Local government units (LGUs) spent a total of P118.9 billion on their coronavirus disease 2019 (COVID-19) response measures as of June 2021, the Department of Finance (DOF) said over the weekend.
The DOF said in a statement that based on preliminary data gathered by the Bureau of Local Government Finance (BLGF), P76.44 billion of the said amount came from the LGUs’ own funds, and another P35.44 billion from the Bayanihan Grant under the 2020 national budget and in view of the Bayanihan to Heal as One Act.
In a report to Finance Secretary Carlos Dominguez, the BLGF said LGUs also utilized P4.93 billion of their unexpended cash balances of public funds held in trust that were transferred to the General Fund (GF) of LGUs to support their pandemic response efforts.
Another P2.14 billion spent by LGUs came from grants and donations, it added.
Under Republic Act (RA) No. 11494 or the Bayanihan to Recover as One Act, the unexpended cash balances of public funds held in trust by the local governments were allowed to be transferred to the GF of the LGUs to support local government programs and projects in response to the COVID-19 pandemic, while RA 11520 extended the validity of the 2020 General Appropriations Act up to December 31, 2021.
The BLGF developed an online reporting system for local treasurers to track the receipts and expenditures of all provinces, cities and municipalities related to their COVID-19 programs, projects and activities.
“This reporting system was used to establish and assess baseline local finance data to serve as inputs in managing the COVID-19 response of the government,” Niño Raymond Alvina, BLGF executive director, said in his report.
Data gathered by the BLGF covered the period from April 2020 to June 2021, with 100 percent reporting compliance of all provincial, city and municipal treasurers of 1,715 LGUs.
Based on the BLGF’s preliminary analysis of the reports submitted by local treasurers, Alvina said LGUs have utilized P35.44 billion or 96 percent of the total of P37.02 billion under the Bayanihan Grant to fund their respective pandemic response measures as of June 30, 2021.
Of the P35.44 billion, 87 percent or P30.83 billion was spent by LGUs for maintenance and other operating expenses (MOOE), mainly on food assistance and other relief goods for households, while the remaining 13 percent or P4.61 billion was used for capital outlays.
Alvina said LGUs were reminded last year that the Bayanihan Grant was valid for disbursement only until December 31, 2021, and unutilized portions shall be reverted to the National Treasury.
Bulk of the COVID-19 response war chest of LGUs came from their own funds totaling P76.44 billion as of end-June 2021. Of this amount, P59.03 billion was used for LGU-funded programs, of which 87 percent or P51.73 billion was spent on MOOE.
“There were 587 LGUs that provided their own projects to their constituents, with 482 or 82 percent of which are municipalities, 68 (12 percent) are cities, and 37 (six percent) are provinces,” Alvina said.
In terms of MOOE spent for COVID-19 response sourced from LGUs’ own funds, the National Capital Region, Calabarzon and Central Luzon had the highest disbursements at P16.1 billion, P6.33 billion and P5.18 billion, respectively.
