Barangay Budget Preparation 06-07-17

BUDGET
PREPARATION
THE BUDGET PROCESS
BUDGET PREPARATION
phase of the local government
budget process.
Involves cost estimation per PPAs, preparation

of budget proposals, preparation of the Budget
Message, Barangay Expenditure Program
Starts upon receipt of the statement of income &

expenditures from Barangay Treasurer and ends
with the submission of the Executive Budget to
the Sanggunian on before Oct 16 of each year.
BUDGET PREPARATION
Legal Basis
The Punong Barangay shall prepare

the Barangay Budget for the Ensuing
Fiscal Year (Section 331, R.A. No. 7160).
BUDGET PREPARATION
Budget Year or Ensuing

FY 2018
Fiscal Year
FY 2017 Current Year
Past Year or Next

FY 2016
Preceding Fiscal Year
KEY PLAYERS
- Punong Barangay
- Barangay Treasurer
- Barangay Secretary
Budget Preparation
BARANGAY TREASURER
• Submit to the PB on or before the 15th day of

September the statement covering the
estimates of income and expenditures for the
past, current, and ensuing fiscal year, based
on a certified statement issued by the
city/municipal treasurer, jointly with
city/municipal accountant.
(Article 423 of IRR)
Budget Preparation
PUNONG BARANGAY
• Upon receipt of the statement of income and
expenditures from the barangay treasurer, the
PB shall prepare the barangay budget for the
ensuing fiscal year.
• He shall submit the Annual Barangay Budget to

the Sanggunian Barangay for enactment not
later than October 16 of the current year.
(Section 318, R.A. 7160)

STEPS in Budget
Preparation
1. Prepare Budget Proposals
2. Prepare the Barangay Expenditure Program
3. Submit the Barangay Budget to the

Sanggunian
STEP 1 Prepare Budget
Proposals
 Considers objectives and expected outputs;
 Cost estimates should be realistic and within

budgetary ceilings;
 Prepare the Project Procurement Management

Plan (PPMP) & Annual Procurement Plan (APP)
for the budget year.
STEP 2 Prepare the
Barangay Expenditure
Program
 The major document of the Annual Barangay
Budget which consists of :
 Estimates of Income;
 Appropriations covering the Current Operating
Expenditures & Capital Outlays; and
 General Provisions
Budget Preparation Forms
1. Certified Statement Of Income
2. Actual Income & Expenditure for Past Year
3. Actual and Estimated Income & Expenditure for

Current Year
4. Income & Expenditure Estimates for Budget Year
5. Actual & Estimated Output
6. Barangay Expenditure Program

STEP 3 Submit the Executive
Budget together with the
budget documents to the
Sangguniang Barangay
 On or before October 16 of the current year;
 Including Budget Message of the PB;
 Annual Investment Program (AIP), duly supported
by DILG-endorsed GAD Plan, LDRRM Plan, Lists of
PPAs for the LCPC, Senior Citizen, Anti-Drugs;
 Financial Statements and data which are deemed
necessary to show the financial status of the LGU.
Barangay Expenditure
Program
Legal Basis:
Local government budgets shall primarily
consist of two (2) parts, namely, the
estimates of income; and the proposed
appropriations covering the current
operating expenditures and capital
outlays (Section 314[a], R.A. No. 7160).
Source of Funds
• Income sources – refers to all revenues &

receipts collected or received forming the
gross accretion of funds of the LGU. (Sec.
306[i], RA 7160)
• Revenue – refers to income derived from the

regular system of taxation enforced under
authority of law or ordinance and, as such,
more or less regularly every year. (Sec.
306[m], RA 7160)
Source of Funds
• Receipts – refers to income realized from

operations and activities of the local government
or are received by it in the exercise of its
corporate function. Ex. loans, contributions or
aids from other entities. (Sec. 306[l], RA 7160)
• Beginning Balance - Any unused

appropriations/savings of the immediate past
year which remain free of any obligation or
encumbrance and which are still available at the
end of the current year, with cash back-up.
Source of Funds
• General Fund – shall consist of monies

and resources of the local government
which are available for the payment of
expenditures, obligations or purposes
not specifically declared by law as
accruing and chargeable to or payable
from, any other fund. (Sec. 308 RA
7160)
Source of Funds
• Trust Fund – which shall consist of private
and public monies which have officially come
into the possession of the local government
as trustee; agent or administrator, or which
have been received as guaranty for the
fulfillment of some obligation.
• Trust Fund - shall only be used for the

specific purpose for which it was created or
for which it came into the possession of the
local government unit. (Sec. 309)
Source of Funds
FY 2018 Internal Revenue Allotment

level will be based on the following:
 Actual collection of National Internal

Revenue Taxes in FY 2015. (Sec. 284 IRA
is based on the collection of the 3rd fiscal year
preceding the current FY)
Source of Funds
 Local Budget Memorandum No. 75

FY 2015 NSO Census of
Population per Proclamation Order
No. 1269 dated May 19, 2016, Total
Brgy. Population 100,125,580.
(Increased by 8,519,502 or 9.30%,
2010 – 91,606,078)
Source of Funds
 The FY 2015 IRA Level is P48.315 Billion or
14.15% higher than the FY 2014 IRA Level (P341.544
Billion).

Billion).

