Common Limitations On Local Taxation: Section 133 of Republic Act No. 7160

COMMON
LIMITATIONS ON
LOCAL TAXATION
Section 133 of Republic Act No.
7160
Common Limitations on Local
Taxation
What are the common limitations on local taxation?

• Income tax, except when levied on banks and other
financial institutions (LFC No. 2-07, Feb. 26, 2007)
• SC held CDOs ordinance which imposed a tax on the lease
or rental of electric and/or telecommunication posts, poles or
towers by pole owners to other pole users at the rate of 10%
of the annual rental income derived therefrom is NOT an
imposition of an income tax which is prohibited by Sec 133 (a)
but rather a tax on business. An act of leasing for
consideration the use of posts1 poles or towers to other ROie
users falls under the LGCs derinition of business under Sec
131 (d) in relation to Sec 143 (h) which provides that the LGU
may impose TFC on ANY business which is not specified in
Sec 143 (a) to (g) and which the sanggunian concerned may
deem proper to lax.
� Changing Mindsets. Influencing Behavior.

Taxation

• Documentary stamp tax;
• Taxes on estates, inheritance, gifts, legacies and other acq1Jisitions mortis
causa, except as otherwise provided herein (correlate with Sec 135 [a]);
■ Customs duties, registration fees of vessel and wharfage on wharves,
tonnage dues, and all other kinds of customs fees, charges and dues
excepl wharfage on wharves constructed and maintainecf by the local
government unit concerned (correlate with Sec 149);
• Taxes, fees, and charges and other impositions upon goods carried into
or out of, or passing through, ttie territorial junsdictions of local
government units in the guise of charges for wharfage, tolls for bridges or
otherwise, or other taxes, fees, or charges in any form whatsoever upon
such goods or merchandise;

Taxation
PASS-THRU-FEES (PALMA DEVT CORP v MUN OF MALANGAS,

ZAMBOANGA, GR No. 152492, Oct 16,
2003 )
• Under Sec 153 and 155, LGUs may prescribe the terms and
conditions for the imposition of toll fees or charges for the use of any
public road, pier or wharf funded and constructed by them. A service
fee imposed on vehicles using municipal roads leading to the wharf is
valid. However, Sec 133 (e) prohibits the imposition, in the guise of
wharfage, of fees-as well as all other taxes or charges in any form
whatsoever - on goods or merchandise. It is, therefore, irrelevant if
the fees imposed are actually for police surveillance on the goods,
because any other form of imposition on goods passing thru the
territorial jurisdiction of the LGU is clearly prohibited by Sec 133 (e).

Taxation
DILG OPINION NO. 07, s. 2007
ISSUE: Whether garbage may be considered as "goods"

based on Section 133 (e) of RA 7160
OPINION: According to Moreno Law Dictionary, "goods or

properties" refer to tangible and intangible objects which
are capable of pecuniary estimation. Based on this
definition, garbage, is not considered goods within the
purview of Section 133 of the Code.

Taxation
DILG OPINION NO. 03, s. 2012
OPINION: Taxes, fees, or charges on trucks

carrying raw materials and cement finished
products imposed by LGUs through ordinance,
are in the nature of pass through fees and thus,
considered illegal collections which run counter
to Section 133 (e) of the Code.

Taxation

• Taxes, fees or charges on agricultural and aquatic products
when sold by marginal farmers or fishermen (refer to Sec
131 [p]);
• Taxes on business enterprises certified to by the Board of
Investments as pioneer or non-pioneer for a period of six (6)
and four (4) years, resi2ectively from the date of reg_istration
(BATANGAS POWER CORP v. BATANGAS CITY, GR No.
152675, April 28, 2004);
• Excise taxes on articles enumerated under the national
Internal Revenue Code, as amended, and taxes, fees or
charges on_petroleum products (Phil Petroleum Corn v Mun
of P1lilia, Riza1 GR No. 90776, June 3, 1991; PETRON
CORP v MAYuR TIANGCO, GR No. 158881, April 16,
2008);

Taxation

• PETRON CORP v MAYOR TIANGCO (GR No. 158881, April 16, 2008)
• The language of Section 133 (h} makes plain that the prohibition with respect to petroleum products
extends not only to excise taxes thereon, but all "taxes, fees and charges"

Taxation

• Phil Petroleum Corp vs Mun of Pililia, Rizal (GR No. 90776, June 3, 1991)
• The NIRC levies a tax on all quarry resources, regardless of origin, whether extracted from public or
private land. A Province may not ordinarily impose taxes on stones, sand gravel, earth and other
quarry resources, because they are alreaay taxed under the NIRC. However, the province can
impose a tax on stones, sand, gravel, earth and other quarry resources extracted from public land
because it is expressly empowered to do so under LGC. It may not tax stones, sand...extracted
from private land because of the limitation under Sec 133 in relation to Sec 151 of NIRC (Prov. Of
Bulacan v CA, GR No. 126232, 27 Nov 1998). LGUs are also the only government entities allowed
to reclaim areas and may derive income therefrom.

Taxation

. Percentage or value-added tax (VAT) on sales,
barters or exchanges or similar transactions on
goods or services except as otherwise provided
herein;
. Taxes on the gross receipts of transportation

contractors and persons engaged in the
transportation of passengers or freight by hire and
common carriers by air, land or water, except as
provided in this Code;

Taxation
FIRST PHIL INDUSTRIAL CORP v CA (GR No. 125948, 29

Dec 1998)
xxx that pipeline operator "engaged in the business of

transporting petroleum products from the Batangas
refineries, via pipeline, to Sucat and JTF Pandacan
Terminals" was exempt from business tax under LGC since
it is engaged in the business of transporting or carrying
goods for hire as a public employment.

Taxation

. Taxes on premiums paid by way or reinsurance or
retrocession;
. Taxes, fees or charges for the registration of motor

vehicles and for the issuance of all kinds of licenses
or permits for the driving thereof, except tricycles
(LTO v CITY OF BUTUAN, GR No. 131512, Jan
20, 2000);

Taxation

. LTO v CITY OF BUTUAN (GR No. 131512, Jan 20,
2000)

Taxation

. LTO v CITY OF BUTUAN (GR No. 131512, Jan 20,
2000)
Xxx the newly delegated powers pertain to the

franchising and regulatory powers therefore exercised
by the LTFRB and not to the functions of the LTO
relative to the registration of motor vehicles and
issuance of licenses for the driving thereof.

Taxation

■ LTO v CITY OF BUTUAN (GR No. 131512, Jan 20,
2000)
The power over tricycles granted under Section 458
[a][3][vi] of the LGC 1991 to LGUs is the power to regulate
their operation and to grant franchises for the operation
thereof. The exclusionary clause contained in the tax
provisions of Section 133 of LGC 1991 must not be held to
have had the effect of withdrawing the express power of
LTO to cause the registration of all motor vehicles and the
issuance of licenses for the driving thereof.

Taxation

. Taxes, fees, or other charges on Philippine products
actually exported, except as otherwise provided
herein;

Taxation

. Taxes, fees, or other charges on Philippine products
actually exported, except as otherwise provided
herein;
. Taxes, fees, or charges, on Countryside and

Barangay Business Enterprises and cooperatives
duly registered under R.A. No. 6810 and the
Cooperative Code of the Philippines respectively
(PHILRECA v DILG [2003]; DILG Legal Opinion
No. 37-2007); and

Taxation

■ DILG OPINION NO. 37, s. 2007
• Cooperatives shall be exempt from payment of local

taxes, gees, or charges imposed by provinces, cities,
municipalities and barangays on the condition that these
cooperatives are duly registered under RA 6810 known
as An Act Establishing the Magna Carta for Countryside
and Barangay Business Enterprises, Granting
Exemptions for any and all Government Rules,
Regulations and Other Incentives and Benefits
therefore, and for other Qurposes and RA 6938 or the
Cooperative Code of the Philippines

Taxation

Taxes, fees or charges of any kind on the National
Government, its agencies and instrumentalities, and local
government units {NAPOCOR v CITY OF CABANATUAN,
supra)
{Rep v Phil Reclamation Authority, GR No. 191109,

18 July 2012)
Reclaimed lands are part of the public domain and are

exempt from payment of real property taxes

Taxation
Evidently, Section 133 prescribes the limitations on the capacity of LGUs to exercise their taxing powers
otherwise granted to them under the LGC (PETRON CORP. v MAYOR TIANGCO, GR NO. 158881, April 16,
2008)

-

LOCAL TAXATION
LEGAL FRAMEWORK
CONSTITUTION
Each LGU shall have the power to create their own

sources of revenue and to levy taxes, fees and charges
subject to such guidelines and limitations as the
Congress may provide consistent with the basic policy
of local autonomy. Such taxes, fees and charges shall
accrue exclusively to the LG (Sec. 5, Art X)
t Changing Mindsets. Influencing Behavior.

YAMANE v. BA LEPANTO CONDOMINIUM
GR No. 54993, October 25, 2005
The power of LGUs to impose taxes within its

territorial jurisdiction derives from the
Constitution itself, which recognizes the power of
these units to create its own sources of revenue
and to levy taxes, fees, and charges subject to
such guidelines and limitations as the Congress
may provide, consistent with the basic policy of
local autonomy.

NAPOCOR v. CITY OF CABANATUAN
GR No. 149110, April 09, 2003
Thenceforth, the power to tax is no longer vested

exclusively on Congress; local legislative bodies
are now given direct authority to levy taxes, fees
and other charges. This paradigm shift results
from the realization that genuine development can
be achieved only by strengthening local autonomy
and promoting decentralization of governance.

MCIM v. MARCOS
GR No. 120082, Sept 11, 1996
It may be exercised by local legislative bodies, no longer merely by virtue of a valid delegation as
before, but pursuant to direct authority conferred by the Constitution.

LEGAL FRAMEWORK
CONSTITUTION
LGC 1991
Each LGU shall exercise its power to create its own
sources of revenue and to levy taxes, fees and charges
subject to the provisions herein, consistent with the basic
policy of local autonomy. Such taxes, fees and charges
shall accrue exclusively to the LGUs (Sec. 129)

LEGAL FRAMEWORK
CONSTITUTION
LGC 1991
ORDINANCE
The power to impose a tax, fees and charges or to
generate revenue under this Code shall be exercised by
the sanggunian of the LGU concerned through an
appropriate ORDINANCE (Sec. 132)

YAMANE v BA LEPANTO CONDOMINIUM,
supra
What determines tax liability is the tax ordinance,

the Code being the enabling law for the local
legislative body.

CHARACTERISTICS
1. Governmental Function
2. Direct Authority from the Constitution
3. Legislative in Nature
4. Subject to Limitations
Inherent Limitation
Constitutional Limitation
Statutory or Congressional Limitations

Inherent Limitations
Situs of Taxation or Territoriality

Public purpose
International Comity
Non-delegability of power
Exemption of government from
taxation

GARCES v ESTENZO
104 SCRA 510, MAY 25, 1981
A resolution of the barangay council for soliciting contributions to but a statue of the barangay's
patron saint and the use of such fund for said purpose does not violate the Constitutional
provision prohibiting the use of public funds for religious purposes

CONSTITUTIONAL
SOURCES OF FUNDS

3 Main Sources of Funds under 1987
Constitution
. Local Taxes, fees, and charges

(Sec. 5, Art X)

Constitution

(Sec. 5, Art X)
. Share in the National Taxes (Sec.
6, Art X)

Constitution

(Sec. 5, Art X)
. Share in the National Taxes (Sec.
6, Art X)
. Share in the proceeds of the
utilization and development of the
national wealth within their areas
(Sec. 7, Art X)

STATUTORY SOURCES
OF FUNDS

Sources of Funds under LGC 1991 and other
Laws
. From Loans (Sec 300-301)

. Donations and Grants (Sec 23)
. Float Bonds (Sec 299)
. Exercise of proprietary functions (Sec 22
[d])
. Credit-financing schemes - BOT schemes
(RA 6957 as amended by RA 7718)

FISCAL AUTONOMY

Fiscal Autonomy
Local governments have the power to

create their sources of revenue in addition
to their equitable share in the national
taxes released by the national
government, as well as the power to
allocate resources in accordance with own
priorities (PROV OF BATANGAS V ROMULO,
GR NO. 152774, May 27, 2004)

STAGES OF LOCAL
TAXATION

Stages of Local Taxation
LEVY I Tax Legislation (Sec 132, RA 7160) I

ASSESSMENT & Tax Administration (Sec 170,
COLLECTION RA 7160)
PAYMENT Tax Obligation

PRIMARY PURPOSE OF
TAXATION
. Doubtless, the power to tax is the most effective

instrument TO RAISE NEEDED REVENUES to
finance and support myriad activities of the
LGUs for the delivery of basic services essential
to the promotion of the general welfare and the
enhancement of peace, progress, and
prosperity of the people {NAPOCOR v. CITY
OF CABANATUAN, supra)

2 Fold Underlying Basis of
Taxation
NECESSITY THEORY
BENEFIT-PROTECTION THEORY

Fundamental Principles - Sec
130, RA 7160
• Uniformity
• Ability to Pay
• Public Purpose
• Not be unjust, excessive, oppressive, or confiscatory
• Not be contrary to law, public policy
• Collections cannot be let to private persons
• Solely for the benefit, and be subject to disposition by the LGU
• Evolve a progressive system of taxation

AUTHORIZED TAXING
AND OTHER REVENUE
RAISING POWERS OF
LGUs

SOURCES OF INCOME
Non-traditional Sources (Sec 295 - 303)

• Loans, Credits and Other Forms of Indebtedness
Purpose/s : [1] financing local infrastructure and other socio-economic development projects in
accordance with the approved local development plan and public investment program; and [2]
stabilizing local finances
Applies to all LGUs

TRADITIONAL SOURCES OF
INCOME (PROVINCE)
A. Externally Generated
Share in the national internal revenue allotment - 23% (Sec 285);
FORMULA: Population - 50%
Land Area - 25°/o
Equal Sharing 25%
Automatic release of the I RA was precisely intended to guarantee and promote

local autonomy (PROV OF BATANGAS v ROMULO, GR NO. 152774, May 27, 2004)

INCOME (PROVINCE)
Share in the national internal revenue allotment - 23% (Sec 285);
Land Area - 25°/o
Equal Sharing 25%
Automatic release of the I RA was precisely intended to guarantee and promote

local autonomy (PROV OF BATANGAS v ROMULO, GR NO. 152774, May 27, 2004)
The only exception to the mandatory automatic release of the LGUs IRA is if the
NIR collections for the current year is less than 40% of the collections of the
preceding 3rd fiscal year, in which case what should be automatically released shall
be a proportionate amount of the collections for the current fiscal year {SEC 284)

INCOME (PROVINCE)
Share in the proceeds derived from the development and utilization of the national
wealth within the province (20% );
CC/Mun 45%
Barangay 35%
2 or more CC/Mun/Brgys : Population 70%

Land Area 30%
HUC/ICC 65%
Brgy 35%

B. Internally Generated
(Sec 135 -141)
• Tax on Transfer of RP Ownership - not more than 50 °/o of 1 % of

the total consideration or FMV, whichever is
higher
• CARP - Exempt
• not more than 50o/o of 1 %

Tax on Business of Printing and Publication -
Gross Receipts for preceding CY;
• Newly started business - not more than 1 /20 of 1 % of capital investment
• Receipts from DepEd prescribed textbooks printing - EXEMPT

• Franchise Tax - not more than 50% of 1 % of the Gross Receipts for preceding CY;
Newly started business - not more than 1 /20 of 1 °/o of capital investment

CITY OF IRIGA v CASURECO Ill
GR NO. 192945, SEPT 5, 2012
• Non-Profit Entities are subject to Franchise Tax. It is not levied on

the corporations simply for existing as a corporation, upon its
property or its income, but on its exercise of the rights or privileges
granted to it by the government.
• To be liable for local franchise tax, the following requisites should

concur: 1) that one has a "franchise" in the sense of a secondary or
special franchise; and 2) that it is exercising its rights or privileges
under this franchise within the territory of the pertinent LGU. The
foregoing requirements are present in the case at bar. Hence,
CASURECO Ill is liable to pay franchise tax notwithstanding its
non-profit nature.

