President Ferdinand “Bongbong” Marcos Jr. is reshaping public spending by placing local government units (LGUs) at the core of project planning under the ₱6.793 trillion national budget for 2026.
In a Malacañang briefing, Communications Undersecretary Claire Castro emphasized that local projects must originate from LGUs, ending the practice of lawmakers’ “pet projects” being implemented without local officials’ knowledge.
“Hindi puwedeng magulat ang isang mayor na may proyektong tinatayo sa kaniyang lugar na hindi niya alam,” Castro said.
The move aligns with the administration’s full implementation of Executive Order No. 103, devolving spending authority and making LGUs accountable as primary planners and implementers.
Under the 2026 plan, LGUs will receive ₱1.19 trillion in National Tax Allotment, ₱31.7 billion in special shares, and ₱1.41 billion in fire code fees. The Local Government Support Fund will rise to ₱57.87 billion, prioritizing basic services, livelihood programs, and aid for low-income LGUs.
Budget Acting Secretary Rolando Toledo noted the shift was not only about increasing funds but also changing allocation rules.
“Hindi lang natin dinagdagan ang pondo, binago natin ang mismong paraan ng paglalagay ng pondo sa budget,” he said.
The budget also boosts the Growth Equity Fund and allocates ₱15.33 billion for disaster rehabilitation, underscoring LGUs’ expanded role in development planning and crisis response.