Budget Review

What does the Local Code say?

The Sangguniang Panlungsod or

Sangguniang Bayan concerned shall
have the power to review the barangay
ordinance authorizing the annual
appropriations to ensure that the
provisions of the RA 7160 are complied
with (Sec. 333).
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 The GAO, authorizing the annual or
supplemental budget is submitted for
review within ten (10) days after its
enactment to the Sangguniang
Panglungsod/Bayan. The purpose of the
Budget Review are the following:

To ensure that the budgetary

requirements and general limitations
provided in the Code are complied with;
• The budget does not exceed the
estimated receipts and/or income of the
barangays; Budget
• The items of appropriations are not
more than those provided by existing
laws. Review
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How is Budget Review Done?
Review within 60 days upon receipt
The Sangguniang
Panglungsod/Bayan, through the
City/Municipal Budget Officer shall
review the barangay budget within
60 days upon receipt of the
appropriation ordinance.
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An appropriation ordinance
submitted for statutory review
carries with it a presumption of
regularity not only as to its
contents but also as to its
enactment by the sanggunian.
• Contents are proper until ruled Presumption
otherwise in the review
• Enactment presumed valid Of Regularity
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• Does not supplant the act of the
Sanggunian.
• Determines whether the
appropriation ordinance submitted
has complied with the provisions of
the law.
• Does not authorize an item or any
item of appropriation that is
specifically prohibited by law. Nature of the
• Does not affect the effectivity of
the appropriation ordinance. Review Action
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Review Actions
and Its Effects

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Review Actions and Its Effects
Review Action
• Declare an Appropriation
Ordinance operative in toto
• When it fully complies with
budgetary requirements
and general limitations.
Effects
shall continue to be in full force and
effect at the beginning of the fiscal
year in the case of annual budget, or
upon its approval or on the date fixed
in the ordinance in the case of the
Supplemental Budget
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Review Actions and Its Effects

Review Action Effects

 Declare the appropriation ordinance Operate under a reenacted
inoperative it its entirety. budget until such time the new
 When the aggregate amount annual appropriation ordinance
appropriated exceeded the shall have met the objections
estimates of income (Sec. 333), or raised (Sec. 333).
 When no sufficient provision is
appropriated for payment of loans
and other indebtedness incurred
or redeem or retire bonds,
debentures, securities, notes and
other obligations (Sec. 303)
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Review Actions and Its Effects

Review Action Effects

• Declare an appropriation Only the items that have not been
ordinance inoperative in part disallowed or reduced shall continue
• Has not complied with some to be in full force and effect.
budgetary requirements and
general limitations
• When some items has been
disallowed

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 ThankYou
Arturo D. Malicay, Jr., CPA, CSP
(085) 342-8977
amalicay@dbm.gov.ph
DBM ROXIII

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