Local government units (LGUs) across the Philippines are set to receive a record P1.19 trillion in National Tax Allotments (NTA) in 2027, marking a P129.32-billion increase from the previous year and significantly boosting fiscal capacity for provinces, cities, municipalities, and barangays.
The allocation provides a major lift to grassroots development, giving LGUs expanded room to fund infrastructure, health systems, education programs, disaster preparedness, and other essential public services. The NTA is automatically appropriated under existing law and is based on national tax collections from three years prior, ensuring a formula-driven and politically insulated distribution.
Executive Secretary Ralph Recto said the increase reflects the administration’s commitment to strengthening local governance and ensuring that communities directly benefit from national economic growth. He emphasized that the funds are not discretionary grants but legally mandated shares of national revenue.
“As a former local executive himself, President Ferdinand Marcos Jr. recognizes these allocations as the people’s entitlement,” Recto said, adding that the funds will reach both major urban centers and remote barangays nationwide.
Under the 2027 breakdown, provinces and cities will each receive P303.56 billion, municipalities will get P448.84 billion, while barangays will share P263.97 billion. The higher allocation is expected to deepen LGUs’ role in delivering frontline services and implementing localized development programs.
The increase also aligns with the government’s broader fiscal decentralization push, complemented by a record P57.87-billion Local Government Support Fund for 2026. This dual-track approach is intended to strengthen coordination between national agencies and LGUs in delivering infrastructure and social services more efficiently.
Recto said the administration is moving toward a more integrated governance model where national and local projects are treated as complementary efforts rather than separate silos. With greater funding and responsibility, LGUs are expected to become stronger drivers of inclusive growth and improved service delivery at the community level.
