DBM: LGUs’ share in nat’l taxes pegged at P871.38B for 2024

The National Tax Allotment (NTA) share of local government units (LGUs) for fiscal year 2024 has been pegged at P878.38 billion, the Department of Budget and Management (DBM) said Friday.

In a statement, the DBM said the amount was determined as it released the guidelines on the preparation of LGUs’ annual budgets for next year.

The P871.38 billion NTA shares of LGUs were based on the certifications issued by the Bureau of Internal Revenue (BIR) at P688.00 billion, Bureau of Customs (BOC) at P183.36 billion, and other agencies certified by the Bureau of the Treasury (BTr) at P19.60 million. 

The Budget Department said the 2024 NTA level of LGUs is P51.11 billion or 6.23% higher than this year’s NTA shares.

In preparation for the LGUs’ 2024 budgets, Budget Secretary Amenah Pangandaman, on June 9, 2023, issued the Local Budget Memorandum (LBM) No. 87.

The memorandum contained the factors in the allocation of the fiscal year 2024 NTA shares of the LGUs consistent with the codal formula provided in the Local Government Code of 1991 and in compliance with the Mandanas-Garcia ruling granted by the Supreme Court, which ruled that LGUs should have a share on all national taxes and not only on internal revenue taxes.

The ruling also fully transfers or devolves to the LGUs the delivery of basic services from the national government.

The DBM said the memorandum further says that municipalities are entitled to an NTA share of P295.47 billion, cities with P201.22 billion, provinces with P200.42 billion, and barangays with P174.28 billion.

The LBM 87, likewise, outlined the guidelines in preparing the next year’s budgets of the LGUs, including the priorities in the use of the NTA and other local resources. 

The DBM said the NTA and other local resources shall first cover the cost of providing the basic services and facilities enumerated in Section 17 (b) of the Local Government Code of 1991, particularly those devolved by the national government, before applying the same for other purposes.

All LGUs are also reminded to appropriate funds in its annual budget no less than 20% of its NTA share for development projects, which is commonly known as the 20% Development Fund, and to allocate funds for programs, projects and activities as mandated by pertinent laws, the Budget Department said. —VAL, GMA Integrated News