It must be noted that the NTA is based on actual tax cash collections of the NG in the third preceding year. Hence the base for the FY 2023 NTA will be the actual collections in 2020 while the base for the FY 2024 will be the 2021 actual collections. The NTA for 2023 is expected to be significantly lower compared to the 2022 level due to lower revenue collections in 2020 because of muted economic activity due to the pandemic. In 2024 the NTA is expected to register an increase as economic conditions improve in 2021 vis-a-vis the 2020 outturn. Based on the medium-term fiscal program in the FY 2022 BESF, revenues for 2021 are expected to reach PhP2,881.5 billion. This is 0.89 percent higher than the actual revenues collected for 2020 amounting to PhP2,856 billion. However, we should not forget that the LGC vests LGUs with autonomy to be able to deliver better services to their constituencies. Hence, the LGC vests them with the capacity to generate revenues, borrow from GFIs, and even enter into PPP arrangements with the private sector. As of end-Q3 of 2020, LGUs have collected PhP 205.71 billion own-source revenues which already exceeded the PhP 193.04 billion own-source revenue targets7 set by the DOF-BLGF for all provincial, city, and municipal treasurers. Let us not pre-judge the ability of LGUs to manage this NTA situation. The key will be the ability of the LGUs to anticipate and plan for these developments.