A lawmaker has filed a bill seeking to redirect the Metro Manila Development Authority’s (MMDA) share in the National Tax Allocation (NTA) to provinces as they prepare for the extended transition to full devolution by 2028.
House Bill No. 9231 aims to give provinces additional fiscal support by redistributing the MMDA’s share in the NTA. The measure seeks to help provincial governments absorb the costs of devolved functions as mandated under Executive Order No. 103, series of 2025.
Agusan del Norte Rep. Dale Corvera, who filed the bill, said many provinces remain heavily dependent on their NTA shares, limiting their capacity to deliver basic services, especially as they are expected to take on more responsibilities under the full devolution framework.
Under Republic Act No. 7924, the 1995 law that created the MMDA, the agency receives funding from several sources. These include allocations under the annual national budget, fines and service fees, a five-percent contribution from the gross revenues of Metro Manila local government units, and a share from the Internal Revenue Allotment, now known as the NTA.
Although the MMDA is not a local government unit, it is included in the computation of NTA shares under the allocation for provinces, as provided in Section 10(b) of RA 7924.
“While most provinces in the country remain heavily dependent on the NTA, which greatly constrains the delivery of essential public services, the MMDA, in 2025 alone, received P4.533 billion, based on the five-percent share from Metro Manila LGUs,” Corvera said.
He said the MMDA’s funding is expected to continue growing as Metro Manila remains the country’s main economic center.
“As Metro Manila continues to be the primary economic center of the country, the five-percent share-component of the MMDA’s budget will continue to rise proportionately with Metro Manila’s growth, and the MMDA share rises with it too,” he added.
Corvera warned that the implementation of EO 103 would further strain provincial budgets, as provinces are expected to assume more devolved functions by 2028 without adequate matching funds.
The proposed measure seeks to provide provinces with additional budgetary capacity to support health, agriculture, infrastructure, social services, and other devolved responsibilities.
Corvera said the passage of the bill could result in an average increase in the budget of each province, allowing local governments to improve the delivery of basic services in the countryside.