DBM Approves Full P1.9 Trillion NTA Release for LGUs in Fiscal Year 2026
The Department of Budget and Management (DBM) has officially approved the release of the P1.9 trillion National Tax Allotment (NTA) for local government units (LGUs) across the Philippines for Fiscal Year 2026. This significant financial allocation is designed to empower local governments and ensure uninterrupted delivery of essential public services.
Timely Release to Support Local Governance
In a recent statement, the DBM confirmed that Secretary Rolando Toledo authorized the Special Allotment Release Order (Saro) and corresponding Notices of Cash Allocation (NCAs) on January 26, 2026. This action covers the complete NTA requirements for LGUs nationwide, as mandated under the Fiscal Year 2026 General Appropriations Act (GAA).
Secretary Toledo emphasized that the prompt release of these funds is crucial to providing local governments with the necessary resources to deliver services without delays. "By releasing the NTA in full and on time, we are enabling LGUs to act decisively, respond to local needs, and bring immediate benefits to their constituents," he stated. The allocation aims to sustain vital local services, including:
- Health care programs and facilities
- Education support initiatives
- Disaster preparedness and response mechanisms
- Maintenance and development of local infrastructure
Understanding the National Tax Allotment
The NTA represents the automatic and formula-based share of LGUs in national internal revenue collections. It serves as a primary funding source for local programs, projects, and services, ensuring that communities receive their fair share of national resources. For Fiscal Year 2026, the NTA has been directly credited to the authorized government servicing banks of LGUs, following established budgeting, accounting, and auditing regulations.
The DBM has reminded all LGUs to utilize these funds strictly for authorized purposes and to comply with all reporting requirements. This directive aligns with transparency and accountability standards that govern public financial management.
DILG Welcomes the Fiscal Boost
The Department of the Interior and Local Government (DILG) has welcomed the full release of the NTA, viewing it as a measure to strengthen LGU capacity. In their statement, the DILG highlighted that this early and complete release provides LGUs with the fiscal space needed for effective planning and service delivery. "This directly supports stronger local governance and faster delivery of services to the public," the agency noted, aligning with the people-centric approach of the 2026 General Appropriations Act.
The DILG also reinforced the importance of judicious, transparent, and accountable utilization of the NTA. LGUs are urged to ensure that funds are used exclusively for authorized purposes and in full compliance with existing financial rules and regulations.
This comprehensive release of the P1.9 trillion NTA marks a critical step in enhancing local autonomy and improving public service delivery across the Philippines, setting a positive tone for fiscal management in 2026.
