Local Government Support Fund

• The Local Government Support Fund (LGSF) is a national government funding mechanism that provides financial support to Local Government Units (LGUs) for priority development programs, projects, and services.
• It helps provinces, cities, municipalities, and barangays implement projects that respond to local needs, especially in infrastructure, basic services, peace and development, and community-based priorities.
• LGSF supports various programs such as FALGU, SBDP, GEF, and SAFPB, each with specific objectives, eligible beneficiaries, and implementation guidelines.
• Projects funded under LGSF are monitored by the DILG, through the Project Development and Management Unit (PDMU), and encoded in monitoring platforms such as SubayBAYAN to promote transparency, accountability, and timely project completion.

Major Programs under LGSF

1. FALGU – Financial Assistance to Local Government Units

• Provides financial assistance to LGUs for the implementation of priority local development projects.
• May support projects such as public buildings, roads, drainage systems, water systems, evacuation facilities, and other local infrastructure, subject to the applicable guidelines.
• It helps LGUs implement projects that may not be fully funded through their regular local resources.

2. SBDP – Support to the Barangay Development Program

• Supports the delivery of basic services and development projects in barangays, particularly those identified under peace and development initiatives.
• Common projects include farm-to-market roads, water systems, health stations, school buildings and electrification
• The program aims to bring government services to communities that need stronger support for development and peace-building.

3. GEF – Growth Equity Fund

• Provides additional funding support to poor, disadvantaged, and lagging LGUs.
• It aims to reduce development gaps among LGUs by supporting priority projects and services.
• GEF helps promote more balanced and inclusive local development.

4. SAFPB – Support and Assistance Fund to Participatory Budgeting

• Supports projects identified through participatory budgeting processes.
• It emphasizes citizen participation, transparency, and responsiveness in identifying priority local projects.
• The program helps strengthen people’s participation in local planning and budgeting.

Role of DILG / PDMU in LGSF

• Provides technical assistance to LGUs in the preparation, review, and compliance of project documents such as DED, POW, implementation schedules, and other required attachments.
• Reviews and validates project data submitted by LGUs, including physical progress, financial status, geotagged photos, and other monitoring reports.
• Conducts regular monitoring, field validation, and coordination with LGUs to ensure that projects are properly implemented.
• Assists LGUs in addressing findings, deficiencies, and required corrections during project review and implementation.
• Uses project monitoring data for reporting, evaluation, and policy recommendations to improve the implementation of LGSF-funded projects.