CEBU, Philippines - Non-government and people’s organizations didn’t get financial assistance from the city government amounting to P10 million last year.
This was because a new guideline was set by the Department of Budget and Management (DBM) -7 on the utilization of the Local Development Fund (LDF), which excludes financial assistance to NGOs and POs development projects, said Marietta Gumia, City budget officer.
Last year, the P10 million was charged against the LDF under the Maintenance and Other Operating Expenses (MOOE), in effect, forfeiting the beneficiaries’ cash aid from the city government.
In a press briefing yesterday, she pointed out that the NGOs and POs can no longer claim last year’s assistance since the MOOE account closes at the end of the year.
Last year’s annual budget was pegged to P5,634,033,236.56 under the General Fund Proper and Special Accounts. P222.7 million was allocated for the LDF.
On the other hand, this year, the financial assistance to the said organizations was charged against the General Fund.
“Continuing appropriations (general fund) so walay problema basta naa lang sufficient funds ang city,†Gumia said.
Reportedly, the LDF stipulates 20% of the Internal Revenue Allotment (IRA), which can be used for social development projects such as the construction or rehabilitation of health centers, evacuation centers, cultural sites and other facilities, provided under the joint memorandum circular of the DMB-Department of Interior and Local Government (DILG).
LDF can also be used for economic development projects such as the construction of local roads and communal irrigation.
Likewise, it can be appropriated for the environmental management projects, such as reforestation, urban greening and purchase of garbage trucks.
DBM Regional Director Carmela Fernan has reminded the city government to circumspect matters especially granting financial assistance, aid, subsidies, and the like to different NGOs and POs. —/JMO (FREEMAN)