LMP: P58.3-B LGSF fund protected from partisan interests

MANILA, Philippines – The League of Municipalities of the Philippines (LMP) said strict safeguards are in place to keep the proposed P58.32-billion Local Government Support Fund for 2027 free from political favoritism and ensure that local government units ( LGUs) get their fair share.

The amount is the biggest LGSF allocation in history.

LMP president and Echague, Isabela Mayor Faustino “Inno” Dy V said the key is making sure the record funding is distributed fairly across local governments.

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“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 that the release of such funds for all local governments nationwide should be free from partisan interests,” Dy said.

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Dy said the rules set by the Department of Budget and Management should ensure that LGUs receive their fair share regardless of political affiliation.

The LMP also thanked President Ferdinand R. Marcos Jr. for the record allocation in the proposed 2027 national budget.

“The DBM has come up with a menu of options as to what projects or programs can be bankrolled by LGU executives from their respective LGSF outays.”

Dy said the rules are meant to prevent political favoritism and keep the funds focused on priority programs and projects.

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Executive Secretary Ralph Recto has said the P58.32-billion LGSF for 2027 is the highest in the country’s history.

Dy said the record 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.”

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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 the LGSF is the distribution of 10 kilos of free rice every two months to nearly eight million Filipino families.

The fund may also be used for farm-to-market roads, water systems, health facilities and multipurpose buildings that can serve as evacuation centers during disasters.

The proposed P58.32-billion 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.

For Dy, the record amount matters. But so do the rules around it.

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With P58.32 billion going to local governments next year, the test is whether every LGU gets its fair share and whether every peso goes where it is supposed to.