Gov’t adjusts LGUs’ nat’l tax shares

THE Department of Budget Management (DBM) has announced an adjustment in the national tax allotment (NTA) shares of local government units (LGUs) with the adoption of new population census.

In a memorandum issued on Wednesday, the DBM has informed the LGUs of their adjusted NTA shares for fiscal year 2026, which reflect the latest demographic data by province, city, municipality, and barangay, as approved under Presidential Proclamation No. 973 signed on July 11.

Under the Local Government Code, LGUs are entitled to 40% of national government tax revenues, though it is allowed to deduct certain items, such as Special Purpose Funds, from the NTA calculation.

“…there is a need to adjust the computation and allocation of the indicative FY 2026 NTA shares of LGUs using the 2024 POPCEN (census of population),” it said.

The DBM said the updated NTA shares will serve as the basis for LGUs in determining the amounts to be allocated for the budgetary requirements.

Finance Secretary Ralph G. Recto earlier noted that after accounting for deductions, the NTA share for LGUs will be equivalent to 35% of national government revenues next year. — Aubrey Rose A. Inosante