Local government units (LGUs) showed a slight uptick in loan requests in April 2026 compared to the same month last year, even as the total financing amount saw a sharp decline to ₱2.7 billion due in part to budget surpluses typical of a non-election period.

According to the latest data from the Department of Finance-Bureau of Local Government Finance (DOF-BLGF), the number of LGUs seeking certificates of net debt service ceiling and borrowing capacity (CNDSCBC) inched up to 17 in April from the 16 recorded in April last year. The BLGF issues these certificates to LGUs, which then submit them to government financial institutions (GFIs) to prove their capacity to repay loans.

However, the total financing requirement for April 2026 plummeted by roughly 73 percent from the ₱10.1 billion requested during the same month a year earlier. This sharp disparity stems from a massive ₱6.1 billion request from Butuan City (Caraga) in April 2025 for its logistical seaport project. By contrast, the largest single request in April 2026 was San Carlos City’s (Pangasinan) ₱500 million loan for road rehabilitation.

Ma. Teresa S. Habitan, vice chancellor of the DOF-attached Philippine Tax Academy (PTA), told Manila Bulletin last week that the lower borrowing demand could be attributed to recent leadership changes across various LGUs.

“Part of the reason could be that there are many new local chief executives (LCEs), and they are still familiarizing themselves with their budgets. So, the financing requirement is still small,” Habitan said. “It could also be because election spending has stopped for now, resulting in revenues being higher than expenditures.” This implies that LGUs are currently well-funded enough to cover their projects.

While the LGUs’ total legal borrowing capacity declined to ₱10.9 billion in April 2026 from ₱16.2 billion last year, it remained high relative to their actual financing needs. For the month, the aggregate borrowing capacity was nearly four times the total loan requirement, signaling a strong ability to settle financial obligations. This fiscal position marks an improvement from a year ago, when the ₱16.2 billion borrowing capacity was only 1.6 times the ₱10.1 billion required.

Provincial borrowing also shifted significantly year-on-year. In April 2026, Batangas Province sought ₱150 million for a provincial health office, whereas in April 2025, Isabela Province requested a much larger ₱2 billion for agricultural facilities and working capital.

Meanwhile, infrastructure and modernization remained the top priorities for municipal borrowing in April 2026. Notable requests included Maco, Davao de Oro’s request for ₱448.4 million for heavy equipment and school buildings; Claver, Surigao del Norte’s ₱400 million for a public market, transport terminal, and sports complex; and Roxas, Palawan’s ₱323.4 million for a People’s Park development and various equipment procurement.

Other significant urban and municipal borrowings for the month included Maluso, Basilan, at ₱185 million for heavy machinery, and Nabunturan, Davao de Oro, at ₱192.3 million for equipment and a thermal decomposition system.

April’s figures brought total borrowing needs to ₱21.8 billion for the first four months of 2026, down 16.2 percent from the ₱26 billion LGUs intended to borrow during the same period last year. This translates to 88 loan requests as of end-April, a 7.4 percent drop from the previous year’s 95-request volume.

Overall, the data underscores that LGUs remain consistently focused on heavy equipment procurement, health infrastructure, and local economic facilities.