The Department of Budget and Management (DBM) has recently issued a local budget circular enjoining local government units to go through the DBM’s online application portal, “Digital Requests Submission for Local Government Support Fund (DRSL),” when submitting requests for financial assistance.
Such requests for financial assistance shall be made chargeable to the Local Government Support Fund (LGSF), a reserve fund that LGUs can utilize to support their capital outlays and social programs.
Under this year’s budget, the LGSF now includes P7.24 billion for capital outlays and social programs to LGUs, plus another P1.93 billion for financial assistance or a total of P9.17 billion in support funds.
Local Budget Circular No. 150, issued last March 8, 2023, amends an earlier circular released on January 24, 2022, that prescribes the guidelines and procedures on the release and utilization of the LGSF-FA to LGUs, consistent with the FY 2022 GAA, Republic Act No. 11639, and the President’s Veto Message.
Unlike before when LGUs can submit their requests via e-mail (dbm@crd-receiving@dbm.gov.ph), the new circular now requires them to utilize the DBM’s online application portal. Any documents provided by the LGU via other channels will be rejected outright.
Ease of doing business, efficient digital transformation
In a media advisory, Budget Secretary Amenah Pangandaman said that the goal of the new circular is to ensure ease of doing business in government offices while hastening the country’s digital transformation.
“Our new guidelines for releasing and utilizing LGU funds are very much aligned with the government’s thrust of ensuring ease of doing business and promoting the digitalization of payments throughout the country,” she said.
“We want to make the procedure more direct, convenient, and secure for LGU financial assistance for their social programs and infrastructure projects. We also want to avoid this becoming a source of corruption, that is why we will not entertain middlemen,” she added.
Additionally, the DBM will only communicate directly with the local chief executive of the LGU to prevent misrepresentation from con artists, intermediaries (like middlemen), dishonest people or syndicates, and other organized groups.
In the event that it is impossible to access the DSRL owing to location, equipment, or internet connection issues, the budget secretary said that LGUs requesting financial assistance can get the support of DBM’s regional offices or the next higher level LGU.
LGSF is meant for ICT, infrastructure, and agri-based projects
According to the DBM, the appropriated funds under the government’s LGSF are meant to support the implementation of agriculture-related programs and projects as well as information and communications technology (ICT) systems, and infrastructure development.
The support fund also covers the construction, maintenance, development, and rehabilitation of various projects, such as “green open spaces,” infrastructure for active mobility, elevated or at-grade pedestrian footpaths and walkways, and multi-purpose buildings.
Finally, the allocated funds shall likewise be used to support the implementation of programs, projects, and activities related to disaster response, rehabilitation, and recovery; the acquisition of school sites; purchase of an ambulance, truck, or mini-dump trucks; and assistance to indigent individuals or families.