Manila, Philippines — The Department of Budget and Management (DBM) has allocated P4.88 billion for the provision of financial assistance to local government units (LGUs) to support their priority programs, especially infrastructure development.
Acting Budget Secretary Wendel Avisado issued Local Budget Circular 122, dated Jan. 31, which laid out the guidelines for the release and utilization of the P4.88 billion Local Government Support Fund-Other Financial Assistance (LGSF-FA) to LGUs under the 2020 General Appropriations Act.
Under the circular, the appropriated amount shall be used for financial assistance to LGUs, except for those under the Bangsamoro Autonomous Region in Muslim Mindanao, specifically for priority projects.
These include the construction, rehabilitation or repair of roads and bridges, public markets, slaughter houses, multipurpose buildings and pavements, drainage canals, sea or river wall, water systems, evacuation centers, public parks, fish ports, and post-harvest facilities.
The fund may also be used for the purchase of ambulances, trucks, mini dump trucks, or multicabs; for the implementation of sports programs and procurement of sports facilities; for street lighting or barangay electrification programs; and for the provision of financial assistance to mental health patients.
According to the DBM, the LGSF-FA to LGUs was placed under conditional implementation to ensure that it would be used only when said priority projects cannot be accommodated by any available LGU funds.
“Further, the President also provided that in the continued pursuit of the Golden Age of Infrastructure in the Philippines, priority on the use of the LGSF-FA shall be given to infrastructure projects that are aligned with the Build, Build, Build program of the government,” the DBM said.
The circular also stated that the fund may not be used for purposes other than the identified programs or projects, or locations other than the LGU for which it was released.
It cannot be utilized to fund projects already fully covered by other sources of funds, nor for the payment of personnel services expenditures.
Interested LGUs may submit their request for funds, together with the documentary requirements, either to the DBM regional office or DBM central office for evaluation.
LGUs that previously received funding support under the LGSF-FA from 2016 to 2019 are also required to submit a report on fund utilization and status of project implementation.
The deadline for the submission of requests is on or before June 30, 2020.
After evaluation, the financial assistance will be released directly by the Bureau of the Treasury to the beneficiary LGUs through authorized government servicing banks.