• Tax on Sand, Gravel and Other Quarry Resources - not more than 10% of FMV per cubic meter
• Distribution:
• Province 30%
• CC/Mun 30%
• Brgy 40%
One must first secure a governor's permit prior to the start of his quarrying
operations (PROV OF CAGAYAN v LARA [2013])
A quarry permit issued by the Governor is contingent on its compliance with the
terms and conditions of the Environmental Compliance Certificate (ECC)
(PHESCHEM IND CORP v SURIGAO [2013])
The province can impose a tax on stones, sand, gravel, earth and other quarry
resources extracted from public land because it is expressly empowered to do so
under LGC. It may not tax stones, sand ...extracted from private land because of
the limitation under Sec 133 in relation to Sec 151 of NIRC (Prov. of Bulacan v
CA, GR No. 126232, 27 Nov 1998)

• Professional Tax - not more than P300.00 (for each profession practiced)
• Amusement Tax - not more than 10% of GR from admission fees (as amended by RA 9640, May
21, 2009)
• Distribution:
• Province 50%
• Mun 50%

Amusement Places (Sec 131 [c], RA 7160)
Resorts, swimming pools, bath houses, hot springs and tourist spots cannot be considered venues
primarily "where one seeks admission to entertain oneself by seeing or viewing the show or
performances." They may be venues where people are visually engaged, they are not primarily venues
for their proprietors or operators to actively display, stage or present shows and/or performances
(Pelizloy Realty Corp v Prov. of Benguet, GR No. 183137, 19 April 2013)

• Annual Fixed Tax for Every Delivery Truck or Van of
Manufacturers or Producers, Wholesalers of, Dealers,
or Retailers in Certain Products - not more than
PS00.00
• EXEMPT - Tax on Peddlers imposed by Municipalities

• Real Property Tax - 35% share on the Basic RPT
COMPONENTS:
• Annual ad valorem tax (Sec. 233)

• Provinces - not to exceed 1 % of the AV
• Cities and MM Mun. - not to exceed 2% of the AV
• Special levies
• SEF - 1 % (Sec 235) - 50% share
• Tax on Idle lands - not to exceed 5% (Sec 236)
• Special Assessment - not to exceed 60% of the actual cost of the projects/improvements
(including Mun. outside MM) - Sec 240

SPECIAL ASSESSMENT
Demand to the RP owner to contribute to the cost

of improving the locality shouldered by the LGU
that resulted to his benefit, not exceeding 60o/o of
the actual cost including the cost of acquiring
land and other RP in connection thereof.

EXEMPT FROM RPT (Sec 234)
• RP owned by the Rep. of the Phils. or any of its political subdivision, except when the beneficial
use thereof has been granted, for consideration or otherwise, to a taxable person
• Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques,

non-profit or religious cemeteries and all lands, buildings and improvements actually, directly and
exclusively used for religious, charitable or educational purposes

�y7J2�f ��ltflli:l�cti �5��Ycf8�c gWJ�1��
i x
· t�e�
in the supply and dlstnbut1on of water ana/or
generation arrd transmIss1on of electric power
• All RP owned by duly registered cooperatives as
provided tor under -RA 6 938
• M & E used for pollution control and
environmental protection
• "Zero-assessment lev.el" - Reside(ltial lots with
FM·v not to exceed P175T (5ec 218J

� Classes of RP for assessment purposes
(Sec. 215)
. Residential
. Agricultural
. Commercial
. Industrial
. Mineral
. Timberland
. Special

MUNICIPALITY
Share in the national internal revenue

allotment - 34o/o (Sec 285);
FORMULA: Population 50°/o
Land Area 25%
Equal Sharing - 25%

MUNICIPALITY
Share in the proceeds derived from the

development and utilization of the national wealth
within the municipality (45o/o )
Province 20°/4
Barangay 35o/o
2 or more Mun/Brgys
Population 70°/o
Land Area 30o/o

MUNICIPALITY
c. RPT Share - 40 °10;
d. SEF Tax Share - 50 °/o
e. Sand, Gravel and Other Quarry

Resources Share - 30 °10
f. Amusement Tax Share - 50o/o

B. Internally Generated (Sections 143,
147-149, 156)
. Business-related Tax - (Sec 143)
. Retailers - more than 30T - 2 °/o of GS/R

. Sec 143 [e]*

BUSINESS-RELATED TAXES
TAX on act of doing business in the LGU
Gross Sales
Annual Tax /Receipts
(No sales,
No tax)

B. Internally Generated (Sections 143,
147-149, 156)
• Fees and Charges on Business and Occupation (Sec 147)
• Fees for Sealing and Licensing of Weights and Measures (Sec 148)
• Fishery Rentals, Fees and Charges (Sec 149)
• Community Tax (Sec 156)

SMART COMM INC v MUN OF MALVAR
GR NO. 204429, FEB 18,2014
If the main purpose of an ordinance is to regulate the

"placing, stringing, attaching, installing, repair and
construction of all gas mains, electric, telegraph and
telephone wires, conduits, meters and other apparatus
including "cell sites" or telecommunications towers, the fees
imposed in the ordinance are PRIMARILY REGULATORY
IN NATURE, AND NOT PRIMARILY REVENUE-RAISING.
While the fees may contribute to the revenues of the
Municipality, this effect is merely incidental and the fees
imposed are not taxes.

CITY
Share in the national internal revenue
allotment - 23o/o (Sec 285);
Land Area - 25%
Equal Sharing- 25%

CITY
b. Share in the proceeds derived from the development and

utilization of the national wealth within the city (45%);
• Province 20%
• Barangay 35%
2 or more Cities/Brgys
• Population 70%
• Land Area 30%
c. Sand, Gravel and Other Quarry Resources Share - 30%

B. Internally Generated (Sec 151)
• TFC imposed by the province and municipality maybe imposed by the city
• Rates of taxes may exceed the maximum rates allowed for the province or municipality by not more
than 50% except the rates of professional and amusement taxes.
• ICCs and HUCs TFC collections solely accrue to them

BARANGAY
Share in the national internal revenue allotment (20% );
111ustration:
20% = P80B
P80T per barangay = at least 100 inhabitants
P80T x 42,000 barangays = P3,360,000,000.00
80B - 3.36B = 76.64B
76.64B Population = 60%

Equal Sharing = 40%

BARANGAY
b. Share in the proceeds of the basic real property tax
collected;
Province = 35% Mun = 40% BRGY = 25%
1% Basic Tax x 10,000.00 Assessed Value

P100.00 RPT due
100.00 x 35% = 35.00 Province

100.00 x 40% = 40.00 Mun.
100.00 x 25 °/o = 25.00 BARANGAY

BARANGAY
b. Share in the proceeds of the basic real property tax collected;
City = 70% BRGY =30%

50% where the RP is located
50% other component brgys
2% Basic Tax x 10,000.00 Assessed Value = P200.00 RPT due
200.00 X 70% = 140.00 City

200.00 x 30% = 60.00 Brgys
50% x 60.00 = 30.00 Barangay (where the RP
is located)
50% x 60.00 = 30.00 other component brgys
1/10 of 30.00 = 3.00/BARANGAY

BARANGAY
c. Share from the proceeds of the tax on

sand, gravel and other quarry resources
extracted within the barangay;
Province = 30% City/Mun = 30% BRGY = 40%
d. Share from the community tax collections,

when collected by the barangay within its
jurisdiction (50o/o );

BARANGAY
Share in the proceeds derived from the development and utilization of the national wealth
within the barangay (35% );
Share from the tobacco excise tax pursuant to RA 7171; and
Proceeds from grants-in-aid, subsidies, and contributions from the national, provincial, city
or municipal funds

BARANGAY
B. Internally Generated (Sec 152-155, Sec 391 [BJ [11])
Taxes on stores or retailers - Gross Sales/Receipts of PS0,000.00 or less (city) or

P30,000.00 or less (mun) at a rate not exceeding 1 % on such Gross SALES or
RECEIPT [fixed establishments only]
Service Fees or charges for services rendered in connection with the regulation or
the use of barangay owned-properties or service facilities (palay, copra or tobacco
dryers)

BARANGAY
Other Fees and charges such as:
Commercial breeding of fighting cocks, cockfights and cockpits
On places of recreation which charge admission fees
On billboards, signboards, neon signs and outdoor advertisements
Barangay Clearance Fees

GREENHILLS EAST ASSN INC v E. GANZON INC
GR NO. 169741, JAN 20, 2010
Although Sec 152 (c) of LGC 1991 requires a barangay clearance for any activity
within its jurisdiction, such clearance cannot be denied when the activity is in a
permissible zone, otherwise such denial is illegal. Xxxx Indeed, the city or
municipality to which the barangay unit belongs may still issue the required license
or building permit despite the withholding of the barangay clearance xxxx

DILG LEGAL OPINION Nos. 16 and 94, s. 2010
The application of barangay clearance may be denied if there is a national law or

ordinance violated.

BARANGAY
E. Other Sources of Barangay Funds
1. Proceeds from solicitations of monies, materials or voluntary labor from barangay residents
(Sec 391 [BJ); and
2. Proceeds from fund-raising activities intended for specific barangay projects (Sec 391 [11])

FEES and CHARGES
Reflections of LGUs dual functions
Corporate
Police Power
Power

FEES and CHARGES
Imposed in Cost recovery

exercise of impositions for
regulatory
powers services delivered
or use of facilities
\� Changing Mindsets. Influencing e av,or.

REAL DISTINCTIONS - 3 TYPES OF NTR
TYPE PRIMARY PURPOSE BASIS OF

IMPOSITION
REGULATORY OR Regulation or inspection of Cost of regulation and
PERMIT FEES business or activity (ensure surveiIlanee
public safety/welfare)
SERVICE FEES For services rendered or Amount commensurate

AND USER conveniences provided by to such services and
CHARGES LGU (delivery of services) ensure continuing
delivery
RECEIPTS Operation of public Full cost recovery

(charges) FROM enterprise
ECONOMIC
ENTERPRISE
Common Revenue-Raising Powers
(Sections 153-155)
A. Service Fees and Charges (Certification Fee; Garbage Fee, etc)
B. Public Utility Charges for the use of LGU owned, operated and maintained public utilities (public
markets; parking area; slaughterhouse;and waterworks system)
C. Toll Fees and charges for the use of LGU public road, wharf, bridge funded and constructed
by the LGU

DOUBLE TAXATION
• Direct DT (objectionable or prohibited sense)

• Same property/subject matter must be taxed twice when it should be taxed but once
• Both taxes must be imposed on the same property/subject matter, for the same purpose during
the same taxing period, by the same taxing authority, within the same jurisdiction, and they
must be the same kind or character of tax
• Manila City vs Coca-Cola, GR No. 181845, Aug. 4, 2009

• Pepsi Cola Bottling Co. v Mun of Tanauan, GR NO. L-31156, Feb 27, 1976
• SERAFICA v Treasurer of Ormoc City, GR No. L-24813,April 28, 1969
• Indirect DT (Broad sense)

Residual Taxing Power
ANYTHING
UNDER
THE SUN
LGUs may exercise the power to levy TFC
any base or subject not otherwise specifically
enumerated herein or taxed under NIRC or
other applicable laws. PROVIDED, that the
TFC shall not be unjust, excessive,
oppressive, confiscatory or contrary to
declared national policy. PROVIDED further,
that the ordinance levying such TFC shall not
be enacted w/o prior public hearing conducted
or the purpose (SECTION 186)
CONDITIONS - Residual Power of
Taxation
• TFC shall not be unjust, excessive, oppressive, confiscatory or contrary to declared national
policy;
• That the ordinance levying such TFC shall not be enacted without any prior hearing conducted
for the purpose; and
• Subject to Limitations (Constitutional/ Common I Authorization Limitations)

SITUS OF THE TAX ON BUSINESSES under
Sec. 143
• With branch office or sales outlet -where the BO/SO is located

• No BO/SO -where the principal office is located
• With principal office in one city/mun but whose factory, project office, plant or plantation is located
in another city/mun, 30% of the sales shall be taxed by the former and 70% shall be taxed by the
latter

SITUS OF THE TAX ON BUSINESSES under
Sec. 143
• Factory located in one city/mun but whose plantation is located in another city/mun, 60% of the
70% of the sales shall be taxed by the former and 40% of the 70% shall be taxed by the latter
• Two or more factories, project offices, plants or plantations located in different LGUs - the 70%
is pro-rated among the cities /mun in proportion to their respective volumes of production during
taxable period (Sec. 150)

Enactment of Tax Ordinance
1. Proposed tax ordinance

2. Holding of public hearing (Sec 187, RA 7160)
3. Deliberation and approval
4. Publication (Sec 188, RA 7160)
5. Review of the Ordinance
6. Public dissemination (Sec 189, RA 7160)

Administrative Appeal (Sec 187)
. The dissatisfied taxpayer who questions

the validity or legality of a tax ordinance
must file his appeal to the Secretary of
Justice, within 30 days from effectivity
thereof. In case the Secretary decides the
appeal, a period also of 30 days is allowed
for an aggrieved party to go to court. But if
the Secretary does not act thereon, after
the lapse of 60 days, a party could already
proceed to seek relief in court.

These 3 separate periods are clearly given for compliance as a prerequisite before seeking
redress in a competent court. Such statutory periods are set to prevent delays as well as enhance
the orderly and speedy discharge of judicial functions. For this reason the courts construe these
provisions of statutes as MANDATORY (JARDINE DAVIES INSURANCE BROKERS INC v
ALIPOSA, GR NO. 118900, FEB 27, 2003, citing REYES v CA, GR NO. 118223, DEC 10, 1999)

The aforecited law requires that an appeal of a tax

ordinance or revenue measure should be made to
the Secretary of Justice within 30 days from
effectivity of the ordinance and even during its
pendency, the effectivity of the assailed ordinance
shall not be suspended {HAGONOY MARKET
VENDOR ASSN v MUN OF HAGONOY,
BULACAN, supra)

Attempt to Enforce Void or Suspended
Tax Ordinances and Revenue
Measures (Sec. 190)
The enforcement of any tax ordinance or revenue

measure after due notice of the disapproval or
suspension thereof shall be sufficient ground for
administrative disciplinary action against the
local officials and employees responsible
therefor.

AUTHORITIES INCIDENTAL TO LOCAL
TAXATION
Authority to prescribe penalties for infraction of tax

ordinance (Sec. 516, RA 7160)
Authority to adjust rates of taxes (Sec. 191, RA

7160)
Authority to granUwithdraw tax exemption

privileges or incentives (Sec. 192-193, RA 7160)

NATURE OF TAX EXEMPTION
Strictly construed against the taxpayer (Sec. 5 [b], RA 7160) - QUEZON CITY V
ABS-CBN [2008]
Exemptions NAPOCOR V CITY OF

are not presumed -
CABANATUAN; SMART COMMUNICATIONS v
CITY OF DAVAO [2009]; QUEZON CITY v
ABS-CBN, supra
Personal in nature and non-transferrable {Art 282, IRR Of RA 7160)

WITHDRAWAL OF TAX EXEMPTION - SEC
193, RA 7160
Unless otherwise provided in this Code, tax

exemptions or incentives granted to, or presently
enjoyed by all persons, whether natural or juridical,
including GOCCs, except local water districts,
cooperatives duly registered under RA 6938,
non-stock and non-profit hospitals and
educational institutions, are hereby withdrawn
upon the effectivity of this Code.

TAXING POWER: BARMM v LGUs
OUTSIDE ARMM
DISTINCTION BARMM LGUs OUTSIDE

ARMM
AS TO BASIS OF Organic Act passed by SEC 5, Art X, Constitution

TAXING POWER the Congress as grants LGUs to create
authorized by SEC 20 [b], their own sources of
Art X, Constitution revenues and to levy TFC
AS TO GOVERNING Organic Act sets the LGC 1991 provides the

GUIDELINES AND guidelines and limitations guidelines and limitations
LIMITATIONS of their taxing power of local taxing power

REFERENCES
Local Government Law and J urisprudence
by ATTY. DANTE B. GATMAYTAN
Tax Digest ( A BAR REVIEWER)

by ATTY. CRESCENCIO P. CO UNTIAN JR
Raising Barangay Revenues

by ATTY. IAN KENN ETH B. LUCERO
1987 Philippine Constitution
The Local Government Code of 1991 (RA 7160)

LOCAL GOVERNMENT
BUDGETING
STATUTORY BASIS
Sec. 305, RA 7160 - Fundamental

Principles:
Xxxx
[i] Local budgets shall operationalize

approved local development plans;
~ Changing Mindsets. Influencing Behavior.

STATUTORY BASIS
Article 410, IRR. Submission of Local

Development Plan. -
LDCs shall submit to the local finance committee a

copy of the local development plan and annual
investment program prepared and approved during the
fiscal year before the carendar for budget P.reparation in
accoraance with applicable laws specifying therein
projects proposed for inclusion in the local government
budget as well as in the budgets of NGAs or GOCCs
concerned ...

