Friday, January 15, 2016

Fiscal transfers to local government to increase in 2017

From the Website of GPH - Government of the Philippines

Fiscal transfers to local government to increase in 2017

The government will significantly increase fiscal transfers to local government units by next year through programs that provide incentives for improving local government performance. These fiscal transfers, which will further improve local service delivery and build infrastructure, could reach up to P100 billion.

Bottom-Up Budgeting

BUB, the government’s participatory budgeting program, provides P20 million funding for a priority poverty reduction program proposed by a city or municipality. At least 1,590 local government units (LGUs) have participated in the program since 2013 and a total of 42,221 projects have been funded, of which 13,712 have been completed as of December 1, 2015.

For this year, 14,325 BUB projects have been allocated P24.7 billion in the national budget.
Budget Secretary Florencio B. Abad announced that BUB funds are now being directly released to municipalities. Moreover, BUB will be expanded next year to cover 42,036 barangays nationwide. The Barangay BuB will provide a subsidy of P1 million to each barangay and will aid barangays in better formulating poverty reduction action plans and monitoring the delivery of basic services in the communities. The first 12,000 barangays will receive funding from the national government in 2017.

Konkreto at Ayos na Lansangan at Daan Tungo sa Pangkalahatang Kaunlaran

KALSADA, a local roads rehabilitation program being implemented in 73 provinces, has been allocated P6.5 billion in the national budget. This is the first time that funds for roads upgrading will be directly released to LGUs. Capital funding required to offset road asset depreciation has never been given to provinces.

The budget chief said meaningful devolution is being institutionalized through these fiscal transfers as the release of the funds under BUB and KALSADA is conditional on LGU compliance with good governance conditions. These conditions include compliance with the Department of Interior and Local Government’s (DILG) Seal of Good Financial Housekeeping and submission to the Department of Budget and Management Local Public Financial Management Assessment Report.

“The good governance criteria of BUB and KALSADA are making this possible,” Abad said.

Abad also said increasing the funds for BUB and KALSADA is vital in sustaining the growth momentum.

“To meet the growth target for 2016, the government is making sure that infrastructure projects will be implemented on time. This includes the completion of all construction and upgrading of national roads and bridges, which will improve road transport, spur trade and tourism development, as well as the construction of needed facilities, such as health centers, classrooms, water and sanitation, and power supply facilities,” said Abad.

GPH Website





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