LGUs to seek P58.53-B local funding via online portal — DBM

Local government units (LGUs) must directly apply for government funding through a digital platform, bypassing political intermediaries and ensuring greater transparency in the allocation of public funds, the Department of Budget and Management (DBM) said on Tuesday.

During the Development Budget Coordination Committee briefing at the House of Representatives, DBM Secretary Kim Robert De Leon, through House Appropriations Committee Chair Mikaela Angela Suansing, said the government has proposed P58.53 billion for the Local Government Support Fund (LGSF) under the 2027 National Expenditure Program (NEP).

"We are proposing Php 58.53 billion for the (LGSF), covering financial assistance to LGUs, the Growth Equity Fund, and the Barangay Development Program," she said.

"By strengthening local fiscal capacity, we bring resources and decision-making closer to communities and give every region a stronger voice in the nation's development," the DBM added.

Under DBM Local Budget Circular No. 169, local chief executives must apply directly through the digital Ugnayang Bayan Portal.

Suansing, who was defending the committee report on the 2027 General Appropriations Bill, said LGUs must submit their funding requests directly to the DBM through the portal, ensuring that allocations are based on local priorities rather than requests coursed through third parties.

The circular eliminates intermediaries, while submission of an application does not guarantee that an LGU will receive funding, she said.

The proposed P58.53-billion allocation for 2027 is reportedly 1.14% higher than the 2026 budget. The DBM said the proposal incorporated inputs from groups such as the Union of Local Authorities of the Philippines (ULAP) and various LGU leagues to better address local infrastructure and social development priorities.

In a separate statement, the DBM said funding requests are evaluated based on several criteria, including governance standards, fiscal management, transparency, absorptive capacity, service delivery, economic development, environmental management, public safety and citizen engagement.

"The evaluation considers governance standards; financial management, fiscal transparency, and absorptive capacity; service delivery; economic development; environmental management; public safety; and citizen engagement," it said.

"DBM also considers the necessity of the proposed assistance, just and equitable distribution of funds among LGUs, and availability of funds," the DBM added.

During the House hearing, Suansing also noted that the Supreme Court had previously affirmed the constitutionality of the LGSF, saying it serves a clear policy purpose and is governed by sufficient legal standards.

"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," she said.— MCG, GMA News