Manila: The Marcos administration has released PHP1.19 trillion to local government units (LGUs), signaling an aggressive push to sustain and speed up service delivery and empower provinces, cities, and municipalities under the 2026 budget.
According to Philippines News Agency, the Department of Budget and Management (DBM) announced on Tuesday that it has fully and upfront released the National Tax Allotment (NTA) of LGUs for Fiscal Year 2026. This follows President Ferdinand R. Marcos Jr.'s directive to ensure public funds quickly translate into services felt on the ground. Budget Secretary Rolando Toledo approved the issuance of the Special Allotment Release Order and Notices of Cash Allocation on Monday, which covers the full-year funding needs of LGUs nationwide.
"This is how the 2026 budget works for the people - by making sure funds reach communities when they are needed most," Toledo said, emphasizing that the early release allows LGUs to plan, act, and deliver without delays.
The PHP1.19-trillion NTA represents the single largest funding stream for local governments, supporting a wide range of services including rural health services, education, disaster response, and local infrastructure. Toledo noted that the release would enable LGUs to sustain essential services such as healthcare, education support, disaster preparedness and response, and infrastructure maintenance.
"By releasing the NTA in full and on time, we are enabling LGUs to act decisively, respond to local needs, and bring immediate benefits to their constituents," Toledo added.
Under the Constitution and the Local Government Code, the NTA is the automatic and formula-based share of LGUs in national internal revenue, serving as a primary funding source for local programs and services. The DBM stated that the 2026 NTA was directly credited to the authorized government servicing banks of LGUs, in accordance with existing budgeting, accounting, and auditing rules.
The budget agency also reminded LGUs to use the funds strictly for authorized purposes and to comply with transparency and reporting requirements.
