Diokno cites need for LGUs to boost spending, expand revenue sources

Finance Secretary Benjamin Diokno on Tuesday underscored the need to boost the spending of local government units and to expand their revenue sources. 

Earlier in the day, Diokno, the economic team, and some Cabinet secretaries met with President Ferdinand "Bongbong" Marcos Jr. and they asked the latter to call on LGUs to improve their local spending. 

"We requested also the President to encourage local government units to expand its revenue sources and boost spending to support local and national growth,'' Diokno said at a Palace briefing.

''So, ang message dito is that it’s really a whole-of-government approach ‘no, hindi lang national government ang gagastos but also the government corporations including GSIS and SSS but also the local governments kasi ang situation ng local governments ngayon is they are in a surplus position – surplus sila; ang national government, deficit,'' he added.

(The message here is that it’s really a whole-of-government approach, it is not only the national government who should spend but also the government corporations including GSIS and SSS, also the local governments because they are in a surplus position while the national government is in a deficit.)

Diokno said the low spending has always been a problem among LGUs. 

He further explained that local governments are not frequently borrowing money because the term of office of their chief executives is just three years. 

''Ever since, I can remember, the LGUs are in surplus position whereas the national government is in a deficit position. And during our time, I think one of the reasons is that, the LGUs  by nature or LGU officials by nature are kind of shy to invest in some projects. Kasi, in fact, the LGUs can borrow money,'' Diokno said. 

''But they are not borrowing money and their vision, their term of office is three years. So, you spend one year preparing your feasibility study, etcetera, then you will present it to a bank, year two. He will run for another term, reelection and he is yet to show his constituents any project but he already has a debt. Maybe that's what they are thinking,'' he added.—AOL, GMA Integrated News