Planning-Budgeting Cycle
DEVELOPMENT
,?!PLANNING ~
(6-10 Years) INVESTMENT
PROGAMMING
BUDGET
ACCOUNTABILITY (3 Years)
~
Current Year
ANNUAL
Budget Year
INVESTMENT PLAN
•
BUDGET
EXECUTION (1 Year)
Current Year
BUDGET BUDGET
REVIEW PREPARATION
BUDGET
AUTHORIZATION t:?
Plan-Budget Flow
LOCAL DEVELOPMENT PLAN (LOP)
Practical Vision/Strategic Decisions
Long-term - (6-10 Years)
INVESTMENT PROGAMMING {IP)

Programs/Projects/Activities
Medium-term - (3 Years)
ANNUAL INVESTMENT PLAN (AIP)

Priority P/P/As
Major Final Output
Performance Indicators/Target
Short-term - (1 Year)
Required documents prior to the preparation of annual/supplemental
blH(g}Ms
ANNUAL/SUPPLEMENTAL BUDGET
(1 Year)

Budget Phases
Priority P/P/As, Major Final Output, Performance Indicators/Target
BUDGET
PREPARATION
BUDGET
AUTHORIZATION
~
BUDGET
REVIEW
~
BUDGET
EXECUTION

Budget Phases
Priority P/P/As, Major Final Output, Performance Indicators/Target
BUDGET
PREPARATION
BUDGET
AUTHORIZATION
~
BUDGET
REVIEW
~
BUDGET
EXECUTION
~
BUDGET
ACCOUNTABILITY
1 \
Joint Memorandum Circular No.I Series of 2007

8 March 2007 as Amended by JMC No. 1, series of 2016
DILG-NEDA-DBM-DoF Joint Memorandum Circular No. 1, series of

2016 (November 18, 2016)
Subject: Updated Guidelines on the Harmonization of Local

Planning, Investment Programming, Resource Mobilization,
Budgeting, Expenditure Management, and Performance
Monitoring and Coordination in Fiscal Oversight

- starts with the Preparation of a r>evelopment Plan-
CDP (Comprehensive Development Plan) -

multi-sectoral plan formulated:
a. Vision
b. Sectoral goals, objectives, development

strategies, and policies within the term of
the LGU officials
c. PPAs which serve as primary inputs to
LGU investment programming, budgeting
and plan implementation

SYNCHRONIZING the PLAN-BUDGET
ALENDAR
Annual Investment Plan Preparation and Approval
LPDC sets Updating of Analysis of planning
guidelines for planning and environment
data budgeting for plan preparation,
gathering database review, updating
1st wk Jan Jan -March
April- May
I~ allsuance of Budget
Preparation of the Updating of AIP in
Approval of the AIP for the
AIP the LDIP as input
Budget year to budgeting
Not later than
June 1 - 15
1st week of Aug April- May

PREPARING the ANNUAL INVESTMENT PLAN
{AIP)
KEY PLAYERS
1. Local Development Council {LDC)
2. Local Chief Executive {LCE)
3. Local Sanggunian {SP/SB)
4. Local Planning and Development Coordinator

{LPDC)
5. Local Budget Officer {LBO)
6. NGOs, Civil Society Groups & Other StaReholders

PREPARING THE AIP: Roles of Key Players
Local Development Council {LDC)
• Align development plan with current development issues.

• Cull out the current slice of the Local Development Investment
Plan (LDIP) as input and annual component of the Capital
Expenditure (CAPEX) into the AIP Summary Form.
• Determine resource requirements of PPAs for basic services
delivery.
• Prepare draft AIP Summary Form and present to Local Chief
Executive (LCE) for comment/review.
·""'
PREPARING THE AIP: Roles of Key Players
Local Chief Executive (LCE'1

• Present the AIP Summary Form to the LDC for deliberation and concurs
with the AIP Summary Form as agreed upon by the LDC.
Sanggunian (SP/SB)
• Approve the Annual Investment Plan (AIP).
Local Planning Development Coordinator (LDCP)
• Input the annual component of the CAPEX into the Annual Investment
Plan (AIP) Summary Form.
Local Budget Officer (LBO)
• Integrate the CAPEX with the PS, MOOE and Other CO into the total
resource AIP to be reflected in the AIP Summary Form.
NGOs, Civil Socie~ Groups and
Other StaRe alders
• Serve as Rey informants on major development issues in the LGU.
• Provide relevant information in the identification and prioritization of

PPAs for inclusion in the AIP.

BARANGAY BUDGET
• LEGAL AUTHORITY for the expenditure of public funds
Sec 305 (al, RA 7160 -

No monev . shall be
Qaid out of the local
•
treasurv. except ,n
IJ.Ursuance of •
an
appropriation
ordinance.

Significance of barangay budget
• An instrument for effective barangay

management:
• planning and policy adoption
• program and project implementation
• financial control
• management information

Barangay Budget Process
REPARATION
-Punong Brgy
• Sept 20 - Oct 16

Types of Barangay Budget
• Annual Budget - financial plan embodying the

estimates of income certified as reasonably
collectible and appropriations covering the
proposed expenditures for the ensuing fiscal
year
•Supplemental Budget - supplementary financial

plan embodying changes during the year in the
estimates of income and/or appropriations as
reflected in the approved Annual Budget

Barangay Budget Consists of:
1. Estimates of Income
2. Appropriations
A. The Current Operating Expenditures{COE):

Personal Services {PS); and
Maintenance and Other Operating Expenses
{MOOE)
8. Capital Outlays - consist of expenditures which

forms part of the assets of the LGU. Its use
usually last for more than 1 year.

TO THE BUDGET
/ " -------
o That the Al P shou d be

prepared and approved before
the start of the ocal budget
preparation phase; and
o That ttle local bud,g ets, shall

fund PPAs includ,ed in the AIP.

By Pirog
As o.f _ _ _ _ _ _ __ _ _- -
Barangay;;
Clly:{Munl
PrOVimc -:
Sdi aiilu l!!iof l!IMOUHT

!lioUiMn4 P-li! _01,)
A IR! Mt! a· I .
~ C Dmplo C.!ll!IU!il O · 1 'f/
SmJ!liiO D
Data; ('CO)}
,oo
General
$ r.;·
(10!}l!!I)
:Sooial
Se · lcea
_ f . 00)_
!Scm"wmlc
Senrl ~
(.00
Other
Sen.rices
( 5!000)
PliepaliEld by;
8tl Fa' un □ ng BSJ'Sllgay

Date::---- ~ - -

BUDGET PREPARATION
Sept. 20 - Oct. 16
Key Player
Punong Barangay
Assisted by - Brgy Treasurer

• Barangay Treasurer
Submits to the PB on or before Sept 15
the detailed statement of income and
expenditures as a basis for the
preparation of the budget for the next
~-fiscal year
Based on a certified statement issued by
the city or municipal treasurer covering the
estimates of income from local sources for
the barangay concerned.

• Punong Barangay
Upon receipt of the statement of

income and expenditures from the BT
Prepares the budget for the ensuing

fiscal year in the manner and within the
period prescribed and submit the
executive budget to the Sangguniang
Barangay for legislative
enactment/authorization (Sec. 331, RA
7160)

PB who fails to submit the budget on or
before Oct 16 shall be subject to such
criminal and administrative penalties as
may be provided by the LGC and other
applicable laws
Sec 318, RA 7160 and implemented by DBM-COA Joint

Circular No. 93-2 dated June 8, 1993

LB MEMO NO. 77-A
24 JULY 2018
FY 2019 BARANGAY BUDGET CALL

A
. Computation of IRA:
• Total IRA shares for FY 2019 Annual Budget: P113,808,836, 176.00
• Based on the certification of the Bureau of Internal Revenue on the actual

national internal revenue taxes collected in FY 2016;
• Pursuant to Section 285 (d) of the Local Government Code of 1991 (RA No.
7160)
• For Special Shares in the proceeds of national wealth/taxes, barangays must

coordinate with the appropriate revenue collecting agencies and government
corporations to reconcile their records with those of the collecting agencies to
determine the amount of their shares from such national taxes. (Sec. 289-294,
RA 7160)
Illustration
• 20% = P113,808,836, 176.00

• PB0,000.00 per Barangay = at least 100 inhabitants
• P80T x 42,044 brgys = P3,363,520,000.00
• P113,808,836, 176.00 - P3,363,520,000.00
= P110,445,316, 176.00
Population = 60°/o
Equal Sharing = 40°/o

Priorities in the use of IRA & Other Local
Resources
• Basic Services and Facilities (Sec. 17 [b] [1] and [g], RA No. 7160)
• Not less than 20% of its IRA for development projects (Sec. 287, RA 7160 and DILG-DBM JMC
No. 2017-1 dated Feb. 22, 2017)
• Not less than 5% of estimated revenues from regular sources for BDRRM Fund (Sec. 21, RA
10121)
• 10% of the general fund of the barangay shall be for Sangguniang Kabataan solely for youth
development and empowerment purposes (Sec. 20 [a], RA 10742)

Resources
• Barangay PPAs should be aligned with the City/Municipality/Province/National Government
priorities to avoid duplication in the use of fiscal and physical resources (Sec. 305 [h], RA
7160)
• PPAs included in the Local Nutrition Action Plan in accordance with the Philippine Plan of
Action for Nutrition 2017-2022 (DILG MC No. 2018-42 dated 26 March 2018)
• Educational programs on drug abuse prevention and control and rehabilitation and
treatment of drug dependents (Sec. 51, RA 9165)

Resources
• Educational programs on drug abuse prevention and control and rehabilitation and
treatment of drug dependents (Sec. 51, RA 9165)
• Conduct of barangay drug clearing operations, including rehabilitation of drug users in

coordination with the DOH & DSWD
• Establishments of Special Drug Education Centers
• Strengthening the criminal justice system

Resources
• By ATTRIBUTION:
• 5% Gender and Development (GAD) Programs (RA 7192, RA 9710, DILG-DBM-NEDA

JMC No. 2016-01)
• Senior Citizens and Persons with Disabilities (PWD) (RA 7432, RA 9442 as amended by
RA9994)
• Combatting AIDS (RA 8504)
• 1% of IRA for Barangay Council for the Protection of Children (BCPC) Programs (RA
9344 as amended)

BARANGAY BUDGET PREPARATION FORMS
1. BBP Fl - Budget of Expenditures and Sources of

Financing (Annex B)
2. BBP F2 - Programmed Appropriation by PPA,

Expense Class, Object of Expenditure
and expected Results (Annex C)
3. BBP F2-A - List of Projects Chargeable Against the

20°/o Development Fund (Annex D)
4. BBP F3 - Plantilla of Personnel (Annex E)
5. BBP F4- Statement of Indebtedness (Annex F)

DOCUMENTS for Legislative Authorization
by the Sangguniang Barangay
• Annual Budget (Barangay Expenditure Program -Annex G)

• Budget Message
• Plantilla of Personnel (BBPF 3)
• Statement of Indebtedness (BBPF 4), if any
• Annual Investment Program approved by the Sangguniang Barangay
thru a resolution, supported by the following:
. DILG-endorsed GAD Plan and

Budget
.BDRRMP

Personal Services (Common)
1. Honoraria
2. Cash Gift
3. Mid-year bonus/Year-End Bonus
4. Monetization of Leave Credit
5. Productivity Enhancement Incentive (PEI)
Salary Grades (SG) for Barangay Officials/Personnel:
Punong Barangay - SG 14
SB Members, Brgy. Secretary & Treasurer - SG 10
Day Care Worker/s - SG 4
Brgy. Health Workers, Brgy. Nutrition Scholars - SG 4
Accounting Clerk I - SG 4
Admin. Aide IV (Barangay Records Keeper) - SG 4
Administrative Aide 111* (Clerk I) - SG 1
Administrative Aide 1*/Utility Worker I - SG 1
Barangay Tanods/Lupong Tagapamayapa - SG 1

Monetization of Leave Credits
CSC DBM Joint Circular No. 1, s. 2004 dated March 23, 2004, as
amended
Barangay officials are entitled to leave credits/benefits equivalent to .3Q

days for every year of service in the barangay
Barangay officials entitled to leave privileges:

• Punong Barangay
• SB Members; SK Chairperson; Brgy Secretary and Brgy Treasurer
BS and BT are entitled to leave privileges only if:
► Rendered 40 hours service in a week

► Appointment papers submitted to CSC for record purposes
Computation:
Monthly Honoraria x No. of Leave Credits x .0481927
P4,000.00 x 28 days x .0481927 = P5,397 .58
. .
Productivity Enhancement Incentive (PEI) ----
Legal basis: Budget Circular No. 2017-4 dated December 4, 2017
Grant of One-Time PEI to Barangay Officials (maximum of PS,000.00)
Uniform rates shall be determined by the sanggunian concerned, depending on the

barangay financial capability.

Maintenance & Other Operating Expense (MOOE)
- Travelling Expense
- Training Expense
- Office Supplies Expense
- Drugs & Medicines Expense
- Gasoline, Oil and Lubricants Expense
- Water Expense
- Electricity Expense
- Telephone Expense - Landline
- Telephone Expense - Mobile
- Internet Expense
- Repairs & Maintenance (Motor Vehicle, Office
Equipment)

Capital Outlay {CO)
1. Land Improvement- Electrification

2. Office Buildings
3. Office Equipment
4. Furniture's And Fixtures
5. IT Equipment and Software
6. Library Books / Motor Vehicles
7. Roads
8. Reservoirs
9. Waterways
10. Other Assets

ACTIVITIES: BARANGAY PREPARATION
1. Issuance of the Budget Call by the PB based on:

a. Approved AIP for the year
b. Submitted Statement of Income and Expenditures
CONTENTS OF BUDGET CALL
Objectives and Policy Decisions for the Budget Year

(Tumong ug tuyo)
. Spending ceiling for Basic Services, Development
ProJects
Expected outputs/targets of each Basic Service
Budget Calendar

EXAMPLE OF A BUDGET
CALENDAR:
Issuance of Budget Call Sept. 20
Preparation of Budget Proposals Sept. 25
Budget Forum w/ Brgy. Official Sept. 26

and Stakeholders
Finalization of Brgy. Expenditure Sept. 30

or Proposed Program Appropriations
Preparation of Budget Message Sept. 30

- 55°/o Personal Service (Total Annual Income-Past
Year)
- Development Fund (20°/o of IRA-Budget Year)
-SK Fund (10°/o of Total General Fund-Budget Year)
- 20o/o for debt servicing (Regular Income)
-2o/o Discretionary Funds (Actual Receipts from
Basic
RPT-Past Year)
- 5o/o for DRRM Fund (Regular Income-Budget Year)

Mandatory Budgetary Requirements &
Limitations
- 55°/o Personal Service (Total Annual Income-Past

Year)
- Development Fund (20°/o of IRA-Budget Year)
-SK Fund (10°/o of Total General Fund-Budget Year)
- 20o/o for debt servicing (Regular Income)
-2o/o Discretionary Funds (Actual Receipts from
Basic
RPT-Past Year)
- 5o/o for DRRM Fund (Regular Income-Budget Year)

5% LDRRMF Regular Income (Budget Year)
Known as the 5% LOCAL CALAMITY FUND (LCF) Known as the (not less than) 5%
DISASTER RISK REDUCTION
MANAGEMENT FUND (LDRRMF)
Unexpended LCF for the budget year shall revert Unexpended LDRRMF shall accrue to a special
back to the general fund (unappropriated surplus) trust fund solely for the purpose of supporting
and will be available for re-appropriation disaster risk reduction and management activities
of the LDRRMCs within the next five (5) years. Any
such amount still not fully utilized after five (5) years
shall revert back to the general fund and will be
available for other social services to be identified
by the local sanggunian.
The LOCAL CALAMITY FUND shall be used for The LDRRM FUND shall be used for [1]
rehabilitation, relief, reconstruction, and other works pre-disaster preparedness programs, [2] for
and services. In other words, it can only be used post-disaster activities, and [3] for the payment
during and after the occurrence of calamity of premiums on calamity insurance (i.e.
Insurance of disaster volunteers)
30% shall be allocated as Quick Response Fund
(QRF) or stand-by fund for relief and recovery
programs in order that situation and living
conditions of people in communities or areas
stricken by disasters, calamities, epidemics, or
complex emergencies, may be normalized as
quickly as possible.
Thus, the QRF of 30% shall be used, as an
assurance, for during and post disaster activities,
while the remaining 70% may be used for
pre-disaster activities; payment of calamity
insurance premiums; and even for during and
post disaster activities as additional fund to the
QRF.
Determined and declared by the local sanggunian The declaration and lifting of the state of calamity
concerned upon the recommendation of the may also be issued by the local sanggunian,
Local Chief Executive upon the recommendation of the LDRRMC,
based on the results of the damage assessment
and needs analysis.
COA Circular No. 2012-002
Coverage of Unspent LDRRMF starts in
CY 2011 and the years thereafter
Unexpended Balance Transferred to Special Trust Revert to General Fund

Fund
2011 2012 2017
2012 2013 2018
2013 2014 2019
2014 2015 2020
2015 2016 2021

4
5

Items of appropriations included, BY
ATTRIBUTION ,
in the Annual Budget
• 5% GAD - Total Appropriations (BY)
• 1% BCPC Programs - IRA (BY)
• RA 9165 - Substantial Portion (BY)
• Senior Citizens/ - Total Appropriations (BY)

PWD Programs

GAD PLANNING AND BUDGETING
4

he
Focal Point System -
GAD Planning &
Budgeting
4
8

The Barangay GAD Focal Point System
The Punong Barangay - Chairperson
Chair of the Sangguniang Barangay Committee
on Women, Children and Family - Co-Chair
Members:
•Sangguniang Barangay Committee on
Appropriations
•SK Chairperson
•Barangay Health Worker
•Barangay Treasurer
•Violence Against Women (VAW) Desk Officer
(Legal Basis- Establishment of VAW Desk: DILG, DSWD, DepEd, DOH & Phil.
Commission for Women Joint Memorandum Circular No. 2 dated Dec. 9, 2010)
•Barangay Nutrition Scholar

•Ta nod Executive Officer
4
•Day Care Worker 9

[_________
c_u_ID_E_L_I_N_E_s________]
In identifying GAD PPAs, priority is given to emerging and/ or
continuing issues
a. Provision of basic
services and facilities b.Women's
to protect and fulfill economic
women's human rights empowerment, c. Participation in
d. Other
including right to including women's local 19vemance provisions
protection from participation in and decision-
oftheMCW
all forms of violence economic making
governance
(Refer to Annex C: Roles and Responsibilities of Local Government Units (LGUs) in Implementing the Magna Carta of
Women). 5
0

