The Bureau of Local Government Finance (BLGF) reported that the number of local government units (LGUs) receiving certification for their borrowing capacity more than doubled in May, with 20 new Certificates of Net Debt Service Ceiling and Borrowing Capacity issued compared to eight in the same month last year, as reported by BusinessWorld.
These certificates are required by LGUs to validate their capacity to take on new debt, ensuring compliance with the net debt service ceiling set by the Department of Finance. The surge indicates increased borrowing activity among local governments, likely driven by infrastructure and development projects.
The BLGF, an attached agency of the Department of Finance, oversees the financial management of LGUs. The sharp rise in certifications may reflect a recovery in local government finances and a push to accelerate public spending at the subnational level.