DBM raises proposed LGU allocation to P1.527 trillion

CEBU, Philippines — The Department of Budget and Management (DBM) is proposing P1.527 trillion in resources for local government units (LGUs) in 2027, an increase of P140.5 billion or 10.14 percent from the P1.386 trillion allocation in 2026.

The proposed allocation, net of the Metropolitan Manila Development Authority, includes P1.320 trillion in National Tax Allotment (NTA), up P129.3 billion from P1.191 trillion this year.

The NTA will provide provinces, cities, municipalities, and barangays with resources for basic and social services, local infrastructure, disaster preparedness, and other devolved functions.

The DBM is also proposing P58.533 billion for the Local Government Support Fund (LGSF), including P37.493 billion for financial assistance to LGUs, P10.3 billion for the Growth Equity Fund, and P9.74 billion for the Support to Barangay Development Program.

Another P1 billion is proposed for Participatory Budgeting Support to help LGUs identify local priorities through transparent and inclusive processes.

Budget Secretary Kim Robert C. De Leon said in a statement that strengthening local fiscal capacity would bring resources and decision-making closer to communities.

The DBM also clarified that LGUs may directly submit requests for LGSF assistance through the prescribed process without the need for a middleman. — (FREEMAN)