What is Local Government Support Fund (LGSF)?

The Local Government Support Fund (LGSF) administered by the Department of Budget and Management (DBM) serves as a crucial mechanism for empowering local government units (LGUs) across the Philippines.

This fund allocation, often tailored to the specific needs and priorities of each LGU, bolsters their capacity to address pressing developmental challenges within their respective jurisdictions. Through the LGSF, LGUs gain vital financial resources to enhance infrastructure, deliver basic services, and implement sustainable development projects, thus fostering inclusive growth and improving the quality of life for residents.

The LGSF plays a pivotal role in decentralization efforts by providing LGUs with the fiscal autonomy needed to pursue local development agendas effectively. By allocating funds directly to LGUs, the DBM empowers them to make informed decisions regarding resource allocation, aligning expenditures with local priorities and community needs. This decentralized approach not only promotes efficient resource utilization but also strengthens local governance structures, encouraging transparency, accountability, and citizen participation in decision-making processes. Overall, the LGSF stands as a cornerstone of the Philippines' commitment to empowering local communities and advancing grassroots development initiatives nationwide.

What is Financial Assistance to LGUs (FALGU)?

The Local Government Support Fund-Financial Assistance to Local Government Units (LGSF-FALGU) is a government initiative designed to aid local governments in implementing various development projects.

Eligible projects under the LGSF-FALGU encompass a wide range of sectors and initiatives, including agriculture, Information and Communication Technology (ICT) systems and infrastructure development, disaster response, rehabilitation, and recovery programs, acquisition of land for school construction, procurement of vehicles such as ambulances and trucks, as well as providing assistance to indigent individuals for medical, burial, transportation, food, and education/scholarship needs. Through the LGSF-FALGU, the government aims to support local governments in addressing key developmental challenges and improving the welfare of communities across the country.

Projects and programs supported by the LGSF-FALGU

The LGSF-FALGU is a government program aimed at assissting local governments in the implementation of development projects. The following projects are eligible for funding under LGSF-FALGU:

  • Implementation of programs and projects related to agriculture;
  • Information and Communication Technology Systems and Infrastructure Development;
  • Implementation of Programs, Projects, and Activities (PPA) related to disaster response, rehabilitation, and recovery;
  • Purchase of land for school construction;
  • Acquisition of ambulances, trucks, mini dump trucks, and other types of vehicles; and
  • Assistance to indigent individuals for medical, burial, transportation, food, and education/scholarship.