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Back to headlinesAugust 27, 2026, 1:00 AM PHT

Public Finance · Local Government

LGUs Set to Receive ₱1.32 Trillion in National Tax Allotments in 2027

The 2027 National Tax Allotment rises by about 11% from this year's level, expanding formula-based fiscal transfers to provinces, cities, municipalities and barangays.

By FMB News DeskPublished August 27, 2026, 1:00 AM PHT2 min read
FMB News editorial visual for local government tax allotmentsFMB News editorial visual
FMB News editorial visual accompanying the 2027 National Tax Allotment report.FMB News editorial visualLicense details

Why this matters to Filipinos

FMB News connects the verified facts and evidence in this report to the decisions, costs, opportunities, and risks that may affect Filipinos, Philippine communities, and the country.

Editorial standard: Sources are listed below. Verified reporting, attributed claims, uncertainty, and analysis remain distinct.

Verified facts

What happened

Local government units are set to receive ₱1.32 trillion in National Tax Allotments in 2027, according to the Department of Budget and Management's indicative allocation.

The amount is about ₱129.32 billion, or roughly 11%, higher than the ₱1.19-trillion NTA for 2026. The 2027 shares are based on national tax collections from 2024 under the statutory formula.

Context

Context

DBM Local Budget Memorandum No. 94 provides the indicative FY 2027 NTA shares and budget-preparation guidelines for LGUs. The expanded tax base follows the Mandanas-Garcia ruling, which broadened the taxes included in computing local governments' just share.

The allotment supports devolved functions and local priorities including health, disaster preparedness, education support and infrastructure. Separate support mechanisms remain important for lower-income LGUs with more limited own-source revenues.

Filipino relevance

Why this matters

The larger formula-based transfer gives local governments more fiscal capacity but also increases the importance of transparent budgeting, timely implementation and measurable service outcomes.

What to watch next

What to watch next

LGUs will incorporate their indicative shares into 2027 annual budgets. Final implementation will depend on statutory allocation rules and the national budget process, while DBM and oversight agencies continue monitoring devolved programs and local fiscal performance.

Sources and public record

Department of Budget and Management: Local Budget Memorandum No. 94 (June 10, 2026, 12:00 AM PHT)Philippine News Agency: PBBM to highlight higher LGU allocations in SONA (June 24, 2026, 12:00 AM PHT)