Recto Assures LGUs of DOF Support for Growth

Finance Secretary Ralph Recto assured local government units (LGUs) that the Department of Finance (DOF) is committed to helping them rise, grow, and deliver the benefits of the government’s “Bagong Pilipinas” agenda to their communities.

“For the success of every LGU translates into prosperity for the people you serve. Sa inyo po nakasalalay ang pag-angat ng bawat bayan at ang magandang kinabukasan ng bawat Pilipino,” Recto said during the Bureau of Local Government Finance’s (BLGF) 37th anniversary on October 9.

The BLGF, an agency under the DOF, provides policies that enhance the financial capacity of LGUs to foster fiscal sustainability and support local governance. It also oversees local treasury and assessment operations to ensure effective financial management.

As part of its initiatives, the BLGF honored the top-performing provinces, cities, and municipalities for 2022 and 2023. The selection was based on local revenue generation, income growth, and spending per capita.

More LGUs have joined the “billionaire’s row” in locally sourced revenues, increasing from 28 in 2019 to 46 last year.

Recto said this growth demonstrates improved governance and fiscal independence, especially outside Metro Manila.

“This is a powerful testament to the improving governance, expanding financial capacity, and growing fiscal independence of our LGUs nationwide,” Recto noted.

He emphasized that empowering LGUs to drive their own growth is key to breaking the cycle of poverty across the country.

To further accelerate this progress, the DOF is rolling out the Local Governance Reform Project (LGRP) to enhance fiscal management.

This includes digitalizing real property valuation systems through the Real Property Valuation and Assessment Reform Act (RPVARA), aimed at attracting investments and boosting local revenues.

During the event, a Data Sharing Agreement was signed between government offices and LGUs to develop a Real Property Information System, improving tax administration and business processes.

Recto said the DOF will fast-track these reforms to modernize local governance and enhance the skills of local treasurers and assessors.

“Asahan po ninyo ang mabilis na pagpapatupad sa mga programang ito para gawing mas klaro, mas simple, at mas moderno ang pamamalakad ng ating gobyerno,” Recto added.

The event was attended by key officials, including Department of Information and Communications Technology Secretary Ivan John Uy, BLGF Executive Director Consolacion Agcaoili, and local government leaders.