These agencies shall coordinate with each other for the purpose of providing continuous capacity building programs for LGUs whether individually or through a composite team to institutionalize and sustain the synchronization of planning, investment programming, revenue administration, budgeting and expenditure management activities.
Revenue generation and collection, fund custody, disbursements and keeping of accounts are functions of the finance department; review of estimates and fiscal policy studies are done by the Department of Budget and Management in close consultation with the National Economic Development Authority; the Central Bank and other economic planning entities of the state to see to it that fiscal plans and programs are geared towards national development. The Commission on Audit conducts fund and performance audit to see to it that expenditures are in accordance with the Appropriation Law approved Congress, above all else, is responsible for revenue and expenditure policies.
The DOF, through the BLGF, is mandated to formulate standards, rules and regulations for the proper classification, appraisal and assessment of real property, and in consultation with DBM, provides for simplified disbursement scheme designed for the speedy and effective enforcement of Internal Revenue Allotment (IRA) shares of LGUs.
-is revenue from local public economic enterprises operated by LGUs
4. Grants and Donations
- local governments may obtain other resources from grants and donations from private sector, NGOs or donor assistance. Private sector grants and donations, for example those from foundations, are less complicated a process than sourcing donor financing from multi-lateral institutions or bilateral donors.
- credit financing from various sources is used by some local governments to support development of infrastructure or capital investment in development of economic enterprises. Typically, the latter is for capital spending although in some instances the former may contribute to operating expenses, albeit on a very temporary basis. Credit financing may take several forms including bonds, deferred payment schemes and loans; sources may include domestic banks, government financial institutions and loans through the national government from foreign sources.