Section 5 of the Duterte Administration’s executive order (EO) 138 signed on June 1, 2021 provides that local government units (LGUs) shall be primarily and ultimately responsible and accountable for the provision of all basic services and facilities fully devolved to them in accordance with the standards for service delivery to be prescribed by the national government (NG). The 2022 National Expenditure Program (NEP) proposed a growth equity fund (GEF) to address issues on marginalization, unequal development, high poverty incidence, and disparities in the net fiscal capacities of LGUs, and to cover the funding requirements of programs, projects, and activities of poor, disadvantaged and lagging LGUs to gradually enable the full and efficient implementation of the functions and services devolved to them.
