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Chapter 1


Background of the Study

The Internal Revenue Allotment (IRA) in a local government

units (LGU) share of revenues from the Philippine National

Government. Provinces, independent cities, component cities,

municipalities, and barangays each get a separate allotment (Local

Government Clarity, 2011).

In accordance with Section 287 of the Local Government Code,

every LGU shall appropriate in its annual budget no less than twenty

percent (20%) of its annual internal revenue allotment for

development projects. It may be utilized to finance the priority

development plan that directly supports the Philippine Development

Plan, Medium-term Public Investment Program and Annual

Investment Program. All projects to be funded shall contribute to the

attainment of desirable socio-economic development and

environmental management outcomes and shall partake the nature of

investment or capital expenditure. The fund could be used for local

projects that focus on social, economic, environmental development

and other related projects covered under. (DILG-JMC, 2011)

The Local Government Code of 1991 provides that the IRA share

of local government units (LGUs), that all local government are

mandated to formulate a long and short-term development plan,

which will set as guide or tool in the implementation of various

development programs, projects and activities.

The 20% Barangay Development Fund serve as guide for the

Barangay to help the communities conduct their development projects

such as environmental, social and economic development like

rehabilitation and other expenditure for the livelihood project. The

Resolution was formulated by the concerned local officials of

Barangay Siocon for the year 2014 to 2015 intended for the priority

projects and programs.

The Barangay Siocon Development Plan covers 12 puroks. The

plan is comprehensive exploring the strength, weaknesses,

opportunities, and threats of the different sectors of the barangay

planning methodology applied in formulating a plan is a genuine

participation from all sectors of the barangay where people as

participants contributed ideas in diagnosing assessing and planning

barangay (BDP Siocon, 2010)

Barangay Siocon is one of the oldest among the 16 Barangays

which comprises the Municipality of Compostela. Siocon officially

became a separate barangay by virtue of Presidential Executive Order

on May 16, 1957. Siocon has sprawling all plain land area estimated

at more or less 982 hectares ( (SBGR of Siocon, 2006).

This study will be conducted to determine the Utilization of 20%

Barangay Development Fund of Barangay Siocon, Compostela,

Compostela Valley.

Statement of the Problem

The study will focus on the utilization of 20% Barangay

Development Fund of Barangay Siocon for calendar year 2014-2015.

Specifically, this aims to answer the question:

1. What are the accomplished programs and projects of the

utilization of 20% barangay Development fund in terms of?

1.1 Social Development;
1.2 Economic Development; and
1.3 Environmental Management.

Objective of the Study

The main objective of the study is to find out the accomplished

programs and projects through the utilization of development funds in

terms of social, economic and environmental Development of

Barangay Siocon.

Significance of the Study

The study will determine the utilization of 20% Barangay

Development Fund of Barangay Siocon, Compostela, Compostela


This is significant to the residents of said barangay for its result

will provide transparency on the projects funded from the 20%

Barangay Development Fund of Barangay Siocon, Compostela,

Compostela Valley for CY 2014-2015. The study promotedbetter

understanding and perception on utilization of 20% Development

Fund of Barangay Siocon in terms of social, environmental and

economic development. Moreover, results of the study could serve as

reference for Barangay Officials and functionaries to assess and

evaluate the extent of 20% Development Fund Utilization in their


Scope and Limitations of the Study

This study focus only on the utilization of 20% development

fund in terms of social, economic and environmental for CY 2014-


Definition of Terms

For clarity and understanding, the following terms are

operational and conceptually defined.

Barangay Siocon. As used in the study, it refers to the place of

Municipality of Siocon, Compostela Valley where the barangay is

located. This refers to the place where the study is conducted.

Development. The act or process of growing or causing

something to grow or become larger or more advanced, the act or

process of creating something over the period of time (Merriam-

Webster, 2014). This refers to the economic and social transformation

that is based on complex cultural and environmental factors and their


Economic Development. This refers to the relating process or

system by which goods and services are produced, sold and bought. It

is based on the production, distribution, and consumption of goods

and services (Merriam-Webster, 2014). As used in the study this refers

to the economic development projects such as livelihood programs

and infrastructure projects in Barangay Siocon.

