NextGen Day

MANILA, Philippines — According to preliminary statistics acquired by the Bureau of Local Government Finance, as of June 2021, local government units (LGUs) had spent a total of PHP118.9 billion on coronavirus disease 2019 (Covid-19) response efforts (BLGF).

The BLGF said in a report to Finance Secretary Carlos Dominguez III that PHP76.44 billion came from local government funds and PHP35.44 billion came from the Bayanihan Grant under the 2020 national budget and in light of the Bayanihan to Heal as One Act (Bayanihan 1), whose effectiveness was extended until last year.

LGUs also used PHP4.93 billion in public monies held in trust that were transferred to the general fund (GF) of LGUs to support their pandemic response activities.

According to the BLGF, grants and donations accounted for another PHP2.14 billion spent by LGUs.

The unexpended cash balances of public funds held in trust by local governments were allowed to be transferred to the GF of the LGUs to support local government programs and projects in response to the Covid-19 pandemic under Republic Act 11494, or the Bayanihan to Recover as One Act (Bayanihan 2), while RA 11520 extended the validity of the 2020 General Appropriations Act (GAA) until December 31, 2021.

The BLGF’s report followed Dominguez’s earlier instruction to the bureau to keep an eye on LGUs’ pandemic-related finances.

In turn, the BLGF created an online reporting system for local treasurers to track all provinces, cities, and municipalities’ receipts and expenditures relating to their Covid-19 initiatives, projects, and activities.

In his report, BLGF executive director Nio Raymond Alvina remarked, “This reporting system was used to establish and review baseline local finance data to serve as inputs in managing the government’s Covid-19 response.”

The BLGF collected data from all provincial, city, and municipal treasurers in 1,715 LGUs from April 2020 to June 2021, with 100 percent reporting compliance.

According to Alvina, LGUs have used PHP35.44 billion, or 96 percent, of the entire PHP37.02 billion under the Bayanihan Grant to pay their respective pandemic response measures as of June 30, 2021, based on the BLGF’s preliminary examination of the reports provided by the local treasurers.

LGUs spent 87 percent of the PHP35.44 billion on maintenance and other operating costs (MOOE), primarily on food aid and other relief supplies for households, while the remaining 13%, or PHP4.61 billion, was spent on construction outlays.

Last year, LGUs were informed that the Bayanihan Grant was only valid for payment until December 31, 2021, and any unused funds will be returned to the National Treasury, according to Alvina.

LGUs contributed the majority of the Covid-19 reaction war chest, which totaled PHP76.44 billion as of June 30, 2021. LGU-funded initiatives received PHP59.03 billion, with MOOE receiving 87 percent of that, or PHP51.73 billion.

“There were 587 local government units (LGUs) that delivered their own projects to their residents, with 482 (82%) being municipalities, 68 (12%) being cities, and 37 (6%) being provinces,” Alvina stated.

The National Capital Region (NCR), Calabarzon, and Central Luzon had the greatest MOOE disbursements for Covid-19 response funded from LGUs’ own funds, at PHP16.1 billion, PHP6.33 billion, and PHP5.18 billion, respectively.

According to Alvina, the LGUs also reported on their sector-specific financial support programs for students, drivers, and older residents, which totaled PHP17.41 billion, with PHP13.59 billion coming from cities.

LGUs have also moved a total of PHP5.44 billion from their trust funds (TFs) to their general funds (GF) to help pay their Covid-19 response, he said. As of the end of June last year, the LGUs had already spent PHP4.93 billion, or 91 percent of the total.

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