Robin Padilla bill seeks ‘equitable distribution of wealth’ to LGUs
Sen. Robinhood Padilla (File photo from the Senate Public Relations and Information Bureau)
MANILA, Philippines — Sen. Robinhood Padilla has filed Senate Bill No. 447 which seeks to provide local government units with enough funding for their priority development projects through a budget reform.
The bill will create a Local Development Equalization Fund (LDEF) that will be used strictly by local governments for development projects, activities, and programs listed in their Comprehensive Local Development Plans.
“Accordingly, this measure aims to provide an equitable distribution of wealth to LGUs to foster development with the end goal of bridging the gap between the revenue expenditure mandates of the [Local Government Code] and the General Appropriations Act,” Padilla said in a statement on Saturday.
Under the bill, the national government will fund the LDEF to make sure provinces, cities, municipalities, and barangays can implement their three-year Comprehensive Development Plan.
The LDEF includes:
- P500 million to P1 billion per province per year
- P100 million to P200 million per city per year
- P50 million to P100 million per municipality per year
- P3 million to 5 million pero barangay per year
The amount of the LDEF for each province, city, or municipality will be based on the following criteria:
- 50% of the prescribed amount for each 1st class LGU
- 60% of the prescribed amount for each 2nd class LGU
- 70% of the prescribed amount for each 3rd class LGU
- 80% of the prescribed amount for each 4th class LGU
- 90% of the prescribed amount for each 5th class LGU
- 100% of the prescribed amount for each 6th class LGU
The bill prohibits the use of the funds for the following
- cash gifts, bonuses, food allowance, medical assistance, uniforms, supplies, meetings, communication, payment of water, light, and fuel bills
- salaries or overtime pay
- traveling expenses
- registration or participation fees in trainings and seminars
- repair and maintenance work in administrative offices
- acquisition of furniture, equipment, and appliances
- acquisition or maintenance of vehicles
There will also be a performance-based evaluation of the use of the funds by an oversight evaluation committee to be headed by an undersecretary of the Department of Interior and Local Government.
The LDEF will be decreased for LGUs that get an “unsatisfactory” performance rating. Two successive unsatisfactory ratings may result in the removal of the LDEF, although an LGU can reapply for it after one year.
On the other hand, the government will provide P1 billion for the capacity building of LGUs to make sure they can properly use the LDEF.
Those officials who will withhold the release of the LDEF to the LGUs will incur a penalty of one to six years and a fine of P500,000.
Those who misuse the funds will also be charged with technical malversation.
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