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Revenue Generation, Utilization and Accountability




(a) Local government units shall endeavor to be selfreliant and shall continue exercising the powers and discharging the duties and functions currently vested upon them. Local government units shall likewise exercise such other powers and discharge such other functions and responsibilities as are necessary. Basic Services and Facilities. or incidental to efficient and effective provisions of the basic services and facilities enumerated herein.Section 17. . appropriate. They shall also discharge the functions and responsibilities of national agencies and offices devolved to them pursuant to this Code.

(iii) Services and facilities related to general hygiene and sanitation. beautification. but are not limited to. and solid waste collection. (ii) Health and social welfare services which include maintenance of barangay health center and day-care center.(b) Such basic services and facilities include. . the following: (1) For Barangay: (i) Agricultural support services which include planting materials distribution system and operation of farm produce collection and buying stations.

where viable. . (v) Maintenance of barangay roads and bridges and water supply systems.iv) Maintenance of katarungang pambarangay. (vi) Infrastructure facilities such as multipurpose hall. and other similar facilities. sports center. and (viii) Satellite or public market. plaza. multipurpose pavement. (vii) Information and reading center.

2011 .DBM-DILG Joint Memorandum Circular No. 2011-1 Date: April 13.

3 To include projects in addressing and responding to natural and man-made disasters and calamities. 1.PURPOSES 1.1 To provide guidelines on the appropriation and utilization of no less than twenty percent (20%) of the Internal Revenue Allotment (IRA) for development projects.2 To enhance transparency and accountability of local government units in undertaking development projects. 1. .

.GENERAL POLICIES 2.1 In accordance with Section 287 of the Local Government Code. every LGU shall appropriate in its annual budget no less than twenty percent (20%) of its annual internal revenue allotment for development projects. 2. as embodied in the duly approved local development plan that directly support the Philippine Development Plan.2 It may be utilized to finance the priority development projects and programs. the Medium-Term Public Investment Program and the Annual Investment Program.

3 All projects to be funded shall contribute to the attainment of desirable socio-economic development and environmental management outcomes and shall partake the nature of investment or capital expenditures.2. .

3.PROJECTS COVERED The 20% of the IRA intended for development projects may be utilized for the following priority programs and projects: 3.1 Construction or rehabilitation of health centers.1. rural health units or hospitals and purchase of medical equipment.2 Construction or rehabilitation of local government-owned potable water supply system. .1 Social Development 3.1.

3.5 Purchase or repair of area-wide calamity related alarm or warning system.4 Construction or rehabilitation of evacuation centers. 3.1. .1.6 Rehabilitation of cultural/historical sites.3.3 Establishment or rehabilitation of Manpower Development Centers.1. 3.1.

chainsaws. fire extinguishers. safe line rescue ropes. extraction tools.3.1. 3. breathing apparatus.7 Purchase or repair of appropriate calamityrelated rescue operations equipment such as inflatable boats.1. . two (2) way handheld radios and the like.8 Purchase and development of land for the relocation of informal settlers and relocation of victims of calamities.

indigenous people and differently-abled persons. senior citizens. .1. displaced families.9 Construction or rehabilitation of facilities such as multi-purpose hall intended to cater out-of-school youths. women.1.10 Installation and maintenance of street lighting system except payment of electric bills. minors.3. and 3.

graders and pay loaders. .2 Economic Development 3. thresher and mechanical driers.1 Construction or rehabilitation of communal irrigation or water impounding system and purchase of post harvest facilities such as farm or hand tractor with trailer.2. 3.2 Construction or rehabilitation of local roads or bridges and purchase of appropriate engineering equipment such as dump trucks.2.3.

and or 3.3.4 Amortization of loans used to finance development projects cited in this Joint Circular.3 Capital expenditures related to the implementation of livelihood entrepreneurship/local economic development projects. subject to the 20% debt service cap.2. .2.

