President Ferdinand R. Marcos Jr. on Monday pledged to address administrative and financial bottlenecks hindering local government units, announcing a push to amend the Local Government Code to empower smaller jurisdictions.

Speaking at the Malacañang inauguration of the Vice Mayors’ League of the Philippines national executive officers, Marcos said his administration is working with several agencies to clarify the responsibilities and fiscal capacities of local offices. The effort aims to help municipalities transition toward full devolution of public services.

The President cited data showing that only 29 percent of local government units passed the Seal of Good Local Governance in 2023 and cited that those who failed to meet the standard often struggled with financial management, social protection, and disaster preparedness.

Marcos also highlighted a heavy reliance on the national government for funding. In 2021, 64 percent of local units depended on the National Tax Allotment, while 71 percent of their total operating income came from external sources rather than local revenue.

“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,” Marcos said.

To modernize local bureaucracy, the administration is rolling out the Electronic LGU System to digitize frontline services. Marcos acknowledged that poor internet connectivity and limited digital resources remain significant hurdles for many regions.

The President also detailed the “Sa Bagong Pilipinas, Bawat Bayan Makikinabang” program, which expands the Local Government Support Fund for healthcare, rural electrification and rice distribution.