15/09/2026
๐ก๐ผ ๐บ๐ถ๐ฑ๐ฑ๐น๐ฒ๐บ๐ฎ๐ป: ๐๐๐จ๐ ๐๐ผ ๐ฑ๐ถ๐ฟ๐ฒ๐ฐ๐๐น๐ ๐๐ฒ๐ฒ๐ธ ๐ฃ๐ฑ๐ด.๐ฑ๐ฏ-๐ ๐น๐ผ๐ฐ๐ฎ๐น ๐ณ๐๐ป๐ฑ; ๐ฟ๐ฒ๐น๐ฒ๐ฎ๐๐ฒ๐ ๐๐ฟ๐ฎ๐ป๐๐ฝ๐ฎ๐ฟ๐ฒ๐ป๐, ๐ฟ๐๐น๐ฒ๐-๐ฏ๐ฎ๐๐ฒ๐ฑ โ ๐๐๐
Local government units themselvesโnot political intermediariesโwill directly seek financial assistance under the proposed P58.53-billion Local Government Support Fund (LGSF) for 2027, with requests subject to established criteria, evaluation, transparency requirements, monitoring, and audit.
House Committee on Appropriations Chairperson Mikaela Angela B. Suansing, during the Debate on General Principles and Provisions of the FY 2027 General Appropriations Bill, explained that under the process observed by the Department of Budget and Management (DBM) for the LGSF-Financial Assistance to LGUs, requests come directly from LGUs based on their identified local needs and priorities and are submitted to DBM through the Ugnayang Bayan Portal, which is accessible to all LGUs.
Under DBM Local Budget Circular No. 169, DBM deals directly with the Local Chief Executiveโa safeguard intended to prevent individuals or organized groups from representing that they can influence or facilitate fund releases.
There is therefore no role for a middleman in the prescribed process. Neither does the filing of a request guarantee funding.
The proposed P58.53-billion LGSF under the FY 2027 National Expenditure Program (NEP) is approximately 1.14 percent higher than the P57.87 billion allocated for FY 2026. The proposed funding level takes into account recommendations from local government stakeholders, including the Union of Local Authorities of the Philippines (ULAP) and the LGU Leagues, for stronger national government support to address the infrastructure and social development needs of LGUs.
Local government stakeholders have cited continuing requirements for farm-to-market roads, water systems, health facilities, bridges, education infrastructure, climate-resilient facilities, digitalization and e-governance, disaster mitigation and recovery, livelihood, social protection, and assistance for marginalized groups.
The proposed increase also recognizes the continuing needs of geographically isolated, underserved, and economically constrained LGUs, particularly those facing infrastructure and service delivery gaps, limited fiscal capacity, climate-related disasters, and other emerging local development needs.
Budget Secretary Kim Robert C. De Leon underscored the role of the LGSF in bringing government resources and development closer to communities.
โWe are proposing Php 58.53 billion for the Local Government Support Fund, covering financial assistance to LGUs, the Growth Equity Fund, and the Barangay Development Program. By strengthening local fiscal capacity, we bring resources and decision-making closer to communities and give every region a stronger voice in the nationโs development,โ Secretary De Leon said during the Development Budget Coordination Committee briefing at the House of Representatives.
๐ฅ๐ฒ๐พ๐๐ฒ๐๐๐ ๐ฒ๐๐ฎ๐น๐๐ฎ๐๐ฒ๐ฑ, ๐ป๐ผ๐ ๐ฎ๐๐๐ผ๐บ๐ฎ๐๐ถ๐ฐ๐ฎ๐น๐น๐ ๐ณ๐๐ป๐ฑ๐ฒ๐ฑ
DBM emphasized that the LGSF is not an unrestricted pool of funds. Its components have specific purposes, eligible beneficiaries, allowable programs and projects, and conditions for release and utilization.
For Financial Assistance to LGUs, requests undergo evaluation using a DBM-developed scorecard, in coordination with relevant agencies.
The evaluation considers governance standards; financial management, fiscal transparency, and absorptive capacity; service delivery; economic development; environmental management; public safety; and citizen engagement. DBM also considers the necessity of the proposed assistance, just and equitable distribution of funds among LGUs, and availability of funds.
The LGSFโs other components are similarly purpose-specific. The Barangay Development Program supports priority development interventions in cleared barangays, while the Growth Equity Fund assists poor, disadvantaged, lagging, and low-income LGUs, including those facing fiscal gaps arising from devolution.
Meanwhile, Participatory Budgeting Support for LGUs requires eligible projects to undergo transparent and inclusive local processes, including participation and concurrence from accredited civil society organizations represented in Local Development Councils.
๐ฆ๐ฎ๐ณ๐ฒ๐ด๐๐ฎ๐ฟ๐ฑ๐ ๐ฏ๐ฒ๐ณ๐ผ๐ฟ๐ฒ, ๐ฑ๐๐ฟ๐ถ๐ป๐ด, ๐ฎ๐ป๐ฑ ๐ฎ๐ณ๐๐ฒ๐ฟ ๐ฟ๐ฒ๐น๐ฒ๐ฎ๐๐ฒ
DBM stressed that safeguards apply before, during, and after the release of LGSF funds.
Beneficiary LGUs remain subject to existing budgeting, procurement, accounting, and auditing laws, rules, and regulations, as well as monitoring, evaluation, reporting, transparency, and public disclosure requirements.
These controls can stop funding when requirements are not met. Under the FY 2024 Green Green Green Program, for instance, seven of 80 beneficiary LGUs failed to comply with documentary requirements and were not endorsed by the concerned agencies, resulting in P87.452 million in unfunded allotments.
The LGSF therefore operates within defined purposes, eligible beneficiaries, allowable projects, standards, and conditions for utilization established by law and further detailed through implementing guidelines. These requirements and accountability mechanisms continue to apply regardless of the electoral cycle.
๐ฆ๐๐ฝ๐ฟ๐ฒ๐บ๐ฒ ๐๐ผ๐๐ฟ๐ ๐ต๐ฎ๐ ๐๐ฝ๐ต๐ฒ๐น๐ฑ ๐๐ฎ๐น๐ถ๐ฑ๐ถ๐๐ ๐ผ๐ณ ๐๐๐ฆ๐
Chairperson Suansing also pointed to the Supreme Court ruling affirming the LGSF as a valid appropriation during the House deliberations on the FY 2027 General Appropriations Bill.
In Belgica v. Secretary of Budget and Management, the Supreme Court held that the LGSF has the discernible singular purpose of providing support to local governments and satisfies the completeness and sufficient-standard tests. The law sets the limits of Executive authority, identifies the policy governing the fund, and provides the conditions for its utilization.
The ruling reinforces that LGSF releases operate within defined purposes, eligibility requirements, evaluation criteria, and accountability mechanisms. LGUs themselves identify and request assistance based on local needs, while approved funds remain subject to transparency, monitoring, audit, and applicable government rules.
Through the proposed P58.53-billion LGSF for 2027, the Marcos Administration seeks to strengthen local fiscal capacity and help LGUs respond more effectively to the needs of their communities, while ensuring that public funds are released and utilized under clear rules, transparency requirements, and accountability safeguards.
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