Tax share of LGUs reduced to P820B

THE Department of Budget and Management (DBM) announced that the national tax allotment (NTA) share of local government units (LGUs) will be reduced to more than P820 billion next year.

DBM officer in charge Tina Rose Marie Canda said in a memorandum released on Thursday that the total NTA share for local governments will be P820.26 billion, down P138.77 billion or 14.47 percent from this year's allotment.

She said the NTA will provide funding to 43,651 local governments. Of the total, P188.66 billion will go to 82 provinces, P188.66 billion to 146 cities, P278.89 billion to 1,488 municipalities and P164.05 billion to 41,935 villages.

Under the Local Government Code of 1991, local governments are entitled to a 40-percent portion of national internal revenue taxes.

Canda said at least 20 percent of each local government's NTA contribution must be set aside for development initiatives.

"Local budget plans and goals shall, as far as practicable, be harmonized with national development plans, goals and strategies to optimize the utilization of resources and to avoid duplication in the use of fiscal and physical resources," she added.

Given the uncertainty surrounding when the Covid-19 pandemic will end, local governments have been asked to continue to fund Covid-19-related programs, initiatives and activities (PPAs) as needed.

"The Covid-19-related PPAs and expenses that may be funded by the LGUs may include those that are related to the prevention of the spread of Covid-19, provision of basic services to the affected population, necessary support to frontline workers, procurement and administration of Covid-19 vaccines, and ancillary supplies and services, subject to the provisions of the "Covid-19 Vaccination Program Act of 2021" (Republic Act 11525) and other PPAs related to Covid-19 response and recovery measures."

Nonetheless, it is understood that local governments will determine the specific Covid-19-related PPAs and expenses that may be included in their respective annual budgets, in consultation with appropriate and competent authorities, taking into account the necessity for such PPAs and expenses, as well as the availability of funds, among other factors.

Source: TheManila Times