C.3 COSTING AND ALLOCATION
OF THE GAD BUDGET
1) At least five percent (5%) of the total LGU budget

appropriations authorized under the Annual Budget
sflall correspond to activities supporting GAD PPAs.
The GAD budget shall be drawn from the L ' s.

m · eratin nse
The GAD budget shall not constitute an additional

budget over an LGU' s total budget appropriations.
2) The five percent (5%) GAD budget shall endeavor to

influence the remaining 95% of lhe LGU budget toward
gender-responsiveness.
5
1

ANNUAL GENDER AND DEVELOPMENT (GAD) PLAN AND BUDGET
FY _ _
Region:
Province:
City/Municipality:
Total Budget of LGU: _ _ _ _ _ __
Total GAD Budget:
Gender Issue/ Cause of GAD Relevant GAD Activity Performance Performance GAD Budget Office of
GAD Mandate the Gender Objective LGU PPA (5) Target Indicator (8) Primary
( 1) Issue (3) (4) (6) (7) co Responsibili
MOOE PS
(2) ty
(9)
Client-focused/GA
•
DMandate
Organization-,f..ocus
ed
SUB-TOTAL
GRAND TOTAL (MOOE+CO+PS)

Prepared by: Approved by: Date:
Chairperson, GFPS-TWG Local Chief Executive DAY/MM/YEAR 5
2

• FREE
RESOURCES
• 5°/o
BDRRMF
• 10°/o SKF
• PS
• 20°/o DF

FREE RESOURCES
If the total estimated income for the budget year is ~reater than
expected mandatory expenditures , the excess is ca led as Free
Resources.
• If it is less, then it is a DEFICIT.
ILLUSTRATION:
Income Available for Appropriation - Budget Year
p xxxx.xx
Less: Mandatory Expenses
• 20% Development Fund . . . xxx.xx
• 10% SK Fund . . . xxx.xx
• 5% DRRMF . . . xxx.xx
• Basic Services ... xxx.xx XXXX.XX
Free Resources p
XXXX.XX
-----------

Allocation of Free Resources
. High Priority Development Project (in

addition to projects listed under the 20%
Development Fund)
. Additional MOOE for Basic Services
. Additional Honoraria for Barangay Officials

Illustrative Computation
(Uniform 0/o Increase in Honoraria)
Amount Available for Increase (Free Resources)

P30,000.00
Present Maximum Difference Uniform % Amount of New

Rate Salary Per of Increase Increase Salary
LBC 115 (30K/c total)
a b c= (b-a) d e= c*d f=e + a
Punong 22,500.00 26,494.00 3,994.00 72.86% 2,910.00 25,410.00
Barangay
Sanggunia 120,000.0 149,744.0 29,744.00 72.86% 21,672.00 141,672.0
ng 0 0 0
Barangay
Barangay 15,000.00 18,718.00 3,718.00 72.86% 2,709.00 17,709.00
Treasurer
Barangay 15,000.00 18,718.00 3,718.00 72.86% 2,709.00 17,709.00
Secretary
TOTAL 41i174.00 30i000.00

The total annual appropriations for personal
services of a barangay for one ( 1) fiscal year shall
not exceed fifty-five percent (55°/o) of the total
annual income actually realized from local sources
during the next preceding fiscal year.

/
PS LIMITATION: Sec. 331 (b), RA 7160


/
PS LIMITATION: Sec. 331 (b), RA 7160

Illustration:
PY (NPY) 2017 CY 2018 BY 2019
1,500,000.00 1,800,000.00 2,000,000.00
X 55%
825,000.00
Waiver for PS Cap:
a. Grant of 5,000.00 cash gift for barangay

officials
b. The year-end bonus equivalent to P1 ,000 (PB)

&
P600 (other BOs)
c. Leave Credit Monetization (SEC. 89,

GENERAL
PROVISIONS, RA 10964- 2018 GAA)
Utilization of 20o/o Development Fund
DILG-DBM JMC No. 2017-1

Feb. 22, 2017

USE OF 20% DEVELOPMENT FUND
3.1 Social Development
3.1.1 Construction or rehabilitation of health centers, rural

health units or hospitals, and purchase of medical equipment;
3.1.2 Construction or rehabilitation of local government-owned

potable water supply system;
3.1.3 Establishment or rehabilitation of Manpower

Development Centers;
3.1.4 Construction or rehabilitation of evacuation centers;

3.1.5 Purchase or repair of area-wide calamity related alarm
or warning system;
3.1.6 Rehabilitation of cultural/historical sites;
3.1.7 Purchase or repair of appropriate calamity -related

rescue operations equipment such as inflatable boats,
breathing apparatus, extraction tools, safe line rescue ropes,
fire extinguishers, chainsaws, two (2) way handheld radios and
the liRe;

3.1.8 Purchase and development of land for the

relocation of informal settlers and relocation of
victims of calamities;
3.1.9 Construction or rehabilitation of facilities such

as multi-purpose hall intended to cater out-of-school
youths, women, senior citizens, minors, displaced
families, indigenous people and differently-abled
persons; and
3.1.10 Installation and maintenance of street lighting

system except payment of electric bills.

3.2 Economic Development
3.2.3 Capital expenditures related to the implementation of livelihood or entrepreneurship/local
economic development projects; and
3.2.4 Amortization of loans used to finance development projects cited in this Joint Circular, subject
to the 20% debt service cap
3.3 Environmental Management

3.3.1 Reforestation and urban greening;
3.3.2 Construction or rehabilitation of sanitary landfills, material recovery facilities and purchase of
garbage trucks and related equipment;

3.3 Environmental Management
3.3.3 Implementation of flood and erosion control

projects such as rehabilitation and construction of drainage
systems, de-silting of rivers, de-clogging of canals;
3.3.4 Other environmental management projects that

promote air and water quality, as well as productivity of the
coastal or freshwater habitat, agricultural land and forest
land.

4.0 EXPENDITURE ITEMS NOT COVERED
The following expense items that are not related to and/or
not connected with the implementation of development
gr9J.ects, programs and activities shall not be paid out of the
20 fo development fund:
4.1 Administrative expenses such as cash gifts,
bonuses, food allowance, medical assistance, uniforms,
supplies, meetings, communication, water and light,
petroleum products and the like;
4.2 Salaries, wages or overtime pay;
4.3 Travelling expenses, whether domestic or foreign;

4.4 Registration or participation fees in training, seminars, conferences or conventions;
4.5 Construction, repair or refinishing of administrative offices;
4.6 Purchase of administrative office' furniture, fixtures, equipment or appliances; and
4. 7 Purchase, maintenance or repair of Motor vehicles or motor cycles.

Prepare Budget Message
Contents of the Budget Message:

Policy Thrusts for the Budget Year
Estimated Income for the Budget Year
How Income is Allocated
Expected Results to be Accomplished

EFFECTIVITY OF BARANGAY BUDGETS (Sec. 332, RA 7160)
Annual budget shall take effect at the

beginning of the ensuing calendar
year (January 01, 2019).
An ordinance enacting a supplemental budget,
however, shall take effect upon its approval or
on the date fixed therein.

BARANGAY BUDGET PREPARATION
FORMS

!i='Y - - - - - Anin u m In l\'li'I n1: Pr-og __ ~A.IP)
By Pirog - I.Prqocll ctlv lty by -S ector
Asa of _ _ _ _ _ _ __ _ _ _ _-
Barangi:l}r.
C:1_¥!'M unl cfpi~'ty! _ _ _ _ _ _ _ _ _ _ __
Pl'Oviri'IC - ;
AIIIIO U l'IT
AIP ·· ·,-
Ofl'ic>lr.l"
IC'JQ<M C ""'" pladon C!l!)! IU!i l O!.!liJ!tY
ID •rlfflllil"'il SimJrl a T.
D-.am; (,C:OJ,
,C2J fH
. . il+-1 i'.I
~
Siervie· .
(U!!OO)
So..:iEI_I _
Ser.oicea
_ ( . 00)_
~ C
Sier.<I~
(0000)
Pliep8-11"8d by;
~~ El.ti 111 -y T~ur-er- P un □ ng Elaranga-y

Dat:e,-; _ _ _ _ _ __ _ o.a1. · _ _ __ _ _ _ _ __
D;rte-; - - - - - - - - - - - - -

SERVICES: AIP Reference
Code
• General Services
• All PPAs that provide planning, financial,
administrative, legal and legislative services to
the frontline services of the oarangay
• Social Services
• All PPAs that promote the well-being and
general welfare of inhabitants such as
education, health, P.Ublic safety, and protection
of marginalized and disadvantaged individuals

SERVICES: AIP Reference
Code
• Economic Services
• All PPAs directed towards promoting growth in
the economy, using all factors in production such
as increasing productivity in agriculture and all
other industries, generating employment and
other livelihood programs
• Other Services
• All PPAs that cannot be categorized in any of the
services identified above

B gay B u ~ Pire;pairali.ilXII Farm No. 1
SlU OGE1i O F EXPE- -D mJRES AND SOURCES O FINANCING., FY _ _

n _ay _ _ _ _ _ __ _ _ _ _ __
C ll(ylMunicipalil:y of _ _ __ _ _ _ __
P n ivin ce of _ _ _ _ _ _ _ _ _ _ __
,Account p y Budg;e1i Y,ear

p C Cl on C clu fPlrop0aed),
3 I 4
I.
Ill lft_,er,;:e l!)t!1J
Shar-e$ n Ree l roperty Ts >:
El Ines:,, if _ x(i;!-i )
F'ees a ndl C h ge-s
R.ecaip'l:a ifrom EcOl!IOmic E n terprise
l'ntema.1 Revenue, AJlotment
S ha fro m Nationa W
l':n ter-L.oca l Tira n sfet
Extra on:l im._ary R eceipl:sJG ran -
Oonalio ns/A id:s
-- -
iVabl

Ou n ■ n Y .
~ O 'Ullt lnr;:ome P'aEiil: Year B ud~Y .
Cod .· Cl __ [ Acfua'I),
FrTS-t {]P rropos d ~•
P'arti cula.-.s
Se m est r
~.A du ~
,1 4 ,s·.
I ll. E
P■ rso -~Senilo _!I ~PS)

S I lcs an . A::!Q (pem u m .e nt and
ca u auecr, plo-yee!ii)
on rt
Ca5-h Gtft
Othec- Per5on1111BI IBe s of pennam m t
:\;Ind ~ual e m ploye,es.
Associated PS cm;h;. {GS l:S, PAGIEJ G .
·:c_·) o.f penna n E!ffl: Ell1ilill rta.SIU:"a'I
emp la,yaetS,
'irotaJ PS
enses
n c:.-allon ~ nses
·· h:i-•l!al Sen,,ices
ene $<eivoe!;ii
Repairsi an d Main -ana n ca
Ta:a:..aa , l n a u ranoa Prarini
Fees
0 h.e.r OE
'ili'otaJ · :OO E

Current Year App ropri.atiion
Account Incom e Past Year Budget Yeair
Classificati,on First Second
Pa rtl cu lars Code (Actual) (Pr•o posed)
Semester Semester Total
(Act ual:} (Estimate)
(1) (2) (3) (4) {S) (6)
-
(7) (8)
Capita~ Outlay (CO)

Land and e.uildings
Property, Plant and Equ ipment
Land Improvements
Total Capital Outlay
Special Purpose Ap;prop.riation (SPA)

Appropriation fo r Debt Service
Appropriation fo r Sangguniang
K abataan
Appropriation fo r Development Fund
Appropriation for Barangay Disaster
R isk Reduction and Management
Fund
Other Authorized SPAs
Total SPA
We hereby certify that tha information presented above are true and correct. We further certify that the foregoing estimated receipts are
reasonably projected as collectible for the Budget Year.
Prepa.red by: Approved by:
Barang1ay Treasurer Ba rangay Secretary Punong Barangay

INSTRUCTIONS: (BBP Form No. 1)
Column 1 - Indicate the receipts by major source. The beginning balance shall be net of
amounts earmarked for specific purposes (e.g., continuing appropriations, 20% Development
Fund). The breakdown of the MOOE, i.e., supplies and materials expenses, utility expenses,
communication expenses, professional services, general services, repairs and maintenance,
taxes, insurance premiums and other fees, and other MOOE, shall be provided in a separate
list. Example:
Professional Services
Utility Expenses Auditing Services 5-02-07-010

Water Expenses 5-02-04-010 Consultancy Services 5-02-07-020
Electricity Expenses 5-02-04-020 General Services
Communications Expenses Janitorial Services 5-02-08-020
Postage and Courier Services 5-02-05-010
Security Services 5-02-08-030
Telephone Expenses 5-02-05-020
Supplies and Materials Expenses
Repairs and Maintenance
Office Supplies Expenses 5-02-03-010
Land Improvement 5-02-09-010
Drugs and Medicines Expenses 5-02-03-040
Machinery and Equipment 5-02-09-040

INSTRUCTIONS: {BBP Form No. 1)
Column 2 - Indicate the account code for each itemized receipt using the
Manual on Financial Management for Barangays, as prescribed under
Commission on Audit Circular No. 2015-011 dated December 1, 2015
Column 3 - Classify the income into regular (R) or non-regular (NR).
Column 4 - Indicate the past year's actual receipts and expenditures. The
past year's actual receipts and expenditures shall be certified by the
Barangay Treasurer.

INSTRUCTIONS: {BBP Form No. 1)
Column 2 - Indicate the account code for each itemized receipt using the
Manual on Financial Management for Barangays, as prescribed under
Commission on Audit Circular No. 2015-011 dated December 1, 2015
Column 3 - Classify the income into regular (R) or non-regular (NR).
Column 4 - Indicate the past year's actual receipts and expenditures. The
past year's actual receipts and expenditures shall be certified by the
Barangay Treasurer.
Column 5 and 6 - Indicate current year's estimated receipts and

expenditures, as follows:
• First semester - actual receipts and expenditures certified by the Barangay
Treasurer.
• Second semester - estimated receipts and expenditures certified by the
Barangay Treasurer.
Column 7 - Indicate the totals of the amounts under Column 5 and 6.
Column 8 - Indicate the proposed amount of receipts and expenditures for

the budget year.

NB:
Based on the Bureau of Local Government Finance
(BLGF) Memo Circular No. 16-2015 dated June 19
2015 re Local Public Financial Management (PFM)
Tools for the Electronic Statement of Receipts and
Expenditures (which include the Guidebook for the New
Local Government Financial Performance Monitoring
System), regular revenues refer to taxes, fees and
receipts actually realized, including the IRA and other
shares _provided for in Sections 284, 290 and 291 of RA
No. 7160, but exclusive of non-recurring receipts such
as national aids, grants, financial assistance, loan
proceeds, sales of assets, miscellaneous
income/receipts and other similar receipts.

