DBM Pegs ₱871-B Indicative 2024 LGU Tax Allotment Share

The Department of Budget and Management (DBM) has released the guidelines on the preparation of the annual budgets of local government units (LGUs), which indicative national tax allotment share was pegged at P871.38 billion for 2024.

Photo Insert: The DBM's memorandum also outlined the guidelines on the preparation of the 2024 annual budgets of the LGUs, including the priorities in the use of the NTA and other local resources.

Local Budget Memorandum (LBM) No. 87 dated June 9, 2023, signed by Budget Secretary Amenah F. Pangandaman, details the factors in the allocation of the 2024 NTA shares of the LGUs consistent with the codal formula provided in the Local Government Code of 1991 and in compliance with the Mandanas ruling.

"The LGUs’ total NTA shares for FY 2024 amount to P871.38 billion, based on the certifications issued by the tax collecting agencies,” Pangandaman said in a statement.

The Bureau of Internal Revenue (BIR), P688.00 billion; Bureau of Customs, P183.36 billion; and other agencies certified by Bureau of the Treasury, P19.60 million. Next year’s NTA level is P51.11 billion or 6.23 percent higher than this year’s shares of LGUs.

The DBM memorandum further stated that municipalities are entitled to an NTA share of P295.47 billion, cities with P201.22 billion, provinces with P200.42 billion, and barangays with P174.28 billion.

The memorandum also outlined the guidelines on the preparation of the 2024 annual budgets of the LGUs, including the priorities in the use of the NTA and other local resources.

Accordingly, the NTA and other local resources shall first cover the cost of providing the basic services and facilities enumerated in Section 17 (b) of the Local Government Code of 1991, particularly those devolved by the national government, before applying the same for other purposes.

“All LGUs are likewise reminded to appropriate funds in its annual budget no less than twenty percent (20 percent) of its NTA share for development projects, which is commonly known as the 20 percent Development Fund,” the DBM said.

Further, the DBM also required LGUs to allocate funds for programs, projects and activities as mandated by pertinent laws.

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