Philippines releases record ₱1.9T in local government funds for 2026
The Department of Budget and Management (DBM) has released PHP 1.9 trillion in National Tax Allotment (NTA) for local government units (LGUs) across the Philippines. The funds, approved under the Fiscal Year (FY) 2026 General Appropriations Act (GAA), will support essential local services and projects. Authorities have emphasised the need for transparency and proper use of the allocation.
Secretary Rolando Toledo signed the Special Allotment Release Order (SARO) and the corresponding Notices of Cash Allocation (NCAs) on January 26, 2026. The full-year NTA was then directly credited to the authorised government servicing banks of LGUs, following budgeting and auditing rules.
The NTA serves as the automatic, formula-based share of LGUs from national internal revenue. It acts as a key funding source for local programs, projects, and services. The Department of the Interior and Local Government (DILG) welcomed the release, stating it would strengthen LGUs' ability to meet community needs. The DILG also reminded LGUs to use the funds strictly for authorised purposes. Compliance with reporting requirements and accountability standards remains mandatory. The timely release aims to prevent delays in service delivery and empower LGUs to sustain critical operations.
The PHP 1.9 trillion NTA release ensures LGUs have the resources to function effectively in 2026. Proper use of the funds will be monitored to maintain transparency and efficiency. The allocation is expected to support ongoing and new local initiatives throughout the year.