.Ann11x C
PROGRAM __._ED AP'iPROP _ IAillON B'M" PPA EXPEJl'l,ISE CLASS OBJ E CT OF EXPENDJliU AND EXP\ CTED RES-W TS. FY _ __
Bar:angay _ _ _ _ _ _ __ _ __ _ _ __
Cily/M u nicipai lil . of _ _ _ _ _ _ _ _ __ _
P o vi n c,f _ _ _ _ _ _ _ _ _ __ _ __
Piropol!ied
Pirogram . IP\roji■ CJ - , ActiYiU s AJP· A-eeount J:unD1J1nt E:ixpBGted Resw:lts
(By Ex ·. _ 11W _0 1 s nd Ob,taci of E • d u re) Refl:!llelll>t:::l!l!' Code ( B:uu get
C1 ) Cod"" v ·e a:r )
' ..:
1. &'EN ERA IL. ADM IN I S ,l i'RATIO . PRJDGRAM
P'e1r.&onal Sen.riCiit;& ( l?'S,)
S al a rie s a:rnd wages ( p - - -- ans - ali't ~ su
e -- pl - ·)
onorana
Ca Gil
othe r P 81r.Son n ell rm · n ~ . nd ,casua l
pl vs
Ass~:llci,atecd PS co ;1J (GS~S, PAGI · 10, ete.) o r·
i a nent nd oa · lo~ee . -
To,~I PS
M::aln~riance ,e ndl O U,el!' Operating E:x.p enl!!lesi
C .. COE)
lr.8VE! ll l ftSI E ·.enses - Loca l
T.-.a ining IE:1!:panse:s
Supp li es an~ M~ eria ls Expe n ses
U1ff y IEicipalilSes
Co mmu n ical l - - Expa nse:s
PliOfessional S81i'Vi-C~
0
Total MOOE

Pll"!D po:s:e d
_ s ,. Act iv i -es .AJJIP .A!GCO ll.l:l"l t A.m ount Expededl R esults
d Obj ct of ~p1mcfi'il:un1) R.efe::rence Code, (Budg,et
(1 ~ Cod',eo Yaa1]
4i
A
PS
MOO -
I
Ka, _ ll,I _ _ -__ n:g l"':!!lr fl'l'lll l !'II )"
PS
MOO
co
il"otal
l'mfifil,s.tr,uctu re
co - 20"¼. D'F
Na1111- DF
Tota l
BDRJ:RMF
Ck.ll idk Re:spornEiB F d
D isa_sbe r P ra,parad n ess. Preve nlii□ n &
ML i - -a'l.io.til , Raspomsae
T
ln ~Uon n R
co
To __
otlrler- Ser-vlcee-
GAD (if pn:rvided h roug h d
ap p iro prie ;tion)
Senio r · ·z:ens & l?ersons 'n'i -h D ie.a b ility
VAWG
Ot ac il'y)
TOTA BSFP

p
by: Approved by:

Column 1 - The breakdown of the MOOE, i.e. supplies and materials

expenses, utilities expenses, communication expenses, professional
services, general services, repairs and maintenance, taxes, insurance
premiums and other fees, and other MOOE, shall be provided in a
separate list.
Column 2 - Indicate the PPA reference code reflected in the AIP
corresponding to each item of appropriation.
Column 3 - Indicate the account code for each of the itemized
expenses using the Manual on Financial Management for Baran_gaY.S,
as prescribed under Commission on Audit Circular no. 2015-011
dated December 1, 2015.
Column 4 - Indicate the proposed amount for the budget year.
Column 5 - Indicate the goods or services that the barangay is
expecte9 _to deliver througll the implementation of the items of
appropriation.

repalfa orn f No, ·
USfOFP OJ
A'IPR ow:rnt xpect d O tpu .
1. J.
Ta I

INSTRUCTIONS: (BBP Form No. 2A)
Column 1 - Indicate the PPA reference code reflected in the

AIP corresponding to each item of appropriation
Column 2 - Indicate the concise description and details of
each of the development projects to be implemented
Column 3 - Indicate the amount allocated for each
development project
Column 4 - Indicate the timelines of the implementation of
each development project
Column 5 - Indicate the good or service that the barangay is
expected to deliver through the implementation of each
development project

PERSONNE fY
-
IPrmiin_oe at·_ _____________
H:em N'.a me ofi Inc: m

Nm .
(11

Column 1 - Indicate the item number of the plantilla
position.
Columns 2 and 3 - Indicate the position title and the
name of the incumbent occupying each position. If the
position is unfilled, indicate the word 'vacant" under
column 3. If the position is proposed for abolition, place
the position title inside a bracket. If the position is
proposed for reclassification, place the previous position
title in a bracket and indicate the proposed position title
below it.
Column 4 and 5 - Indicate the current salary grade/step
and corresponding rate per annum of eacti position.
Include as a footnote the compensation law/circular being
implemented. For the initial implementation of changes,
attach a copy of the Position Allocation List.

Column 6 and 7 - Indicate the salary grade/step and

corresponding rate per annum of each position proposed for
the budget year.
Column 8 - Indicate the difference between the old and the
new rates of compensation per annum for the budget year.
Additional Instructions:
1. This form shall cover both elective and appointive officials
of the barangay whose salaries are chargeable against
Personal Services Appropriation.
2. Only funded vacant positions shall be included in the
plantilla. All unfunded vacant positions shall be
removed/deleted from the plantilla.

4
D
Bara ·
palilyo _ _ _ _ _ __
in
0 Ba nee o th;e
Principal
, 1)
1----.;;.....:;..-----+-_
(3~ ~
____;,....;;...._...,.;...._........._-+-~L.....C....-+---;i....i;...---+-....;a;.;;.i;.,__1---11,,;.,L,.--1-...;i.;;.,i----+-----L;;J;....-+-~'--l--l.,;;,.=.I"-+ - - '
f 2~- -

Column 1 - Full name of creditors with their
corresponding addresses.
Column 2 - Date when the obligation is
incurred.
Column 3 - Period (months/years) within
which to pay the loan.
Column 4 - Principal amount of the loan.
Column 5 - Purpose of the loan incurred.

INSTRUCTIONS: (BBP Form No. 4) ----~
Column 6, 7 and 8 - Total payments prior to budget

year, including payments within the current year.
Columns 9, 10 and 11 -Amounts due and budgeted

for the budget year.
Column 12 - balance of the principal after deducting

previous payments and amount due for the budget
year.

Sam pie B a ..-:,mgay Annua l audg e t
(A ccou nls p r ovid'ed a re bas,edl on O OA M anual)
B ,udgot Year
.Account.
Object o f IE ::xpe,nd itur ,e E x pen d lrtl.l r-es Expected Re,sults Perlo rrn a nc•e :l ndic at.o ·r.
·C ode ,i Pr,o oosed l I
P art I. R ac.@ip ts Piro g r.am
Sha l'es irn Real P r o p erty T ax 4 -0 1-0 1 -01 0 60,00 0
Tax R even Lie - Goodls and Sec-vices

Busrness Tax 4-01 -~l2-01 0 7 ,000
Share on lhe· la.x: frum san d . g rave l an d o the.r 4 ..01-02-02 10 12,,00 0
,q u a n y p roducts
T .ax R evenue - P a:rrrnit IF 0 @s

F ees .a n d charg es 0111 c-orn rn erci.,11 b r·e ~d ing1o f 4 --D 1-03-01 0 7 ,000
figh tiing cock s, cockf~gh ts and oockpi ts
FeEt<S ,a nd ch a r,g es o n p la ces of r,ecrea tio.n 4-01-03- 020 5 ,0 00

which dhairge Admission f ees
F ees arnd cha r ges o n bill b oards, s tgn'boa rd s ,

neon. s ig ns an d o utdoor advertis etne n lS 4-01 -0 3 -030 6,,000
T ax ,R €tV·c;m u e - Oth e rs
Sha re f r om IRA 4-01 - 04-01 0 3 ,0 0 0,0 0 0
1 .ax ,Rev·E mue - Fine.s, and Pen ames

Prope.-ty 4-01 - 0 5 ..01 0 a.ooo
G oods a n d Serv,ices 4-01 - 0 5 -0:20 2 ,50 0
P errnil: F•® eS
O lher:s 4-01 - 0 5 --030 1 ,2 0 0
A ssistance and S u h sid y

Subsid'y from N aOo o a l Govmnm e n t 4-02-01.-01 0 25,000
Subsid y from IL GU s 4-02 - 011-02 0 2 ;50 0

Budget Year
Account.
Object o r Expe,1111d itu.-,e Expen,ditun11s Expected R osu Its Part<Hmance lnd1ieator
Co d e
(Procosedl
Shares,, Grants aod DoJ1,al ions
S han,i frorn Nat ion al Weal n1 4--03- 011-o 1 D 600.000
Gran ls and Donations 4-03- 02- 01 ,0 12 ,000
Service and !B usiness Revenue

C learance and Cer liflcallio:111 Fee-s .,1- 04- 01 -0 10 12.000
Other Service .R@ven;ue 4-04-0 1-900 6 ,0 0 0
TOTAL ESTIM 'Alli ED FUNDS AVAILABLIE FOR 3 .,7 66,200

AJPiPROPRIATIION
I
P,;;n1 II . E:.xpendi tu .-e Program
GEIN,E RAL ADMIN IISTRATION PROGRAJM:

CURRENT OPERATING EXPEND ITURE S
Personal Sen11i,ces ( PS)

a. Salari es and Wages (Peirmanen 1:/Ca.suar
em plo:•le0s) XXX)O( 120,000
b . HOl'lOrar la 5-01-02-050 380,000
c. C,.i,sh Gift 5 - 01-02-070 50,0 00
d_ OIJher Personnel Benefits 5 •01 r02..-990 50,00 0
e. .Associiated PS Costs (GSIS, P:ag - lBIG, 5-01-02-070 55.000
etc .. } or pe.rmanentlco!!sl.11.;11 employess
I T OTAL PS 655,000
Maintenan ce a nd ,O the,r O pe.-ating

E x ·p enses ( !M OOE)
Travel1ing Expenses, - Local 5 -02-01 - 010 10,,000
T,a lning Expenses. 5 -02--02-010 10,000
Office Su pp li &.s. Expenses 5-02--03-0'10 20 ,000
Ac-cou ntable Forms Expenses 5-02-03- 020 20 ,000
Wel'faire Goo ds Expen ses 5 -02--03-030 5,000
Drugs a n d M ad'icines Expense.s 5-02--03-040 5,000

Bud g •e t Yea!!"
Acc.ou111t !E xpected Resu lts Pe,n orm ance Indicator
Obje c t of Expe11ditur,e Expenditur es
Gode
{ P roposed)
Fuel, Oi l and lubricant Exp anses 5-02-03-05() 50,000
10,000 I
O~h er Supplies and M a terial Expenses 5 -0 :2 -03-990
5-0.2-04-0 10 24,000 I
Waler Expenses
E ll ectricity Expenses 5-02-04-020 120,000
Postage aod Courier Services 5-02-05-0 1 0 10,000
T ,e lephone Exp enses 5 -02-05-020 12,000
Internet Subscription ExpBnse s 5 -02'- 05-0 30 15.000
Auditing Service 5-02-07-0 1 0 60,000
Environ men I/Sanita ry Services 5 ·02 ·08-0 1 0 50,000
Janilori'al Services 5-02-08-020 120,000
Securi ly Services 5-02,- 08-0 30 120 ,000
Repairs and Maint enance
La nc:J l1m provemenls 5 -02-09-01 0 100,000
I nfrastructuir-e Assets 5·02~09-020 50,000
Buildings and Olher Structures 5-02- 09-030 50,000
I M ach inery and Equipment 5 -02- 09-040 50 ,000
T ransporlation E quipment 5-02-09-0 5U 50,000
Other MOOE
Adiverti sing Expenses 5 -02-99-010 5-,000
T ransportation and Delivery Expenses 5 -02-99 -030 110,000
R011 VLease E xpenses 5-02-'99-040 14,000
M embersl1 ip Dues and Con tributions 5 -02-'9 9-0 50 30,800
to Orga n i zalion s
Subs,criplion Expenses 5-02-99-060 6,000
Donations 5-02-99-0 70 10,000
T O T A L MOOE 1 , 0 36,,800
1
I
Capital O utlay (CO) 300,000
Land and Bui lding$ 300,000
Properly. P l aot and E q u ipment
TOTAL C O 600,000

BudgetYeaf"
A,r;:;eo ll.ll 1rrt Ex pen ditu.-es Expee,t ed Restl ~ts Perf•O nTI a n,r;:;,e, lnd icato r
Obj ect o f Expenditi.A,re-
Code
(Pl"oposedl
S.peci;al Pu,r poso Appropri aUons (S:P A)

Approp iati!Ol\lJ Jor D bt S ervi(;e 2'3,380,
Appropniations fo:r SK 376,620
I
TO T AL SP.A 400,000
TOT AJL GENERA II. ADMIN l'STRATJON PROGRAM 2,691,800
.BASI C .SERVICES AND FAC~ILITJES IP ROGftAM
a. Day:Care l n cr·easedl n om ber of P er•c entage inorease i n

PS p r-e-,sc hoo!e.-s e rnrdlled nurnbe .- o f e n i-ollees rn the
Honorari,a 12,000 In, D ay C a re Centers Day Ca.-o C €lntei.- I
MOOE
Suppli es and Expen ses, 1 8,000
co
T otal 30,,000
lb • .F-te;,lllh and N ubilio n Improven1erd oJ hearth P e r;:;:,antag8 d ~ a s e in

PS sentices inc denc.e o f common
Honoraria 12:,000 di sease.s
MOOE N u mbel" o f p atients ser ved i n
Drug·s and M ed icine 22 ,000 h e a lth centers
co
Totall' 34,000
c . Peace a n d O rd e r (in cludes BADACl P e.acef1u l comm unil.y P e.rcenrag.o deer-case o f

PS come .--ate in the bar.a,ngay
Honorana, 21,200
MOOE
- IJnifmrn/Food Suppl ies:
110,000 I I
co
Total 31 , 200

Budget Y,ea·r
Account
ObJect of' Expel'llditure Expgnditurcs, Expected Results IPerfonnan.ce Ind ic artor
Code I
lPropo,sed I
d. 89ricultun111I S ui;i 12ort Services lncn:1as.e i n agricuttur.ail PE!fl:entage increase in
PS 11.2,000 [Prod1.:1cU:oo agric<ul'tura,I production
MOOE Number of b.eneficia ri as of
Supplies a ndl M alerilall s 112 .000 farm inputs, s ucti as I
co pesticides a n d fer li!1izen;;
T otal 24,000
e. Kaf.;in.mgang Pambarangay Peaoerul com mun Ry Number o-r d lsputeslcases.

PS 12 ,000 ..-csolved
MOOE
Suppl ies .and Matermal.s 12,0•00
co
T otal 24,000
f. h111frasln.1ciure Imp roved faci lities i n Number of b'ui1d ings

20% Dev1111opm'2nl. Fund 600,000
1 '1!he lbal""angay· repai re d/reha bi lilated
Ollhers
Total •600,000•
91.. BDRRMF Resil ient oomm1ur, ily N u mber o:f beneficiariies- of

ORF 60.000 rel ier goods
Dis aster Prepa,-edness,, 140.000 Decrease iin th e rnumbe r of
I casUJa~ties durin g callamities
Prsvention &
M itig:a llion, Response.
Reh abl l1tation &. Re-covary
Total 200,000
h .. Information a ind Readi!J!g ~!i!n!e.- Increased access to, Percen tage. lncrea se i n th e
PS q ua!ity maleriiaJs ai11d I n umber of v Jsitors
I Number of b o oks/mat•a na!s
Honoraria 12.0 0 0 resources in the
MOOE 12,0 0 0 bararn gay iread ing p u r,o hased -
T otal 24, 000 csnit1a1..-
iL O[llh©f" Services
Seniol'" Citize11/F'W D 30,.- 000
O thers 77.,200
I 107,200
Total
Total fo..- Bas~c Ser,rices & Fa.e ll ities Program 1 ,074,400

I

Budget Year
Account Expenditures Expected Results Performance Indicator
Object of Expenditure I
Code
(Proposed)
TOTAL EXPENDITURE PROGRAM 31766.200
ENDING BALANCE .. 0 ..

A. Identify Sources of Revenue that will Finance the
Budget
~--------------------------
1. Internal Sources
STEP 1 . Determine Actual income From Taxes
PARTICULARS
2017 2018 2019
1.0 Beginning Balance
2.0 Income
2.1 Share from Real Property Tax
a. Business Taxes (Stores & Retailers)
b. Share on Sand & Gravel Tax
c. Miscellaneous Taxes on Goods & Services
d. Other Taxes
Sub-Total Income from Taxes
o Beginning Balance is the unused or unexpended appropriation for the past and
current year less amount needed for uncompleted projects or services plus
unappropriated income or surplus at the end of the fiscal year.

STEP 2. Determine Actual Income from Operating and Miscellaneous Revenue
PARTICULARS
2017 2018 2019
2.2 Operating and Miscellaneous Revenue
a. Permit and Licenses

Permit Fee
Other Permit &b Licenses
Other Specific Income
b. Clearance & Certification Fees

Other Specific Income
c. Business Income
Sub-Total Income from Operating And
Miscellaneous Revenue

STEP 3. Estimate Income from Internal Sources for the Budget Year.
a.) Use the Average Growth Method to estimate Budget Year's Income.
b.)
c.) To estimate inc&fflfcfOt'the Budget Yea~urrent Year Income -

Budget Year Income = Past Year Income X 1OO%
Estimated 1n&,ffiW~ etJff~nt Year lncbWffl ~f11fA1<Y-l=lf~~Y~fr
"fncome
Note: Internal Sources include actual income from taxes as determined in Step 1 And
Income from Operating and Miscellaneous Revenue as shown in Step 2.

d.) Application of Projection Technique
EXAMPLE: INCOME
a. To Estimate Average Growth
Past Year 1 2015 3,000
Past Year 22016 3,500 -- 5,000 - 3,000

X 100
Average Income
Past Year 32017 4,200 Growth (AIG) 15,700 - 5,000
urrent Year 2018 5,000
15,700 AIG = 2,000 X 100

10,700
AIG -- 0.1869 X 100

AIG = 18.69%
b. To Estimate Budget Year Income

BYEI = 5,000 (18.69% + 1)
= 5,000 (0.1869 + 1)
5,000 (1 .1869) or
BYEI = 5,935

e.) Another projection technique using the averaging method is
to determine the increase per year expressed in percentage
growth and averaged at least for 3 years
Example:
Year Income Annual Increase %age Growth

2015 3,000.00
2016 3,500.00 500 16.7%
2017 4,200.00 700 20.0%
2018 5,000.00 800 19.0%
Average Growth 18.57%
To determine or estimate income from internal sources:
Budget Year2019 Average Growth (2018 Income)

= 18.57% (5,000) + 5,000
928.5 + 5,000
= 5,928

2. External Sources
STEP 1. Determine income from external sources.
1 . Share from Internal

Revenue Collections
(IRA)
2. Share from National
Wealth
3. Share from EVAT
4. Subsidy from other
LGUs
5. Others
TOTAL

STEP 2. Project revenue from
external sources. The basic assumption
in estimating income from external
sources is the current year's external
sources of revenue is the same as of the
budget year's income.

