LGUs to receive over P871B nat'l tax allotment in 2024
Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman has announced a substantial increase in the total National Tax Allotment (NTA) for local government units (LGUs) for Fiscal Year 2024. The total allocation has been raised to P871.3 billion, which signifies an increment of P51.11 billion, equating to a 6.23% increase from the Fiscal Year 2023 NTA shares of P820.2 billion.
Secretary Pangandaman emphasized that the DBM aims to stimulate
significant inclusive growth through this increase in LGUs’ NTA.
This aligns with the commitment of President Ferdinand R.
Marcos, Jr. to ensuring that resources are utilized most effectively at local
levels, thereby fostering sustained economic development across the country.
“Local government units (LGUs) will be provided with P1.008 trillion,
equivalent to 17.5 percent 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. This allocation to LGUs excludes the funds for programs
under various national government agencies which are intended for
implementation across regions nationwide.” the budget secretary said.
The increase in the FY 2024 NTA shares of LGUs resulted from
higher revenue collections in FY 2021 vis-Γ -vis revenue collections in FY 2020,
which can be attributed to the economy gradually reopening from the period of
lockdowns during the height of the COVID-19 pandemic.
Under Sections 284 and 285 of the Local Government Code (LGC) 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 (DF).
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.
LGUs shall have 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. (DBM/PIA-Caraga)
