THE National Tax Allotment (NTA) to be set aside for local government units (LGUs) in 2024 was pegged at P871.38 billion, the Department of Budget and Management (DBM) said.
“The fiscal year (FY) 2024 NTA level is P51.12 billion or 6.23% higher than the FY 2023 NTA share of LGUs,” the DBM said in a budget memorandum.
NTAs are the share given by the National Government (NG) to LGUs out of the take from all national taxes.
The size of the NTA varies each year because it represents a 40% share of the NG revenue total from three years prior. The 2024 NTA was thus based on NG revenue from 2021, the second year of the pandemic.
The 6.23% gain on the 2023 NTA, which was taken from 2020 NG revenue, reflects the economy’s recovery between the first and second years of the pandemic.
The LGU total is 43,670, consisting of 83 provinces, 148 cities, 1,486 municipalities and 41,953 barangays.
Municipalities are entitled to an NTA of P295.47 billion, followed by cities (P201.22 billion), provinces (P200.42 billion), and barangays (P174.28 billion).
Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) has been allotted P103.1 billion, followed by Central Luzon (P84.83 billion), the Western Visayas (P68.58 billion), the Central Visayas (P61.58 billion) and the National Capital Region (P52.55 billion).
Apart from the NTA, some LGUs are also entitled to special shares from the proceeds of taxes such as excise taxes on Virginia tobacco cigarettes, excise taxes on burley and native tobacco products, gross income taxes paid by all businesses and enterprises within the economic zones, among others.
“The NTA… shall first cover the cost of providing basic services and facilities, particularly those devolved by the NG, before applying the same for other purposes,” the DBM said.
LGUs are also required to appropriate at least 20% of their NTA on development projects and at least 5% of their estimated revenue from regular sources to their Local Disaster Risk Reduction and Management Fund.
The 2024 budgets of LGUs must also include programs and projects that prioritize gender and development, senior citizens and persons with disabilities, combating AIDS, and protecting children. — Luisa Maria Jacinta C. Jocson