proposes Performance Challenge Fund for LGUs
By Philippine Information Agency (PIA 8)
TACLOBAN CITY –
Department of Interior and Local Governments Secretary Jesse Robredo
is proposing the Performance Challenge Fund for Local Government Units
(PC Fund), Leyte Board Member Roque A. Tiu informed.
Board Member Tiu said
that the DILG Secretary intimated his proposal during the recently
concluded orientation seminar of the members of the faculty of the
Mayors Development Center, Inc. of the League of Municipalities of the
Challenge Fund for Local Government Units (PC Fund) is an incentive
fund to LGUs in the form of counterpart funding to high-impact capital
investment projects in the Annual Investment Program and funded the
20% Development Fund consistent with national priorities.
It shall seek to
rationalize national government inter-governmental transfers to LGUs,
and encourage alignment of local development initiatives with national
government development agenda and priorities.
The PC Fund shall be
open to all provinces, cities and municipalities awarded with the Seal
of Good Housekeeping provided that the LGU shall allocate counterpart
fund to implement capital investment projects aligned with the
national development agenda and priorities.
The LGUs may be
targeted based on income class or alternative indicators of fiscal
need like income/IRA per capita, poverty incidence, or level of LGU.
Coverage will be limited by the volume of grants that are sizeable
enough to be attractive to the targeted LGUs.
The PC Fund aims to
recognize good governance performance particularly in the adoption of
“good housekeeping” governance areas of planning, budgeting, revenue
mobilization, financial management and budget execution, procurement,
and resource mobilization.
It also seeks the
improvements in LGU performance by linking incentives/financial grants
with performing LGUs based on an established set of requirements and
condition; encourages alignment local development programs with
national development goals and priorities; and stimulate LGU and
private sector investments in sectors prioritized by the national
The Proposal is
currently posted at the DILG website for those interested to browse
and to give their comments.