Senator Robinhood Padilla has filed a bill seeking to provide adequate funds for local government’s priority development projects.
Padilla’s Senate Bill 447 mandates that the Local Development Equalization Fund (LDEF) should be used strictly for development projects, activities, and programs listed in the local government units’ (LGUs) Comprehensive Local Development Plans.
“The cornerstone of this proposed measure is the creation of a Local Development Equitability Fund to support the mandated expenditure assignments imposed upon LGUs. 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 LGC and the General Appropriations Act,” the measure stated.
Aside from promoting the principle of devolution, the bill is also attuned to the agenda of budget reform pursued by former senator Panfilo Lacson.
Padilla explained that while the government is pursuing devolution to ensure the efficient delivery of public services, it cannot do so fully because “political and economic power” remain centered in “imperial Manila.”
Under Padilla’s bill, the national government would fund the LDEF to make sure the provinces, cities, municipalities, and barangays can implement their three-year CDP.
The yearly LDEF includes P500 million to P1 billion per province, P100-200 million per city, P50-100 million per municipality, and P3-5 million per barangay.
The amount of LDEF for each province, city or municipality shall be based on the following criteria: 50 percent of the prescribed amount for each first class LGU, 60 percent for each 2second class LGU, 70 percent for each third class LGU, 80 percent for each fourth class LGU, 90 percent for each fifth class LGU, and 100 percent for each sixth class LGU.
The funds are not to be used as cash gifts, bonuses, food allowance, medical assistance, uniforms, supplies, meetings, communication, water
and light and fuel; for salaries or overtime pay; traveling expenses; registration or participation fees in trainings and seminars; in repair and maintenance works in administrative offices; in acquiring furniture, equipment and appliances; and in the acquisition or maintenance of vehicles, the bill stipulated.
Neither may the LDEF be used for funding PAPs that may duplicate or overlap with those being implemented by the national government, it added.
Meanwhile, there will be a performance-based evaluation of the use of the funds by an Oversight Evaluation Committee (OEC) to be headed by the Undersecretary of the Department of Interior and Local Government.
Its members will include officials and at least four members of accredited civil society groups and non-government organizations in the areas where the projects are to be implemented.
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 shall provide P1 billion for the capacity building of LGUs to make sure they can properly use the LDEF.
A web-based monitoring system shall be set up by the OEC, with an initial funding of P100 million.
A penalty of one to six years and a fine of P500,000 await officials who will withhold the release of the LDEF to the LGUs. Those who misuse the funds may be charged with technical malversation.
The bill also provides for a Congressional Oversight Committee to monitor the implementation of the provisions of the law.
