local government units (LGUs) nationwide are expected to receive about PHP1.008 trillion in 2024, the Department of Budget and Management (DBM) said on Tuesday.

“Local government units (LGUs) will be provided with PHP1.008 trillion, equivalent to 17.5 percent of the proposed FY (Fiscal Year) 2024 national budget. This allocation pertains mainly to statutory shares of LGUs from national taxes, such as the National Tax Allotment (NTA) and the BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) Annual Block Grant, among others,” Budget Secretary Amenah Pangandaman said in a statement.

“This allocation to LGUs excludes the funds for programs under various national government agencies, which are intended for implementation across regions nationwide.”

Pangandaman said the total NTA for LGUs in 2024 amounts to PHP871.3 billion, higher by 6.23 percent or PHP51.1 billion from their NTA shares of PHP820.2 billion in 2023.

She said the increase in the LGUs’ NTA shares for 2024 was a result of higher revenue collections attributed to the gradual reopening of the economy.

Citing the Local Government Code of 1991, she said about PHP200.416 billion in the proposed total NTA shares would be given to 83 provinces, PHP201.2 billion to 148 cities, PHP285.4 billion to 1,486 municipalities, and PHP174.2 billion to 41,953 villages in the country.

“Local governments shall have a just share, as determined by law, in the national taxes that shall be automatically released according to Section 6, Article X of the General Provisions of the 1987 Philippine Constitution,” Pangandaman said.

“Each LGU is also mandated to appropriate no less than 20 percent of its NTA share for development projects, which is commonly known as the Development Fund.”

She said the allotment of 2024 NTA remains consistent with the Local Government Code of 1991 and the Supreme Court’s Mandanas-Garcia ruling, which mandates that LGUs are entitled to just shares from all national taxes collected by the government.

Pangandaman said the DBM aims to stimulate significant inclusive growth through the increase in LGUs’ NTA, adding that it is aligned with the commitment of President Ferdinand R. Marcos Jr. to ensuring the effective use of resources at local levels to foster sustained economic development across the country.

In 2022, the DBM proposed the allocation of about PHP962.2 billion for LGUs in 2023 to boost their capabilities and enable them to fast-track the delivery of their basic services. (PNA)