Press Release
July 2, 2019

Lacson's BRAVE Bill Empowers LGUs to Achieve Inclusive Growth

More at:

Local government units will soon get much-needed funding for their key development projects with the proposed Budget Reform for Village Empowerment (BRAVE) Act of 2019 filed by Sen. Panfilo M. Lacson.

Senate Bill 23 guarantees an annual Local Development Fund to help LGUs in provinces, cities, towns and barangays implement their three-year Comprehensive Development Plans.

Under the bill, a LDF for financing development projects, activities and programs will be given to:

  •  Provinces: P500 million to P1 billion per year

  •  Cities: P100 to P200 million each per year

  •  Towns/municipalities: P50 to P100 million each per year

  •  Barangays: P3 to P5 million each per year

The amount of LDF for each province, city or town shall be based on the following criteria:

  • 50 percent of the prescribed amount for first-class LGUs

  •  60 percent of the prescribed amount for second-class LGUs

  •  70 percent of the prescribed amount for third-class LGUs

  •  80 percent of the prescribed amount for fourth-class LGUs

  •  90 percent of the prescribed amount for fifth-class LGUs

  •  100 percent of the prescribed amount for sixth-class LGUs

The LDF is to be automatically and directly released to every LGU at the start of the fiscal year or quarterly within five days at the start of each quarter. The national government cannot impose a lien or imposition against this fund.

However, the LDF will not be released without a certification from the Local Government Academy that the LGU is capacitated to plan and implement its Comprehensive Development Plan.

But LDF funds may not be spent for items that are not related to or connected with the development PAPs. LDF funds cannot be spent for PAPs that may duplicate or overlap with PAPs implemented by the national government agencies. Neither shall they be used as a counterpart fund to support national government agencies' identified PAPs.

A yearly performance review of the LGUs' implementation of their programs will be held. LGUs deemed unsatisfactory may have their LDFs slashed by 50 percent the following year, and terminated in case of two successive unsatisfactory performances.

Meanwhile, a web-based monitoring system will be adopted. Information accessible to the public may include funding/cost, location, contractor, progress status, number of beneficiaries, date of completion and responsible government official, of the PAPs.

A Congressional Oversight Committee will monitor and oversee the implementation of the provisions of this Act. The Committee shall be composed of five members each from the Senate and House of Representatives. It will be chaired by the Chairpersons of the Committee on Local Government from both the Senate and House of Representatives.

Also, a sunset review of the law will also be held after five years or as the need arises, to determine remedial legislation.

For its part, the Local Government Academy will establish a continuing capacity program for LGUs, to make sure LGUs are capacitated to plan and implement development projects.

"By giving the LGUs the necessary wherewithal to be active participants in the development of our country, we will end the culture of mendicancy and political patronage that viciously thrive in our system. Ultimately, this will help us realize the elusive inclusive growth that we all aspire for as a nation," Lacson said.

News Latest News Feed