carer (For riciac Z RELEASE REPUBLIC OF THE PHILIPPINES ome | DEPARTMENT OF THE INTERIOR AND LOCAI. GOVERNMENT Ke, wey DEPARTMENT OF BUDGET AND MANAGEMENT JOINT MEMORANDUM CIRCULAR NO. _1, s. 2005 Date: September 20, 2005 TO : GOVERNORS, CITY AND MUNICIPAL MAYORS, PUNONG BARANGAYS, MEMBERS OF THE SANGGUNIAN, LOCAL DEVELOPMENT COUNCILS, LOCAL FINANCE COMMITTEES AND ALL OTHERS CONCERNED SUBJECT : GUIDELINES ON THE APPROPRIATION AND UTILIZATION OF THE 20% OF THE ANNUAL INTERNAL REVENUE ALLOTMENT (IRA) FOR DEVELOPMENT PROJECTS 1.0 PURPOSES 1.1 To provide guidelines on the appropriation and utilization of at least twenty percent (20%) of the Internal Revenue Allotment (IRA) for development projects. 1.2 To enhance accountability of LGUs in Undertaking development projects. 2.0 GENERAL POLICIES 2.1, In accordance with Section 287 of the Local Government Code, every LGU shall appropriate in its anrual budget no less than twenty percent (20%) of its annual internal revenue allotment for development projects. 2.2 It'shall be utilized to finance the priority projects, as embodied in the duly approved local development plan that directly support the Medium-Term Philippine Development Plan and the Medium-Term Public Investment Program. 2.3 Allpprojects to be funded shall: 2.3.4, Contribute to the attainment of desirable socio-economic P » development and environmental management outcomes;3.0 -2- 2.3.2 Partake the nature of investment and capital expenditures; and 2.3.3 Take into consideration cost recovery and entrepreneurship. PROJECTS COVERED The 20% of the IRA intended for development projects shall be utilized for the following: 3.1 Social Development 3.1.1. Establishment or rehabilitation of Productivity Enhancement Center for out-of-school youths, women, minors, displaced families, indigenous people, differently-abled persons and older persons; 3.1.2 Establishment or rehabilitation of Manpower Development Center; 3.1.3 Construction or rehabilitation of health centers, rural health unit or hospital, and purchase of medical equipment; 3.1.4 Construction or rehabilitation of a local government-owned potable water supply system; 3.1.5 Installation of street lighting system; 3.1.6 Preservation of cultural/historical sites. 3.1.7 Other programs or projects of similar nature. 3.2 Economic Development 3.2.1 Implementation of a livelihood / entrepreneurship development program or project. 3.2.2 Construction/rehabilitation of a communal irrigation or water impounding system and purchase of post harvest facilities such as farm or hand tractor with trailer, thresher, mechanical drier and the like 3.2.3 Construction/rehabilitation of farm-to-market roads. 3.2.4 Construction/rehabilitation of local roads or bridges; and 3.2.5 Other programs or projects of similar nature.4.0 5.0 6.0 7.0 3. 3.3. Environmental Management 3.3.1 Construction/rehabilitation of sanitary landfill or controlled dumpsite and purchase of a garbage truck or related equipment. 3.3.2 Community reforestation or urban greening projects. 3.3.3 Flood control programs or projects such as de-clogging of canals or de-silting of rivers. 3.3.4 Other environmental management programs or projects that promote air and water quality, as well as productivity of coastal or freshwater habitet, agricultural land and forest land. REPONSIBILITY OF THE LOCAL CHIEF EXECUTIVE It shall be the responsibility of every Provincial Governor, City and Municipal Mayor and Punong Barangay to ensure that the 20% of the IRA is optimally utilized to help achieve desirable socio-economic development and environmental outcomes. The appropriations for development projects shall not include items for personal services. MONITORING The Department of the Interior and Local Government (DILG), through its Bureau of Local Government Supervision (BLGS), shall maintain a National Information or Database System on the utilization of the 20% of the IRA. REPEALING CLAUSE All existing issuances issued either by the DILG or Department of Budget and Management (DBM), which are deemed inconsistent herewith, are hereby superceded. EFFECTIVITY This Joint Memorandum Circular shall take effect immediately. eon Pere ANGELO T. REYES ROMULO L. NERI Secretary ee Secretary Qa serra m8 TE Mt