Senator Sherwin Gatchalian is calling on the Anti-Red Tape Authority (ARTA) to intensify efforts to digitally transform local government units (LGUs), stressing that national reforms will fall short without corresponding action at the grassroots level.

“Red tape is one of the factors that deters economic growth. We need to ensure that digitalization is felt on the ground, in every LGU,” said Gatchalian, chair of the Senate Committee on Finance, during a budget hearing on ARTA’s proposed 2026 allocation.

Gatchalian emphasized that while digital initiatives are progressing at the national level, the lack of LGU participation threatens the effectiveness of reforms intended to streamline government processes and improve ease of doing business.

“Maganda nga yung process natin sa national pero kung hindi naman digitalized ang local, sayang lang (Our process at the national level is indeed good, but if the local level is not digitalized, it’s just a waste),” he pointed out.

The senator specifically flagged the low compliance rate among LGUs in adopting the Energy Virtual One-Stop Shop (EVOSS) — a law he authored that consolidates and automates the permitting process for energy projects.

According to ARTA data presented during the hearing, only 113 out of 1,634 cities and municipalities nationwide are fully compliant with EVOSS, despite its potential to significantly reduce bureaucratic delays.

Gatchalian urged ARTA Director General Ernesto Perez to design a comprehensive program that would enable full digitalization of LGUs, highlighting that he is prepared to support additional funding in the 2026 national budget to realize this goal.

“You need to craft a program that will completely digitalize the LGUs,” Gatchalian said.