LOCAL government units (LGUs) will receive a National Tax Allotment (NTA) of P1.034 trillion in 2025, the Department of Budget and Management (DBM) said.

In a memorandum, the DBM said P237.96 billion will be released to provinces, P239.05 billion to cities, P350.68 billion to municipalities, and P206.92 billion to barangays.

NTAs are the 40% share of National Government (NG) revenue from three years prior. The 2025 NTA is thus based on government revenue reported in 2022.

The DBM reported that 43,622 LGUs will be receiving NTAs — 83 provinces, 149 cities, 1,485 municipalities, and 41,905 barangays.

The Calabarzon region will receive an NTA of P122.71 billion, followed by Central Luzon (P100.72 billion), the Western Visayas (P81.4 billion), the Central Visayas (P73.08 billion), and the National Capital Region (P62.32 billion).

NTA provided by the Bureau of Internal Revenue stood at P776.56 billion, with the Bureau of Customs supplying P258 billion. Other agencies certified by the Treasury bureau will provide P41.36 million.

Alongside the NTA, some LGUs will be given a share of the proceeds from resources generated within their jurisdictions, such as the excise tax on Virginia tobacco as well as burley and native tobacco.

Several local governments are also entitled to gross income taxes paid by businesses and enterprises within economic zones, a share of value-added tax and of fire code fees.

“The LGUs concerned are advised to coordinate with the appropriate revenue-collecting agencies and government corporations to reconcile their records with those of the collecting agencies to determine the amount of their shares from the said taxes,” DBM said.

The NTA and other resources should be devoted to providing basic services and facilities before they are spent for other purposes, the DBM said.

“Local budget plans and goals shall, as far as practicable, be harmonized with national development plans, goals, and strategies to optimize the utilization of resources and to avoid duplication in the use of fiscal and physical resources,” the DBM said.

LGUs are required to allocate 20% of its NTA on development projects, and 5% on a Disaster Risk Reduction and Management Fund.

LGUs 2025 annual budgets must also include programs, projects, and activities for gender and development, senior citizens and persons with disabilities, prevention and care against Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS), and the implementation of programs for the protection of children.

Barangays are required to allocate 10% of their general fund to the Sangguniang Kabataan council.

The NG spending plan for next year is at a record P6.2 trillion, up 7.5% from this year and equivalent to 21.4% of gross domestic product. — Beatriz Marie D. Cruz