The Department of Budget and Management (DBM) has released the guidelines on the preparation of the FY 2024 annual budgets of Local Government Units (LGUs) as their indicative National Tax Allotment (NTA) shares for fiscal year (FY) 2024 were pegged at P871.38 billion.
DBM Secretary Amenah F. Pangandaman signed on 09 June 2023 the Local Budget Memorandum (LBM) No. 87, spelling out the factors in the allocation of the FY 2024 NTA shares of the LGUs consistent with the codal formula provided in the Local Government Code of 1991 and in compliance with the Supreme Court Ruling on the consolidated cases of Congressman Hermilando I. Mandanas, et al. vs. Executive Secretary Paquito N. Ochoa, Jr., et al. and Honorable Enrique T. Garcia, Jr. vs. Executive Secretary Paquito Ochoa, et al.
The LGUs’ total NTA shares for FY 2024 amount to P871.38 billion, based on the certifications issued by the following tax collecting agencies: Bureau of Internal Revenue (BIR), P688.00 billion; Bureau of Customs (BOC), P183.36 billion; and other agencies certified by Bureau of the Treasury (BTr), P19.60 million. The FY 2024 NTA level is P51.11 billion or 6.23 percent higher than the FY 2023 NTA shares of LGUs.
The Memorandum further states that municipalities are entitled to an NTA share of P295.47 billion, cities with P201.22 billion, provinces with P200.42 billion, and barangays with P174.28 billion.
The Memorandum also outlined the guidelines on the preparation of the FY 2024 annual budgets of the LGUs, including the priorities in the use of the NTA and other local resources. Accordingly, the NTA and other local resources shall first cover the cost of providing the basic services and facilities enumerated in Section 17 (b) of the Local Government Code of 1991, particularly those devolved by the national government, before applying the same for other purposes.
All LGUs are likewise reminded to appropriate funds in its annual budget no less than twenty percent (20%) of its NTA share for development projects, which is commonly known as the 20% Development Fund, and to allocate funds for programs, projects and activities as mandated by pertinent laws.