Local government units (LGUs) across the country are set to receive a significant financial boost in 2027, as their National Tax Allotment (NTA) is projected to increase by 11 percent to bolster public services and infrastructure development.
Executive Secretary Ralph Recto announced on Monday that the proposed NTA allocation for LGUs will reach P1.32 trillion in 2027, climbing from the P1.19 trillion budgeted in 2026.
“Kapag mas malaki ang pondo ng LGU, siguradong mas mabilis at maganda ang serbisyo para sa bawat Pilipino,” Recto said in a social media post, stressing that increased local funding directly translates to enhanced public service delivery.
The NTA represents the statutory share of national internal revenue taxes distributed to local government units to finance local infrastructure and public welfare initiatives. These funds cover essential projects such as the construction of public hospitals, health centers, school classrooms, and road networks, as well as disaster relief operations and social assistance programs.
Under the proposed 2027 spending plan, major Metro Manila cities are slated to receive significant budget shares. Quezon City leads the capital region with an allocation of P10.877 billion, up from its P9.822 billion share in 2026. The City of Manila is set to receive P6.749 billion compared to P6.9 billion in 2026, while Caloocan will see its allotment rise to P6.19 billion from P5.59 billion in the previous fiscal year.
The upward adjustment in allotments aims to enhance fiscal decentralization, providing municipalities, cities and provinces greater financial flexibility to meet the expanding needs of their constituents.