President Ferdinand R. Marcos Jr. on Monday vowed to tackle challenges faced by local government units (LGUs), including limitations in administrative, financial, and technical capacity, which have hindered their full devolution and delivery of public services.

Speaking at the oathtaking ceremony of the national executive officers of the Vice Mayors’ League of the Philippines (VMLP) at Malacañang, President Marcos emphasized his administration’s efforts to amend the Local Government Code to enhance governance, accountability, and fiscal capacity at the local level.

“In collaboration with the ULAP, the DILG, and the DEPDev, we are pursuing necessary amendments to the Local Government Code that clarify the responsibility, strengthen the accountability, and enhance the fiscal capacities of LGUs,” the President said.

Data presented by the Chief Executive showed that only 29 percent of LGUs passed the Seal of Good Local Governance in 2023, with non-passing LGUs struggling in financial management, disaster preparedness, and social protection. 

He also noted the constraints on local fiscal autonomy, citing that 64 percent of LGUs in 2021 depended on the National Tax Allotment (NTA), while externally sourced revenues constituted 71 percent of their operating income.

President Marcos highlighted additional challenges, including inadequate digital infrastructure, poor internet connectivity, and limited ICT resources, compounded by unclear delineation of responsibilities between national agencies and LGUs. 

To address these, the administration is supporting the digitalization of both frontline services and back-end systems.

Among the initiatives announced are the Automatic Income Classification of Local Government Units Act, which institutionalizes the automatic income classification of LGUs, and the launch of the Electronic LGU System (eLGU) to digitize local frontline services.

The government also rolled out the “Sa Bagong Pilipinas, Bawat Bayan Makikinabang” program, expanding the Local Government Support Fund to help LGUs implement critical programs—from rice distribution and healthcare infrastructure to rural electrification. Additionally, the Socio-Civic Projects Fund will provide each barangay with a one-time educational grant of P100,000, with an equal amount allocated for community-prioritized capital outlay projects.

“These will equip LGUs with the tools, the resources, and the clarity of mandate that they need to serve effectively,” President Marcos said. 

He went on. “More importantly, they are designed to unlock the full potential of LGUs: make you more self-reliant, more responsive, and more competitive.”

Founded in 1988, the VMLP comprises 1,634 vice mayors across the Philippines and works to advance effective local legislation, develop programs to enhance legislative capabilities, and promote local autonomy in partnership with national and international stakeholders.