THE Department of Budget and Management (DBM) announced a substantial increase in the total National Tax Allotment (NTA) for local government units (LGUs) for Fiscal Year 2024.
Secretary Amenah Pangandaman said the total allocation has been raised to P871.3 billion, which signifies an increment of P51.11 billion, equating to a 6.23-percent increase from the Fiscal Year 2023 NTA shares of P820.2 billion.
She emphasized that the DBM aims to stimulate significant inclusive growth through this increase in LGUs’ NTA.
Pangandaman said this is also aligned with the commitment of President Ferdinand Marcos, Jr. to ensure that resources are utilized most effectively at local levels, thereby fostering sustained economic development across the country.
“LGUs will be provided with P1.008 trillion, equivalent to 17.5 percent of the proposed FY 2024 national budget. This allocation pertains mainly to statutory shares of LGUs from national taxes, such as the NTA and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Annual Block Grant (ABG), among others. This allocation to LGUs excludes the funds for programs under various national government agencies which are intended for implementation across regions nationwide,” the budget chief said.
The increase in the FY 2024 NTA shares of LGUs resulted from higher revenue collections in FY 2021 vis-à-vis revenue collections in FY 2020, which can be attributed to the economy gradually reopening from the period of lockdowns during the height of the COVID-19 pandemic.
Under Sections 284 and 285 of the Local Government Code (LGC) of 1991, the 83 provinces were allotted P200.416 billion in the proposed Total NTA Shares.
Meanwhile, the 148 cities and 1,486 municipalities were allocated P201.2 billion and P295.4 billion, respectively, in the proposed Total NTA Shares. On the other hand, P174.2 billion was earmarked for the 41,953 barangays in the country.
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 (DF).
The 2024 NTA remains consistent with the LGC of 1991 and the Supreme Court ruling on the Mandanas-Garcia Case, which effectively strengthened fiscal decentralization due to the significant increase in the tax base used for the computation of the NTA.
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.