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THE PROPOSED LOCAL GOVERNMENT SUPPORT FUND HAS REACHED ₱58.32 BILLION
The proposed 2027 national budget contains ₱58.32 billion for the Local Government Support Fund, or LGSF. It would be the largest amount proposed for the fund.
The LGSF is separate from the ₱1.32 trillion National Tax Allotment that local governments are entitled to receive. The largest proposed component is ₱37.49 billion in financial assistance to local government units. The remaining money is described as support for the Growth Equity Fund, the Barangay Development Program and participatory budgeting.
A published breakdown of the four components does not arithmetically match the stated ₱58.32-billion total. MCT is therefore not treating the remaining component amounts as settled until they can be checked against the detailed 2027 National Expenditure Program table.
The fund can support health, education, food assistance, infrastructure, livelihoods and other local needs. Those are legitimate public purposes. The concern raised by former Finance undersecretary Cielo Magno and budget watchdogs is that unclear selection rules can allow national officials to favor particular local governments.
The amount is still part of a proposed budget. Congress can change it before the General Appropriations Act is approved, and the President can veto individual provisions.
For residents, the important question is not simply whether their town receives a project. The public should be able to see why that project was selected, how much it costs, who implements it and whether local governments with greater need receive a fair share.
WHAT TO WATCH
Watch the House and Senate budget hearings for the allocation formula, the list of eligible projects, release conditions and publication requirements. A large fund needs rules that can be checked before and after money is released.