The national government is gearing up for a significant expansion in direct funding to local communities, promising a record-breaking P1.4-trillion National Tax Allotment (NTA) for local government units (LGUs) by 2027.
Executive Secretary Ralph Recto announced the projected 11 percent increase during the League of Municipalities of the Philippines (LMP) Luzon National Congress on Tuesday. Of the total 2027 allotment, P676.9 billion is slated specifically for Luzon municipalities.
At the LMP event, Recto oversaw the immediate distribution of Special Allotment Release Orders (SAROs) under the Local Government Support Fund (LGSF). The funds cover Financial Assistance to LGUs, the Growth Equity Fund and the Support to Barangay Development Program.
Recto assured local leaders that recommendations submitted to Malacañang would be treated as an operational work checklist rather than ignored paperwork, reflecting President Ferdinand R. Marcos Jr.’s commitment to equitable resource distribution.
“Ang hiling lang namin sa inyo ay gamitin nang tama. Gamitin nang maayos. At higit sa lahat, gamitin para sa tao ang pondo ng bayan,” Recto told the attendees.
To expedite disbursements, the administration has streamlined application procedures, allowing municipal heads to process and monitor requests digitally through the Ugnayang Bayan portal.
This year’s LGSF budget stands at P57 billion, targeting essential rural development such as water systems, agricultural roads, medical centers, and multipurpose structures. Funding for the program is expected to rise further to P58.53 billion in 2027.
The Executive Secretary also discussed the nationwide initiative granting P200,000 directly to every barangay via the Presidential Socio-Civic Projects Fund. Half of the grant will assist five graduating college students, while the rest will finance neighborhood development plans.
Alongside physical infrastructure, Recto noted that local support funds help sustain broad social safety nets, including the Bagong Pilipinas Rice Program, which distributes 10 kilograms of free rice bi-monthly to roughly 8 million households.
Recto urged mayors to prioritize disaster risk reduction, climate resilience, and solid waste management in their spending, pointing out that investing in prevention saves far more public funds than post-disaster recovery.
“Hindi po kakumpitensya ng national government ang LGU. Magka-team tayo. Kayo ang katuwang namin, kakampi namin, at kamay ng gobyerno sa bawat komunidad,” Recto said.