Unilab study: LGUs need better guidance in health spending

POLICY FORUM A new study commissioned by the Unilab Center for Health Policy (UCHP) and conducted by the Ateneo School of Government and the Ateneo Policy Center. HANDOUT PHOTO

A NEW study from the Unilab Center for Health Policy (UCHP) found that while local government units (LGUs) are increasing their health spending, they need clearer guidance and better technical support from national agencies. The study, conducted by the Ateneo School of Government, was presented at the 2nd UCHP Symposium.

The research reviewed budgeting practices in four LGUs and found that health budgets have risen by as much as 5% since 2022. Despite this, challenges remain. Many LGUs still rely heavily on national tax allocations, and a significant portion of their budgets goes toward personnel salaries, leaving limited funds for actual health programs.

Furthermore, LGUs face a confusing array of overlapping requirements for their budgets, including annual investment and operational plans that are often on different schedules. According to principal researcher Dr. Maria Eufemia C. Yap, this misalignment can delay fund releases and lead to plans that don’t address local health needs.

UCHP Program Director John Basa noted that the findings underscore the urgent need for government agencies to provide stronger support and clearer policy guidance to local governments. He added that improved systems and better alignment could help LGUs transform their health budgets from mere expenditures into powerful investments that directly improve the well-being of their constituents.

The study supports the call for promoting financial accountability and aligning national and local priorities to ensure health resources are effectively spent.