malaysiang
Manila – The Philippines’ economic managers, led by Finance Secretary Benjamin Diokno, have called on President Ferdinand R. Marcos Jr. to encourage local government units (LGUs) to increase their revenue sources and accelerate spending. This initiative is aimed at supporting both local and national economic growth.
According to Philippines News Agency, During a Palace press briefing, Diokno emphasized the critical role LGUs play in achieving inclusive economic growth. The economic team, during a sectoral meeting at Malacañan Palace on Tuesday morning, discussed the need for President Marcos’s intervention in addressing issues related to LGUs. Diokno pointed out that despite having broad powers to raise revenue sources, LGUs remain heavily dependent on national government transfers and have a low absorptive capacity. This dependency affects their ability to improve the quality of public goods and services.
The Finance Secretary noted the surplus position of LGUs compared to the national government’s deficit and highlighted local officials’ reluctance to invest in projects. To address this, Diokno suggested tapping the Development Academy of the Philippines and the Local Government Academy to train personnel who could be instrumental in local government investments.
Furthermore, the economic team recommended implementing catch-up plans for the fourth quarter of 2024 and avoiding underspending in the first semester of the same year. These measures aim to enhance budget utilization rates and address problems in program and project implementation. Diokno also mentioned the importance of early procurement activities to facilitate these improvements.
