Local government units will receive P871.38 billion as their share of the national tax allotment (NTA) next year, the Department of Budget and Management said.
The DBM memo said that municipalities are entitled to an NTA share of P295.47 billion, with cities getting P201.22 billion, provinces P200.42 billion, and barangays P174.28 billion. The 2024 NTA level is P51.11 billion or 6.23 percent higher than the 2023 shares of LGUs.
In a statement Friday, DBM said it has released the guidelines on the preparation of the 2024 annual budgets of local government units.
Budget Secretary Amenah Pangandaman signed on June 9, 2023 the Local Budget Memorandum 87.
This spells out the factors in allocating the 2024 NTA shares of the LGUs, consistent with the codal formula provided in the Local Government Code of 1991.
It also complies with the Supreme Court Ruling on the consolidated cases of Congressman Hermilando Mandanas, et al. vs. Executive Secretary Paquito N. Ochoa, Jr., et al. and Honorable Enrique T. Garcia, Jr. vs. Executive Secretary Paquito Ochoa, et al., the DBM noted.
The LGUs’ total NTA shares for 2024 of P871.38 billion was based on the certifications issued by tax-collecting agencies such as the Bureau of Internal Revenue (P688 billion), the Bureau of Customs, (P183.36 billion), and other agencies certified by the Bureau of the Treasury (P19.60 million).
The memorandum also outlined the guidelines on the preparation of the FY 2024 annual budgets of the LGUs, including the priorities in the use of the NTA and other local resources.
The NTA and other local resources shall first cover the cost of providing the basic services and facilities enumerated in Section 17 (b) of the Local Government Code of 1991, particularly those devolved by the national government, before applying the same for other purposes.
“All LGUs are likewise reminded to appropriate funds in its annual budget no less than 20 percent of its NTA share for development projects, which is commonly known as the 20 percent Development Fund, and to allocate funds for programs, projects, and activities as mandated by pertinent laws,” the DBM said.