The Department of Budget and Management (DBM) wants to strengthen the autonomy of local government units (LGUs) in delivering essential services to the public through higher funding allocation.
During the Development Budget Coordination Committee (DBCC) Senate briefing on Wednesday, Sept. 14, Budget Secretary Amenah F. Pangandaman said the Marcos administration has allotted almost P1 trillion for LGUs in 2023.
Pangandaman said the greater allotment aims to recognize LGUs’ role in achieving inclusive and sustainable economic prosperity for the country.
“With a total allocation of P962.2 billion for LGUs, we aim to strengthen our efforts in capacitating and empowering them to autonomously deliver essential services to their constituents,” Pangandaman said.
The amount cornered 18.3 percent of the P5.268 trillion proposed national budget next year.
Of the amount, P820.27 billion is for the National Tax Allotment, adhering to the Mandanas-Garcia Supreme Court ruling.
It also includes P28.88 billion worth of Local Government Support Fund (LGSF) which is around Php10.91 billion higher than the P17.97 billion appropriated this year.
The LGSF is composed of Php13.88 billion for the provision of the Growth Equity Fund as financial assistance to the identified poor, disadvantaged, and lagging LGUs.
There is also P5 billion for the financial assistance to be given to all level LGUs, except for those under BARMM; and P10 billion for the Support to Barangay Development Program (SBDP).
The assistance to LGUs is aimed at implementing agriculture-related programs and projects, information and communications technology systems and infrastructure development, construction, maintenance, and/or rehabilitation of public spaces, and programs for disaster response, rehabilitation, and recovery.
“Despite the limited fiscal space, we tried to increase some of the budget allocations for LGUs,” the budget chief said, adding that the economic transformation agenda will not be possible without them.
On Tuesday, the DBCC briefed the Senate Committee on Finance chaired by Sen. Juan Edgardo “Sonny” Angara on the highlights of the 2023 National Expenditure Program (NEP).
Pangandaman presented the dimensions, as well as the proposed new special and general provisions that will govern the first full-year budget of the Marcos administration.
In terms of sectoral breakdown, the social services sector (P2.071 trillion or 39.3 percent) covering education and health, among others, is allotted the largest share of the Php5.268 trillion proposed national budget.
This is followed by the economic services sector (P1.528 trillion or 29.0 percent) which will largely support the Build, Better, More Program.
“This is consistent with the President’s goal to reduce poverty, usher in economic transformation, and accelerate economic recovery,” the budget chief shared.
Meanwhile, the general public services sector will be allocated with P807.2 billion (15.3 percent); debt burden with P611.0 billion (11.6 percent) for net lending assistance to Government-Owned and Controlled Corporations (GOCCs) and interest payments; and finally, defense with P250.7 billion (4.8 percent).
Pangandaman also presented the proposed budget by expense classification, by recipient units, and by regions.
“We are one with the President in moving the country forward through united efforts for economic transformation,” she underscored.