IN LOCAL governance, fiscal transparency and accountability are important pillars for ensuring effective and responsible leadership. The recent recognition of 42 local government units (LGUs) in Iloilo Province for passing the 2024 Seal of Good Financial Housekeeping (SGFH) by the Department of Interior and Local Government (DILG) underscores the value of financial responsibility in local government operations. This seal is a symbol of good governance practices that benefit every resident in the province.
The SGFH is granted to LGUs that adhere to key principles of fiscal discipline, transparency, and accountability. At its core, the Seal is a benchmark for local governments to uphold their duty in managing public resources judiciously. In the case of Iloilo Province, the 42 LGUs that received the Seal have shown financial responsibility, an achievement that translates into more efficient use of taxpayers’ money, increased public trust, and improved delivery of services.
How beneficial is fiscal transparency to local communities?
When local governments are transparent in their financial operations, it helps foster a culture of trust between the people and their leaders. Residents can be assured that public funds are being used for their intended purpose — be it for infrastructure, health services, or social welfare programs — rather than being misallocated or mismanaged. In an era where resources are often limited, fiscal discipline ensures that every peso spent serves the greater good, helping to build more resilient communities.
Iloilo Province’s experience offers an insightful example of how fiscal transparency enhances the functioning of local governance. LGUs that adhere to stringent financial standards are better positioned to pursue sustainable development. For instance, LGUs that passed the SGFH are able to attract more investments, secure funding for vital projects, and efficiently implement programs that improve the quality of life for their residents. Moreover, the full disclosure of financial information, which is a requirement for SGFH, strengthens public accountability, ensuring that elected officials are held responsible for their actions.
However, the path to fiscal transparency is not without its challenges. Not all LGUs in Iloilo met the criteria this year, with the Municipality of Janiuay being the lone exception. This signals a need for further investment in financial management capabilities and systems, especially for smaller or less equipped municipalities. It is essential that local governments continue to improve their financial operations to meet the SGFH’s stringent criteria. DILG-Iloilo has urged LGUs to persist in their commitment to fiscal discipline, and this message should resonate throughout the province.
Looking ahead, it is crucial to recognize that fiscal transparency is not just a matter of compliance, but a strategy for long-term growth. By ensuring that public funds are managed with integrity, local governments are laying the foundation for future progress. As Iloilo continues to develop, maintaining the highest standards of financial housekeeping will be essential for addressing challenges such as infrastructure gaps, social inequalities, and environmental concerns.
The recognition of Iloilo’s LGUs for good financial housekeeping is an important reminder of the vital role fiscal transparency plays in local governance. It builds public confidence, improves service delivery, and ensures that resources are used effectively. As more local governments in Iloilo – and hopefully beyond – follow suit, we can look forward to a future where financial accountability is the norm, leading to stronger, more sustainable communities.