Billion).
 TheFY 2018 IRA Level is P35.863 Billion or

7.37% higher than the FY 2017 IRA Level (P486.885).
Source of Funds
The allocation for the FY 2018 IRA, amounting to

P522.748 Billion, as 40% National Internal
Revenue Taxes to LGUs after deducting the cost of
devolved functions (P6.476B):
82 Provinces = 23%
145 Cities = 23%
1,478 Municipalities = 34%
41,889 Barangay = 20% or P103.254 Billion

Source of Funds
Allocation formula for the share of each Barangay from
the 20% Share from IRA, P103.254 Billion (Section
285 of LGC)
 Guaranteed share of P80,000 (41,815 Brgy -

P3.345Billion)
 Balance of P92.737B shall be allocated as follows:
 60% Base on Population (P55.642B)
 40% Equal Sharing (P39.964B/41,889 Brgy.)

P954,045.53
Use of Funds
Fundamental Principles:
 No Money shall be paid out of the local treasury

except in pursuance of an appropriation
ordinance or law. (Sec. 305[a], RA 7160)
 Local government funds and monies shall be

spent solely for public purpose. (Sec. 305[b], RA
7160)
 Local Budgets shall operationalize approved

Local Development Plans. (Sec. 305[i], RA 7160)
Use of Funds
Presentation of the Expenditure Program:
 Presented by Program/Project/Activity (PPA)
 Reflect the expected outputs and

performance indicators for each PPA
 According to expense/allotment class for a

three year period (past year, current year &
budget year)
Use of Funds
Current Operating Expenditures (PS & MOOE)
and Capital Outlay Defined under Sec. 306 of RA
7160:
 Personal Services refer to payment of salaries,

wages & other compensation of LGU officials &
employees;
 Example: Honoraria, Mid-Year Bonus, Year-End

Benefits & Cash Gift (YEB) and Productivity
Enhancement Incentive (PEI), Monetization of Leave
Credits of mandatory barangay officials.
Use of Funds
Current Operating Expenditures (PS & MOOE)
and Capital Outlay Defined under Sec. 306 of RA
7160:
 Maintenance and Other Operating Expenses

refer to purchase of goods & services for the conduct of
normal operations that will be used or consumed
during the budget year;
 Example: Utility expenses such as electricity & water;

communication expenses; supplies & materials
expenses; travelling expenses; training expenses,
repairs & maintenance; and representation expenses.
Use of Funds
Current Operating Expenditures (PS & MOOE) and

Capital Outlay Defined under Sec. 306 of RA 7160:
 CapitalOutlay refer to purchase of goods & services,

the benefits of which extend beyond the fiscal year
& which add to the assets of the LGU.
 Example: Cost of Buildings and Structures, constructed

or acquired and related improvements thereto which are
permanent or capital in nature; Office Equipment,
Furniture & Fixtures; Transportation Equipment; and
Repairs & Maintenance.
Priorities in the Use of
Funds
As Mandated under Section 17(g) of RA 7160, the IRA
and other local resources shall first cover the cost of
providing BASIC SERVICES and facilities devolved to the
Barangay, before applying the same for other purposes, to
wit:
 Agricultural support services which include planting

materials distribution system and operation of farm produce
collection and buying stations;
 Health& social welfare services which include

maintenance of barangay health center and day-care
center;
Funds
Basic Services & Facilities for Barangay
 Services & facilities related to general hygiene and

sanitation, beautification, and solid waste collection;
 Maintenance of katarungang pambarangay;
 Maintenance of barangay roads and bridges and water

supply system;
 Infrastructure facilities such as multi-purpose hall,

multipurpose pavement, plaza, sports center;
 Information and reading center.

Funds
Budgetary Requirements – 20% Dev. Projects
LGUs shall appropriate in its annual budget

no less than 20% of its annual IRA for
development projects as mandated under
Section 287 of Local Government Code. This
shall be utilized with DILG-DBM Joint
Memorandum Circular No. 2017-1 dated
February 22, 2017.
Funds
IRA Budget Year P1,000,000
Multiplied by 20%
Development Projects P 200,000

Funds
 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
expenditures.
 Unexpended Balances of Appropriation of the 20%

Development Fund from completed or discontinued
projects shall be reverted; however, shall be Re-
appropriated for other Developmental Projects.
Funds
Allowable 20% Development Projects
 Social Development
 Construction or rehabilitation of health centers, rural health

units or hospitals, including purchase of lot for the purpose;
 Purchase of ambulance and medical equipment;
 Construction or rehabilitation of local government-owned

potable water supply system;
 Establishment or rehabilitation of Manpower Development

Centers;
Funds
 Construction or rehabilitation of evacuation centers,

including purchase of lot for the purpose;
 Construction of Special Drug Education Centers, and Drug

Treatment/Rehabilitation Centers, including purchase of
lot for the purpose;
 Rehabilitation of historical sites classified as such by the

National Historical Commission of the Philippines;
Funds
 Purchase & development of land for the relocation of

informal settlers and relocation of victims of calamities;
 Constructionor rehabilitation of multi-purpose halls (more

than one specific purpose) including purchase of lot for the
purpose; and
 Installation of street lighting system.

