Sen. Imee Marcos on Thursday questioned the Department of Budget and Management (DBM) for retaining a ₱37.5-billion fund for local government assistance in 2027 despite low spending in the current year.
During a budget hearing on Oct. 22, Marcos said only ₱1.606 billion, or 4.3% of the 2026 allocation for the Financial Assistance to Local Government Units (FALGU), had been obligated as of Aug. 15. Actual disbursements reached only ₱145.973 million.
FALGU was initially proposed at ₱5 billion for 2026 but was increased to ₱37.493 billion in the enacted budget. The same amount was retained in the proposed 2027 budget.
Marcos questioned why the DBM kept the increase despite the low utilization rate, noting that the agency usually removes congressional budget increases when preparing the following year's proposal.
“Ang baba ng implementation, ba't kayo nagdagdag ng napakalaki? From 5 billion, naging 37.493. Paanong himala yan?”
DBM Secretary Kim Robert de Leon said the figures were generated from the actual LGU reported obligation and disbursement under the SubayBAYAN portal.
“These may be the figures from the monitoring of the DILG of the implementation of the FALGU.”
He further noted that higher allocation would support President Ferdinand Marcos Jr.'s Bawat Bayan Makikinabang program, which provides assistance to local governments, including rice distribution.
De Leon said the government plans to continue the program in 2027, citing its implementation in 2026.
Marcos asked the DBM to submit a list of local government units and projects that received FALGU funding in 2025 and 2026. She also sought measures to prevent delays in spending the funds.
Sen. JV Ejercito, meanwhile, asked the DBM to explain the criteria for selecting recipient local governments.
De Leon said they are willing to provide the parameters used in terms of processing the release for LGUs.
“As of right now, the list is also available online through the DBM Compass but we'll certainly furnish the list to the committee and to the Senator's Office.”
Furthermore, the agency considers financial management, compliance with reporting requirements and previous accomplishments in using government funds.
The proposed 2027 budget allocates ₱58.53 billion to the Local Government Support Fund, which includes ₱37.5 billion for FALGU.
