A record P1.32 trillion in national tax shares will flow to local governments in 2027, giving provinces, cities, municipalities and barangays a bigger guaranteed funding stream as President Bongbong Marcos pushes LGUs to help deliver national projects.
Executive Secretary Ralph Recto said the National Tax Allotment will rise by P129.32 billion from the previous year and will be highlighted in Marcos’ State of the Nation Address on July 27. The amount is based on 2024 national tax collections, following the three-year lag required by law.
“As a former local executive official himself, the President sees and honors these as people’s entitlements. These are guaranteed plowbacks that will go from big cities to the remotest barangays,“ Recto said.
Recto said the formula is fixed. “That indexation is set in stone, beyond alteration. As such, they are in the nature of automatic appropriations,” he said.
Under the formula, 83 provinces will share P303.56 billion, 149 cities will share P303.56 billion, 1,491 municipalities will get P448.84 billion, and 41,912 barangays will divide P263.97 billion. Population and land area will determine each LGU’s share.
The funding will come from P990.68 billion in Bureau of Internal Revenue collections, P329.09 billion from the Bureau of Customs, and P63.6 million from other collections certified by the Bureau of the Treasury.
The bigger NTA comes on top of the record P57.87-billion Local Government Support Fund for 2026. Recto said Marcos wants LGUs tapped as partners in national programs, including DepEd’s classroom-building push.
“The conventional and traditional thinking is that the NTA for LGUs is enough. But the President said we should tap the expertise and resources of LGUs in implementing national projects and programs,“ Recto said.
For ordinary Filipinos, the test is whether record funding can produce visible projects, faster work and better services on the ground.
