League of Municipalities seeks bigger nat’l tax share for LGUs
The League of Municipalities of the Philippines (LMP) is calling for an increase in the share of local government units (LGUs)from the national tax revenues, saying they need it for better delivery of services previously assigned to national agencies but now devolved to cities and towns.
This was one of the main developments reported by the current LMP national president, Mayor Faustino “Inno” Dy V of Echague, Isabela, during the league’s national assembly held in Pasay City earlier this month.
“The LMP National Directorate composed of the Provincial Chapter Presidents has approved a resolution urging (both) houses of Congress to revisit the Local Government Code and to increase the share of the NTA (National Tax Allotment) from 40 percent to 50 percent, along with other proposed amendments to the Code,” Dy said in a speech.
The NTA refers to the 40-percent cut from the national tax revenues that is designated for LGUs and distributed by the Department of Budget and Management.
‘Genuine decentralization’
According to LMP Executive Director Andrea Loriaga, most municipalities across the country remain “NTA-dependent’’ and “their devolved functions require funding that the municipalities don’t have.”
In his speech, Dy called on LMP members to “collectively urge Congress to revisit the Local Government Code and consider our call to recompute the NTA in order to lessen this great disparity.”
“With the sustained leadership of President Marcos in empowering LGUs, with the support of Congress… we believe the country can take the next major step toward genuine decentralization that’s been long overdue,” Dy said.
LGUs capable
Aside from a bigger NTA, Dy said the league is calling for the rationalization of the personnel services cap for LGUs and for greater flexibility in determining their own organizational structures.
The LMP held its 2026 national assembly from March 8 to 11 at Marriott hotel in Pasay, with the theme “Empowered Municipalities, Stronger Nation: Local Government Code Reform for a Future-Ready Philippines.”
The assembly should serve as an opportunity for the league to demonstrate that local governments are capable of properly implementing projects and responsibly managing public funds, Dy said.
“The true strength of our country does not begin in the halls of national government alone. It begins in our towns, in our barangays, and in the communities that we serve every single day,” he said. “Let us prove that the future of the Philippines is being built in every municipality represented in this hall today.”
