The projected National Tax Allotment (NTA) for local government units is expected to reach P1.4 trillion nationwide in 2027, with Luzon local government units (LGUs) set to receive P676.9 billion, Malacañang said.

In a press briefing on Wednesday, Aug. 26, Presidential Communications Office (PCO) Undersecretary Claire Castro said the projected 2027 NTA would represent an 11 percent increase from current levels, while the proposed Local Government Support Fund (LGSF) allocation would rise to P58.532578 billion from P57.872578 billion in 2026.

The higher LGSF allocation, she added, is intended to give local governments more resources to address infrastructure and social development needs, including farm-to-market roads, water systems, health facilities, bridges, disaster-resilient community facilities, and assistance to marginalized groups.

She, however, assured the public that the national government's responsibility does not end after funds are released.

“Hindi po natatapos ang obligasyon ng national government matapos ibigay ang pondo dahil kinakailangan po itong ma-monitor kung lahat po ng naibibigay na tulong sa ating lokal na pamahalaan ay nagagamit sa tama at hindi po naaabuso ang pondo (The obligation of the national government does not end after the funds are given because it is necessary to monitor whether all assistance provided to local governments is properly used and the funds are not abused),” Castro said.

Asked about the national government functions expected to be devolved to LGUs next year, Castro said national agencies would continue to monitor the implementation of programs supported by the funds.

She cited the Department of Public Works and Highways (DPWH) for infrastructure projects and the Department of Education (DepEd), Commission on Higher Education (CHED), and Technical Education and Skills Development Authority (TESDA) for scholarship-related assistance.

The government has also streamlined documentation requirements for these funds, allowing local chief executives to submit and track requests online through the Ugnayang Bayan portal.

Castro said President Marcos decided to increase the LGSF after listening to the concerns and recommendations of local government leaders, including feedback that the fund had produced positive results.

She cited the assessment of Naga City Mayor Leni Robredo, who she said had described the implementation of the LGSF as positive and noted its transparency and the clear identification of where the funds should go.

Castro said the President heard that municipalities and other LGUs needed additional resources to meet the needs of their constituents.

Meanwhile, Executive Secretary Ralph Recto urged local officials to ensure that public funds are used properly and for the benefit of their constituents.

“Ang hiling lang namin sa inyo ay gamitin nang tama (Our only request is that you use it correctly),” he said during the distribution of Special Allotment Release Orders (SAROs) under the LGSF to municipalities during the League of Municipalities of the Philippines Luzon National Congress on Tuesday, Aug. 25.

The event also featured the on-site distribution of SAROs for LGSF Financial Assistance to LGUs (FALGU), the Growth Equity Fund (GEF), and the Support to Barangay Development Program (SBDP) for municipalities in Luzon.

“Gamitin nang maayos. At higit sa lahat, gamitin para sa tao ang pondo ng bayan (Use it properly, and, above all, use public funds for the people),” he added.

Recto also said every barangay nationwide would receive a direct P200,000 allocation from the Presidential Socio-Civic Projects Fund, with half intended to assist five graduating college students and the other half for local development projects.

The LGSF, he said, also supports social welfare and food security programs, including the Bagong Pilipinas Rice Program, which provides 10 kilograms of rice every two months to nearly 8 million families.

He urged LGUs to use their NTA and LGSF allocations for climate adaptation, disaster preparedness, and solid waste management, stressing the importance of preventive measures in reducing future rehabilitation costs.

“Hindi po kakumpitensya ng national government ang LGU. Magka-team tayo (The LGU is not a competitor of the national government. We are a team),” Recto said.

“Kayo ang katuwang namin, kakampi namin, at kamay ng gobyerno sa bawat komunidad (You are our partners, allies, and the government's hands in every community),” he added.