The League of Municipalities of the Philippines (LMP) said safeguards have been put in place to keep the proposed P58.32-billion Local Government Support Fund (LGSF) for 2027 free from political favoritism and ensure local government units receive their fair share.

The proposed allocation is the largest LGSF in Philippine history.

LMP president and Echague, Isabela Mayor Faustino “Inno” Dy V said the Department of Budget and Management (DBM) has established rules to ensure the record funding is distributed equitably among LGUs regardless of political affiliation.

“Guard rails have been put in place by the DBM to ensure the equitable and proportionate distribution of the LGSF among all provincial, city and municipal governments, in keeping with the directive of the President that the release of such funds for all local governments nationwide should be free from partisan interests,” Dy said.

The LMP also thanked President Ferdinand Marcos Jr. for the record allocation under the proposed 2027 national budget.

“The DBM has come up with a menu of options as to what projects or programs can be bankrolled by LGU executives from their respective LGSF outlays,” Dy said.

He said the guidelines are intended to prevent political favoritism and ensure funds are directed toward priority programs and projects.

Executive Secretary Ralph Recto earlier said the P58.32-billion allocation would be the highest in the LGSF’s history.

Dy said the record funding “shows President Marcos’ trust and confidence in local governments, from provinces and cities to municipalities and barangays. It also reflects his commitment to giving LGUs more room and resources to drive local development.”

“We will not fail the President. We will make sure that the funds are spent wisely based on the DBM’s guidelines and subject to strict auditing and accountability rules,” he said.

Dy described the LGSF as an “equity tool” designed to promote a fairer distribution of national resources among LGUs and reduce opportunities for patronage politics.

Among the programs to be supported through the fund is the distribution of 10 kilos of free rice every two months to nearly eight million Filipino families.

The LGSF may also finance farm-to-market roads, water systems, health facilities and multipurpose buildings that can serve as evacuation centers during disasters.

The proposed P58.32-billion allocation includes P37.49 billion in financial assistance to LGUs, P10.3 billion for the Growth Equity Fund, P9.74 billion for the Barangay Development Program of the National Task Force to End Local Communist Armed Conflict and P1 billion for support and assistance under participatory budgeting.

The funding will be provided on top of LGUs’ National Tax Allotment (NTA), formerly known as the Internal Revenue Allotment before the Supreme Court’s Mandanas-Garcia ruling expanded the tax base used to determine local governments’ share of national taxes.

The country’s 1,491 municipalities are set to receive a combined P448.70 billion in NTA.

For Dy, however, the record LGSF allocation is only as significant as the safeguards governing its distribution and use.

With P58.32 billion proposed for local governments next year, he said the challenge is ensuring every LGU receives its fair share and that the money is spent for its intended purposes.