The Department of Budget and Management (DBM) released ₱1.19 trillion in National Tax Allotments (NTAs) to local government units for the 2026 fiscal year, a move intended to accelerate the delivery of regional services and bolster decentralization efforts.

Budget Secretary Rolando Toledo approved the issuance of special allotment release orders and corresponding notices of cash allocation on Jan. 26, according to an agency statement on Tuesday. The release covers the full-year requirements for provinces, cities, and municipalities as authorized under the 2026 national budget.

The decision to front-load the entire ₱1.19 trillion allocation marks a shift toward ensuring local executives have immediate liquidity to fund essential services including health care, education support, and disaster response.

Toledo said the timely disbursement is designed to eliminate bureaucratic delays that often hinder the implementation of local infrastructure projects and social welfare programs.

By providing these resources at the start of the year, the administration is enabling local governments to act decisively on immediate needs rather than waiting for staggered tranches, the budget chief said.

The ₱1.19 trillion figure represents the automatic share of local governments in national internal revenue collections, a mandate reinforced by the Mandanas-Garcia ruling which expanded the base for calculating these transfers.

The 2026 allotments were credited directly to the authorized government servicing banks of each local unit. While the release provides significant fiscal autonomy, the budget department cautioned local officials that the funds remain subject to strict accounting and auditing rules. The DBM urged local governments to adhere to transparency standards and maintain rigorous reporting on how the ₱1.19 trillion is utilized across devolved functions.

This full-year disbursement reflects the administration’s broader strategy of fiscal decentralization, shifting the burden of service delivery from the national government to local leaders.

As the primary source of funding for many smaller municipalities, the tax allotment serves as the backbone for local governance and regional economic stability. The DBM said it will continue to monitor the utilization of these funds to ensure they align with the government’s developmental goals for the 2026 fiscal cycle. (Derco Rosal)