Finance Secretary Benjamin E. Diokno on Friday, Sept. 2, said local government units (LGUs) should boost up their fiscal resilience by stimulating growth on the local level.

Diokno told local chief executives, especially in Samar and Leyte where he attended an event, that all LGUs should step up its efforts to build up fiscal resilience.

“Now that we are emerging from the pandemic, you must lead our LGUs in building fiscal resilience while stimulating the growth of our local economies,” he said.

Diokno said a sound local government finance is important as the revenue share of LGUs has increased with the implementation of the Supreme Court ruling on the Mandanas-Garcia case.

“You are now primarily responsible and accountable for the provision of basic services and facilities fully devolved to LGUs. With this expanded mandate, you must lead your local governments in improving revenue collection and resource mobilization to attain fiscal sustainability and genuine local autonomy,” he told mayors in Samar and Leyte province.

The finance chid said that during the pandemic, particularly in 2020, the LGUs were front and center in the delivery of public services. “As a result, the health crisis had a significant impact on the fiscal resources of many localities,” said Diokno.

The Department of Finance’s (DOF) Bureau of Local Government Finance (BLGF) has been working with LGUs to strengthen its local treasury and assessment operations.

The BLGF has been conducting the Standardized Examination and Assessment for Local Treasury Service or SEAL program to enable LGUs with capacity building and development interventions.

Diokno said the SEAL program aims to professionalize and modernize the local government treasury service.

In addition, the DOF wants LGUs to fasttrack its digitalization programs such as in the local revenue collection to boost overall tax effort, and improve the ease of doing business, as well as to eliminate discretion.