Review of LGU-level health spending pushed

A new study by the Unilab Center for Health Policy (UCHP) has revealed persistent gaps in how local government units (LGUs) manage their health budgets. Conducted with the Ateneo School of Government and the Ateneo Policy Center, the research reviewed LGU budget practices from 2022 to mid-2025.

It found that while health allocations rose slightly, municipalities remain heavily dependent on the National Tax Allocation, which makes up most of their funds. Much of this is spent on personnel salaries, leaving fewer resources for programs and services.

The study also pointed to overlapping requirements, delayed fund releases, and misaligned directives as barriers to efficient spending. It recommended stronger technical support, clearer policy guidance, and closer coordination between national and local priorities.

At the presentation of findings in Makati, UCHP program director John Basa said the results highlight the urgent need for government agencies to provide stronger technical support and more precise policy guidance to local governments.

He also noted the role of Congress in reviewing whether current laws promote genuine and sustainable health spending at the LGU level.

“With improved systems and alignment, LGUs can transform their health budgets from routine expenditures into powerful investments that directly improve the well-being of their constituents,” Basa said.

Dr. Maria Eufemia C. Yap, senior research fellow at the Ateneo Policy Center, said the study was designed not just to track LGU spending but to explain why budget execution continues to face bottlenecks.

“Our ultimate aim is to convert field findings into scalable instruments for national reform,” Yap said, stressing the involvement of local chief executives so recommendations can focus on areas where national agencies can drive change.

During a panel discussion, Naga City Mayor and former Vice President Leni Robredo shared her city’s experience to illustrate the fiscal pressures LGUs face.