Metro Manila (CNN Philippines, April 2) — Local government units (LGUs) may use their 20% development fund for the implementation of measures against COVID-19 in their areas, the Department of the Interior and Local Government (DILG) said.
The DILG signed a joint memorandum circular with the Department of Budget and Management allowing the LGUs to replenish their depleted budgets.
“We are giving LGUs more flexibility in using their development fund for disaster preparedness and response efforts to contain the spread of coronavirus and to continue to provide basic services to their constituents who are severely affected by the enhanced community quarantine,” DILG Secretary Eduardo Año said.
The 20% development fund is sourced from the annual internal revenue allotment of LGUs. It is originally used in local government projects concerning social and economic development and environmental management.
Under the circular, local governments may use the development fund in procuring personal protective equipment (PPE), hospital equipment and supplies, testing kits, reagents and equipment. Disinfectants, sprayers, and disinfection tents may also be purchased.
Expenses on food, transportation, and accommodations for medical and LGU personnel involved in COVID-19 relief efforts may also be charged to the development fund. LGUs may also use the fund in providing relief goods to affected households.
The amount may also cover the construction or rental of additional spaces for persons under investigation (PUIs) and persons under monitoring (PUMs). LGUs may also use the fund in operating testing laboratories.
The development fund may also be utilized in acquiring temporary shelters for the homeless.
LGUs may also charge to the fund trainings for personnel in COVID-19 testing, along with other programs and activities related to the containment of COVID-19.
DILG Undersecretary and Spokesperson Jonathan Malaya clarified the limitations in using the development fund.
“Hindi ito puwedeng gamitin para bumili ng furniture, fixture[s], appliances at motor vehicles,” said Malaya.
[Translation: It can’t be used to buy furniture, fixture[s], appliances and motor vehicles.]
According to the circular, the fund does not cover salaries, wages, overtime pay, and other personnel benefits.
Administrative expenses such as supplies, meetings, communication, water and electricity, and petroleum products cannot be charged to the development fund.
