RATIONALE

The SGLG Incentive Fund is a financial reward given by the Department of the Interior and Local Government (DILG) of the Philippines to local government units (LGUs) that have demonstrated exemplary performance in governance and delivery of basic services. SGLG stands for "Seal of Good Local Governance," which is a program of the DILG that assesses the LGUs' performance in seven areas: financial administration, disaster preparedness, social protection, peace and order, business-friendliness and competitiveness, environmental management, and tourism, culture, and the arts. 


The SGLG Incentive Fund is granted to LGUs that have passed the assessment and have met the standards set by the DILG. The fund can be used by the LGUs to finance development projects and programs that will benefit their constituents. The amount of the incentive fund varies depending on the LGU's category (provincial, city, or municipal) and performance rating. The SGLG Incentive Fund is intended to encourage LGUs to strive for better governance and service delivery, and to recognize those that have already achieved high levels of performance.