Robin Padilla bill seeks ‘equitable distribution of wealth’ to LGUs

By: John Eric Mendoza - 2 years ago

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.

Diokno: Focus on capacity building to avoid LGUs’ understanding

Get into more PPPs, Bongbong Marcos tells LGUs

atm