LGUs get more say more than dev’t money

THE Govt issued new procedures giving nearby government units (LGUs) extra leeway to choose on which initiatives to aid with their development money (DFs), but additional reporting requirements to make certain accountability.

Joint Memorandum Round (JMC) No. 1 was issued by the Departments of Finance, (DoF) Spending budget and Management (DBM) and the Interior and Community Governing administration (DILG) to overhaul the guidelines for employing DFs.

LGUs are necessary to set aside at least 20{849e8ffd61f857ae171dd9a8fd6fc742959f810141db87fd65508d4e2428dfac} of their annual interior revenue allotment for development jobs — the so-called 20{849e8ffd61f857ae171dd9a8fd6fc742959f810141db87fd65508d4e2428dfac} DF.

“This JMC is currently being issued to boost the responsiveness of the tips and market larger autonomy, transparency and accountability in the LGUs’ appropriation and utilization of their respective 20{849e8ffd61f857ae171dd9a8fd6fc742959f810141db87fd65508d4e2428dfac} DFs, as delivered underneath RA No. 7160,” in accordance to the circular dated Nov. 4 and printed on Wednesday. RA 7160 is the Area Governing administration Code.

LGUs now have much more freedom to choose on which projects and applications to assistance with 20{849e8ffd61f857ae171dd9a8fd6fc742959f810141db87fd65508d4e2428dfac} DFs, removing precise limitations contained in the old procedures, according to John Aries S. Macaspac, director of the DBM’s Area Governing administration and Regional Coordination Bureau.

“The LGUs will now have larger leeway and adaptability to pick packages and assignments, which they deem are responsive to the progress desires of their respective constituents, considering the fact that we did not prescribe the unique task menu, but merely normal policies that must be observed by LGUs,” Mr. Macaspac mentioned in a Viber message Thursday.

The circular pointed out that LGUs can use the money to support priority development tasks based on their medium-term programs. These assignments ought to be recognized as needed, very important in selling basic welfare very well-planned and all set for procurement and implementation.

It said community governments can also seek out specialized guidance from companies in the national government this kind of as the Agriculture section, DBM, DoF, DILG, Public Functions section, and the Nationwide Economic and Development Authority, among other individuals, to help them assess which related and responsive jobs to prioritize.

The funds are not able to even now be employed for personnel service expenditures these as salaries, overtime spend and other added benefits, for administrative and travel expenses, registration and participation service fees for teaching and seminars, payment for home furniture, machines and appliances of administrative offices, as effectively as to purchase or repair cars.

On the other hand, Mr. Macaspac mentioned the new principles also contained an improved reporting system for the use of DFs.

“As regards transparency and accountability, that was even further strengthened in the new JMC given the institutionalization of the use of the program of the DoF-BLGF (the Bureau of Community Governing administration Finance) in the reporting of utilization by LGUs,” he stated.

The round directs area governments to submit quarterly stories on their usage of the 20{849e8ffd61f857ae171dd9a8fd6fc742959f810141db87fd65508d4e2428dfac} DF next the necessities of the BLGF.

The BLGF will keep track of and maintain a database of fund usage primarily based on the submitted reviews.

“The obligation and accountability in making certain that the progress projects funded less than the 20{849e8ffd61f857ae171dd9a8fd6fc742959f810141db87fd65508d4e2428dfac} DF comply with the recommendations below this JMC and optimally contribute to the attainment of attractive socio-economic targets and results of the LGU shall rest on the nearby main govt and other officials anxious,” it mentioned.

In March, the govt authorized LGUs to use their 20{849e8ffd61f857ae171dd9a8fd6fc742959f810141db87fd65508d4e2428dfac} DF to dietary supplement their paying on pandemic containment steps. — Beatrice M. Laforga

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