With the finalization of the 2026 National Tax Allotment (NTA), the Department of the Interior and Local Government (DILG) urged local government units (LGUs) to ensure the judicious and prudent use of the ₱1.190 trillion allocation.

The DILG noted that the 2026 NTA is 15 percent higher than the previous year, highlighting the vital role of LGUs in directing funds toward programs and projects that directly benefit their constituents.
Computed based on actual national tax collections in 2023, the NTA aims to support effective delivery of basic services nationwide.

Pursuant to Local Budget Memorandum (LBM) No. 92B issued in December, the Department of Budget and Management (DBM) finalized the NTA shares of LGUs, allocating ₱1.190 trillion to all LGUs in the country.

Under the LBM, municipalities will receive the largest share at ₱404.487 billion, followed by cities with ₱274.104 billion, provinces with ₱273.817 billion, and barangays with ₱238.102 billion. Region IV-A will receive the highest allocation at ₱142.278 billion, followed by Region III with ₱116.840 billion and the National Capital Region with ₱71.687 billion.

The NTA represents the constitutionally mandated 40 percent share of national tax collections allocated to LGUs and released by the DBM. Following the 2019 Mandanas-Garcia Supreme Court ruling, LGU shares now include all national taxes beginning FY 2022.

In alignment with President Marcos guidance, the DILG reiterates its call for LGUs to uphold transparency, accountability, and strict compliance with financial management rules to ensure that funds contribute to sustainable development and improved public service delivery.