3. Add E$tirnated lncomfe fro~lnternal S~urces with
estimated Income r.orn xternal ~ources o
determine amount avallable or appropnat1on.
Example:
Estimated Income
Internal Sources Px,xxx
Add: External Source x,xxx
Total Estimated Income
Available for Appropriation Px,xxx

B. Determine Actual and Estimated
Expenditure Level
STEP 1. Determine Actual

Expenditure for Basic Services,
Development Projects, SK and DRRM
Fund Expenses for the Past Year.

Actual Expenditure for the Past Year
BASIC SERVICES
HEALTH AND PEACE AND IA.DMINIS-TR 5% of Regular
20% of IRA
Account Code OBJECT OF EXPENDITURE NUTRITION ORDER IA.TIVE/LEGIS DEVELOP-MEN 10% of General Income
TOTAL
AGRI DAYCARE SERVICES SERVICES LATIVE Fund SK CALAMITY
T PROJECTS
SERVICES SERVICES SERVICES FUND
~-0 Current Operating Expend itures
1.1 Personal Services

809 a. Honoraria
814 b. Cash Gift
c. Sa laries & Wages -
803 eased/Contracted
822 d. Terminal Leave Benefits
830 e. Other Personnel Benefits

M.2 Maintenance & Other Operating
Expenses
831 a. Travelling Expenses
837 b. Teleph one , Telegraph & Internet

838 c. Postage & Deliveries
862 d. Public Infrastructure
878 e. Motor Vehicle Maintenance
849 f. Office Supplies Expenses

834 g. Water
835 Electricity
836 Cooking Gas
831 h. Expenses Local
950 i. Other Expenses
M.3 Total Current Operating Expenses

1.1 + 1.2)
~-0 Capital Outlays
202 2.1 Land Improvements
204 2.2 Buildings
215 2.3 IT Equipment
218 Motor Vehicles
222 Office Equipment
224 Furniture & Fi xture
t3.0 TOTAL OBLIGATIONS /1 .3 + 2.0)

STEP 2. Determine Actual Expenditure for Basic Services Development
Projects, SK and DRRM Fund Expenses for the Current Year.

Actual and Estimated Expenses for the Current Year
BASIC SERVICES
HEALTH AND PEACEANC ADMIN IS-T
NUTRITION ORDER RATIVEILE 5% of Regular
20% of IRA 10%of
Account SERVICES SERVICES GIS- LATIVE DEVELOP-ME General Fund Income
OBJECT OF EXPENDITURE TOTAL
Code AGRI DAYCARE SERVICES NT PROJECn CALAM ITY
SK
SERVICES SERVICES FUND
n.0 Current Operating

Expenditures

809 a. Honoraria
814 b. Cash Gift
c. Salaries & Wages -
803 eased/Contracted
d. Termina l Leave
822 J3enefits
e. Other Personnel
830 a enefits
1.2 Maintenance & Other
~perating Expenses
b. Telephone , Telegraph
837 ~ Internet
838 c. Postage & Deliveries
862 d. Public Infrastructure
e. Motor Vehicle
878 Maintenance
f. Office Supplies
849 xpenses
834 g. Water *NOTE:
835 Electricity
836 Cooking Gas
831 h. Expenses Local
950 i. Other Exnenses
First six (6) months (Jan-June) are actual
1.3 Total Current Operating expenses. Assume that for the next six
l=xnenses (1.1 + 1.2\
~-0 Capita l Outlays (6) mos. (Jul-Dec) will be equivalent to
204 2.2 Buildings the balance in appropriation (Total
218 Motor Vehicles Appropriation for the Current Year less
224 Furniture & Fixture Actual Year)
3.0 TOTAL OBLI GATIONS (1.3 + 2.0\

STEP 3. Estimate Expenditure for Basic Services, Development Projects, SK and
Calamity Fund for the Budget Year
3.1 Allocate Income for Mandatory Expenditures

Estimated Income for the Budget Year P __
Less: Mandatory Expenses
a. 20% of IRA for Development Projects..... P __
b. 10% of General Fund for SK ...................... P - -
c. 5% of Regular Income for Calamity.......... P _ _
d. Other Statutory Expenses ......................... P _ _
Total Mandatory Expenses ......................................... P _ _
Net Amount to be Appropriated
for Basic Services...................................... P - -
3.2 Allocation for Basic Services

Allocation for Basic Services for the Budget Year
BASIC SERVICES
HEALTH AND PEACE AND ADMINIS-TRATI
NUTRITION ORDER VE/LEGIS-LATI
Account Code OBJECT OF EXPENDITURE SERVICES SERVICES VE SERVICES TOTAL
DAYCARE OTHER
AGRI SERVICES
SERVICES SERVICES
1.0 Current Operating Expenditures

809 a. Honoraria
814 b. Cash Gift
c. Salaries & Wages -
803 ~eased/Contracted
822 d. Terminal Leave Benefits
830 e. Other Personnel Benefits

1.2 Maintenance & Other Operating
~xpenses
837 b. Telephone, Telegraph & Internet

838 Postage & Deliveries
862 c. Public Infrastructure
878 d. Motor Vehicle Maintenance
849 e. Office Supplies Expenses

834 f. Water
835 Electricity
836 Cooking Gas
831 g. Training Expenses (Local)

950 h. Other Exoenses
1.3 Total Current Operating Expenses
1.1 + 1.2)
tz.o Capital Outlays
204 2.2 Buildings
218 Motor Vehicles
224 Furniture & Fixture

4. BT submits Statements of Income and
Expenditures on or before the 15th day of
September to the PB (BBPF Nos. 1,2 and 3)

BUDGET AUTHORIZATION
October 20 - 31
Key Player
Sangguniang Barangay
Members

SEC. 391 [a] [3], RA 7160
• Enactment of ANNUAL AND SUPPLEMENTAL BUDGETS by

virtue of an Appropriations Ordinance (AO)
• AO authorizes the Punong Barangay and other Barangay

Officials -
1. To carry out delivery of basic services; and

2. To implement priority development projects.
• AO provides funds to support above undertaRings.

SUPPLEMENTAL BUDGET
No appropriation ordinance providing for a

supplemental budget shall be enacted
EXCEPT in the case of the following:
•Supported by funds actually available;

• New revenue measures; and
•In times of public calamity by way of
budgetary realignment

j! SEC 17 [b], RA 7160 - Basic Services & Facilities of Barangay
1) Agricultural support services which include planting materials

distribution system and operation of farm produce collection
and buying station;
2) Health and social welfare services which include maintenance of
barangay health center and day-care center;
3) Services and facilities related to general hygiene and sanitation,
beautification, and solid waste collection;
4) Maintenance of Ratarungang pambarangay;
5) Maintenance of barangay roads and bridges and water supply
systems;
6) Infrastructure facilities such as multi-purpose hall, multipurpose
pavement, plaza, sports center, and other similar facilities;
7) Information and reading center; and
8) Satellite or public marRet, where viable
•
HOW?
Step 1.
Present the Executive Barangay Budget to the Sangguniang
Barangay.
• Deliver the State of the Barangay Address {SOBA);
• Follow Contents of Budget Message;
•Calendar and certify as urgent the proposed executive
budget.
Step 2.
Deliberate on the Executive Budget.
2.1 Discuss the allocation of income to be initiated by
the
Committee on Appropriations.
2.1.1 Budgetary Requirements:
Mandatory Budgetary Requirements & Limitations
- 55% of Regular Income of the next preceding year -

Personnerschedule limitation or PS CAP
- 20% of IRA - For Development Projects
- 10% of Barangay General Fund - For SK Fund
- 5% of Regular Income - For Disaster RisR
Reduction Management Fund (DRRMF)
- 20% Debt Service (if any)
- 2% Discretionary Fund of PB
-Allocations by ATTRIBUTION - GAD, RA 9165, SC/PWD,
BCPC
- Sec. 17 [b], RA 7160

Personnel Schedule (PS) CAP or limitation
55% of Regular Income of the next preceding year
Example:
FY 2017 FY 2018 FY 2019

Past Year Current Year Budqet Year
P 1,000,000 P 1,100,000 P 1,200,000

X . 55
p 550,000
1
1
•
20% Development Fund
20% of Internal Revenue Allotment (IRA)

- for Development Projects
Example:
FY 2017 FY 2018 FY 2019
Past Year Current Year Budget Year
P 600,000 P 800,000 P 1,000,000

X . 20
p 200,000
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I
10% SK Fund
10% of Total Regular Income
Sec. 4, RA 10742: Use of 10% Sangguniang Kabataan Fund -

"Until the new set of officials have been duly elected and
qualified, the sangguniang barangay shall use the sangguniang
liabataan fund solely for youth development programs."
Example:
FY 2017 FY 2018 FY 2019

P 600,000 P 800,000 P 1,000,000
X . 10
p 100,000
1
2

5% Barangay DRRM Fund (BDRRMF)
5% of Total Regular Income - Republic Act No. 10121

-30% of 5% lump-sum allocation for Quick
Response Fund
-70% of 5% allocation for disaster prevention &
mitigation,
preparedness, response, rehabilitation and
xampl¥: 2017 FY 2018 FY 2019

P 600,000 P 800,000 P 1,000,000
X . 05
P 50,000 1
2

2.2 Discuss the allocation of income to other PPA's
2.2.1 Priority Projects / Services
-Over & Above 20% of the IRA
-Basic Services
-Expected Results/ Output
-Performance Indicators for each MFO's
2.3 Discuss the Sources of Income

2.3.1 IRA & National Wealth shares
2.3.2 Locally-generated income
-Income from Tax Revenue
-Income from Operating & Miscellaneous Revenue
-Income from Other Sources
1
2

Step 3.
Enact the Appropriations Ordinance {AO).
Legislative Instrument authorizing
the budget
Effectivity:
• Effective at the beginning of the budget year upon
approval by majority SB members & signed by the
Punong Barangay {PB).
1
2
~

PERIOD OF APPROVAL
• Sanggunianag Barangay (SB) should approve the AO

before beginning of a new year;
- SIMPLE MAJORITY: Majority of the members present there
being a quorum (excluding PB [JAVIER v CADIAO])
• If no enactment, SB shall continue to hold sessions
without additional remuneration until Ordinance is
approved.
• If SB fails to pass budget, appropriations ordinance of
past year is deemed reenacted.
NOTE: It remains in force & effect until ordinance

authorizing budget is passed by SB
1
2

REENACTED BUDGET
• Essential Operating Expenses

Supplies and Materials
Travelling Expenses
Administrative Costs
Other expenses to operate governance
• Personal Services
Honoraria
Salaries and Wages
• Statutory & Contractual Obligations
1
2
•
LEGAL EFFECT: REENACTED BUDGET
►No new projects can be undertaken

►New positions cannot be filled
►No new equipment can be acquired
►Non-recurring activities, no matter how vital,
cannot be undertaken
►No increase in honoraria and other benefits
1
2

LEGAL EFFECT: REENACTED BUDGET
►No new projects can b

►New positions ca
►No new equi~ acquired
►Non-recu es, no matter how vital,
cannot ~
►No increas onoraria and other benefits
1
2

REDUCTION/INCREASE OF APPROPRIATIONS
• SB can reduce appropriations but cannot increase

the same except when mandatory / statutory
obligations have not been provided in the budget
• Provided appropriations does not exceed total

estimated income
Vote of the Punong Barangay (PB) on the Proposed Budget

• Punong Barangay as Presiding Officer does not normally
vote but he may do so only to breaR a tie (JAVIER v CADIAO
[Aug 2016])
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2
••
Budget Authorization
Form

c. BUDGET AUTHORIZATION FORM
Barangay Budget Authorization Form No. 01
Barangay
City/Municipality
Province of
_ _ _ _ _ _ _ _ Regular Session
Begun and held in _ _ _ _ _ _ _ , _________ , on _ _ _th

day of _ _ _ _ _ _ _ _ _ _ __
Barangay Appropriation Bill No. _ _ _ __
AN ORDINANCE APPROPRIATING FUNDS FOR Barangay
Be it enacted by the Sangguniang Barangay of

in Council assemb l ed:
Section 1. Source of Funds. The following income as

indicated hereof are hereby declared as sources of fu n ds
particularly the Tax Revenue and Operating and Miscellane o us
Income, which are realistic and probable to be collected an d
remitted to th_e Local Treasury, necessary to finance the
delivery of basic services and implementation of priority
development of Barangay _______ from January on E: to
December thirty-one, two thousand and _____ , ex ce pt
otherwise specifically provided herein:
1
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0

-
!Estimated I n c o m e f o r Budget Vea!]

p
Share on Int:ernal Revenue Collections . ......... .. ........ . . .. . . . .
Share on real Property Tax .. . . . . .. . . .. .. . ..... . . .. ...... ... .......... .. . .
Business Taxes (Stores and Ret:ailers) -- -------· ·· ··· ··· ··· -· ··-·--- ---
Share on Sand and Gravel Tax ...... ... . . ..... . . . . ... .. . .. ... ....... . ..
Share on National VVealt:h . .... .. ............ . ... .. .. . . . .. ... ... . .. . ..... .... .
Share on EVAT . . .... . .. . ........... . ... .. . .... ... ..... . .. .. .. . .... . .. .. . . .. ..... .... .
Miscellanecus Taxes on Goods and Services .. . ..... . . . . . . .. .. ...
Ot:her Taxes . . . . .. ..... ... .... . ..... . ....... . ....... . . . .... . .. .. .... ... ...... .. . ... . . . .... ..
Ot:her Specific Income . . . . .... . . . . . ..... . . . . . ....... ... .. . . ... ....... .. ... . . .... ..
Subsidy f'rom Other LGUs . . . . .... . . . .......... . ........... .. . . . . ... . .. . . .. . .. ..
Tot:al Available Resources . . . . .. .. ......... ... ... . .. .. .... .. . ... .. .. . ......... ..
\sarangav Expenditure Program!

Section 2.. A p p r o p r i a t i o n o f Funds. The follovvin ~ sums o r so much thereof as
maybe necessary are hereby appropriated out: of Ta < Revenue and Operating and
Income and any unexpend ed bal , , nces thereof, in the Local
Miscellaneous
Treasury o f the barangay not otherwise appropria t = d f o r basic services delivery
and implementation o f priority development projects.
Maintenance and
P/P/A Personal Other Operating Capi tal Outlay TOTAL
Description Services Expen s es
Agricultural Services
Establishment of Plant Nursery
Day Care Services
Health and Nutrition Services
Peace and Order Services
Administrative and Legislative
Services '
Development Projects {20% of IRA)
-
SK Projects
{10% of GF)
Calamity Projects
{5% of RF)
,J

S e c t i o n 3 . . T h e a p p r o p r i a t e d a m o u n t is aimed t o produce the
e x p e c t e d m a j o r final o u t p u t (MFC>) -for t h e barangay and are t o be
measured by p e r f o r m a n c e o r o u t p u t indicators p e r MFC>. This
serves as t h e rationale -for t h e money spent -for t h e various
services a n d d e v e l o p m e n t p r o j e c t s provided by t h e Barangay,
p u r s u a n t t o S e c t i o n 1 7 o-f t h e Local Governm e n t Code.
Budget Y ear
P/P/A Description
MAJOR. FINAL OUTPUT
Per~ormance Estimated
Indicator ·o u t p u t
i
2

S~c:t i e> r-. 4 - G ~ .-. ~ - - ~ I P r <>'V" i s i e>r11.s . Follovvi n g policies are
a LH::hc:>riz:e d Tor t h e risc:al y e a r :
a_ Inc:o ,m e rrc:>m o p e r a t : i n g a n d misc:ellanec:>us Fees s h a l t b e
c:oElect:ed ..at m a x i m u m c o l l e c t i o n erfic:ienc:y.
b- Priority in the use ,o F income shall be for budgetary
r e q u i r e m e n t s a s m a r , d a t : e d b y t:he lc:>c:al code_
• 2.0°/o o1F IRA. f'or d e v e l o p m e :n t: p r o j e c t s
- 5°/o For U n.Fo,r e s e e n E v e n t s
- 1 0 ° / o t=or S a n g g , u n i a n g K a b a t a a n (:SK)
c:_ St::r ict: c o m p l i a n c e t o t h e 55°./o P e r s o,n a l S e r ' v i c e s Jimit:atio,n
shall be observed.
d . P r i o r i t y i n t:he u s e of' s a ' v i n g s s h a Iii b e For b a s i c ser'vices.,
a u g m,ent:at::ion or ,d e - v e l o p m e n t pre>jec:ts and other
m a n d a t o r y e x p e •n s e s p r o v i d e d uncl ,e r t h e Le>cal Code_
e_ All proc:,u r e m e n t s h a l l rc:>lle>vv s t r i c t l y t h e p ,rc:n,.,isio ,n s o r R-A-
9184-
s~c:t'i<> na s _ Eff~c:ti -v i t v - This Ordinance shall take effect

i m m e d i a t e l y u p o n it::s a p p r o - v a l .
D a t e Prc:>mulgat::ed:
C a r r· e d Unanimously,
Na1T1e a n d S i g n a t u r e o r B a r a n g a y S a n,g g u n i a n Memb e rs.

