MANILA, Philippines — Share of local governments from national tax collections will increase to P1.32 trillion next year, as part of President Ferdinand Marcos Jr.'s continued push for stronger local governance, Malacañang said Wednesday.
Executive Secretary Ralph Recto said the National Tax Allotment (NTA) for LGUs would jump by P129.32 billion from the 2026 level, a "non-partisan, formula-based" allocation that would be highlighted in the President's fifth State of the Nation Address on July 27.
"As a former local executive official himself, the President sees and honors these as people’s entitlements. These are guaranteed plowbacks that will go from big cities to the remotest barangays (villages)," Recto said in a statement.
The P1.32-trillion NTA for 2027 is based on internal revenue collections in 2024, in accordance with the law requiring the allotment to be computing using collections from three years prior.
Recto said the amount would be among the biggest ticket items in the proposed 2027 national budget which is being finalized by the Department of Budget and Management.
Under the NTA allocation formula, around 83 provinces will receive P303.56 billion; 149 cities, P303.56 billion; 1,491 towns, P448.84 billion; and 41,912 villages, P263.97 billion.