SC petition challenges P1.19-T NTA inclusion in 2026 budget

THE Supreme Court (SC) has been asked to declare unconstitutional the inclusion of the P1.19-trillion National Tax Allotment (NTA) in the 2026 General Appropriations Act (GAA), as petitioners warn that the move has already caused a P155.9-billion shortfall for local government units (LGUs).

In a petition for certiorari filed on Tuesday, Batangas Vice-Governor Hermilando I. Mandanas, the Philippine Councilors League, and a private citizen argued that the Executive branch committed grave abuse of discretion by treating the LGUs’ “just share” as a legislative appropriation subject to budget execution controls.

The petitioners said that the NTA, which serves as a primary funding source for basic services and infrastructure, must be released automatically as mandated by the Constitution.

“The inclusion and characterization of the National Tax Allotment as part of the Appropriations under the 2026 General Appropriations Act is unconstitutional and illegal, as the NTA is not a national expenditure subject to legislative appropriation but a constitutionally mandated share that must be automatically released to Local Government Units,” the petition read.

The dispute was triggered after Congress failed to pass the 2026 national budget on time, leading to the reenactment of the 2025 GAA, according to petitioners. Because the NTA was tied to the budget law, the government initially accrued only P1.03 trillion for LGUs (the 2025 figure) instead of the P1.19 trillion proposed for 2026.

“Given the constitutionally limited three-year term of elected local officials, any uncertainty, delay, or diminution in the accrual of the NTA results in concrete and present injury by constraining governance priorities, development planning, and service delivery,” the petitioners added.

The petitioners further argued that the LGU share does not accrue to the National Treasury and therefore falls within the exceptions to the rule that money can only be paid through an appropriation made by law. — Erika Mae P. Sinaking