Budgetary Aid to Local Government Units (BALGU)

June 4, 1990 DOF LOCAL FINANCE CIRCULAR NO. 01-90 TO : All Regional Directors for Local Government Finance; Provincial, City and Municipal Treasurers; and Others Concerned SUBJECT : Budgetary Aid to Local Government Units (BALGU ) For the information and guidance of all concerned, attached is a copy of DLG-DBM-DOF Joint Circular No. 1, dated April, 1990, of the Inter-Agency Committee of the National Assistance to Local Government Units (NALGU) prescribing policies and guidelines relative to the Budgetary Aid to Local Government Units (BALGU). In accordance with the aforesaid Circular, the BALGU is intended to provide the Local Government Units (LGUs) with financial assistance in the pursuit of the development objectives and to enable such LGUs to improve and develop their administrative and technical capabilities. BALGU funds shall be utilized only in the direct implementation of projects and shall in no case be used for salaries, salary standardization, bonuses, cash gifts and other personnel expenditures unless expressly authorized by the Department of Budget and Management (DBM). The local government units shall shoulder the pre-implementation of the project and the technical supervision expenses for which the 20% Development Fund may be utilized for the purpose. All LGUs shall be provided with their respective fund ceilings for programming of priority projects which shall be released directly to them by the Department of Budget and Management upon approval of the Integrated Program as recommended by the NALGU Inter-Agency Committee and approved by the President. cdt Accordingly, the requirements and/or procedures for the approval of such fund ceilings are therein provided for. However, project proposals not submitted to the DLG NALGU Office by June 30 of the year shall no longer be eligible for funding for that current year. Strict observance and/or compliance with the provisions of the aforestated Joint Circular is hereby enjoined. The Provincial Treasurers are hereby instructed to disseminate the contents of this Circular to all Municipal Treasurers within their respective jurisdictions. (SGD.) VICTOR C. MACALINCAG Undersecretary