MANILA — Increased financial support for local government units will be among the major accomplishments President Ferdinand R. Marcos Jr. is expected to highlight when he delivers his fifth State of the Nation Address next month, Malacañang said Wednesday.
According to Executive Secretary Ralph Recto, LGUs are poised to receive PHP1.32 trillion in National Tax Allotment funds in 2027, reflecting stronger revenue collections and the administration’s commitment to empowering local governments.
The projected increase of PHP129.32 billion over the previous allocation is expected to enhance the capacity of provinces, cities, municipalities, and barangays to deliver basic services and pursue development programs.
Recto described the NTA as a guaranteed share of national revenues that automatically flows to local governments under existing laws, ensuring a fair and predictable distribution of funds nationwide.
For 2026, LGUs are set to receive PHP1.19 trillion, with allocations determined through a formula based on population, land area, and equal sharing. The amount is derived from national tax collections recorded three years earlier.
The allocation breakdown includes PHP303.56 billion each for provinces and cities, PHP448.84 billion for municipalities, and PHP263.97 billion for barangays.
Data showed that Davao City will receive the largest share among local governments in 2026 at PHP10.1 billion. Other major beneficiaries include Quezon City, Manila, Caloocan, Taguig, and Pasig.
Beyond the NTA, the government has earmarked PHP57.87 billion for the Local Government Support Fund in 2026, the highest allocation for the program to date.
Recto said the President has pushed for a more integrated approach to governance, encouraging national agencies and LGUs to work together in carrying out infrastructure projects and public service programs.
He added that the administration recognizes local governments as key partners in driving economic growth and improving services at the community level.
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