Funds
 Economic Development
 Construction
or rehabilitation of communal irrigation or water
impounding system;
 Purchase or lease of post-harvest facilities, such as farm or

hand tractor with trailer, thresher and mechanical driers;
 Construction or rehabilitation of local roads or bridges,

including purchase of appropriate engineering equipment, such
as dump trucks, graders and pay loaders;
Funds
 Economic Development
 Capital expenditures related to the implementation of

livelihood or entrepreneurship/local economic development
projects;
 Development of alternative power or energy sources, such

as, but not limited to renewable energy power plants; and
 Amortizationof loans used to finance development projects

cited in this JMC, subject to the 20% debt service cap
prescribed under Section 324 (b) of RA 7160.
Funds
 Environmental Management
 Reforestation and urban greening;
 Construction or rehabilitation of sanitary landfills and

materials recovery facilities;
 Purchase of garbage trucks and other equipment for

environmental management and protection purposes;
Funds
 Environmental Management
 Implementation of flood and erosion control projects, such

as rehabilitation and construction of drainage systems, de-
silting of rivers, and de-clogging of canals; and
 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, such as,
but not limited to, treatment of wastewater for
conservation/re-use purposes, and installation of air pollution
control devices.
Funds
NOT Allowable 20% Development Projects
 Personal Services expenditures, such as salaries, wages,
overtime pay and other personnel benefits;
 Administrative expenses, such as supplies, meetings,

communication, water and electricity, petroleum products,
other general services, and the like;
 Traveling expenses, whether domestic or foreign;
 Registration or participation fees in training, seminars,

conferences or conventions;
Funds
NOT Allowable 20% Development Projects
Purchased of administrative office furniture, fixtures,

equipment or appliances; and
Purchase, maintenance or repair of motor vehicles

or motor cycles, other than those specified in item
3.0 hereof (allowable ambulance, dump truck,
graders, pay loaders & garbage trucks)
Funds
Budgetary Requirements – 5% DRRM Fund
 As provided for under Section 21 of RA No. 10121,

The Philippine Disaster Risk Reduction & Management
Act of 2010, and Rule 18 of its Implementing Rules
and Regulation (IRR), not less than 5% of the
estimated revenue of LGUs from regular
sources shall be set aside as Local Disaster Risk
Reduction Management Fund (LDRRMF) and shall be
utilized in accordance with pertinent provisions of
laws, rules and regulations.
Funds
Regular Sources Budget Year P1,200,000
Multiplied by 5%
DRRM Activities P 60,000

Funds
Pursuant to NDRRMC/DBM/DILG JMC No. 2013-1 dated

March 25, 2013, 5% LDRRMF shall be allocated as
follows:
 30% lump-sum allocation for Quick Response

Fund (QRF) or stand-by-fund for relief & recovery
program.
 70% allocation for disaster prevention and

mitigation, preparedness, response, rehabilitation and
Funds
 Projects & activities to be charged against the LDRRMF shall be
incorporated in the Local Disaster Risk Reduction & Management
Plan and integrated in the approved Annual Investment Program
(AIP) of the LGU.
The release and use of the 30% QRF shall be supported by a

resolution of the local sanggunian declaring a state of calamity
or Presidential declaration.
State of Calamity is a condition involving mass casualty

and/or major damages to property, disruption of means of
livelihoods, roads and normal way of life of people in the affected
areas.
Funds
 The Unexpended LDRRMF shall accrue to a
special trust fund solely for the purpose of
supporting disaster risk reduction & management
activities of the BDRRMC within the next five
years.
The unexpended balances of the LDRRMF may be

released and utilized for new expenditure item
upon submission of a revised AIP, upon
recommendation of the BDRRMC in accordance
with the approved LDRRMP. (Sec. 6.5 JMC 2013-1)
Funds
BUDGETARY REQUIREMENT
Sangguniang Kabataan Fund – 10% of the

General Fund of the barangay shall be set aside
for the Sangguniang Kabataan. (Section 329 of RA
7160 & Section 20 of RA 10742)
Any Unexpended Balanes of SK Fund shall be

added to the 10% share of the SK Fund for the
next year.
Funds
Budgetary Requirements – 10% SK Fund
General Fund Budget Year P1,500,000
Multiplied by 10%
Youth Development Programs P 150,000

Funds
Article 423 of the IRR of RA 7160
The 10% share shall be appropriated

and administered by Sangguniang
Kabataan and shall be spent for the
purposes provided in Rule XXVII of
the IRR of RA 7160, except for
Personal Services.
Funds
BUDGETARY REQUIREMENT
Debt Service - Full provision shall be made for all

statutory and contractual obligations of the LGU
concerned. (Section 324[b]/303 of LGC)
LGUs are expected to honor commitments on

credit financing by requiring them to appropriate
funds adequate to pay their debts or loans
extended to them.
Effects of the Review Action –
Budgetary Requirements
 Inoperative in its Entirety – If the

reviewing authority (Sangguniang Bayan)
ascertained that the ordinance authorizing
annual or supplemental appropriations has
not complied with the requirements
set forth in this Title, the reviewing
authority, within 60 day period herein
prescribed, declare such ordinance
inoperative in its entirety. (Section 333)
Budgetary / General
Limitation
Total Appropriation (Balance
Budget) - the Aggregate amount
appropriated shall not exceed the
estimates of income. (Section
324[a]/Section 333)
Local Government Unit shall endeavor to

have a balanced budget in each fiscal year
of operation (Section 305[m])
Budgetary / General
Limitation
Total Appropriation Limitation
General Fund Budget Year P1,500,000
Multiplied by 100%
Total Appropriations P1,500,000

