Makati City will receive a reduced National Tax Allotment for 2024 following the Department of Budget and Management's exclusion of 10 barangays known as the "EMBO" group.
City Administrator Claro Certeza announced the change on Friday, stating that Makati will only receive its NTA for the remaining 23 barangays under its jurisdiction.
"This means that Taguig has to assume full responsibility for the benefits and welfare of over 300,000 residents that are now under its jurisdiction," Certeza said.
He highlighted DBM's Budget Memorandum No. 87-A dated 28 December 2023, reducing Makati's NTA allocation for 2024 from P1,775,342,277 to P1,006,144,469.
"It is now incumbent upon Taguig to take up the mantle of governance and welfare for these communities. This transition marks a new chapter, not only in the administrative dynamics of our cities, but also in the lives of the residents of these barangays. We trust that Taguig City will uphold the highest standards of service and care that these residents rightfully deserve," Certeza stated.
Despite the NTA reduction, Certeza emphasized that the impact on Makati's programs and services will be minimal. He cited the city's strong local revenue collection, exceeding P24.8 billion as of December 2023. Business tax and realty tax contribute significantly to this figure.
Makati's approved budget for 2024 stands at P19.7 billion, with the Social Development Sector receiving the largest allocation. Healthcare, education, and social welfare sub-sectors receive P4.1 billion, P3.2 billion, and P1.8 billion, respectively.
For comparison, Makati allocated P1.4 billion to primary healthcare and P1.6 billion to Ospital ng Makati's patient care program in 2023. Additionally, roughly P2 billion went towards education programs and P1 billion towards social welfare initiatives.
The NTA is a system for distributing national tax revenues to local government units, replacing the Internal Revenue Allotment. The formula considers population (50 percent), land area (25 percent), and equal sharing (25 percent).
The Supreme Court in 2023 affirmed its 2021 ruling that Taguig, not Makati, has jurisdiction over the Fort Bonifacio Military Reservation, which includes the Bonifacio Global City and the EMBO barangays.