The Department of Finance (DOF) is providing more funds to the local government units (LGUs) through the National Tax Allotment (NTA), enabling them to provide more health, education, agriculture and environment, roads and infrastructure, technology, as well as security and social protection (HEARTS) projects for their constituents.
This is in line with President Ferdinand R. Marcos, Jr.’s commitment to deliver the Bagong Pilipinas through inclusive growth and regional development.
“Ang ating mga LGUs ang tunay na katuwang ng national government sa paghahatid ng serbisyo sa bawat sulok ng bansa. Kaya asahan nila ang buong suporta ng DOF para lalo pang dumami, gumanda, at mapabilis ang mga serbisyong kanilang naibibigay,” Finance Secretary Ralph G. Recto said.
“Lagi pong bukas ang DOF na makipagtulungan sa ating mga LGUs. For we believe that the success of every LGU translates into greater prosperity for Filipinos. Sa ating LGUs nakasalalay ang pag-angat ng bawat bayan at ang magandang kinabukasan ng bawat Pilipino,” he added.
The NTA shares of LGUs were increased to 40% of all national taxes collected by the DOF as mandated by the 2019 Mandanas-Garcia ruling of the Supreme Court (SC), which took effect in 2022. Previously, shares of LGUs only comprised the Bureau of Internal Revenue (BIR) collections.
This means greater capacity for LGUs to improve the delivery of essential services to their constituents and strengthen the government’s commitment to devolution under the Local Government Code of 1991.
In 2025, 43,634 provinces, cities, municipalities, and barangays received PHP 1.03 trillion in NTA, up by 18.73% from the 2024 level of PHP 871.38 billion.
By 2026, LGUs’ NTA will increase by 15.07% to PHP 1.19 trillion.
In the National Capital Region (NCR), among those receiving the biggest funding this year were Quezon City (PHP 8.53 billion), City of Manila (PHP 5.35 billion), Caloocan City (PHP 4.90 billion), Taguig City (PHP 3.74 billion), and Pasig City (PHP 2.61 billion).
Among the regions, Region IV-A received the biggest share at PHP 122.68 billion in 2025. This will increase to PHP 141.15 billion in 2026.
The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is also being supported through an annual block grant of PHP 83.42 billion in 2025. This will increase to PHP 93.98 billion in 2026.
DOF HEARTS Series
This series showcases how the DOF is funding the nation’s HEARTS (H-health, E-education, A-agriculture and environment, R-roads and infrastructure, T-technology, and S– security and social protection) to bring us to Bagong Pilipinas.