Budgetary / General
Limitation
Personal Services limitation – total

annual appropriations for PS of a
barangay for one fiscal year shall not
exceed 55% of the total annual income
actually realized from local sources during
the next preceding fiscal year.
(Section 331[b])
Budgetary / General
Limitation
Personal Services Limitation
Regular Sources Next Preceding Year

or Past Year P1,000,000
Multiplied by 55%
PS Appropriations P 550,000
Budgetary / General
Limitation
Discretionary Fund – 2% of the

actual receipts derived from basic real
property tax in the next preceding
calendar year. (shall be disbursed only for
public purpose & not for personal
needs)
Budgetary / General
Limitation
2% Discretionary Fund Limitation
RPT Next Preceding FY P 300,000
Multiplied by 2%
Total Appropriations P 6,000

Budgetary / General
Limitation
20% Debt Service Cap -

Appropriation for Debt Servicing shall not
exceed 20% of the regular income of
the LGU concerned. (Section 324[b])
Budgetary / General
Limitation
20% Debt Service Limitation
Regular Sources BY P 1,200,000
Multiplied by 20%
Total Appropriations P 240,000

Effect of the Review Action –
Budgetary/General Limitations
 Inoperative in Part – Items of

appropriation contrary to, or in excess of,
any of the general limitations or the maximum
amount prescribed in this Title shall be
disallowed or reduced accordingly.
 Except, if the ordinance contains appropriations

in excess of the estimates of the income duly
certified as collectible, inoperative in its
entirety. (Section 333)
USE OF SK FUNDS RA 10632
 Use of the SK Funds – The 10% of

the General Fund of the barangay
allocated for SK shall be used by the
sangguniang barangay solely for
youth development programs or
projects until the new sets of SK
officials have been duly elected &
qualified. (Section 1, Rule 5, IRR of
RA 10632)
Allocation of SK Funds –
RA 10632
Youth Development Programs & Projects
1. Capacity-Building such as: Leadership

Training/Youth Camp Program; Employability
Skills Training; and Value Formation,
Citizenship/Nation Building Seminar;
2. Health Services and Adolescent Reproductive

Health Program;
3. Out of School Youth Programs

RA 10632
Youth Development Programs & Projects
4. Socio-Cultural and Sports Development;
5. Disaster Preparedness and Climate Change

Adaptation;
6. Other similar Youth-related Development

programs and projects.
RA 10632 Youth
Development Plan & Budget
• The Task Force shall prepare an SK Budget/
development plan for one fiscal year
containing its PPAs, incorporating therein
the corresponding fund requirements for the
said undertaking.
• Youth Development Plan shall serve as the

mother document and basis of the Youth
Development Budget.
RA 10632 Youth
• The Task Force submits the plan and budget
to the Punong Barangay or Appropriations
Committee of the Sangguniang Barangay.
• The Punong Barangay or Appropriations

Committee of the Sangguniang Barangay
reviews Youth Development Plan for
inclusion in the over-all Barangay
Development Plan and Budget.
RA 10632 Youth
• The Punong Barangay, in the exercise of his
supervisory function over the Task Force, may
ask clarification or suggest/advice adjustments
to improve the Youth Development Plan &
Budget.
• The Sangguniang Barangay enacts appropriate

Budget Ordinance for the purpose, and submits
the same to the Sangguniang
Panlungsod/Bayan for the latter’s review.
RA 10632 Access to SK
Funds
• After the Sangguniang Barangay approves the
barangay budget, the Task Force can begin
accessing funds for its planned PPAs, and shall:
• Prepare individual activity design for each PPA

included in the YDP, signed by all members of the
Task Force, detailing the process involved in the
planned PPA indicating funds to be used.
• Submit the activity designs to the Punong

Barangay.
SK Reforms – RA 10742
• This Act shall be known as the

“Sangguniang Kabataan Reform
Act of 2015”
• Youth shall refer to those persons

whose ages range from 15 to 30 years
old as defined in RA No. 8044.
QUALIFICATIONS OF SK OFFICIALS
• An official of the SK, either elective or appointee,
must be a citizen of the Philippines;
• A qualified voter of the Katipunan ng Kabataan;
• A resident of the barangay for not less 1 year

immediately preceding the day of the elections;
• At least 18 years but not more than 24 years of

age on the day of the elections, able to read &
write Filipino, English or the local dialect;
QUALIFICATIONS OF SK OFFICIALS
• Must not be related within the second civil
degree of consaguinity or affinity to any
incumbent elected national official or to any
incumbent elected regional, provincial, city,
municipal or barangay official, in the locality
where he or she seeks to be elected, and
must not have been convicted by final
judgment of any crime involving moral
turpitude.
Section 20[a] of RA 10742
• The Sangguniang Barangay shall appropriate
the Sangguniang Kabataan Funds in lump-
sum which shall be disbursed solely for
youth development and empowerment
purposes.
• The Sangguniang Kabataan shall have

