THE BARANGAY BUDGET

OPERATIONS MANUAL

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 Updating the Budget Operations Manual
for Barangays (BOMB)

Roles and Functions of Barangay

Officials

Benefits of Barangay Officials

Barangay Funds

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
UPDATING THE BUDGET OPERATIONS MANUAL FOR
BARANGAYS (BOMB)
 THE CURRENT BOMB WAS ISSUED IN JULY 2006
 NEW DEVELOPMENTS
 The Government Procurement Reform Act (RA 9184 and Its IRR,
January 2003)
 The Philippine Disaster Risk Reduction and Management Act of
2010 (RA 10121)
 Manual on the Financial Management of Barangays (COA Circular
No. 2015-11, December 3, 2015)
 Transfer of the Release of IRA to BTR (DBM-DOF Joint Circular
No. 2016-1, January 5, 2016)
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 UPDATING THE BUDGET OPERATIONS MANUAL FOR
BARANGAYS (BOMB)
 NEW DEVELOPMENTS

 New Issuances on GAD (PCW-DILG-DBM-NEDA JMC 2016-1, January

12, 2016)

 Sangguniang Kabataan Reform Act of 2015 (RA 10742, Jan. 15, 2016)

 BOM for LGUs, 2016 Edition (LBC No. 112, June 10, 2016)

 New Guidelines on the 20% Development Fund (DILG-DBM JMC No.

2017-1, February 22, 2017)

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
UPDATING THE BUDGET OPERATIONS MANUAL FOR
BARANGAYS (BOMB)

Areas for improvement:

 Topics for inclusion/improvement in the manual
 Barangay mandates and sources of funds
 Budgeting Framework
 Some areas in the budgeting process
 Annexes: Issuances and Guidelines

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
Roles and Functions
of Barangays and its
Officials

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 “ As the basic political unit, the
barangay serves as the primary
planning and implementing unit of
government policies, plans,
programs, projects, and activities in
the community, and as a forum
wherein the collective views of the
people may be expressed, crystallized
and considered, and where disputes
may be amicably settled.”
(Section 384, Republic Act [R.A.] No.
7160, The Local Government Code of
1991)
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
Basic Services and Facilities (Section 17, R.A. No. 7160)

1. Agricultural support services which include planting materials

distribution system and operation of farm produce collection and
buying stations;
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 Katarungang Pambarangay;

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
Basic Services and Facilities (Section 17, R.A. No. 7160)

5. Maintenance of Barangay roads and bridges and water supply

systems;
6. Infrastructure facilities such as multi-purpose hall, multi-purpose
pavement, plaza, sports center, and other similar facilities
7. Information and reading center; and
8. Satellite or public market

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
Barangay Officials and Offices

PUNONG BARANGAY 7 SANGGUNIANG BARANGAY MEMBERS

CHAIRMAN BRGY. TREASURER BRGY. SECRETARY

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT

LUPONG
TAGAPAMAYAPA
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
The Sanggunian Barangay may
form a community brigade and
create such other positions as
may be deemed necessary to
carry out the purposes of the
barangay government in
accordance with the needs of
public service, subject to the
budgetary limitations on personal
services. (Section 387 [b]. R.A.
No. 7160)
  The Sanggunian Barangay may
provide for the organization of
community brigades, barangay
tanod, or community service unit
as may be necessary. (Section
391 [a] [16], R.A. No. 7160)
 The Punong Barangay may
appoint not more than twenty
(20) barangay tanods (Section
393 [d], R.A. No. 7160)
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
Benefits of
Barangay
Officials
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 Barangay officials, including barangay tanods and members of
the lupong tagapamayapa, shall receive honoraria, allowances
and such other emoluments as may be authorized by law or
barangay, municipal or city ordinance in accordance with the
provisions of the Local Government Code.

