Finance Secretary Ralph G. Recto underscored the Department of Finance’s (DOF) critical role in empowering local government units (LGUs) to succeed in delivering tangible results to their communities, ensuring that national progress is felt at the grassroots level.

“It is our duty to assist you in building up your financial capacity, attaining fiscal sustainability, and contributing to national growth,” he said in his keynote message at the Bureau of Local Government Finance’s (BLGF) 38th Anniversary on November 5, 2025.

“For we all know this: the strength of the Republic is measured by the strength of our LGUs. Hindi natin kayang maiangat ang bawat rehiyon, siyudad, komunidad, at pamilyang Pilipino mula sa kahirapan kung hindi matatag ang mga LGU na nagsisilbi sa kanila araw-araw,” he added.

The DOF-BLGF provides sound, innovative, and up-to-date local fiscal policies to safeguard local financial viability, enhance revenue and resource mobilization, as well as foster good governance and fiscal transparency of LGUs. It also oversees local treasury and assessment.

The DOF is also providing more funds to LGUs through the National Tax Allotment (NTA), enabling them to provide more public services.

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.

All these are in line with President Ferdinand R. Marcos, Jr.’s commitment to deliver the Bagong Pilipinas through inclusive growth and regional development.

To further equip LGUs, Secretary Recto announced the launch of the Integrated Electronic Official Receipt to help every local government standardize, integrate, and enhance their fiscal and financial management operations. This is among the key reforms the DOF instituted when Secretary Recto took office in 2024.

Furthermore, he announced the publication of three new valuation and assessment manuals, which will help LGUs exercise fiscal fairness under the Local Governance Reform Project (LGRP) of the BLGF.

The Local Assessment Manual (LAM) serves as a comprehensive reference for local assessment officials, reinforcing standardization, transparency, and efficiency in the administration of real property taxation.

The Mass Appraisal Guidebook (MAG) supplements the LAM, detailing mass appraisal processes and procedures that may be applied to all property types.

Meanwhile, the Philippine Valuation Standards (PVS) serve as a reference for valuation professionals, government agencies, and stakeholders, ensuring transparency, accuracy, and compliance in property valuation across various sectors.

The Finance Chief also thanked the Asian Development Bank (ADB) for its continued support in implementing the LGRP, which strengthens the Real Property Valuation and Assessment Reform Act (RPVARA).

“Asahan po ninyo ang mabilis na pagpapatupad sa mga bagong reporma at programa para gawing mas klaro, mas simple, at mas moderno ang pamamalakad ng ating gobyerno. For we all know this: the strength of the Republic is measured by the strength of our LGUs,” he said.

Secretary Recto also conveyed the DOF’s strong support to the BLGF’s mission in facilitating local fiscal transformation, which isn’t just about collecting taxes and managing funds, but having a stronger connection with their constituents.

During the event, the DOF and the BLGF recognized the top-performing LGUs according to their Local Source Revenues (LSR), Ratio of LSR to Total Current Operating Income, Year-on-Year Growth in LSR, and Total Current Operating Expenditures per Capita.

“Today’s reforms, and today’s awards, remind us that local finance is not a local concern alone— it is a national priority. Dahil kapag matatag ang pinansyal na performance ng ating mga LGU, mas mabilis ang pagdaloy ng serbisyo, mas dadami ang negosyo, mas maraming trabaho ang malilikha, at mas lalaki ang kita ng bawat Pilipino,” the Finance Chief said.

Local Source Revenues (LSR)

The top-performing provinces according to local source revenues were the Province of Bulacan (PHP 3.39 billion); Cebu (PHP 3.01 billion); Province of Rizal (PHP 2.83 billion); Pampanga (PHP 2.71 billion); Province of Quezon (PHP 2.31 billion); Bataan (PHP 2.25 billion); Province of Pangasinan (PHP 1.49 billion); Province of Cavite (PHP 1.41 billion); Negros Occidental (PHP 1.37 billion); and Iloilo (PHP 1.32 billion).

The top-performing cities were: Quezon City (PHP 28.86 billion); Makati City (PHP 18.90 billion); Taguig City (PHP 16.15 billion); Pasig City (PHP 14.64 billion); Manila City (PHP 12.86 billion); Parañaque City (PHP 9.60 billion); Pasay City (PHP 8.07 billion); Davao City (PHP 6.84 billion); Mandaluyong City (PHP 6.61 billion); and Cebu City (PHP 5.91 billion).

