Philippines gets P440-M European Union grant for LGU finance management

Secretary of Foreign Affairs Albert del Rosario. AP FILE PHOTO

The European Union (EU) is providing the Philippines a grant of 8 million euros or about P440 million to help improve public finance management in local government units.

Foreign Secretary Albert del Rosario and EU Ambassador Guy Ledoux on Tuesday signed the financing agreement for “Support to Local Government Units for more effective and accountable Public Finance Management,” an EU-sponsored project.

The project, which will be implemented by the Department of Budget and Management, is expected “to enhance the capacity of local governments to generate revenue and to allocate and spend public funds more effectively and efficiently,” said Ledoux.

It is composed of various components, including improved institutional capacities of oversight bodies at central level, developing policy agenda and action plan, and strengthening capacity of regional offices.

The project also includes components that focus on improving transparency and accountability of LGUs as well as monitoring systems.