By Lane Afable, News Editor
President Ferdinand R. Marcos Jr. has made a commitment to address issues confronting local government units (LGUs), such as limitations in administrative, financial, and technical capacity that affect their full devolution and service delivery.
In his message during the oathtaking ceremony of the national executive officers of the Vice Mayors’ League of the Philippines’ (VMLP) in Malacañang yesterday, President Marcos said his administration is pursuing necessary amendments to the Local Government Code to focus on governance and accountability concerns.
“In collaboration with the ULAP, the DILG, and the DEPDev, we are pursuing necessary amendments to the Local Government Code that clarify the responsibility, strengthen the accountability, and enhance the fiscal capacities of LGUs,” President Marcos noted.
The Chief Executive said data indicated that only 29 percent of LGUs passed the Seal of Good Local Governance in 2023, with non-passing LGUs experiencing gaps in financial administration, disaster preparedness, and social protection.
The President also highlighted constraints on local fiscal autonomy, with the 2021 figure showing that 64 percent of LGUs were dependent on the National Tax Allotment (NTA), while externally sourced revenues accounted for 71 percent of their operating income.
President Marcos also raised the issues in digital governance, with many LGUs facing inadequate infrastructure, poor internet connectivity, and limited ICT resources, compounded by the persistent ambiguity in the delineation of functions between national agencies and LGUs.
The administration is also working to improve coordination between national and local governments, while supporting LGUs in digitalizing both frontline services and back-end systems.
Other initiatives for the LGUs include enacting the Automatic Income Classification of Local Government Units Act, which institutionalizes the automatic income classification of LGUs, and launching the Electronic LGU System (eLGU) to digitize LGUs’ frontline services.
According to the President, the government likewise launched the “Sa Bagong Pilipinas, Bawat Bayan Makikinabang,” expanding the Local Government Support Fund to empower LGUs to implement critical programs—from rice distribution and healthcare infrastructure to rural electrification.
Assistance to the barangays through the Socio-Civic Projects Fund will also be extended, with each barangay receiving a one-time educational grant of P100,000, alongside an equal amount allocated to priority capital outlay projects identified by the community itself.
“This will equip LGUs with the tools, the resources, and the clarity of mandate that they need to serve effectively,” President Marcos said.
“More importantly, they are designed to unlock the full potential of LGUs: make you more self-reliant, make you more responsive, and more competitive.”
Founded in 1988, VMLP, composed of 1,634 member LGUs, is an organization of all vice mayors of the Philippines, with main functions including collaborating with national, local, and international partners to advance effective local legislation, developing programs to enhance legislative capabilities, and promoting local autonomy.
