MANILA — The Bureau of Local Government Finance (BLGF) listed 30 certificates covering P4.355 billion in proposed borrowings by local government units (LGUs) in its August report.

Of the total, 26 were new certificates of net debt service ceiling and borrowing capacity, while the remaining four were amendments to previously issued documents. The certificates covered 24 municipalities, one city, two provinces and three barangays.

The largest proposed borrowing was P500 million for infrastructure projects in the barangays of Poblacion and Mapulang Lupa in Pandi, Bulacan.

This was followed by P460 million for the construction of multi-purpose buildings and a public cemetery, as well as road concreting projects in Baganga, Davao Oriental.

Meanwhile, Dapitan City in Zamboanga del Norte and the Province of Sultan Kudarat each sought P400 million, with the former earmarking the funds for the construction of a public market and the latter for the procurement of heavy equipment.

The August report brought the total number of certificates listed by the BLGF this year to 176, covering P41.06 billion in proposed borrowings against a combined borrowing capacity of around P118 billion — meaning LGUs have so far proposed to draw on roughly a third of the debt headroom available to them under the legal ceilings.

The BLGF, an attached agency of the Department of Finance, issues certificates of net debt service ceiling and borrowing capacity to determine the maximum amount a local government may borrow. Under the Local Government Code of 1991, or Republic Act No. 7160, LGUs may secure loans and other forms of financing from public and private lending institutions to fund infrastructure and development projects, provided that debt service stays within the ceilings set by law. The certification process is the step that establishes how much an LGU can legally borrow before it approaches public or private lenders, and the requests in the latest report — spanning public markets, roads, multi-purpose buildings, cemetery construction and heavy equipment — illustrate the range of local projects that such borrowings are intended to fund.

Also on Thursday, Finance Secretary Frederick D. Go administered the oath of office of Wryan Martin C. Te, who was appointed BLGF executive director on Sept. 18, 2026. Te now heads the agency whose certificate listings track proposed LGU borrowings, and subsequent BLGF reports will show whether the pace of certifications — 176 so far this year — continues through the remainder of 2026.

— Justine Irish D. Tabile

Source: BusinessWorld