Environmental Development. Its purposeful activity with the

goal to maintain and improve the state of environmental resources

affected by human activities (West Coast District Municipality, 2012).

As used in this study, it refers to the environmental and ecological

problems, and the development policies for environmental

management within the framework of sustainable growth.

Project Implementation. This refers to the stage of life cycle

focuses on the very critical role of mobilizing and utilizing the

resources to run project to the extent that results are generated

efficiently and effectively (Quinio, 2008). As used in this study, this

refers to the implementation of such project and activities of Barangay

Siocon in order to accomplish goals.

Social Development. This refers to the relating to or involving

activities in which people spend time talking to each other or doing

enjoyable things with each other (Merriam-Webster, 2014). As used in

the study, this refers to the social development project such as

rehabilitation of health center, cultural and historical sites of

Barangay Siocon funded from 20% development Fund.

Utilization. Its refers to make use of or turn tom practical use

of something (Merriam-webster, 2010). It refers to the expenditures of

the 20% Development Fund in Barangay Siocon, Compostela,

Compostela Valley.

Chapter 2

The chapter presents the related literature that was perused by

the researcher from the various sources, framework itself including

the presentation of variables in the form of diagram.

Related Literature

The Philippine Development Plan 2011-2016 adopts a

framework of inclusive growth, which is high growth that is sustained,

generates mass employment and reduces poverty. With good

governance and anticorruption as the overarching theme of each and

every intervision, plan translate into specific goals, objectives,

strategies, programs and project all the things that we want to

accomplish in the medium term. Though this plan, it intend to pursue

rapid and sustainable economic growth and development, improve the

quality of life of the Filipino, empower the poor and marginalized and

enhance the social cohesion as a National (National Economic and

Development Authority, 2013)

Economic development is typically measured in terms of joss

and income, but it also includes improvement in human development,

education, health, choice, and environmental sustainability.

Business and economic developersin the us are increasingly

recognizing the importance of quality of life, which includes,

inveronmental, and recreational amenities, as well as social

infrastructure such as child care, in attracting and retaining

businesses in a community. In each of these definitions, the focus is

on growth of the physical and social sphere of life. As well there is an

inherent goal, that such growth achieves a greater standard of living

or quality of life. Important to note is that residential development is a

separate component. Lastly, the field does presume one common fact,

that what is there is not providing what that community needs (alan

deardorff, 2013).

Economic development differs from economic growth. Whereas

economic development is a policy intervention endeavor with aims of

economic and social wellbeing of people, economic growth is a

phenomenon of market productivity and rise in GDP (sheffrin, 2003).

Development of the collective is subconscious. It starts with

physical experience which eventually leads to conscious

comprehension of the process. Conscious development basedon

conceptual knowledgeof the social process accelerates development

and minimizes errors and imbalances. At times of transition, crises

and oppurtunities, those energies are released and expressed in

action, strategies and programs that tap this latent energy and

channel it into constructive activities can stir an entire nation to

action and advancement (Jacob and Cleveland,) 1999).

Development is an activity of the society as a whole. It can be

stimulated, directed or assisted by government policies, laws and

special programs, but it cannot becompelled or carried out by

administrative or external agencies on behalf of population.

Development strategy should aim to release peoples initiative not to

substitute for it. Development proceeds rapidly in those areas where

the society becomes aware of oppurtunities and challenges and has

the will to respond to them. Human awareness, aspiration and

attitude determine societys where humanity recognizes its power to

determine results (Jacobs and Cleveland, 1999).

Develop procedures for implementing the organizations

environmental policy statement. This involves identifying

environmental impacts resulting from the organizations activities and

developing an environmental management plan to control and

minimize that impact. Many organizations integrate the (EMS)

Environmental Management System into a larger overall sustainability

program that incorporates economic and social performance as well

as environmental performance (Stuart,2007).

