The Department of Finance (DOF) underscored the importance of public access to local government financial data in monitoring and improving the performance of local government units (LGUs).
“We acknowledge the significance of timely, pertinent, consistent, and openly accessible data on LGU financial performance. This serves as an accountability tool that civil society organizations can employ,” said Finance Undersecretary for Fiscal Policy and Monitoring Cielo Magno on December 7, 2022 at a high-level dialogue for USAID’s Cities for Enhanced Governance and Engagement (CHANGE) Project.
Undersecretary Magno said that the DOF’s Bureau of Local Government Finance (BLGF) has made digital LGU fiscal data readily available on its website. This includes statistics on annual and quarterly local finance and LGU debt. The tool also allows civil society organizations (CSOs) to hold local leaders accountable using transparent performance metrics.
Undersecretary Magno emphasized the indispensable role of CSOs in local governance.
“They promote accountability for our LGUs, offer on-the-ground perspectives that can help policymakers improve local governance, and complement local government efforts to deliver social services, especially to the poor and the marginalized,” Undersecretary Magno explained.
The Local Government Code (LGC) of 1991 urges LGUs to create spaces for the meaningful participation of non-government organizations, civil society, and people’s organizations.
Decentralization and public participation are necessary elements to achieving genuine local autonomy.
Undersecretary Magno said that there are initiatives underway to mainstream decentralization and public participation.
The government issued Executive Order No. 138 on June 1, 2021 in line with the Supreme Court ruling that all collection of national taxes, except those accruing to special purpose funds and special allotments for the utilization and development of the national wealth, should be included in the computation of the base of the just share of LGUs.
The resulting increase in the LGUs’ share from national taxes should enable them to carry out additional duties and functions that have been devolved to them.
Increased allocations should ideally strengthen the capacity of LGUs to provide social services to their citizens; increase economic growth, employment, and productivity; and promote LGU competence, accountability, and transparency.
Undersecretary Magno hopes that the CHANGE program will strengthen the administration’s initiatives toward empowering LGUs to better serve the public through decentralization, while attaining fiscal sustainability both at national and local levels.
“I assure you that the DOF, together with the BLGF, will continuously collaborate with you in advocating reforms and implementing programs towards good local governance,” said Undersecretary Magno.