Punong Barangay – shall in no case be less than P1,000.00

Sannguniang Barangay members, Barangay Treasurer, and

Barangay Secretary – shall in no case be less than P600.00

The annual appropriations for personal services shall be

subject to the budgetary limitations under Sec 325 (a),
R.A. No. 7160
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 The punong barangay, the sangguniang barangay
members, the barangay treasurer, and the
barangay secretary shall also be entitled to:

1. Christmas bonus – at least One Thousand

Pesos (P1,000.00) each, the funds shall be taken
from the GF of the barangay or from such other
funds appropriated by the National Government
for the purpose.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 2. Insurance coverage – shall include, but shall not be
limited to, temporary and permanent disability, double
indemnity, accident insurance, death and burial
benefits, in accordance with R.A. No. 6942.

3. Free medical care – includes subsistence, medicines,

and medical attendance in any government hospital or
institution. Provided that, such hospital care shall
include surgery or surgical expenses, medicines, x-rays,
laboratory fees, and other hospital expenses.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 4. Immediate medical attendance to the nearest
private clinic, hospital or institution and the
expenses not exceeding Five Thousand Pesos
(P5,000.00) that may be incurred therein shall
be chargeable against the funds of the barangay
concerned.

(In case of extreme urgency where there is no

longer available government hospital or
institution)
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 5. Exemption from Payment of tuition and
matriculation fees for their legitimate dependent
children attending state colleges and universities.

Avail of such educational benefits in a state

college or university located within the province
or city to which the barangay belongs.

Noted : During incumbency only.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 6. Appropriate civil service
eligibility on the basis of the
number of years of service to the
barangay, pursuant to the rules and
regulations issued by the Civil
Service Commission (CSC) (Sec
393 [b], R.A. No. 7160)

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 Elective barangay officials shall
have preference in appointments to
any government-owned or
controlled corporation, including
their subsidiaries, after their tenure
of office, subject to the requisite
qualifications and the rules and
regulations of the CSC (Sec. 393
[c], R.A. No. 7160)
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 All duly appointed members of
the barangay tanod brigades, or the
equivalent, which shall number no
more than twenty (20) in each
barangay shall be granted insurance
or other benefits during their
incumbency, chargeable to the
barangay or city or municipal
government to which the barangay
belongs.
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 Punong Barangay Entitled to
Sangguniang Barangay leave benefits
members pursuant to
SK Chair as ex-officio CSC-DBM Joint
SB member Circular No. 1,
Barangay treasurer s. 2004 dated
March 23, 2004
Barangay Secretary

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
Increase or adjustment of honoraria of
barangay officials notwithstanding the
restriction under Sec. 391 a (10), R.A.
No, 7160, as follows:
Position Title Salary Grade (SG)
Punong Barangay SG 14, Step 1
Sangguniang Barangay SG 10, Step 1
Members
Barangay Treasurer
Barangay Secretary

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
Barangays may create the following positions
and may be compensated in the form of salary
or honoraria:
Position Title Salary Grade (SG)
Utility Worker I SG 1
Clerk I SG 3
Accounting Clerk I SG 4
Barangay Health Aide SG 4
Revenue Collection Clerk I SG 5
Day Care Worker I SG 6
Administrative Assistant SG 8

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 Subject to the availability of funds and the
general limitation on personal services

The enumeration of functions under Section 17

(a) and (b), R.A. No. 7160 is not exclusive

No increase in the compensation or honoraria

of the sanggunian barangay members shall take
effect until after the expiration of the full term of
all members of the sangguniang barangay
approving such increase (Sec. 391 (a) (10), R.A.
No. 7160)
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
Barangay
Funds
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
A. Taxing and Other Revenue-
Raising Powers of Barangays
TAXES
SERVICE FEES OR CHARGES
BARANGAY CLEARANCE
OTHER FEES AND CHARGES

