At A Glance
- Executive Secretary Ralph Recto said the government will continue increasing funding and direct support for local government units (LGUs).
- The 2027 National Tax Allotment (NTA) of LGUs is expected to reach nearly P1.4 trillion, the highest level in the country's history.
- The proposed 2027 national budget also includes P58.53 billion for the Local Government Support Fund (LGSF).
Executive Secretary Ralph Recto said the Marcos administration will continue increasing funding and direct support for local government units (LGUs) to help them deliver services more quickly to their constituents.
Recto made the commitment after receiving the Presidential Action Agenda of the League of Municipalities of the Philippines (LMP) during the LMP Mindanao Island Cluster Conference in Cebu City on Aug. 13.
He said the National Tax Allotment (NTA) of LGUs is expected to reach nearly PHP 1.4 trillion in 2027, the largest allocation in the country's history.
“Halos 30 percent ng lahat ng koleksyon ng buwis ng pamahalaan ay awtomatikong ibinababa sa ating mga lokal na pamahalaan (Nearly 30 percent of all government tax collections are automatically allocated to our local governments),” Recto noted.
“Ito ang pinakamalaking pondong direktang mapupunta sa mga LGU sa kasaysayan ng bansa (This is the largest fund that will directly go to LGUs in the country's history),” he said.
The largest share of the NTA will go to 1,491 municipalities, which are set to receive a combined P448.70 billion, while 83 provinces will receive P303.56 billion, 149 cities will get P303.56 billion, and 41,912 barangays nationwide will receive P263.97 billion under the 2027 distribution.
Aside from the NTA, Recto said the administration will further strengthen the Local Government Support Fund (LGSF), which finances programs and projects identified as priorities in local communities.
The proposed 2027 national budget includes P58.53 billion for the LGSF, which Recto described as the highest level in the fund's history.
“Hindi namin gustong diktahan ang mga LGU kung ano ang dapat gawin (We do not want to dictate to LGUs what they should do),” he said.
“Ang gusto namin ay makinig sa inyo, makipagtulungan sa inyo, at maghatid ng resulta kasama ninyo (We want to listen to you, work with you, and deliver results with you),” he added.
Among the initiatives supported by the LGSF is the distribution of 10 kilograms of free rice every two months to nearly eight million Filipino families, as well as projects involving roads, farm-to-market roads, water systems, health facilities, and multipurpose buildings that can serve as evacuation centers during disasters.
Recto said the government has also simplified the process for requesting LGSF assistance by reducing requirements and speeding up the release of funds so projects can be implemented sooner.
In addition, each barangay nationwide will receive P200,000 from the Presidential Socio-Civic Projects Fund, amounting to more than P8 billion in direct support for development projects in communities.
Recto said President Marcos has made clear that government support should increase when LGU programs are shown to work and deliver tangible benefits to communities.
The LMP Mindanao Island Cluster Conference was also attended by Office of the Presidential Assistant for the Visayas (OPAV) Secretary Philip Lo, Cebu Province Governor Pamela Baricuatro, LMP National President Mayor Faustino “Inno” Dy V, LMP Vice President for the Mindanao Cluster Mayor Leonard Escobillo, and LMP-Cebu President Cesar Suan.