Jauhn Etienne Villaruel

Article (news)

Rowegie Abanto

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block" width="960"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1787889214795Screen Shot 2026-08-28 at 11.53.22 AM.png" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">President Ferdinand Marcos Jr. receives the final FY 2027 National Expenditure Program from Acting Department of Budget and Management Secretary Kim Robert de Leon during its formal presentation at Malacañan Palace on August 10, 2026.<em> Presidential Communications Office</em></span></span></span></div><p>MANILA — An economist on Friday flagged the P58.5 billion allocation for Local Government Support Fund (LGSF) in the proposed 2027 national budget, saying the fund could be a source for discretionary spending ahead of the 2028 national elections.</p><p>The LGSF allocation for 2026 reached P57.8 billion, and under the proposed 2027 budget, LGSF increased to P58.53 billion, which economist Jan Carlo Punongbayan said was &quot;a significant jump&quot; compared to this year&#x27;s budget for the fund.</p><p>&quot;Many of my friends who are also looking at the budget for next year are saying that, in fact, this could be a source for discretionary spending,&quot; said Punongbayan, who teaches at the University of the Philippines School of Economics.</p><p>&quot;Even if there are supposedly certain parameters by which these funds can be downloaded to the local government units, there&#x27;s still so much room for discretion,&quot; he said.</p><p>&quot;And then of course we have to look at the context which is the upcoming 2028 elections,&quot; he added, noting that the role of local governments would be &quot;quite pivotal&quot; in determining the outcome of the election.</p><div><a href="https://www.abs-cbn.com/news/nation/2026/8/26/palace-assures-national-gov-t-to-monitor-use-of-local-gov-t-support-fund-2332">Palace assures national gov’t to monitor use of local gov’t support fund</a></div><p>He also urged vigilance for other &quot;possibly discretionary spending items&quot; in the proposed budget, including Financial Assistance to Local Government Units, the so-called Growth Equity Fund, and support to barangays under the National Task Force to End Local Communist Armed Conflict.</p><p>On Wednesday, Malacañang assured that the national government would monitor the use of LGSF to avoid abuse.</p><p>Palace Press Officer Claire Castro said the fund should be used for community development such as building of local infrastructure, farm-to-market roads, water systems, health facilities as well as improving disaster resiliency and financing assistance to marginalized groups.</p><div><br/></div><div><strong>RELATED VIDEO:</strong></div><div><strong><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/BTtD1jppKEI?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span></strong><br/></div>

<p>An economist on Friday flagged the P58.5 billion allocation for Local Government Support Fund (LGSF) in the proposed 2027 national budget, saying the fund could be a source for discretionary spending ahead of the 2028 national elections.</p>

An economist on Friday flagged the P58.5 billion allocation for Local Government Support Fund (LGSF) in the proposed 2027 national budget, saying the fund could be a source for discretionary spending ahead of the 2028 national elections.

Economist flags proposed P58.5-B Local Government Support Fund: 'So much room for discretion'

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Economist flags proposed P58.5-B Local Government Support Fund: 'So much room for discretion'

Rowegie Abanto,

ABS-CBN News

Published August 28, 2026 11:56 AM PHT

Read More:

Local Government Support Fund

LGSF

Malacanang

National Budget

2027 Budget

JC Punongbayan

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