THE Department of Budget and Management on Tuesday said it has released in full the P1.19 trillion National Tax Allotment (NTA) of local government units (LGUs) for fiscal year 2026.
The NTA is the 40-percent share of LGUs in all national tax collections, as mandated by the Constitution and the Mandanas-Garcia Supreme Court ruling, implemented in 2022, which increased LGU fiscal autonomy by expanding the NTA base from purely internal revenue taxes to all national taxes, such as customs duties.
“By releasing the NTA in full and on time, we are enabling LGUs to act decisively, respond to local needs, and bring immediate benefits to their constituents,” Budget Secretary Rolando Toledo said in a statement.
Toledo on January 26 approved the issuance of the Special Allotment Release Order (SARO) and the corresponding Notices of Cash Allocation (NCAs) covering the full-year NTA requirements of LGUs nationwide, as authorized under the 2026 General Appropriations Act (GAA).
The allotment would enable LGUs to sustain essential services, such as health care, education support, disaster preparedness and response, and maintenance of local infrastructure, Toledo said.
The NTA is the primary source of funding for many LGUs, particularly those outside major urban centers.
Funds were directly credited to the LGUs’ authorized government servicing banks, in compliance with budgeting, accounting and auditing rules, Toledo said.
He reminded LGUs to use the NTA strictly for authorized purposes and to comply with reporting requirements, underscoring the importance of transparency and accountability in the use of public funds.