President Bongbong Marcos directed the release of the full P1.19 trillion National Tax Allotment for local government units in fiscal year 2026, with Malacañang saying the move was meant to ensure public funds are immediately available for local use.
The Department of Budget and Management said the release was carried out in line with the President’s directive to make sure government spending translates into timely and tangible services in provinces, cities, and municipalities. Acting Budget Secretary Rolando Toledo approved the issuance of the Special Allotment Release Order and the corresponding Notices of Cash Allocation on January 26, covering the full-year funding requirements of LGUs as authorized under the 2026 General Appropriations Act.
“This is how the 2026 budget works for the people – by making sure funds reach communities when they are needed most,” Toledo said, noting that the early release allows local governments to plan and implement their programs without delay.
The DBM said the National Tax Allotment remains a primary source of funding for local governments. The amounts were directly credited to the authorized government servicing banks of LGUs in accordance with existing budgeting, accounting, and auditing rules.
The budget agency reminded local governments to use the funds strictly for authorized purposes and to comply with transparency, reporting, and accountability requirements.