financial independence in its operations,
disbursements and encashment of their fund,
income and expenditures.
Section 20[b] of RA 10742
• The SK Funds shall be deposited in the

name of the SK of the concerned
barangay in a government-owned bank
situated in or nearest to its area of
jurisdiction with the SK Chairperson &
SK Treasurer as the official
signatories.
Section 20[c] of RA 10742
• All Sangguniang Kabataan funds shall

be allocated in an Annual Budget, and
if funds allow, in a Supplemental
Budget in accordance with the adopted
Annual Barangay Investment Program
(AIP).
RA 10742
Youth Development &
Empowerment Program
• Comprehensive Barangay Youth Development Plan
and Annual Barangay Investment Program shall
give priority to PPAs that will promote and ensure:
• Equitable access to quality education,
• Environmental protection & climate change

adaptation,
• Disaster risk reduction and resiliency,

RA 10742
Youth Development &
Empowerment Program
• Youth employment and livelihood,
• Health & Anti-Drug Abuse,
• Gender Sensitivity,
• Sports Development; and
• Capability Building which emphasizes Leadership

Training.
Section 20[d] of RA 10742
• The Budget Cycle of the SK shall be

synchronized with that of the barangay. As
such, Sangguniang Bayan shall, within
60 days upon receipt hereof, review the
annual budget & supplemental
budget of the SK on their compliance in
the immediately preceding provision &
other existing laws, rules & regulations.
Section 30[a] of RA 10742
• Every Barangay, Municipality, City &

Province shall conduct an annual activity
to be known as the Linggo ng
Kabataan on the week where the
12th of August falls to coincide with
the International Youth Day.
SK Reforms RA 10742 –
Sec. 36 Repealing Clause
• Section 329 of RA 7160 – SK fund in
lumpsum, financial independence & SK
Chairperson & Treasurer as official
signatories.
• Sections 423-439 of RA 7160 – Chapter 8

SK Powers & Function, Chapter 9 SK
Pederasyon & Chapter 10 Linggo ng
Kabataan
RA 10923 Act Postponing
SK Elections
 Section 1. Date of Elections – The
barangay and SK elections on October
31, 2016 shall be postponed to the 4th
Monday of October 2017.
 Section 3. Hold Over – Until their

successors shall have been duly elected
and qualified, all incumbent barangay
officials shall remain in office, unless
sooner removed or suspended for cause.
Allocation of SK Funds
RA 10923
 Section 7. Use of SK Funds – Until

the new Sangguniang Kabataan
officials have been duly elected and
qualified, the Sangguniang
Barangay shall NOT use the SK
Fund, EXCEPT for Youth
Development and Empowerment
Programs as provided in RA 10742,
SK Reform Act of 2015.
Additional Budgetary Requirement
By ATTRIBUTION
The FY 2017 Annual Budgets of LGUs shall likewise include PPAs
that can be attributed and built-in within the budget level for the
following:
 Gender and Development – 5% of General Fund
 Enforcement of RA 9165 – Substantial appropriation to

address illegal drugs and other substances.
 Senior Citizens & Persons with Disabilities
 Implementation of the program of the Local Councils for the

Protection of Children pursuant to RA No. 9344 – 1% of IRA
Gender and Development
(GAD)
Legal Bases
 Section 30 of the General Provision of Republic

Act No. 10924, FY 2017 General Appropriations
Act;
 Section 2.2.13 of Local Budget Memorandum

No. 75, FY 2018 Internal Revenue Allotment
Level and Other Local Budget Preparation
Matters;
(GAD)
Legal Bases
 PCW-DILG-DBM-NEDA Joint Memorandum

Circular No. 2016-01 and 2013-01, Guidelines
on the Localization of the Magna Carta of
Women;
 Republic Act No. 9710, An Act Providing For the

Magna Carta of Women.
(GAD)
Legal Basis
Section 30 of the GP of RA 10924
 Programs and Projects Related to Gender and
Development. All agencies of the government shall
formulate a Gender and Development Plan designed to
address gender issues within their concerned sectors or
mandate and implement the applicable provisions under
RA 9710 or Magna Carta of Women and Convention on
the Elimination of All Forms of Discrimination Against
Women.
(GAD)
Legal Basis

 The GAD Plan shall be integrated in the regular
activities of the agencies, which shall be at least
five percent (5%) of their budgets;
 For this purpose, the General Fund will be the

basis for computing the five percent (5%) GAD
Budget.
(GAD)
Legal Basis
 In addition, activities currently being undertaken by
agencies which relate to GAD or those that
contribute to poverty alleviation, economic
empowerment especially of marginalized women,
protection, promotion, and fulfillment of women’s
human rights, practice of gender-responsive
governance are considered sufficient
compliance with the said requirement.
(GAD)
Legal Basis
Sec. 2.2.13 of LBM 75
 FY 2018 Annual Budget of LGUs shall

likewise include Programs/Projects/
Activities that can be attributed and
built-in within the budget level for
Gender and Development (GAD).
(GAD)
What is GAD?
 GAD refers to the development
perspective and process that are
participatory and empowering, equitable,
sustainable, free from violence, respectful
of human rights, supportive of self-
determination and actualization of human
potentials;
(GAD)
What is GAD?
 It seeks to achieve gender equality as a

fundamental value that should be reflected in
the development choices;
 Stresses the need of women to organize

themselves and participate in political processes
to strengthen their legal rights.
(GAD)
Creation of LGU GAD Focal Point
System (GFPS)
 The Barangay GFPS shall be chaired by

the Punong Barangay, co-chaired by
the Chair of the Sangguniang Barangay
Committee on Women, Children and
Family.
(GAD)
System (GFPS)
 The following are Members of the