3. agricultural land and forest land.2 Construction or rehabilitation of sanitary landfills.3 Environmental Management 3. 3.3. . as well as productivity of the coastal or freshwater habitat. and 3.4 Other environmental management projects that promote air and water quality. declogging of canals.3 Implementation of flood and erosion control projects such as rehabilitation and construction of drainage systems.3. de-silting of rivers.3. material recovery facilities and purchase of garbage trucks and related equipment.3.1 Reforestation and urban greening.3.

meetings. food allowance. whether domestic or foreign. communication. programs and activities shall not be paid out of the 20% development fund: 4. wages or overtime pay. 4. petroleum products and the like.EXPENDITURE ITEMS NOT COVERED The following expense items that are not related to and/or not connected with the implementation of development projects.3 Travelling expenses.2 Salaries. medical assistance. .1 Administrative expenses such as cash gifts. 4. water and light. bonuses. uniforms. supplies.

and 4. repair or refinishing of administrative offices.4 Registration or participation fees in training. seminars. . 4. equipment or appliances. fixtures.5 Construction.6 Purchase of administrative office' furniture. maintenance or repair of motor vehicles or motor cycles.4.7 Purchase. conferences or conventions. 4.

Funds 1. 5. Trust funds in the barangay treasury shall not be paid out except in fulfillment of the purpose for which that trust was created or the funds received. Barangay funds and monies shall be spent solely for public purposes. No money shall be paid out of the barangay treasury except in pursuance of an appropriations ordinance or law. 4. 3. transactions and operations of the barangay. Total disbursements shall not exceed actual collections plus 50% of the uncollected estimated revenue.Principles and Rules to be Observed in the Release & Disbursement of Brgy. 2. Fiscal responsibility shall be shared by all barangay officials exercising authority over the financial affairs. .

6.Intensify revenue collection . The Barangay Treasurer may be authorized by the SB or Bids & Awards Committee (BAC) to make direct purchases amounting to not more than P1. the following courses of action shall be taken: .Seek financial assistance . Treasurer and the Brgy. In case of revenue shortfall.Spend only what is necessary . Financial records must be kept in custody of the Brgy. Bookkeeper and/or City Accountant. 8. No cash Advances shall be made to any barangay official or employee unless the same is in accordance with accounting and auditing rules and regulations. 9. 7.000 for the essential needs of the barangay.Resort to borrowing .

Unexpended Balances and Appropriations for Capital Outlays shall form part of Continuing Appropriations. Unexpended Balances and Appropriations of the 20% Development Fund from completed or discontinued projects shall be reverted. 14.10. Therefore. any unexpended balances shall be added to the 10% share of the SK for the next year. shall be re-appropriated for other development projects. The PB may by ordinance or policy in the general provision be authorized by the SB to augment any item in the approved annual budget from savings in other items within the same expense class. . 12. 11. The 10% Sangguniang Kabataan (SK) Fund is a statutory obligation considered as a Trust Fund. 13. however. Unexpended Balances and Appropriations for Personal Services shall revert to the General Fund.

BUDGET ACCOUNTABILITY (January 1 – December 31) Legal Basis The second paragraph of Section 332 provides that “the responsibility for the execution of the annual and supplemental budgets and the accountability therefore shall be vested primarily in the punong barangay concerned.” .

Collect Real Property Taxes and such other taxes as may be imposed by province/city/municipality that are due in the barangay only after being deputized for the purpose by concerned Provincial/City/Municipal Treasurer. Record all obligations and disbursements in the Expenditure Books of Accounts under the General Fund. charges and contribution collected. Deposit all collections in the depository account maintained in the name of the barangay within 5 days after receipt. Step 5. Step 3. charges and contribution due or accruing to the barangay in the Income Books of Account under the General Fund. fees. Issue an official receipt for all taxes. . Record all collections from taxes. Step 2. fees. Step 4.How is the Accountability of the Budget Done? Step 1.

Step 6. . Segregate all expenditure levels by sector.

Post in a conspicuous place the three Barangay Budget Accountability Forms No. .Monitor actual results of service delivery and implementation of development projects.Compare actual results with planned targets. Treasurer & Secretary. 1 to 3. The said forms shall be prepared quarterly by the Brgy. Step 9. Post in a conspicuous place in the Barangay the income earned for the quarter and where it was spent. . Step 8.Step 7. .Provide corrective actions for negative deviations. – Monitor and evaluate performance .

Committee on Appropriations of Sangguniang Barangay (SB) • Barangay Treasurer • Barangay Secretary • Barangay Bookkeeper/Municipal/City Accountant the .Persons Responsible for Reporting • Punong Barangay • Chairman.