DBM raises LGUs national tax share to P871B in 2024

The Department of Budget and Management (DBM) has raised the total National Tax Allotment (NTA) for local government units (LGUs) for fiscal year 2024.

In a statement on Tuesday, the DBM said the total NTA for LGUs has been increased to P871.3 billion.

This is higher by 6.23% or P51.11 billion from the LGUs’ NTA of P820.2 billion for fiscal year 2023.

Budget Secretary Amenah Pangandaman said the increase in NTA “aims to stimulate significant inclusive growth” of local governments.

“Local Government Units (LGUs) will be provided with P1.008 trillion, equivalent to 17.5% of the proposed FY 2024 national budget. This allocation pertains mainly to statutory shares of LGUs from national taxes, such as the National Tax Allotment (NTA) and the BARMM Annual Block Grant (ABG), among others,” said Pangandaman.

“This allocation to LGUs excludes the funds for programs under various national government agencies which are intended for implementation across regions nationwide,” said the Budget chief.

The Budget Department said the increase in the 2024 NTA shares of LGUs resulted from higher revenue collections in 2021 vis-à-vis revenue collections in 2020, “which can be attributed to the economy gradually reopening from the period of lockdowns during the height of the COVID-19 pandemic.”

Broken down, the DBM said that pursuant to the Sections 284 and 285 of the Local Government Code (LGC) of 1991, the country’s 83 provinces were allotted P200.416 billion in the proposed total NTA shares for 2024.

The 148 cities and 1,486 municipalities were allocated P201.2 billion and P295.4 billion, respectively.

Moreover, P174.2 billion was earmarked for the 41,953 barangays in the country.

The DBM said each LGU is also mandated to appropriate no less than 20% of its NTA share for development projects, which is commonly known as the Development Fund (DF).

The agency said 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.—AOL, GMA Integrated News