GFPS:
 Sangguniang Barangay Committee on Appropriations
 SK Chairperson
 Barangay Health Worker
 Violence Against Women (VAW) Desk Officer
 Barangay Nutrition Scholar
(GAD)
System (GFPS)
 The following are Members of the

GFPS:
 Tanod Executive Officer;
 Day Care Worker;
 Lupong Tagapamayapa member;
 Women’s organizations existing at the barangay level;
 Barangay Human Rights Action Officer, where existent.
(GAD)
System (GFPS)
 Members of the private sector and academe, as

appropriate may also be considered members
of the GFPS; and
 The Barangay Secretary shall provide

secretariat support to the Barangay GFPS.
(GAD)
What is a GAD Plan?
 A GAD Plan is viewed as an integral part of
the overall LGU Plan. The formulation of a
GAD Plan shall follow the regular planning and
budget calendar/schedule of LGUs and shall be
anchored on the existing Barangay
Development Plan and Annual Investment
Program (AIP) preparation.
(GAD)
What is a GAD Budget?
 A GAD Budget is the total amount provided in
the General Fund Budget of the LGU to finance
the PPAs in the GAD Plan;
 The earmarking of at least 5% of the total

annual appropriation for GAD-related
activities is an indicative figure that should be
attributed in the existing PPAs of LGUs’
budgets.
(GAD)
What is a GAD Budget?
 Accordingly, GAD Budget must not be

interpreted as an Additional and
Separate Fund that will be provided by
the local government;
(GAD)
How is the GAD Budget Prepared?
 The GAD PPAs may be classified into:
1. Organization-focused
2. Client-focused
(GAD)
 Organization-focused, where efforts

are geared to respond to gender issues
that affect the welfare and performance
of women and men employees of the
LGU.
(GAD)
 Client-focused, where efforts address

gender issues that affect the LGU’s
clients and/or constituents.
(GAD)
 Examples of PPAs or expenses that CAN be charged to
the GAD Budget:
1. PPAs that address GAD issues and GAD mandates (e.g.
maintenance and operation of Brgy Violence against
Women Desk) including relevant expenses such as
supplies, travel, food, board and lodging, professional
fees;
2. Capacity Development on GAD (e.g. Gender Sensitivity

Training; Gender Analysis, Gender-responsive Planning)
(GAD)
 Examples of PPAs or expenses that CAN be charged to the
GAD Budget:
3. Activities related to the establishment and strengthening

of enabling mechanisms that support the GAD efforts to
LGUs (e.g. GAD Focal Point System, VAW desk)
4. Salaries of LGU personnel assigned to plan, implement

and monitor GAD PPAs on a full-time basis following the
government rules in hiring and creation of positions.
(GAD)
 Examples of PPAs or expenses that CAN be charged to the
GAD Budget:
5. Brgy. programs that address women’s practical and

strategic needs (e.g. day care center, breastfeeding rooms,
crisis or counseling rooms for abused women and children,
gender-responsive family planning program;
6. Construction expenses for day care center; VAWC center

and women crisis center.
(GAD)
 Examples of PPAs or expenses that CAN be charged to the GAD
Budget:
7. Consultation conducted by the Brgy to gather inputs for
and/or to disseminate the GAD Plan & Budget;
8. Payment of professional fees, honoraria and other services

for gender experts or gender specialists engaged by LGUs for
GAD-related trainings and activities; and
9. Information Education Campaign (IEC) activities

(development, printing and dissemination) that support the
GAD PPAs and objectives of the LGUs.
(GAD)
 Examples of PPAs or expenses that CANNOT be charged to the
GAD Budget:
1. PPAs that are not in the LGUs DILG-endorsed GAD Plan;
2. Personal Services of women employees unless they are working

full-time or part-time on GAD PPAs;
3. Honoraria of GFPS members or other employees working on

their GAD programs;
4. Salaries of casual or emergency employees unless they are hired

to assist in GAD-related PPAs
(GAD)
 Examples of PPAs or expenses that CANNOT be charged to
the GAD Budget:
4. Purchased of supplies, materials, equipment and vehicles

for general use of the LGU;
5. Physical, mental and health fitness including purchase of

supplies, materials, equipment; social, rest and recreation
activities; and religious activities and implementation of
cultural projects unless they are justified as clearly
addressing a specific gender issue.
(GAD)
Schedule to be observed in GAD
Planning & Budgeting
 January - February (a year before the budget

year) – the PB shall issue a directive to the
barangay for the preparation of the annual GPB FY
2018 and annual GAD Accomplishment Report FY
2016;
(GAD)
 March – The consolidated GPBs, together with the GAD
ARs, shall be submitted to the City/Municipal
Planning Development Office in the case of
barangays;
 March – Afterwards, the GPBs shall be submitted not

later than March 31 to the DILG City/Municipal
Local Government Operations Officer for review
and endorsement.
(GAD)
 April-May – DILG C/MLGOO shall review and endorse
LGU GPBs, which shall be returned to the concerned LGU for
inclusion in the preparation of the AIP;
 June-July – the following activities are undertaken

a. Integration of identified gender issues and concerns and
GAD goals, strategies, objectives, targets and PPAs of the
GPB during the formulation, updating or enhancement of
Barangay Development Plan, whenever applicable.
(GAD)
 July-August – The following activities are undertaken
a. Integration of the endorsed GPB PPAs in the annual

barangay budget proposals.
b. The treasurer shall ensure the integration of the GPB

in the LGU budget proposal during the technical budget
hearings.
(GAD)
 September – The Treasurer shall ensure that the
identified GAD PPAs are reflected in the Barangay
Expenditure Program.
 October – Not later than October 16, the Punong

