P1.19-T National Tax Allotment released to local governments

THE National Tax Allotment (NTA) of P1.19 trillion has been released to local government units (LGUs), the Department of Budget and Management (DBM) said.

Acting Budget Secretary Rolando U. Toledo approved the NTA Special Allotment Release Order and the corresponding Notices of Cash Allocation on Jan. 26.

The funds represent the LGU share of taxes earned by the National Government three years earlier.

“The timely release of the FY 2026 National Tax Allotment ensures that local governments have the resources they need to deliver services without delay,” he said in a statement on Tuesday.

The NTA, which is directly credited to the authorized government service banks of LGUs, is intended to fund local services like healthcare, education support, disaster preparedness and response, and infrastructure upkeep, it said.

“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,” Mr. Toledo said.

The DBM also urged the LGUs to comply with reporting requirements, consistent with transparency and accountability standards, and use the NTA strictly for “authorized purposes.”

Under the Local Government Code, LGUs are entitled to 40% of National Government tax revenue. — Aubrey Rose A. Inosante