The City Government of Manila has announced the immediate release of over P143 million in previously withheld budget items, providing a major financial boost to its 896 barangays.
The move, announced by Mayor Francisco “Isko Moreno” Domagoso on Monday, effectively clears budget backlogs that have accumulated over more than two years, ensuring local communities receive funds legally due to them.
Domagoso confirmed in a statement that the release includes three critical funding streams for barangays:
The first item is the Barangay Clearance Share, which covers funds accumulated from January 2023 to September 2025.
The second item is the Barangay Development Fund (BDF), which is the P12,000 allocation per barangay earmarked for the Fiscal Year 2025 community development programs.
The third item is the Real Property Tax (RPT) Share, which is the mandated 30% share from the city’s RPT collections for the period covering July to November 2025.
Restoring Predictable Revenue
The total combined release, finalized as of October 30, 2025, aims to normalize the flow of funds and empower barangays to provide consistent frontline services.
“While modest in amount, the allocation is expected to support basic operational needs and small-scale community programs across Manila’s 896 barangays,” Domagoso said, highlighting the importance of the BDF.
The immediate payout of the Barangay Clearance Share is a direct implementation of a city ordinance passed during Domagoso’s earlier term, which aligned the city’s processes with the Anti-Red Tape Act and the Ease of Doing Business law.
The release of the 30% RPT share is a mandated entitlement under the Local Government Code.
The City Treasurer’s Office confirmed that the financial injection—totaling over P143 million across all six districts—signifies the city’s commitment to fiscal transparency and supporting its smallest local government units.