Local execs vow proper use of P58.32- billion LGSF

MANILA, Philippines — Learning a hard lesson from massive anomalies in the flood control scandal, the League of Municipalities in the Philippines gave assurances that the government’s record high P58.32-billion budget for local government units in 2027 will be used properly.

“We will not fail the President. We will make sure that the funds are spent wisely based on the Department of Budget and Management’s guidelines and subject to strict auditing and accountability rules,” LMP president Faustino “Inno” Dy V promised.

He said there are “strict safeguards” in place to keep the proposed P58.32-billion Local Government Support Fund (LGSF) for 2027 “free from political favoritism and ensure LGUs get their fair share.”

Budget watchdogs have warned that the LGSF is a lump-sum appropriation that smacks of a form of pork barrel.

The proposed LGSF includes P37.49 billion in financial assistance to LGUs, P10.3 billion for the Growth Equity Fund, P9.74 billion for the Barangay Development Program of the National Task Force to End Local Communist Armed Conflict, and P1 billion for support and assistance under participatory budgeting.

LGUs will receive these funds on top of their National Tax Allotment, formerly known as the Internal Revenue Allotment before the Supreme Court’s Mandanas-Garcia ruling expanded the tax base used to compute the share of local governments.

The country’s 1,491 municipalities will receive the largest combined NTA allocation at P448.70 billion. Another P303.56 billion will go to 83 provinces, P303.56 billion to 149 cities and P263.97 billion to 41,912 barangays.

“Guard rails have been put in place by the DBM to ensure the equitable and proportionate distribution of the LGSF among all provincial, city and municipal governments, in keeping with the directive of the President,” Dy stressed.

Release of such funds to LGUs, according to President Marcos, “should be free from partisan interests.”

“The record LGSF allocation shows President Marcos’ trust and confidence in local governments, from provinces and cities to municipalities and barangays. It also reflects his commitment to giving LGUs more room and resources to drive local development,” said Dy, mayor of Echague town in Isabela and son of Speaker Faustino Dy III.

Executive Secretary Ralph Recto said that the LGSF for 2027 is the highest in the country’s history.

In a statement, Dy described the LGSF as an equity tool that helps ensure a fairer distribution of national resources among LGUs and “limits the space for patronage politics.”

Among the programs funded through LGSF is the distribution of 10 kilos of free rice every two months to nearly eight million families. It may also be used for farm-to-market roads, water systems, health facilities and multipurpose buildings that can serve as evacuation centers. during disasters.