LGUs obtain more funds to fight virus

Value -P3.850

P214,139,792 -6.020%

Value P0.110

AT least P130 billion could be freed up from local government units’ (LGU) budgets to help them address the growing fallout from the coronavirus disease 2019 (CO VID-19) after the National Government allowed them to use their development funds.

This, after some officials of LGUs expressed concern that their funds meant to respond to the pandemic might be depleted soon.

LGUs can now use 20% of their annual Internal Revenue Allotment (IRA) on COVID-19-related expenses according to Joint Memorandum Circular (JMC) No. 2020-001 issued by the Departments of Budget and Management (DBM) and Interior and Local Government (DILG).

Out of the P4.1-trillion spending plan for this year, LGUs were automatically allotted P648.921 billion in IRA, or their share in government revenues equivalent to 40% of national taxes collected three years before the current fiscal year. From their share, which is computed based on land area,

P159,622,250 4.603%

Value -P3.000

P151,250,105 -7.692% population and type of LGU, local governments must allocate at least 20% for development projects or P129.784 billion in total for 2020.

DBM confirmed that P130 billion is the minimum amount LGUs should have allocated for their development fund this year.

It is up to the LGUs how much they are willing to use from the fund to finance their efforts against COVID-19, Budget Secretary Wendel E. Avisado said in a mobile phone message

Initially, this share could only be used for priority development projects under LGU’s approved local development plans and annual investment plan, which are programmed for socioeconomic and environmental development.

The coverage was expanded through the JMC dated March 27 to include COVID-19-related expenses, including the purchase of personal protective equipment, testing kits, medicines, vitamins, hospital tools and supplies, disinfectants, sprayers and other dis