NextGen Day

According to their national tax allotment (NTA) shares, local government units (LGUs) nationwide would get around PHP871.38 billion in 2024, the Department of Budget and Management (DBM) announced Friday.

The DBM stated that LGU municipalities are entitled to an NTA share of PHP295.47 billion, cities PHP201.22 billion, provinces PHP200.42 billion, and villages PHP174.28 billion, citing Local Budget Memorandum 87, which Budget Secretary Amenah Pangandaman issued on June 9.

The government’s tax receipts determine the NTA shares of LGUs.

According to Section 284 of Republic Act 7160, also known as the Local Government Code of 1991, LGUs get a 40% share of national taxes depending on the sums collected in the third fiscal year before to the current fiscal year.

According to the DBM, the LGUs’ PHP861.38 billion NTA shares for Fiscal Year (FY) 2024 were calculated based on certifications from the Bureau of Internal Revenue (PHP688 billion), the Bureau of Customs (PHP183.36 billion), and other agencies certified by the Bureau of the Treasury (PHP19.60 million).

“The FY 2024 NTA level is PHP51.11 billion or 6.23 percent higher than the FY 2023 NTA shares of LGUs,” it stated.

The DBM pointed out that the memorandum also provided recommendations for the LGUs’ yearly budgets for FY 2024, including the order in which the NTA and other local resources should be used.

Accordingly, before using local resources for other purposes, the NTA and other local resources must first pay for the basic services and facilities listed in Section 17(b) of the Local Government Code of 1991, particularly those devolved by the national government.

All LGUs are likewise urged to provide monies in their yearly budgets equal to at least 20% of their NTA share for development initiatives, also known as the 20% Development Fund, and to allocate cash for programs, projects, and activities as required by applicable regulations.

According to the memorandum, the local government units (LGUs) must fully cooperate in establishing the results-based monitoring and evaluation system that will be used by the oversight organizations or other national government organizations to evaluate how well they performed in providing the devolved functions and services.

The local chief executive and other local officials concerned with the disbursement of money shall be responsible and accountable for such disbursement.

According to the memo, the Government Procurement Reform Act (RA 9184) and other relevant laws’ requirements, as well as the budgeting, accounting, and auditing rules and regulations, are all subject to strict compliance by the aforementioned local officials.

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