I HER.EBY C E R T I F Y t o t h e correctness or the above-quoted 'Local
~ p,p r e > p r i a t i o n C>rc:I i n a n ,c e _
S e c r e t : a,r y t o t:he S a n g g u n i a n g Barangay
Chairman, C ,o m m i t : t e e o n A p p r o p r i a t : i c u ,
.A..PPR.C),"EC>:
LCE,. PLJ:nong Barangay
1
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4

BUDGET REVIEW
November 11 - December 15
Key Player
Sangguniang Bayan and
Sangguniang Panlungsod

DOCUMENTS FOR LEGISLATIVE REVIEW
• Transmittal Letter
• Appropriation Ordinance
• Budget Message
• Annual Investment Program with Sanggunian Resolution
. DILG endorsed GAD plan

. BDRRM Plan
• Barangay Expenditure Program (BBPF Nos. 1, 2, 2-A, 3, 4)

SECTION 333 [a], RA 7160 - BUDGET
REVIEW
Within ten (10) days from its approval,

copies of the barangay ordinance
authorizing the annual appropriations
shall be furnished the sangguniang
panlungsod/ bayan as the case
maybe through the city/ municipal
budget officer. The sanggunian
concerned shall have the power to
review such ordinance in order to
ensure that the provisions of this Title
are complied with.
REGLEMENTARY PERIOD OF
REVIEW
If within sixty (60) days after

the receipt of the ordinance,
the sanggunian concerned
taRes no action thereon, the
same shall continue to be in
full force and effect.

If within the same period, sang~unian
concerned shall have ascertainea that
the ordinance contains appror.riations in
excess of the estimates of the income
duly certified as collectiblel or that the
same has not complied with the
budgetary re~uirements set forth in this
Title, the said ordinance shall be declared
inoperative in its entirety or in part.

ROLE OF THE CITY/MUN. LOCAL FINANCE
COMMITTEE
RA 7160. Sec. 316 [f]. Local Finance Committee
Assist the Sangguniang BAYAN / PANLUNGSOD in the review and evaluation of

budget of component BARANGAYS and recommend the appropriate action
thereon

PURPOSE OF BUDGET REVIEW
To ensure that the provisions of RA 7160 and other statutes are

complied with:
■ that the items of appropriations are not more than those provided by existing laws
■ that budgetary requirements and limitations are complied with
■ that the fundamental principles of budgeting are observed

EFFECTS OF REVIEW
. Declare the appropriation

ordinance operative in toto
ordinance inoperative in its
entirety
ordinance inoperative in part

Declare the appropriation ordinance operative
in toto
• The budget is found to have complied with

the provisions of law, rules and regulations.
• The budget shall be in full force and its

effect is at the beginning of the fiscal year
in the case of the annual budget, or upon
its approval or on the date fixed in the
ordinance in the case of the supplemental
budget.

Declare the appropriation ordinance inoperative in its
entirety
• The total appropriations is in excess of the

estimates of income duly certified as collectible
• No sufficient provision for payment of loans
• The budget fails to comply with any of the other
budgetary requirements and where to rectify the
same would necessarily lead to expenditures
exceeding income or to changes in the other
items of expenditure resulting to revision of the
budget

Declare the appropriation ordinance inoperative in its entirety
• Must be returned to the PB for proper adjustments/revisions.

• BT shall not make any further disbursements from the inoperative budget.
• Barangay shall operate on a reenacted budget
• The budget shall be revised to comply with the

provisions of law and resubmitted to the reviewing
officer with the appropriate required revisions.

Declare the appropriation ordinance inoperative in part
• There are items of appropriations not complied with

or that these are found to be in excess or deficient
under provisions of law and may be corrected by
the imposition of conditions in the review letter.
• The budget is considered operative as revised/
reduced/adjl:J~ted in accordance with the review
action. Where copy of revision, reduction,
adjustment is required to be submitted to the
Sangguniang P~nlungsod/Bayan, the same will
have lo be complied.
• When the appropriation ordinance is declared
inoperative in part, only the items of appropriation
that have not oeen declared inoperative or reduced
shall continue to be in full force and effect.

Appeal for reconsideration in case of conflict of
review letter
• Barangay may make an appeal in case of

conflict of review of its budget to:
• City/municipal legal officer assigned to review and
submit recommendation on approved ordinances
and executive orders issued
• DBM regional office for technical assistance

LEGAL CONSEQUENCE: Disbursing items of
appropriations which were disallowed in the
budget review
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••
PRESUMPTION OF REGULARITY
For the purpose of budget review, an
appropriation ordinance is regular on its
face if it carries the following:
• CERTIFICATION of the Secretary to the Sanggunian
and ATTESTATION by the Chairman, Committee on
Appropriation;
• Signed by the Punong Barangay on each and every
page thereof (Sec. 54 J; and
· fexcludmg
p~5s5e9n1 ~et~e
8eri~irity 0 u~e m1~~WAfJ~f ~t~}tt~n
pre~cfin~ ofri!cer])
• Seal of the barangay

BUDGET EXECUTION
January 1 - December 31
Key Player
Punong Barangay

SECTION 332, RA 7160
The responsibility for the execution of the

annual and supplemental budgets and the
accountability therefor shall be vested
primarily in the Punong Barangay
concerned.

RESPONSIBILITY OF THE Punong Barangay
* That the revenues as estimated are

realized
* That the approved development

projects and basic services are
implemented and delivered
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~ Changing Mindsets. Influencing Beha~ior.

HOW?
Step 1 -
Prepare a Simplified Allotment Release Order (SARO)

for all basic services and development projects.
The SARO is released comprehensively for the entire

year.
(Barangay Budget Execution Form No. I-Simplified

Allotment Release Order)
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Step 2 -
Prepare a Cash Program {CP) to support the Simplified
Allotment Release Oraer {SARO).
The Cash Program {CP) is a financial statement
showing the expected income and disbursement on a
monthly basis {January to December).
(Barangay Budget Execution Form No. 2 -

Cash Program)
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5
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Step 3 -
Prepare the quarterly performance targets.
This is the major justification for the release and
disbursement of funds. The expected results or output
to be produced by the financial transaction are shown
in the form.
(Barangay Budget Execution Form No. 3-

Performance Targets FY __ )
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Step 4-
Prepare the Disbursement Voucher for all valid

obligations found in the Barangay Appropriation
Ordinance or Supplemental Budget.
This forms are used in obligating and disbursing

of funds. Issue checRs to cover payments.
1
5
•
SIGNATORIES IN THE CHECKS, OBLIGATION REQUEST
and the DISBURSEMENT VOUCHER
• ChecRs issued by baran~ays are jointly si~ned by the

Baran~ay Treasurer and the Punon~ Baran~ay
• The Obli~ation Request are signed by:
1) The Punong Barangay
2)The Chairman of the Committee on

Appropriations, to certify as to the existence of the
appropriation;
1
5

SIGNATORIES IN THE CHECKS, OBLIGATION REQUEST
and the DISBURSEMENT VOUCHER
• The Disbursement Voucher is signed by:

1) Chairman of the Committee on
Appropriation of the SB, to certify as to the
existence of the appropriation
2) Barangay Treasurer, to certify as to the
availability of funds
3) Punong Barangay, to certify as to validity,
propriety and legality and approval of the
voucher.
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5
••
Step 5 - Procure goods and civil worRs projects.
- Prepare / Revised Project Procurement and
Management Plan (PPMP) for:
- Basic Services Delivery
- Development Project
- Prepare / Revised Annual Procurement Plan
(APP) for all PPMPs for:
- Basic Services Delivery
- Development Projects
- Implement APP through the Barangay Bids and Awards

Committee (BBAC) pursuant to RA 9184
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5
•
Principles and Rules to be Observed in the Release
~ - - and Disbursement of Barangay Funds - - ~
1) No money shall be paid out of the barangay treasury
except in pursuance of an appropriations ordinance or
law.
2) Barangay funds and monies shall be spent solely for public
purposes.
3) Trust funds in the barangay treasury shall not be paid out
except in fulfillment of tne purpose for which that trust
was created of the funds received.
1
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I
and Disbursement of Barangay Funds
4) Fiscal responsibility shall be shared by all barangay

officials exercising authority over the financial affairs,
transactions and operations of the barangay.
5) No Cash Advances shall be made to any barangay

official or employees unless the same is in accordance
with accounting and auditing rules and regulations.
1
6

~ - - and Disbursement of Barangay Funds
6) In case of revenue shortfall, the following courses of

action shall be taRen: -Spend only what's necessary,
Intensify revenue collection, SeeR financial assistance and
resort to borrowing.
1
6

7) The PB may by ordinance or policy in the general

provisions be authorized by the SB to augment any item
in the approved annual budget from savings in other items
within the same expense class. Use of savings through
augmentation of funds is allowed without creating a
Supplemental Budget.
8) Unexpended Balances and Appropriations for Personal
Services and Maintenance and Other Operating
Expenses shall revert to the General Fund at the end of the
year.
1
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9) Unexpended Balances and Appropriations for Capital
Outlays shall form part of continuing appropriations.
10) Unexpended Balances and Appropriations of the

20% Development Fund from completed or discontinued
projects shall be reverted to the un-appropriated surplus
and shall thereafter be re-appropriated for other
development projects.
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6
~

11) Total disbursements shall not exceed actual

collections plus 50% of the uncollected estimated
revenue
Example:
Actual Collections for the month = P 5,000.oo
Estimated Revenue for the month = 10,000. oo
Uncollected estimated revenue = P 5,000.oo
50% of 5,000.oo = 2,500.oo
Maximum Total Disbursements = P 7,500.oo

1
6

~ - - and Disbursement of Barangay Funds - ~
12) The 10% Sangguniang Kabataan {SK) Fund is a

statutory obligation considered as a Trust
Liability. To use this fund, a worR program or a
plan reflecting the projects that they intend to
fund for the year shall be developed. Any
unexpended balances shall be added to the 10%
share of the SK for the next year.
1
6
•
Baran,g ay Bud,g et Executiion Form N lo _11 I I l
SIMPLIF IE D ALLOTMENIT RELEA.S E ORDER
i i
Baran,gay:
BAS IC SERVICES APPROPRIATI ONS

AND T ·O T AL RESERVE THIS
DEVELOPMENT PS MOOE co (S') = (,6 '), RELEASE
PR·O JECTS 2 + 3+4 f7)= 5 ,-6,
(1 ') (2'), (3'), (4'),
Ad rm iin iis t ratilve Servi ces 3510 ,,000 .,0 0 2 5 ,, 5 ,7 ,g . 5 8 ,o .,o o 37 5 ,, 5 ,7 ,g . 5 8 175.,,0 00 .,0 0 2 ,0 0 , 5 ,7 9 .5 8
Pea,c e a nd order se rviice s ,o .,o o 23 ,1 00 .,0 0 ,o .,o o 23 , 1 ,0 0 .,0 0 11.5so .,o o 11 ,5,5 ,o _,o o
Jan irlo r iia I se rviice s ,o .,o o 3 , soo .,o o ,o .,o o 3 , suo .,o o 1,8-00.,0 0 1 , 8 •0 0 .,00
Genera I Se rviice s ,o .,o o ,G ,,,o O O _,o 0 ,o .,o o ,G ,,,0 00 .,0 0 3 ,,o oo.,o o 3 ,,o oo .,o o
Repa iira n d M la iinte n a n ce ,o .,o o ,0 .,00
o f Bara n g .a y haH ,o .,o o 5 ,0 ,,0 00 .,0 0 ,o .,o o 5 ,0 ,,0 00 .,0 0 5 ,0 ,,0 00 .,0 0 ,o .,o o
Ca la lf'll1 illy Reserve 34, 1 5 .9 _,s ,o 34, 1 5 .9 _,s ,o 34, 1 5 .9 _,5 0 ,o .,oo
Ma inte na n ,c e o f bara n g .a y ,o _,o o ,o .,o o
roads 21 ,,5 ,3 8 .A-•o ,o ..,o o 21,,538.,4.,0 1 ,o ,,7 •6 9.20 1 ,0 ,,7 •6 ,9 .2,0
Ag r iic u tllu ra II Serviices 4,.,o o o _,o o ,o _,o o 4,.,o o o _,o o 2,.,0 00 _,o o 2,.,0 00 _,o o
Day Car,e Servi ces 18,,,0 00 ..,0 0 ,o ..,o o 1 8 ,,,o o o ..,o o 9 ,,,o o o ..,o o 9 ,,,o O O .,, 0 0
Hlealil:11-1 & N lutr iil:iion serviices 2a,,aoo_,o o ,o _,o o 2 a ,,a ,o o _,o o 114,.4 •0 0 _,o o 114,.4 ·0 o _,o o
1 ,0 "o/.,, SK fun d proj,ects ,s 8,319 .2,0 ,o ..,o o ,s 8,319 .2,0 ,o .,, oo ,s 8,319 .2,0
D iis ,c retiio nary expenses 9S.22 ,o _,o o ·9 5,.22 ·9 5,.22 ,o _,o o
Repa iirand M la iintenan,c e
o f Healil:11-1 Center 5 ,0 ,.,o o o _,o o ,o _,o o 5 ,o ,.,o o o _,o o 2 5 ,,,,o o o _,o o 2 5 ,,,,o o o _,o o
T ·O TAL 3 5 10 ,,, 0 0 0 ..,o o 333,,192 ..,0 0 ,o ..,o o ,s 8 3 ,,192 ..,o o 3 3 ,s .,,7 74 ..,0 .2 34·6 ,,4 17 .,9 8
Prepared By: Approved By:
Ba ran gay· Treas u r ,e r Pu n o n g Baran gay·

lnstrucbons:
(1) List dow·nthe baste ·servtces,,development pr,aJ:ects,,pn:,gr.ams and a,cbvHtes ,of the barang.ay to
be debvered and implemented durmg the budget year 1n C,olumn 1.
(2) ,(3),,(4) and (5) lndtcate the .appJopnated amount for pers,onal ·servtces,,mamtenan,ce and ,other
,operating exp,enses .and ,capHal ,outlay·sand ·sum up ,or add ,c,olumns 2,,3.and 4to ,get the kdal
appniprlabon 1n C,olumn S,,,
(6) A.re·serve 1mpo·s1bon .auth,ori~ed by the Sanguman :arangay ·sh,oulldbe mcluded 1nC,olumn 6,
to serve as c,ont~ngency me.asure.,
(7)i Th1i&,c,olumn shows the amount ,c,omprehens1iVe~ released fr,othe fis,cal year.,

.
1 [ [
Barangay Budget Execution Form No. 2
t CASH PROGRAM
i
Barangay:
Income from Taxes MONTH

and Operating and TOTAL
Miscellaneous Jan Feb March April May June July Aug Sep Oct Nov Dec
Income
A. Income from Taxes 53,391.00 52 891.00 51,891.00
B. Operating and
Miscellaneous Income 4,100.00 5,000.00 7,000.00
C. (A+B)
TOT AL INCOME 57.491 .00 57 891.00 58,891.00
LESS:
D. Disbursementts
Basic Services 38,100.00 40,650.00 40,650.00
Development
Projects 0.00 5,000.00 10,000.00
10%SK 3,000.00 3 ,000.00 4,000.00
5% BDRRMF 0.00 0.00 0.00
Others 0.00 0.00 0.00
E. TOTAL
DISBURSEMENTS 41,100.00 48,650.00 54,650.00
F. (C-E)
ENDING
BALANCE 16,391.00 9,241.00 4,241.00
G. BEGINNING
BALANC E/S URP L US/
DEFICIT (cumulatjve) 16,391.00 25,632.00 29,873.00
Prepared by: Certified Correct: Approved by:
Barangay Treasurer City/Municipal Accountant Punong Barangay

Instructions:
(1) Indicate the monthly income of the barangay coming from taxes and
pperating and miscellaneous income from
January to
December.
(2) Ensure that the monthly projection of income
will be realized and collectible.
(3) Determine the monthly disbursement or obligations to be incurred and
project from January to December of the Fiscal Year.
(4) Deduct total expected disbursement for the
month from the income.
(5) Reflect the balance as ending balance, if positive it means income is
greater than disbursements, if it is negative balance
it indicates that disbursements are greater than income. The ending
balance for the first month becomes its beginning
balance and adds up or becomes
cumulative until the last month.