Barangay shall ensure that the identified GAD PPAs are
included in the Budget Message and in the Executive
Budget for submission to the Sangguniang Barangay
for its enactment.
(GAD)
 Within 60 days after receipt of the Annual or
Supplemental Budgets, the Sangguniang
Panlungsod/Bayan shall review the Barangay
Annual/Supplemental Budgets;
 The Sangguniang Panlungsod or Bayan shall

ensure that GAD PPAs have the required resource
allocation in the Annual Budget.
Senior Citizens & Persons
with Disability
starting with the FY 2013 GAA….
No specified
amount (%)
for the
provision for
Senior
Citizens.
with Disability
Section 31, General Provisions,
FY 2017 General Appropriations Act
“All agencies of the government shall

formulate plans, programs and
projects intended to address the
concerns of senior citizens and
persons with disability, and integrate
the same in their regular
activities.
with Disability
Section 31, General Provisions,
FY 2017 General Appropriations Act
Moreover, all government infrastructure &

facilities shall provide architectural or
structural features, designs or facilities that
will reasonably enhance the mobility, safety
and welfare of persons with disability
pursuant to Batas Pambansa Blg. 344 and RA
No. 7277
with Disability
Projects and Activities
 IEC Information, Education
Campaign/Advocacy to raise the level of
awareness of the general public and policy
makers/decision makers on ageing needs of
persons with disabilities and prevention of
discrimination against and abuse of older
persons and persons with disabilities;
 Livelihood training program for older persons &

persons with disabilities;
with Disability
Projects and Activities
Care-giving training for family members

of older persons and persons w/
disabilities;
Infra-projects providing for well-lit

building, readable sign boards,
specifically built and designed comfort
rooms, ramps to facilitate access of older
persons and persons w/ disabilities.
Local Council for the
Protection of Children
• Implementation of the programs of the Local

Councils for the Protection of Children
(LCPC) pursuant to RA No. 9344 (Juvenile
Justice and Welfare Act of 2006).
• One percent (1%) of the Internal Revenue

Allotment of Barangays shall be allocated
for the strengthening and implementation of
the programs of the LCPC. (Sec. 15 of RA
9344)
Local Council for the
Protection of Children
1% Protection of Children
IRA Budget Year P 1,000,000
Multiplied by 1%
LCPC Appropriation P 10,000

Enforcement of Dangerous
Drugs Act of 2002
Section 51 of RA 9165 / DILG MC
No. 2009-09
 LGUs shall appropriate a substantial
portion of their respective annual
budgets to assist in or enhance the
enforcement of this Act giving priority to
preventive or educational programs and
the rehabilitation or treatment of drug
dependents.
Drugs Act of 2002
DILG MC No. 2009-09
Responsibilities of the PB
 Shall identify drug affected house clusters, work
places, streets, puroks and sitios where delivery, sale
or use of illegal drugs are being conducted and to
report the same immediately to the PNP or PDEA.
 Extend necessary assistance and cooperation, from

operations up to prosecution, to the PDEA and PNP
authorities in its operation against illegal drugs.
Drugs Act of 2002
DILG MC No. 2009-09
 Failure to include such appropriation in the said Annual
Budget can subject the local officials concerned to a
possible administrative charge of dereliction of duty.
 In case of adverse reports from PDEA and/or PNP that

illegal drugs’ sale, delivery and use is rampant within the
LGU area of jurisdiction, and the local officials therein,
after having been made aware thereof, failed to take
appropriate measures to enforce RA 9165 may be charged
administratively for gross negligence or dereliction of
duty as may be warranted by evidence.
Department of Budget and Management
Past Year Current Year Budget Year
Source of Income/Receipts
2016 2017 2018
Regular Sources
Real Property Tax (RPT) 300,000 400,000 450,000
Business Tax 70,000 80,000 90,000
Community Tax 10,000 15,000 20,000
Other Local Taxes 6,000 8,000 10,000
Internal Revenue Allotment 2,427,300 2,790,000 3,100,000
Aid from Municipality & Province 2,000 2,000 2,000
Sub-Total from Regular Sources 2,815,300 3,295,000 3,672,000
Non-Regular Sources
Donations (No Specific Purpose) 20,000 - -
Proceeds from Sale of Assets 3,000 - 22,000
Receipts from Loans & Borrowings 100,000 - -
Sub-Total from Non-Regular Sources 123,000 - 22,000
TOTAL 2,938,300 3,295,000 3,694,000
Note: P100,000 Loan in FY 2016 is payable in 3 years for P40,000 each year for FY 2016-2018.
BARANGAY _________________________________
FY 2018 BUDGETARY REQUIREMENTS & LIMITATIONS
BUDGETARY REQUIREMENTS
Basis of Computation (IRA/
Minimum Appropriation
Particulars Regular Sources/ General Percentage / Rate
Required
Fund/ RPT)
20% Development Projects 20% -
5% LDRRMF 5% -
10% SK Fund 10% -
Debt Service Full Provision -