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
1. TAXES – On stores or retailers with
fixed business establishments with gross
sales of receipts of the preceding
calendar year of Fifty Thousand Pesos
(P50,000.00) or less, in the case of cities
and Thirty Thousand Pesos
(P30,000.00) or less in the case of
municipalities, at a rate not exceeding
one percent (1%) on such gross sales or
receipts
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 2. SERVICE FEES OR CHARGES–
Barangays may collect reasonable fees or
charges for services rendered in connection
with the regulation or the use of barangay-
owned properties or service facilities such as
paly, copra, or tobacco dryers
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
3. BARANGAY CLEARANCE–
No city or municipality may issue
any license or permit for any
business or activity unless a
clearance is first obtained from
the barangay where such business
or activity is located. For such
clearance, the sangguniang
barangay may impose a
reasonable fee.
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
3. OTHER FEES AND
CHARGES
– The barangay may levy
reasonable fees and charges:
a. On commercial breeding of fighting
cocks, cockfights and cockpits;
b. On places of recreation which charge
admission fees; and
c. On billboards, signboard, neon signs
and outdoor advertisements

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
B. Shares from
Other Local Sources
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
B. Shares from Other Local
Sources
SERVICE FEES AND CHARGES
PUBLIC UTILITY CHARGES
TOLL FEES OR CHARGES
COMMUNITY TAX

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
1. SERVICE FEES AND CHARGES –
Local government units may
impose and collect such
reasonable fees and charges
rendered (Section 153, R.A. No.
7160)

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
2. PUBLIC UTILITY
CHARGES – Local government
units may fix the rates for the
operation of public utilities
owned, operated and maintained
by them within their jurisdiction
(Section 154, R.A. No. 7160).

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
3. TOLL FEES OR CHARGES –
The sanggunian concerned may
prescribe the terms and conditions
and fix the rates for the imposition of
toll fees or charges for the use of any
public road, pier, or wharf, waterway,
bridge, ferry or telecommunication
system funded and constructed by the
local government unit concerned

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
4. COMMUNITY TAX – Cities or
municipalities may levy a community
tax in accordance with the provisions
of R.A. No. 7160. The city or
municipal treasurer shall deputize the
barangay treasurer to collect the
community tax in their respective
jurisdiction, and 50% of the proceeds
collected through the barangay
treasurer shall accrue to the barangay
where the tax is collected.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
C. Shares from Real Property
Taxes
REAL PROPERTY TAX (INCLUDING
INTEREST)
PROCEEDS FROM USE, LEASE OR
DISPOSITION, SALE OR REDEMPTION OF
PROPERTY ACQUIRED AT PUBLIC AUCTION
50% OF THE TAX PAID UNDER PROTEST
COLLECTED BY THE LOCAL TREASURER

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
D. Share if Barangays in the Proceeds of
National Tax
The share of local government units in the internal revenue
allotment (national taxes) shall be allocated in the following
manner:
LGU Type Percentage Share
Province Twenty-three percent (23%)
Cities Twenty-three percent (23%)
Municipalities Thirty-four percent (34%)
Barangays Twenty percent (20%)

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 Every barangay with a
population of not less than one
hundred (100) inhabitants shall
be entitled to an IRA share of
not less than Eighty Thousand
Pesos (P80,000.00) per annum
chargeable against the 20% share
of barangays from the total IRA.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 After deducting the aggregate sum of
the individual barangay share of
P80,000.00 each from the total
twenty percent (20%) allocation for
all barangays, the remaining balance
of said 20% shall be further
distributed to the barangays
POPULATION 60%
EQUAL SHARING 40%

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 Financial requirements of barangays
created by LGUs after the effectivity
of the Code shall be the
responsibility of the LGU concerned

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
E. Shares of Barangay from the Development
and Utilization of the National Wealth
LGUs shall have a share based on
the preceding fiscal year from the
proceeds derived by any national
government agency (NGA) or
government-owned and controlled
corporation (GOCC) engaged in
the utilization of the national
wealth.
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 Barangay share shall be distributed in the following
manner:

Where the natural resources are located in the province

and HUC/ICC:
Barangay – 35%

Where natural resources are located in two or more

barangays:
Population – 70%
Land Area – 30%
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT