DBM releases LGUs’ P1.19-T nat’l tax allotment

The Department of Budget and Management on Tuesday announced that it has fully released the P1.19-trillion National Tax Allotment (NTRA) of local government units for fiscal year 2026.

In a statement, the DBM said Acting Budget Secretary Rolando Toledo approved the issuance of the Special Allotment Release Order and the corresponding Notices of Cash Allocation on January 26, 2026, covering the full-year NTA requirements of LGUs nationwide, as authorized under the 2026 General Appropriations Act.

The Budget Department said the release was in line with the directive of President Ferdinand “Bongbong” Marcos Jr. to “ensure that public funds translate into timely and tangible services for the people.”

It also said the full and upfront release of the fiscal 2026 NTA of LGUs “underscores the people-centric character of the 2026 General Appropriations Act (GAA), which prioritizes uninterrupted basic services, stronger local governance, and faster delivery of programs that directly affect communities.”

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

“This is how the 2026 budget works for the people—by making sure funds reach communities when they are needed most,” said the Budget chief, adding that “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.”

The DBM said that the prompt release of the 2026 NTA reflects the administration’s continued commitment to fiscal decentralization and to strengthening the capacity of LGUs to perform their devolved functions effectively.

Under the Constitution and the Local Government Code, the NTA represents the automatic and formula-based share of LGUs in national internal revenue, serving as a primary source of funding for local programs, projects, and services.

The 2026 NTA was directly credited to the authorized government servicing banks of LGUs, in accordance with existing budgeting, accounting, and auditing rules.

The DBM also reminded LGUs to utilize the NTA strictly for authorized purposes and to comply with reporting requirements, consistent with transparency and accountability standards.—AOL, GMA Integrated News