B.ar.an,g.ay Budge1: E:xe c u1:iio n Forli"TI No .. 3
PERFORMANICE T ARGE T S,, FY

Baran,g ay --
f I
Bas iic Serviicesl QUARTERLVTA.RGETS

Deve llo ip li"TI,e nt P roie cts , .3:'), TOTAL
MF·O PERF·O RMANCE (4),
I ND ICATORS Q11 Q2 Q3 Q4
{11'), { 2 '),
AgriicuHura ll Serviices Pilant seed Hn,gs d iistriib u t,e d 25, 25, 25, 25, 1100
Farli"Tier benefic iiarie s 11,0 11,0 11 5 , 11 5 , so
D.ay C.are Serv-iices Pre - S •c ho o ll ·C h iilld re n tr.aiined 4 ·0 4 ·0
Parent be nefic iia rie s 40 -
40
Heallth & Nutriitiion P .a tients provlld,e d 11 S , 11S,
Se ll"V·iice s p r iili"TI a ry· ,c a re 115, 115 3 •0
Ch iilldren pr o v iided n utriitiio na I ,o
,c .ar,e 115, 115, 3 •0
Pea,c e & or,d er Conflicts de c iide dlre so IIV'e d 11 11 2 11 5,
Sell"Vice s Per sons .a pprehended
0
•O •O '11 •O '1
AdlfTI _ & reg ils lla1:irve r ,e so llu1:iio n ·s p.a·s ·sed 3 3 3 3 112
Se rv iice, s o r ,d iin a n ,ce, s p .assed 11 11 11 3
Deve llo p n,,e n1: Projects K iillo n,,e 1:e rs o f br,g y_ ro .a ,d s 0
n, a iin1:a iine d •O 11.,5 , 11.,5 , 3
B r,g y_ HaH li"TI a iinta iine d 11 11
HeaHh Center li"TI a iinta iine d 11 11
Other SK Projcec1:s Athfetiic sports ,c o n ,d u ,cte d 2 2
v ·o uth t r.a iined on skiiHs 2 2
Janirtoriiall Serviice,s B r,g y .. hallll & HeaHh •c eon1:er
,c feaned 2 2 2 2 2
Ge n ,e r .a IJ Se ll"Viice s books o f .a ,ccounts
li"TI a iinta iine d 11 11 11 11 11
Prepared b y: Approved B y:
I
B .a r .ang.a y Sec r ,e t.a ry Punong B .a r.a ng.a y

11) Indicate t~e m·~r 1nal output or goods and seiv1ce1 to ~e delivered to sta~e~oMers.
-
IJ) In Column ~ 11 tdown t~e peiformance indicator..(at I·a.tJ) per MOand quant~ l~em n
Column !~y qu ·rter.
ll) Add all targets for t~e four (4) quaiter .and lnd~a~ sum II t~e total column.

BUDGET ACCOUNTABILITY
January 1 - December 31
Key Player
Punong Barangay & Other
Brgy Officials

Budget Accountability
This is the last stage of the budget process whereby

financial records and reports are prepared and
validated periodically to assess whether
performance is in accordance with the budget
plans.
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HOW?
* Record all collections from taxes, fees,

charges and contributions due or
accruing to the barangay in the Income
BooRs of Account under the General
Fund
* Issue an official receipt for all taxes, fees,
charges and contributions collected
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HOW?
*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.
------
* Deposit all collections in the depository
- account maintained in the name of the
barangay within five (5) days after receipt
7
•
HOW?
*Record all obligations and disbursements in

the Expenditure BooRs of Accounts under
the General Fund.
*Segregate all expenditure levels by sector.
1
7

HOW?
*Post in a conspicuous place in the

Barangay the income earned for the quarter
and where it was spent {FDP)
(Identify Step 6 as the services/development
projects where the income was spent)
*Post in a conspicuous place the three (3)

Barangay Budget Accountability Forms Nos.
1 to 3.
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7
••
HOW?
■ Monitor and evaluate performance.
■ Monitor actual results of service delivery and

implementation of development projects.
■ Compare actual results with planned targets.
■ Provide corrective actions for negative

deviations.
-
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•
BARANGAY
ACCOUNTABILITY REPORTS

1. Report of Actual Income
(Barangay Budget Accountability Form No. 1)
2. Quarterly Report of Financial Operation
3. Quarterly Physical Report of Operation
1
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IMPORTANCE OF ACCOUNTABILITY REPORTS
- Barangay records and reports of budgetary

transactions must be prepared and kept for the
following reasons:
1. To provide information on the status of

project implementation
2. To ensure that obligations are incurred

within the limits of the approved
appropriations;
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3. To record unpaid obligations, both
current and those certified to as accounts
payable at the end of the year;
4. To serve as basic input into the next

budget preparation.
1
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Responsible Persons: Budget
Performance
[. Punong Barangay
. Chairman of the Committee on Appropriations
of the Sangguniang Barangay
. Barangay Treasurer
4. Barangay Secretary
. Barangay Bookkeeper/Municipal/City
Accountant
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~

PUBLIC ACCOUNTABILITY: Barangay and its
Budgetary Transactions
• Barangay officials must report the following to the

general public:
1. Income actually realized for the quarter;
2. Expenditures actually spent for the

quarter; and
3. Accomplishments for the quarter.
1
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MONITORING THE FINANCIAL OPERATIONS: ITS
IMPORTANCE
• The financial operations of a barangay shall be

monitored by the barangay officials concerned by
comparing the approved appropriations against
actual obligations or disbursement. Monitoring of
the barangay financial operation is necessary to
ensure that expenditures do not exceed the
amount approved in the appropriation ordinance.
1
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•
WORKSHOP

COMPUTE THE FOLLOWING BUDGETARY REQUIREMENTS &
LIMITATIONS FOR FY 2019 BUDGET:
BUDGETARY AMOUNT- FY 2019

REQUIREMENTS &
LIMITATIONS
55% PS CAP ?
20% DEVELOPMENT FUND ?
10% SK FUND ?
?
20% DEBT SERVICE
2% DISCRETIONARY FUND ?
?
5% DRRM FUND
5% GAD FUND ?
1% BCPC FUND ?
ANTI-ILLEGAL DRUGS ?
PROGRAMS
SENIOR CITIZENS/PWD ?
PROGRAMS 1
FREE RESOURCES/PORTION ? 8
••
ES OF FINANCING PAST CURRENT BUDGET
YEA17) YEAR (2018) YEAR (2019)
IRA SHARE 6,900,000.00 7,500,000.00 8,800,000.00

SHARE IN REAL PROP. TAX 80,000.00 100,000.00 200,000.00
SHARE ON THE TAX FROM SAND, 20,000.00 25,000.00 40,000.00
GRAVEL AND OTHER QUARRY
PRODUCTS
FEES AND CHARGES ON 7,000.00 10,000.00 15,000.00
COMMERCIAL BREEDING OF
FIGHTING COCKS, COCKFIGHTS AND
COCKPITS
FEES AND CHARGES ON BILLBOARDS, 5,000.00 7,000.00 9,000.00
SIGNBOARDS, NEON SIGNS AND
OURDOOR ADVERTISEMENTS
FEES & CHARGES ON PLACES OF 5,000.00 7,000.00 8,000.00

RECREATION WHICH CHARGE
ADMISSION FEES
CLEARANCE AND CERTIFICATION FEE 10,000.00 15,000.00 20,000.00
OTHER SERVICE REVENUE 10,000.00 13,000.00 16,000.00
ACQUISITION OF LOANS 5,000,000.00
TOTAL 7,037,000.00 7,677,000.00 14,108,000.0
0
BUDGETING
PROCESS FOR THE
SANGGUNIANG
KABATAAN FUNDS
RA 10742; DBM-DILG-NYC JMC
� � No.01, s.2019
liiiiiiliiiiii
BUDGET PREPARATION
Barangay Treasurer shall inform, in writing, the SK

chairperson and the SK treasurer on or before the 15th
day of September of the estimated ten percent (10°/o)
of the general fund of the barangay for the ensuing
fiscal year, supported by a certification of income of the
barangay from the city/municipal treasurer.

RELEASE OF SK FUND
SK Funds shall be SK shall open a SK funds shall be
automatically current account in deposited by the
released by the the name of the SK barangay in the
barangay to the SK in a bank w/ the said account not
SK Chair and SK later than five
~ Treasurer as (5) working days
~~ ~~~:....- official signatories after the
~ crediting of the
· .~ monthly IRA
share
In case of barangays w/o elected SK officials, the barangay shall transfer the
corresponding 10% SK Fund to the trust fund of the barangay, the same shall
be released by the barangay upon the election of the SK officials concerned

SK PLANNING PROCESS
1. The SK, in consultation with the Katipunan ng Kabataan,

shall formulate a 3-year rolling plan, which shall be known
as Comprehensive Barangay Youth Development Plan
(CBYDP);
2. CBYDP serve as basis for the preparation of Annual

Barangay Youth Investment Program (ABYIP), which
contain the specific programs, projects, and activities with
corresponding project costs, including the necessary fund
flows to approximate the reasonable timing in the release of
funds;

SK PLANNING PROCESS
3. ABYIP shall be prepared and approved by the SK

through a resolution before the start of the
preparation of the SK annual budget; and
4. In the preparation of the CBYDP and ABYIP, the SK

shall observe the pertinent policies and guidelines
issued by the NYC for the purpose.

SK BUDGET PREPARATION
1. The SK annual budget shall be prepared 1n

■
accordance with the approved ABYIP.

SK Annual budget - financial plan embodying the estimates of the income
and expenditures of the SK for one (1) fiscal year
2. The SK Chair, with the assistance of the SK

treasurer, shall prepare the SK annual budget
consisting the following:
(i) estimates of income; and
(ii) expenditure program.

3. Priority should be given to youth development and
empowerment PPAs in accordance with PYDP and LYDP, as
embodied in the approved CBYDP and ABYIP, that will promote
the following:
• Equitable access to quality education;
• Environmental protection;
• Climate change adaptation;
• Disaster risk reduction and resiliency;
• Youth employment and livelihood;
• Health and antidrug abuse;
• Gender sensitivity;
• Sports development; and
• Capability Building, which emphasizes leadership training.

4. The budget cycle of the SK shall be

synchronized with that of the barangay. As
such, the SK chairperson shall submit the proposed
SK annual budget to the SK members not later than
the 16th day of October of the current year for
budget authorization purposes.

SK BUDGET AUTHORIZATION
1. The SK shall deliberate on the proposed SK

annual/supplemental budget. The SK shall pass a
resolution approving the SK annual/supplemental
budget.

1. The SK shall deliberate on the proposed SK

annual/supplemental budget. The SK shall pass a
resolution approving the SK annual/supplemental
budget.
2. If funds allow, changes in the annual budget may be done

through supplemental budget(s) under the following
circumstances:
• When supported by funds actually available as certified
by the SK treasurer; and
• If covered by new revenue source(s).

3. SK secretary shall cause the posting of the resolution

approving the SK annual/supplemental budget in the
barangay bulletin board and in at least three (3)
conspicuous places within the jurisdiction of the
barangay, and if possible including the use of traditional
and non-traditional media, not later than five (5) days
after the approval thereof.

3. SK secretary shall cause the posting of the resolution

approving the SK annual/supplemental budget in the
barangay bulletin board and in at least three (3)
conspicuous places within the jurisdiction of the
barangay, and if possible including the use of traditional
and non-traditional media, not later than five (5) days
after the approval thereof.
4. SK secretary shall submit the SK annual/supplemental

budget to the sangguniang panlungsod or sangguniang
bayan, through the city/municipal budget officer, within
ten (10) days upon the approval thereof.

BUDGET REVIEW
1. The reviewing Sanggunian shall \Nithin sixty (60)
days upon receipt review the annual/supplemental
budget of the SK on their compliance with the
priority programs, projects and activities identified
under Section 20 (c) of RA No. 10742, and with
other existing laws, rules and regulations.

BUDGET REVIEW
Section 20 (c) of RA No. 10742:
All Sangguniang Kabataan funds shall be allocated in an annual
budget, and if the funds allow, in a supplemental budget in
accordance with the adopted Annual Barangay Investment
Program. Both the Comprehensive Barangay Youth
Development Plan and Annual Barangay Investment Program
shall give priority to programs, projects and activities that will
promote and ensure the equitable access to quality
education, environmental protection, climate change
adaptation, disaster risk reduction and resiliency, youth
employment and livelihood, health and anti-drug abuse,
gender sensitivity, sports development, and capability
■ ■ ■

BUDGET REVIEW
2. Depending on its findings, the reviewing Sanggunian may
declare the SK annual/supplemental budget:

BUDGET REVIEW

BUDGET REVIEW
operative in
its entirety
when it fully
complies with
the priority
PPAs identified
under Sec 20
(c) of RA No.
10742, and
with other
existing laws,
rules and
regulations

BUDGET REVIEW
operative in operative in
its entirety its entirety,
when it fully subject to
complies with conditions,
the priority when certain
PPAs identified items of
under Sec 20 appropriation
(c) of RA No. require prior
10742, and clearance/docu
with other mentation
existing laws, and/or approval
rules and from
regulations appropriate
authorities

BUDGET REVIEW
operative in operative in inoperative in its
its entirety its entirety, entirety, when: (i)
when it fully subject to the expenditure
complies with conditions, program exceeds the
the priority when certain estimates of income;
(ii) all the PPAs are
not based on the
under Sec 20 appropriation ABYIP or inconsistent
(c) of RA No. require prior with the priority PPAs
10742, and clearance/docu under RA No. 10742;
with other mentation and (iii) the
existing laws, and/or approval resolution approving
rules and from the SK budget is
regulations appropriate passed before the
authorities approval of the ABYIP

BUDGET REVIEW
operative in operative in inoperative in its inoperative in part,
its entirety its entirety, entirety, when: (i) when: (i) item(s) of
when it fully subject to the expenditure appropriation contrary
complies with conditions, program exceeds the to budgetary limitations
the priority when certain estimates of income; (ii) item of
(ii) all the PPAs are appropriation that has
not based on the no legal basis; (iii) PPAs
under Sec 20 appropriation ABYIP or inconsistent not based on the
(c) of RA No. require prior with the priority PPAs approved ABYIP; (iv)
10742, and clearance/docu under RA No. 10742; PPAs included before
with other mentation and (iii) the providing for all PPAs
existing laws, and/or approval resolution approving under RA No. 10742;
rules and from the SK budget is and (v) amount of a
regulations appropriate passed before the PPA is higher than that
authorities approval of the ABYIP stated in ABYI P

BUDGET REVIEW
3. Failure on the part of the reviewing Sanggunian to complete
the review within the prescribed period shall render the said
annual/supplemental budget deemed approved;

BUDGET REVIEW
3. Failure on the part of the reviewing Sanggunian to complete
the review within the prescribed period shall render the said
annual/supplemental budget deemed approved;
4. The reviewing Sanggunian shall return to the SK chairperson,

through the city/municipal budget officer, the SK
annual/supplemental budget with the advice of action thereon,
if any, for proper adjustments. Upon receipt of such advice,
the SK treasurer who has custody of the funds shall not make
further disbursements from any item of appropriation declared
inoperative, disallowed, or reduced.

BUDGET EXECUTION
1. The SK treasurer, whenever necessary, shall certify the
availability of funds.

BUDGET EXECUTION
2. All payments out of the SK fund shall be made through

Disbursement Vouchers.

BUDGET EXECUTION

3. Disbursements shall be made by issuing checks drawn against

the current account in the name of the SK with the SK
chairperson and SK treasurer as the official signatories.

BUDGET EXECUTION

3. Disbursements shall be made by issuing checks drawn against

the current account in the name of the SK with the SK
chairperson and SK treasurer as the official signatories.
4. All claims against the SK funds shall be properly supported with

complete documentation.

BUDGET EXECUTION
5. SK chairperson and SK treasurer shall be properly
bonded, chargeable against the SK funds, subject to the
pertinent guidelines and policies issued by the Bureau of
the Treasury

BUDGET EXECUTION
5. SK chairperson and SK treasurer shall be properly
bonded, chargeable against the SK funds, subject to the
pertinent guidelines and policies issued by the Bureau of
the Treasury
6. Unexpended balances in the SK budget(s) shall revert to

the general fund of the SK at the end of the fiscal year,
and shall not thereafter be available for expenditure
except by subsequent approval of the SK. However,
unexpended balances for capital outlays shall continue
and remain valid until fully spent, reverted, or the
project is completed.

BUDGET ACCOUNTABILITY
The SK chairperson, with the assistance of the

SK treasurer and SK secretary, shall prepare
the budget accountability reports as may be
prescribed by the COA.

Common Limitations On Local Taxation: Section 133 of Republic Act No. 7160

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Common Limitations On Local Taxation: Section 133 of Republic Act No. 7160

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COMMON

What are the common limitations on local taxation?

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What are the common limitations on local taxation?

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PASS-THRU-FEES (PALMA DEVT CORP v MUN OF MALANGAS,

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DILG OPINION NO. 07, s. 2007

ISSUE: Whether garbage may be considered as "goods"

OPINION: According to Moreno Law Dictionary, "goods or

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DILG OPINION NO. 03, s. 2012

OPINION: Taxes, fees, or charges on trucks

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. Taxes on the gross receipts of transportation

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FIRST PHIL INDUSTRIAL CORP v CA (GR No. 125948, 29

xxx that pipeline operator "engaged in the business of

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. Taxes, fees or charges for the registration of motor

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Xxx the newly delegated powers pertain to the

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. Taxes, fees, or charges, on Countryside and

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• Cooperatives shall be exempt from payment of local

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{Rep v Phil Reclamation Authority, GR No. 191109,

Reclaimed lands are part of the public domain and are

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Each LGU shall have the power to create their own

t Changing Mindsets. Influencing Behavior.

The power of LGUs to impose taxes within its

t Changing Mindsets. Influencing Behavior.

Thenceforth, the power to tax is no longer vested

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t Changing Mindsets. Influencing Behavior.

t Changing Mindsets. Influencing Behavior.

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What determines tax liability is the tax ordinance,

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