Additional Budgetary Requirements By Attribution
5% Gender & Development 5% -
1% Senior Citizens & PWDs 1% -
1% Protection of Children 1% -
BUDGETARY LIMITATIONS
Basis of Computation (IRA/
Maximum Appropriation
Particulars Regular Sources/ General Percentage / Rate
Allowed
Fund/ RPT)
Total Appropriation 100%
55% Personal Services 55%
2% Discretionary Fund 2%
20% Debt Service 20%

BUDGETARY REQUIREMENTS
Minimum Appropriation
Particulars Basis of Computation Percentage / Rate
Required
20% Development Projects 2018 - IRA 3,100,000 20% 620,000
5% LDRRMF 2018 - Regular 3,372,000 5% 183,600
10% SK Fund 2018 - GF 3,694,000 10% 369,400
Debt Service Due 2018 40,000 Full Provision 40,000
Additional Budgetary
Requirements By Attribution
5% Gender & Development 2018 - GF 3,694,000 5% 184,700
1% Senior Citizens & PWDs 2018 - GF 3,694,000 1% 36,940
1% Protection of Children 2018 - IRA 3,100,000 1% 31,000
BUDGETARY LIMITATIONS
Maximum
Particulars Basis of Computation Percentage / Rate
Appropriation Allowed
Total Appropriation 2018 - GF 3,694,000 100% 3,694,000
55% Personal Services 2016 - Regular 2,815,300 55% 1,548,415
2% Discretionary Fund 2016 - RPT 300,000 2% 6,000
20% Debt Service 2018 - Regular 3,672,000 20% 734,400

Thank you &
Good Day!
Achievable steps can overcome impossible

obstacles.
‘ANYTHING IS POSSIBLE IF YOU HAVE
FAITH’…MARK 9:23
Allocation of SK Funds
Conduct of SK Elections – 10% of the SK Fund

but not less than Ten Thousand (P10,000)
Pesos shall be reserved in the event that SK
election will be conducted.
General Fund SK Fund Reserved for Election
1,000,000 100,000 10,000
10,000,000 1,000,000 100,000
800,000 80,000 10,000

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BUDGET

Involves cost estimation per PPAs, preparation

Starts upon receipt of the statement of income &

The Punong Barangay shall prepare

Budget Year or Ensuing

FY 2017 Current Year

Past Year or Next

• Submit to the PB on or before the 15th day of

• He shall submit the Annual Barangay Budget to

(Section 318, R.A. 7160)

2. Prepare the Barangay Expenditure Program

3. Submit the Barangay Budget to the

 Considers objectives and expected outputs;

 Cost estimates should be realistic and within

 Prepare the Project Procurement Management

2. Actual Income & Expenditure for Past Year

3. Actual and Estimated Income & Expenditure for

4. Income & Expenditure Estimates for Budget Year

5. Actual & Estimated Output

6. Barangay Expenditure Program

• Income sources – refers to all revenues &

• Revenue – refers to income derived from the

• Receipts – refers to income realized from

• Beginning Balance - Any unused

• General Fund – shall consist of monies

• Trust Fund - shall only be used for the

FY 2018 Internal Revenue Allotment

 Actual collection of National Internal

 Local Budget Memorandum No. 75

 The FY 2016 IRA Level is P38.759 Billion or

 The FY 2017 IRA Level is P58.266 Billion or

 TheFY 2018 IRA Level is P35.863 Billion or

The allocation for the FY 2018 IRA, amounting to

82 Provinces = 23%

145 Cities = 23%

1,478 Municipalities = 34%

41,889 Barangay = 20% or P103.254 Billion

 Guaranteed share of P80,000 (41,815 Brgy -

 Balance of P92.737B shall be allocated as follows:

 60% Base on Population (P55.642B)

 40% Equal Sharing (P39.964B/41,889 Brgy.)

 No Money shall be paid out of the local treasury

 Local government funds and monies shall be

 Local Budgets shall operationalize approved

 Presented by Program/Project/Activity (PPA)

 Reflect the expected outputs and

 According to expense/allotment class for a

 Personal Services refer to payment of salaries,

 Example: Honoraria, Mid-Year Bonus, Year-End

 Maintenance and Other Operating Expenses

 Example: Utility expenses such as electricity & water;

Current Operating Expenditures (PS & MOOE) and

 CapitalOutlay refer to purchase of goods & services,

 Example: Cost of Buildings and Structures, constructed

 Agricultural support services which include planting

 Health& social welfare services which include

 Services & facilities related to general hygiene and

 Maintenance of katarungang pambarangay;

 Maintenance of barangay roads and bridges and water

 Infrastructure facilities such as multi-purpose hall,

 Information and reading center.

LGUs shall appropriate in its annual budget

IRA Budget Year P1,000,000

Development Projects P 200,000