Section 2Sec./Art. 2

Declaration of Policy. -It is hereby declared the policy of the State to recognize the good performance of local government units (LGUs) in transparency and accountability in the use of public funds, preparedness for challenges posed by disasters, sensitivity to the needs of vulnerable and marginalized sectors of society, implementation of health programs, investment and employment promotion, protection of constituency from threats to life and damage to property, and safeguarding the integrity of the environment. In such recognition, the State hopes to encourage all LGUs to take on greater challenges, encourage outcome-based performance and to reward local governments for their effort in pursuing the general welfare of their constituency and in enforcing existing laws.