An Environmental Management System is the means by which

organization addresses immediate and long term impacts of its

products, services and process on the environment. It involves the

allocation of resources, assignment of responsibility and ongoing

evaluation of practices, procedures and processes with regard to

environmental protection and it focuses on continuous imptovement

(Stuart, 2007).

Sustainable development is Development that meets the needs

of the present without compromising the ability of future generations

to meet their own needs. Sustainable development promotes the idea

that social, environmental and economic progresses are all attainable

within the limits of our earths naturakl resources. Sustainable

development approaches everything in the world as being connected

through space, time and quality of life (Bruntland, 2007)

Society is the field of organized relationships and interactions

between individuals. Only a small portion of human activity is

oraganized for utilization by society, so only a small portion of

development potential of technology, knowledge, information, skills,

and system is tapped (Jacobs and Cleveland, 1999).

Theory Base

According to Weber and Durkheim (2013), all versions of

modernization theory are ameliorative, admitting the possibility of

accelerated positive change though such diffusion devices as foreign

aid, technological transfer, reform of legal and economic institutions,

psychological manipulation to promote universalistic, achievement

orientation, or some combination of these.

The achievement of the Millennium Development Goals is at the

centre of sustainable development. Sustainable Development is vital

to the economic, social and environmental viability of nations. It is

essential for poverty eradication since global poverty is

overwhelmingly rural. This study share us on how we develop our

country (NEDA, 2013).

This theory looks at which aspects of countries are beneficial

and which constitute obstacles for economic development. The idea is

that development assistance targeted at those particular aspects can

lead to modernization or backward societies (Durkheim, 2013).

Conceptaul framework

Independent Variable Dependent

Key Result Areas of
20% BDP in terms of
Programs and
a.) Social Projects of the
Development Utilization of 20%
b.) Economic Deveopment Fund
Deveopment in the Barangay
c.) Environmntal
Figure1. The Schematic Diagram of the Study

The conceptual framework shows the Independent variables and

Dependent variables. In this study, the independent variables are the

Barangay Development Fund of Siocon in terms of social, economic

and environmental.

The dependent variable shows the accomplished programs and

projects of the Utilization of 20% Development Fund of Siocon

Compostela, Compostela Valley.

Chapter 3

These chapters discuss the research method used, gathering

and source of data, research instruments, scoring and statistical

treatment of the data gathered.

Method Used
The researchers utilize the descriptive method to gather

necessary data and information needed in the study. Descriptive

method is fact-finding study with adequate and accurate

interpretation of finding (Calderon, 2004).

Sources of Data

The researcher will use the primary data and secondary data.

The primary source will be structured questionnaire formulated by

the researcher that will be utilized to obtain data from the

respondents of Barangay Siocon. Secondary data will be the

resolution and minutes given by the office of the Brgy. Captain.

The researcher will also use other sources such as internet,

journals, books, and other reading material that can provide

information relevant to the study.

Data Gathering Instrument

In gathering data, the researcher prepared letter addressed to

the office of the Barangay Captain where the study will be conducted
to get the needed data and make the most of the designed

questionnaires to obtain data and information from the respondents

needed for the study. Follow up interview will be used to the Barangay

Treasurer in Barangay Siocon for more information important to the


Procedure of the Study

The following are the procedure of the study:

1. The researcher will identify problem or topic will conduct

research in different school libraries.

2. Submission of the letter asking permission for the Barangay

Captain of Barangay Siocon

3. Consultation of statistician and English critique to correct the

grammar and statistical method;

4. Interpretation and analysis of the data gathered.

Statistical Treatment

The results will be tallied and recorded accordingly with the aim

of providing an interpretation for the purpose of the study.

In enterpreting and analyzing of the data retrieved, the descriptive

statistical tool to be used as follows:

1. Simple Percentage. This will determine the utilization of

20% development Fund in Siocon, Compostela, Compostela


For interpretation, the following formula will be used;

Percentage= x100%

P= total percentage of projects
n= Total amount of projects interms of three areas
N= total amount of 20% Development Fund.