Executive Order (EO) No. 138, s. 2021 provides for the full devolution of certain functions of the Executive Branch to local government units (LGUs). Pursuant to Section 8 of said EO, the Growth Equity Fund (GEF) shall be established to address the issues of marginalization, unequal development, high poverty incidence, and disparities in the net fiscal capacities of LGUs. 

The Growth Equity Fund (GEF) aims to provide support to funding requirements of programs, projects, and activities of the poor, disadvantaged, and lagging Local Government Units (LGUs).