THE Department of Budget and Management (DBM) set aside P1 billion for the Department of Interior and Local Government to subsidize “well-performing” local government units (LGU).
Under the Performance Challenge Fund (PCF)—a financial support program recognizing LGU efforts to better public service- the DILG can allocate as much as P7 million for a province, P3 million for a city and P1 million for a municipality. The fund will prioritize “less able LGUs.”
Budget Secretary Florencio “Butch” Abad said that the P1-billion release for the PCF to subsidize deserving LGUs is the “total allocation set for year 2013.
“The Aquino administration started the PCF to encourage LGUs to improve the way they deliver goods and services to their constituents, primarily through the alignment of their local projects with the Administration’s own socio-economic development priorities,” Abad said.
“At the same time, PCF-supported programs should also promote governance reforms that enhance transparency, accountability, and openness in the way our LGUs work,” he added.
The PCF support may be used by LGU programs that will contribute to the Millennium Development Goals, economic development, climate change management, disaster preparedness, as well as joint projects of LGUs with foreign institutions and private sectors.
Abad said that the DILG determines LGU-beneficiaries’ eligibility to receive funds by looking and keeping track of the LGU record—or the “Seal of Good Housekeeping”—if they “have shown great progress in instituting governance reforms, particularly with respect to transparency, accountability, planning, fiscal management and performance monitoring.
“If we want to institutionalize reforms, we need to take a close look at how government is performing at the local level . . . with the aim of rewarding good performance and creating a culture of excellence among our local governments,” Abad said.
The DBM stated that there are already 1,365 out of the 1,590 LGUs assessed by the DILG that have earned the Seal of Good Housekeeping.