Top-performing municipalities were: Cainta, Rizal (PHP 1.26 billion); Mariveles, Bataan (PHP 1.17 billion); Limay, Bataan (PHP 992.75 million); Malay, Aklan (PHP 777.21 million); Silang, Cavite (PHP 759.01 million); Taytay, Rizal (PHP 751.07 million); Consolacion, Cebu (PHP 711.55 million); Marilao, Bulacan (PHP 694.06 million); Mauban, Quezon(PHP 661.42 million); and Masinloc, Zambales (PHP 560.91 million).

Ratio of LSR to Total Current Operating Income

The top provinces according to Ratio of LSR to Total Current Operating Income were Bataan (50.88%); Pampanga (41.66%); Bulacan (38.51%); Rizal (37.44%); Cebu (36.25%); Aklan (36.13%); Quezon (33.32%); Zambales (32.50%); Sorsogon (31.40%); and Benguet (29.56%).

The top-performing cities were: Makati City (93.32%); Pasig City (84.74%); Mandaluyong City (83.22%); Pasay City (82.32%); San Juan City (79.31%); Quezon City (78.66%); Taguig City (77.35%); Parañaque City (77.12%); Santa Rosa City (75.11%); and Manila City (73.58%).

The top municipalities were: Limay, Bataan (79.40%); Malay, Aklan (79.11%); Mariveles, Bataan (71.88%); Sual, Pangasinan (70.48%); Masinloc, Zambales (68.26%); Mauban, Quezon (67.66%); Kauswagan, Lanao Del Norte (65.95%); Guiguinto, Bulacan (61.93%); Consolacion, Cebu (61.19%); and Pateros, Metro Manila (59.35%).

Year-on-year growth in locally-sourced revenues

For the year-on-year growth in LSR indicator, the top provinces were: Samar (110.08%); Siquijor (101.15%); Catanduanes (99.35%; Bohol (97.40%); Cebu (88.15%); Sorsogon (84.91%); Ilocos Sur (57.60%); Misamis Occidental (53.54%); Bulacan (51.95%); and Pangasinan (45.78%).

The top Highly-Urbanized Cities were: Lapu-lapu City (37.35%); Iloilo City (35.07%); Cebu City (25.76%); Paranaque City (21.48%); Baguio City (19.44%); Taguig City (19.22%); San Juan City (18.03%); Mandaluyong City (14.79%); Angeles City (12.71%); and Pasig City (11.48%).

The top Component and Independent Component Cities were: Tagaytay City (19.20%); Lipa City (19.11%); San Pedro City (19.06%); Toledo City (18.78%); Santa Rosa City (16.94%); Naga City (15.70%); Antipolo City (15.02%); Batangas City (14.06%); Tagbilaran City (13.04%); and Meycauyan City (12.80%).

The top municipalities were: Caoayan, Ilocos Sur (347.52%); Kapalong, Davao del Norte (342.30%); San Felipe, Zambales (182.05%); Tubod, Surigao del Norte (170.06%); Consolacion, Cebu (158.73%); San Jacinto, Masbate (135.43%); San Marcelino, Zambales (132.77%); Alitagtag, Batangas (130.51%); Badian, Cebu (106.42%); and Currimao, Ilocos Norte (97.87%).

Total Current Operating Expenditures per Capita

For the Total Current Operating Expenditures per Capita indicator, the top performing provinces were: Batanes (PHP 24.08 billion); Dinagat Islands (PHP 6.46 billion); Quirino (PHP 6.31 billion); Mountain Province (PHP 6.18 billion); Siquijor (PHP 5.42 billion); Guimaras (PHP 5.06 billion); Kalinga (PHP 4.758 billion); Catanduanes (PHP 4.75 billion); Ifugao (PHP 4.35 billion); and Abra (PHP 4.31 billion).

The top cities were: Makati City (PHP 54.03 billion); San Juan City (PHP 19.60 billion); Pasay City (PHP 16.24 billion); Mandaluyong City (PHP 16.04 billion); Ilagan City (PHP 15.36 billion); Tandag City (PHP 12.74 billion); Santiago City (PHP 11.22 billion); Muntinlupa City (PHP 11.19 billion); Salvador City (PHP 10.96 billion); and Borongan City (PHP 10.71 billion).

The top municipalities were: Kalayaan, Palawan (PHP 207.76 billion); Daguioman, Abra (PHP 44.57 billion); Ivana, Batanes (PHP 43.91 billion); Lacub, Abra (PHP 40.13 billion); Uyugan, Batanes (PHP 39.20 billion); Dinapigue, Isabela (PHP 37.19 billion); Sabtang, Batanes (PHP 34.39 billion); Adams, Ilocos Norte (PHP 34.04 billion); Tineg, Abra (PHP 33.14 billion); and Mahatao, Batanes (PHP 28.21 billion).

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.