Sunday, September 28, 2025

DBM issues rules on release, use of funds for LGU projects

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The Department of Budget and Management (DBM) has issued guidelines on the release and use of a P4.88-billion fund intended to support local government units’ (LGUs) priority programs and projects.

The DBM, through local budget circular no. 122 dated January 31, 2020, said the appropriated amount will be used for financial assistance to LGUs’ priority programs and projects, except for those under the Bangsamoro Autonomous Region in Muslim Mindanao.

Identified priorities include construction, concreting, rehabilitation, repair or improvement of local roads and/or bridges; public markets; slaughterhouses; multi-purpose buildings/halls; multi-purpose pavements; drainage canals; sea wall/river wall; water system projects; evacuation centers; public parks; fish ports; and post-harvest facilities composed of ice plant and cold storage facilities.

The circular said it also includes the purchase of ambulance, trucks, mini dump trucks or multicabs; sports programs and facilities; street lighting or barangay electrification; and financial assistance to mental health patients.

However, the DBM cited that in the President’s affirmation message, he said the financial assistance to LGUs was placed “under conditional implementation.”

“(This is) to ensure that the same shall be used only for priority development programs and projects of LGUs only when said programs and projects cannot be accommodated by any available LGU funds,” the DBM said.

The President also provided that the priority on the use of the fund shall be given to infrastructure projects that are aligned with the “Build, Build, Build” program of the government.

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