Local government units (LGUs) are set to receive P871.3 billion as national tax allotment (NTA) in 2024, according to the Department of Budget and Management (DBM).
In a statement, the DBM said yesterday the NTA for LGUs next year is 6.23 percent higher versus the 2023 NTA shares of P820.2 billion.
Budget Secretary Amenah Pangandaman said the DBM aims to stimulate significant inclusive growth through this increase in LGUs’ NTA.
“LGUs will be provided with P1.008 trillion, equivalent to 17.5 percent of the proposed 2024 national budget. This allocation pertains mainly to statutory shares of LGUs from national taxes, such as the NTA and the BARMM Annual Block Grant, among others. 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 increase in the 2024 NTA shares of LGUs resulted from higher revenue collections in 2021 vis-í -vis revenue collections in 2020, which can be attributed to the economy gradually reopening from the period of lockdowns during the height of the coronavirus pandemic, the DBM said.
Under Sections 284 and 285 of the Local Government Code 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. – Angela Celis
