• About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
Wednesday, November 29, 2023
Invest Daily Pro
  • Top News
  • Economy
  • Forex
  • Investing
  • Stock
  • Politics
  • Editor’s Pick
No Result
View All Result
  • Top News
  • Economy
  • Forex
  • Investing
  • Stock
  • Politics
  • Editor’s Pick
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Forex

LGUs urged to develop capital investment plans

by
November 24, 2022
in Forex
0
LGUs urged to develop capital investment plans
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter

LOCAL government units (LGUs) have been instructed to develop a capital investment planning capability, the Department of Finance (DoF) said, citing the need to raise their creditworthiness and improve their access to financing.

“As we implement the full devolution of certain functions from the executive branch to local governments pursuant to Executive Order (EO) No. 138, government units are confronted with the challenge of funding the expanded scope of basic services and local development projects. It is therefore imperative that LGUs put in place plans on capital investment,” Finance Secretary Benjamin E. Diokno said in a statement on Thursday.

EO No. 138 outlines the devolution of National Government functions corresponding to the expansion of LGUs’ share of national taxes.

The expansion of the LGUs’ National Tax Allotment comes as local officials made only limited use of their authority to borrow.

According to the DoF, only 62% of LGUs have availed of credit in the past five years.

In 2021, LGU borrowing only amounted to P136.6 billion or around 0.74% of gross domestic product.

The Bureau of Local Government Finance (BLGF) reported that LGUs were only able to utilize 51.5% of their borrowing capacity in the past five years.

“These were most commonly used for the construction of local government buildings and roads, acquisition of lots, and procurement of heavy equipment,” it added.

The BLGF issues certificates of net debt service ceiling and borrowing capacity to LGUs to set the maximum amount that LGUs can borrow.

Mr. Diokno said the initiative is being pursued as part of an engagement with the World Bank Group, in which LGUs will be capacitated to undertake the planning of their capital investment programs.

“This initiative will steer our LGUs on the path to creditworthiness, which is key to accessing long-term financing required for sustainable investments,” he added.

Ateneo de Manila University Economics Professor Leonardo A. Lanzona said that LGUs are key players in the economy’ recovery.

“For this to happen, they should be allowed to create and develop their own economic programs and policies. The national agencies and departments should refrain from setting rules and policies for the LGUs to follow. In this case, matters relating to industrialization, agricultural development and the enhancement of the service sector, including infrastructure, should be decided at the regional level,” he said in an e-mail.

Mr. Lanzona said that LGUs should develop their own industrial policy along the lines of service expansion, which should be presented to the National Government in order to reduce barriers that can mobilize both labor and capital to competitive regions.

“It is likely that some regions may lag behind. While the National Government should keep their hands off from the economic programs of the regions, it is crucial that they provide the necessary public goods, such as health, education and infrastructure to the lagging regions. This should be the only rationale for government intervention,” he added. — Luisa Maria Jacinta C. Jocson

ShareTweetPin

Related Posts

Smart spending tips: Achieving a fulfilling holiday season without breaking the bank
Forex

Smart spending tips: Achieving a fulfilling holiday season without breaking the bank

November 29, 2023
Secrets of Success: Branwell Moffat,  Founder and Director CX Consulting
Forex

Secrets of Success: Branwell Moffat,  Founder and Director CX Consulting

November 29, 2023
Argentina’s Milei seeks foreign policy, IMF reset in Washington trip
Forex

Argentina’s Milei seeks foreign policy, IMF reset in Washington trip

November 29, 2023
Countries urged to curb factory farming to meet climate goals
Forex

Countries urged to curb factory farming to meet climate goals

November 29, 2023
Second-hand shopping a $1-bln-plus business for Amazon in Europe
Forex

Second-hand shopping a $1-bln-plus business for Amazon in Europe

November 29, 2023
DATEM’s name piques curiosity
Forex

DATEM’s name piques curiosity

November 29, 2023
Next Post
PHL coal, oil, gas reserves valued at P241 billion in 2021

PHL coal, oil, gas reserves valued at P241 billion in 2021

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Onion shipments total 1,200 MT five days before import deadline 

Onion shipments total 1,200 MT five days before import deadline 

January 23, 2023
Gatchalian files resolution to probe PAGCOR on third-party auditor 

Gatchalian files resolution to probe PAGCOR on third-party auditor 

February 1, 2023
BTS rekindles debate about military service in South Korea

BTS rekindles debate about military service in South Korea

July 4, 2022
Asian Terminals’ profit rises 35% to P3B

Asian Terminals’ profit rises 35% to P3B

April 17, 2023
Solar, wind projected to lead renewable energy expansion

Solar, wind projected to lead renewable energy expansion

November 21, 2022
How casinos are making gambling safer

How casinos are making gambling safer

November 30, 2022
Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
    • About Us
    • Privacy Policy
    • Terms & Conditions
    • Contact Us
    • Email Whitelisting

    Copyright © 2023 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About Us
    • Contact Us
    • Email Whitelisting
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Thank You

    Copyright © 2023 SmarterNewsNow. All Rights Reserved.