THE proposed P58.32 billion Local Government Support Fund (LGSF) for 2027, the largest allocation in the fund’s history, will be distributed under safeguards intended to ensure that local governments receive assistance fairly and without regard to political affiliation, the League of Municipalities of the Philippines (LMP) said.
LMP President and Echague, Isabela Mayor Faustino Dy V said the Department of Budget and Management (DBM) has established rules to ensure the equitable and proportionate distribution of the record allocation among provinces, cities and municipalities.
“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.
He said the rules should ensure that local governments receive their fair share regardless of political affiliation while keeping the fund focused on priority programs and projects.
“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 outlays,” Dy said.
Executive Secretary Ralph Recto has described the P58.32 billion allocation as the highest LGSF fund in the country’s history.
Dy said the record funding reflects the administration’s confidence in local governments and gives them additional resources to support local development.
“We will not fail the president. We will make sure that the funds are spent wisely based on the DBM’s guidelines and subject to strict auditing and accountability rules,” Dy said.
He described the LGSF as an “equity tool” that helps promote a fairer distribution of national resources among local governments and reduces the space for patronage politics.
The proposed LGSF consists of 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.
Among the programs supported by the LGSF is the distribution of 10 kilos of free rice every two months to nearly 8 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 LGSF allocations will be provided on top of the National Tax Allotment (NTA), formerly known as the Internal Revenue Allotment, which was expanded following the Supreme Court’s Mandanas-Garcia ruling.
For 2027, the country’s 1,491 municipalities are set to receive a combined P448.70 billion in NTA, while provinces, cities and villages will also receive their respective shares under the national budget.
The LMP said the record LGSF allocation would give local governments greater resources to address local needs, but stressed that the funds must be distributed and spent according to DBM rules and existing auditing and accountability requirements.
