The Department of Budget and Management (DBM) has released new guidelines on the release and utilization of the Local Government Support Fund – Financial Assistance to Local Government Units and Support for Capital Outlays and Social Programs (LGSF-FA to LGUs) under the 2023 General Appropriations Act (GAA).
The Guidelines are provided under Local Budget Circular No. 150 dated 08 March 2023 signed by DBM Secretary Amenah F. Pangandaman.
“In support of the Marcos Jr. administration’s 10-point priority agenda, the DBM continues to adopt measures that will effectively implement digital transformation and ease of doing business. We are fully embracing digitalization in the DBM, including the submission of request for financial assistance under the Local Government Support Fund,” Secretary Pangandaman said.
“We hope that through this new measure, matutulungan nating mapadali ang proseso para sa pag-request ng pondo ng ating mga LGUs para sa kanilang ibat-ibang programa at proyekto,” the Budget Secretary added.
As per the new guidelines, the submission of requests for financial assistance, chargeable against the LGSF-FA to LGUs shall only be made through the Digital Requests Submission for Local Government Support Fund (DRSL) found in the DBM Apps Portal. All documents submitted by the LGU through other means shall be automatically denied.
DBM Regional Offices concerned or the next higher level of LGU may provide assistance to the requesting LGU in case of difficulty in accessing the DSRL due to various reasons, such as geographical location, device and/or internet connection problems, among others.
*To prevent scammers, middlemen, fraudulent individuals or organized groups from making representations that they are able to influence or facilitate the release of the LGSF-FA to LGUs, the DBM shall directly deal only with the local chief executive of the LGU concerned.*
*“Ginagawa po nating mas direct, convenient, and secured ang pag-request ng mga LGUs ng financial assistance para sa infrastructure projects at social programs sa DBM. With this initiative, sa official DRSL portal lang po magre-receive ng request ang DBM, at tanging mga local chief executive lamang ang bibigyan natin ng access sa portal na ito,” Sec Pangandaman said.*
*“Iniiwasan natin na maging source of corruption itong process for request and release of funds mula sa LGSF. Kaya hindi po tayo mag-e-entertain ng middlemen. Kadalasan, dyan nagsisimula ‘yung pangloloko at korapsyon.
Nangangailangan na nga ‘yung mga LGU, lalo pa silang nababaon dahil sa panloloko ng mga scammers. These things, we want to avoid and eradicate,” Pangandaman added.*
Pursuant to the Special Provision (SP) of LGSF under the 2023 GAA, the amount appropriate for the LGSF-FA includes P1,925,500,000 for financial assistance to LGUs and P7,236,336,000 for support for capital outlays and social programs to LGUs.
The appropriated funds are in support of the implementation of agriculture-related programs and projects; Information and Communications Technology systems and infrastructure development; and the construction, maintenance, development, and/or rehabilitation of various projects, such as green open spaces, infrastructure for active mobility, elevated or at-grade pedestrian footpaths and walkways, and multi-purpose building.
It shall likewise support the implementation of programs, projects and activities for disaster response, rehabilitation, and recovery; acquisition of school sites; purchase of ambulance, trucks, or mini-dump trucks; and assistance to indigent individuals of families.
The Circular shall take effect 15 days after its publication.
Meanwhile, the LGSF-FA to LGUs may only be used until 31 December 2024.