(Budget Secretary Amenah Pangandaman/file)
QUEZON CITY, (PIA) – The Department of Budget and Management (DBM) has earmarked a sum of P871.3 billion for the 2024 National Tax Allotment (NTA) of local government units (LGUs) which is 6.23 percent higher than the P820.2 billion NTA shares in 2023.
The said increase in 2024 NTA that amounts to P51.11 billion resulted from the significant upturn in revenue collections in fiscal years 2020 and 2021 back when the economy is slowly reopening after the setbacks caused by the COVID-19 pandemic.
“The DBM aims to stimulate significant inclusive growth through this increase in LGUs’ NTA. This aligns with the commitment of President Ferdinand R. Marcos, Jr. to ensure that resources are utilized most effectively at local levels, thereby fostering sustained economic development across the country,” said Budget Secretary Amenah Pangandaman.
In total, the budget department has allotted P1.008 trillion for the utilization of LGUs. This essentially corresponds to the 17.5 percent of the proposed National Expenditure Program (NEP) for fiscal year 2024.
The said allocation also posted a 6 percent increase as compared to the approved P950.8 billion budget in the 2023 General Appropriations Act (GAA).
The bulk of this budget provision will finance the NTA in line with the Local Government Code of 1991 and the Supreme Court Ruling on the Mandanas-Garcia Case which primarily served as the jurisprudential foundation of fiscal decentralization.
Aside from the NTA, the P16.6 billion of the total budget allocation for LGUs will go to the Local Government Support Fund while P80.6 billion has been allotted to the BARMM Annual Block Grant (ABG), Special Development Fund, as well as BARMM shares in National Taxes.
“This allocation to LGUs excludes the funds for programs under various national government agencies which are intended for implementation across regions nationwide,” Pangandaman explained.
Each LGU is mandated to appropriate no less than 20 percent of the NTA for its Development Fund (DF) which will finance the implementation of priority development projects.
Meanwhile, 83 provinces will receive P200.416 billion from the total NTA shares of LGUs pursuant to Sections 284 and 285 of the Local Government Code (LGC) of 1991.
On the other hand, P201.2 billion has been set aside for 148 cities and P295.4 billion for 1,486 municipalities.
In addition, P174.2 billion will go to 41,953 barangays in the country.
Last Tuesday, September 19, the House of Representatives officially opened the plenary debates on House Bill No. 8980 or the General Appropriations Bill (GAB) for FY 2024.
During their sponsorship speeches, House Committee on Appropriations Chair Elizaldy Co and Senior Vice Chair Stella Luz Quimbo underscored the importance of promoting economic growth by conducting a comprehensive scrutiny of the proposed 2024 national budget.
“Let us not merely approve a budget. Let us craft a legacy,” said Quimbo, in an effort to urge lawmakers in crafting a NEP that is responsive to the existing and emerging socio-economic conditions of the country. (DBM/PIA-NCR)
