Solon to file bill seeking 5% increase in LGUs’ National Tax Allotment


Ilocos Norte 2nd District Rep. Angelo Marcos Barba is set to file a bill seeking to increase the National Tax Allotment (NTA) of local government units (LGUs) by five percentage points, a measure aimed at strengthening local fiscal autonomy under the Mandanas-Garcia framework.
Barba announced the proposal during a meeting with leaders of LokalGovPH, where they discussed the measure and sought to build support among local government stakeholders ahead of its filing in Congress.
Under the proposed measure, the additional five-percent share in national taxes would be implemented gradually at one percentage point annually to allow a smoother fiscal transition.
The bill also seeks to allocate 70% of the additional NTA to municipalities, citing their primary role in delivering basic public services. The remaining 30% would be divided equally among provinces, cities, and barangays, with each receiving a 10% share.
Another key provision is the creation of an Income Classification Equalization Factor, which would provide greater financial support to lower-income LGUs in an effort to reduce development disparities among communities.
"Our LGUs are on the frontlines of governance, yet many remain fiscally constrained. This bill strengthens local fiscal autonomy so our municipalities, cities, and barangays can deliver better services without always relying on congressional insertions for basic infrastructure," Barba said.
The lawmaker said expanding the fiscal capacity of municipalities and other local governments would improve public service delivery and enable LGUs to better fulfill their devolved responsibilities under the Local Government Code, as reinforced by the Supreme Court's Mandanas-Garcia ruling.
Barba added that consultations with LokalGovPH were intended to refine the bill's provisions and consolidate support from local government stakeholders before its formal introduction in Congress.
He also reaffirmed his commitment to advancing legislative reforms that strengthen local governments and improve governance nationwide.