MANILA, Philippines — The Department of Finance (DOF) assured local government units (LGUs) that the computation of their National Tax Allotment (NTA) shares strictly adheres to relevant constitutional provisions, emphasizing transparency and accountability in the process.
“We assure our LGUs that we are strictly adhering to transparency and accountability, especially with the principles set by the Supreme Court, in implementing the Mandanas-Garcia ruling,” Finance Secretary Ralph Recto said in a statement on Sunday.
“Nothing is shortchanged,” he added.
The anti-corruption group Mayors for Good Governance earlier called on the DOF for a full accounting of the 40 percent share of national taxes meant for local governments.
They claimed cities and municipalities only receive 31 percent instead of the full 40 percent mandated by the Mandanas-Garcia ruling.
The League of Cities of the Philippines (LCP) supported the call, aiming to clarify how much they are truly receiving as their rightful share of the national revenue.
The Mandanas-Garcia ruling, which took effect in 2022, expanded the NTA shares of LGUs to 40 percent of all national tax collections, beyond those collected by the Bureau of Internal Revenue.
This adjustment grants LGUs greater fiscal autonomy, enabling them to receive a more substantial share of the national tax base to fund local development projects and improve service delivery.
The Supreme Court mandated that the NTA computation include all national tax collections, excluding those allocated to special purpose funds and specific allotments for national wealth development and utilization.
Recto said that its computations are guided by the Supreme Court decision, as well as Section 29(3), Article VI, and Section 7, Article X of the 1987 Constitution, ensuring that deductions are in full compliance with the law.
The Finance chief stressed that they welcome “continued dialogues with our LGUs to help them strengthen their fiscal capacities and optimize resource utilization to deliver more and better services to Filipinos.”
He said that he is scheduled to meet officials of the League of Cities next week to discuss the NTA computation and address any concerns raised by LGUs.
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