The provincial government of Iloilo is taking a wise step by requesting the reversion of funds initially allocated under the Local Government Support Fund-Support to Barangay Development Program (LGSF-SBDP).
This request is grounded in a recent clarification from the Department of Budget and Management (DBM) and the Department of the Interior and Local Government (DILG), which stated that funds from the LGSF should be treated as trust funds and should not revert to local government units (LGUs) but rather remain with national agencies like the Bureau of Internal Revenue.
In 2021, Iloilo received P720 million to fund 165 projects.
However, due to various delays, P196.9 million of these funds went unspent and were returned to the Bureau of the Treasury.
Unfinished Business
Recognizing the need to address unfinished business, the provincial government has already allocated P56 million from its 2023 Supplemental Budget to complete some pending projects.
Gov. Arthur Defensor, Jr. reported that out of the 165 projects, 91 have been completed, 69 are still underway, and 5 have yet to start.
These delays stem from several issues, such as procurement challenges, weather conditions, and contract problems. For instance, securing bids can be difficult, and adverse weather can halt progress.
The provincial government’s request to the DBM to revert these funds to Iloilo is a strategic move. It shows a commitment to completing the projects that will improve local infrastructure, such as provincial roads, which are crucial for economic development and connectivity.
By seeking the reversion of these funds, Governor Defensor demonstrates proactive governance, ensuring that the money allocated for development is fully utilized for its intended purpose.
This effort not only addresses the unfinished projects but also aligns with the broader goal of the LGSF-SBDP, which is to foster sustainable development in conflict-prone and affected communities.
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