The national government plans to expand financial resources and direct assistance to local government units (LGUs) to expedite the delivery of public services, according to Executive Secretary Ralph Recto.
The commitment was made following Recto’s receipt of the Presidential Action Agenda from the League of Municipalities of the Philippines (LMP) during the LMP Mindanao Island Cluster Conference in Cebu City.
The National Tax Allotment (NTA) for LGUs is projected to hit nearly ₱1.4 trillion in 2027, marking the largest fund distribution in the nation’s history.
“Halos 30% ng lahat ng koleksyon ng buwis ng pamahalaan ay awtomatikong ibinababa sa ating mga lokal na pamahalaan,” Recto noted.
“Ito ang pinakamalaking pondong direktang mapupunta sa mga LGU sa kasaysayan ng bansa,” he said.
Municipalities will secure the largest NTA portion under the 2027 allocation, with 1,491 towns sharing a combined ₱448.7 billion. Meanwhile, 83 provinces and 149 cities are slated to receive ₱303.56 billion each, while 41,912 barangays nationwide will be assigned ₱263.97 billion.
Alongside the NTA, the administration intends to bolster the Local Government Support Fund (LGSF), which backs priority projects chosen by local communities. The proposed 2027 national budget sets aside a record-high ₱58.53 billion for the LGSF.
“Hindi namin gustong diktahan ang mga LGU kung ano ang dapat gawin,” he said.
“Ang gusto namin ay makinig sa inyo, makipagtulungan sa inyo, at maghatid ng resulta kasama ninyo,” he added.
Programs backed by the LGSF include bi-monthly distributions of 10 kilograms of free rice to roughly eight million Filipino families. The fund also drives local infrastructure, such as roads, farm-to-market pathways, water networks, healthcare facilities, and multipurpose centers for disaster evacuation.
To speed up project execution, the administration simplified LGSF application procedures by cutting down documentation requirements and accelerating fund disbursements.
Additionally, every barangay across the country will be granted ₱200,000 from the Presidential Socio-Civic Projects Fund, channeling more than ₱8 billion directly to grassroots development projects.
President Ferdinand Marcos Jr. instructed that state funding should grow when local initiatives prove successful and yield concrete benefits for residents, Recto affirmed.
The event was attended by Office of the Presidential Assistant for the Visayas (OPAV) Secretary Philip Lo, Cebu Governor Pamela Baricuatro, LMP National President Mayor Faustino “Inno” Dy V, LMP Vice President for the Mindanao Cluster Mayor Leonard Escobillo, and LMP-Cebu President Cesar Suan.