MANILA — The National Tax Allotment (NTA) of Makati City for 2024 was reduced by P700 million following the removal of the 10 EMBO barangays, which are now under the jurisdiction of Taguig City in the allocation.

In a statement on Friday, Makati said that based on a Department of Budget Management (DBM) memorandum, the city would receive a little over P1 billion in 2024.

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Prior the removal of the EMBOs, its NTA was pegged at P1.7 billion.

Despite a lower allotment, Makati City Administrator Claro Certeza said they do not see social services being affected at all.

“Tuluy-tuloy pa rin ang mga programa. We are blessed to have our own taxation system that gives more than what we need. Commensurate rin naman ‘yan kung mawawalan kami ng 10 barangays na gagastusan namin, so it doesn’t really matter,” he said.

But this means, Taguig would now have to shoulder the responsibility and the welfare of around 300,000 residents in embo barangays affected by the High Court’s ruling, Certeza said.

"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,” he said.

For 2024, the city council approved a total budget of P19.7 billion, of which the social development sector takes the biggest portion of the funds.

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“Makati does not rely on the NTA because of our consistent tax collection performance. Locally-sourced revenues are more than enough to fund our 2024 budget, not to mention the savings gained from the subsidies previously given to the EMBO barangays,” Certeza said.

The NTA replaced the former Internal Revenue Allotment or IRA which are given to local governments using a specific formula and takes into consideration the size and population of a municipality, city, or province and equal sharing.

Makati’s statement came following the closure of health centers and fire stations in embo barangays.

Affected residents lost access to healthcare services previously offered by Makati. The Taguig local government, meanwhile, offered 24-hour services in its “super health” centers.

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For decades, Taguig City and Makati City have been at odds over the ownership of the disputed properties, as well as the renowned financial district BGC, also known as Fort Bonifacio or The Fort.

Following battles in lower courts which started in 1993, the Supreme Court in December 2021 ruled that the area's territorial jurisdiction falls under Taguig City. The Makati City government then filed an omnibus motion for reconsideration before the SC.

But in a resolution in September last year but only made public in April, the High Court's Special Third Division denied with finality Makati City's motion for reconsideration, saying that the basic issues it raised had been resolved and "duly considered" by the court in its earlier decision.

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