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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).

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


9.94% higher than the FY 2015 IRA Level (P389.860
Billion).

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


13.59% higher than the FY 2016 IRA Level
(P428.619 Billion).

 TheFY 2018 IRA Level is P35.863 Billion or


7.37% higher than the FY 2017 IRA Level
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
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;
Priorities in the Use of
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;

 Infrastructurefacilities such as multi-purpose hall,


multipurpose pavement, plaza, sports center;

 Information and reading center.


Priorities in the Use of
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.
Priorities in the Use of
Funds
Budgetary Requirements – 20% Dev. Projects

IRA Budget Year P1,000,000

Multiplied by 20%

Development Projects P 200,000


Priorities in the Use of
Funds
Budgetary Requirements – 20% Dev. Projects
 Allprojects 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.
Priorities in the Use of
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


Priorities in the Use of
Funds
Allowable 20% Development Projects
 Social Development

 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;

 Rehabilitationof historical sites classified as such by the


National Historical Commission of the Philippines;
Priorities in the Use of
Funds
Allowable 20% Development Projects
 Social Development

 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.


Priorities in the Use of
Funds
Allowable 20% Development Projects
 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;
Priorities in the Use of
Funds
Allowable 20% Development Projects
 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.
Priorities in the Use of
Funds
Allowable 20% Development Projects
 Environmental Management

 Reforestation and urban greening;

 Construction or rehabilitation of sanitary landfills and


materials recovery facilities;

 Purchaseof garbage trucks and other equipment for


environmental management and protection purposes;
Priorities in the Use of
Funds
Allowable 20% Development Projects
 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

 Otherenvironmental 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.
Priorities in the Use of
Funds
NOT Allowable 20% Development Projects
 PersonalServices 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;

 Registrationor participation fees in training, seminars,


conferences or conventions;
Priorities in the Use of
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)
Priorities in the Use of
Funds
Budgetary Requirements – 5% DRRM Fund

 Asprovided 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.
Priorities in the Use of
Funds
Budgetary Requirements – 5% DRRM Fund

Regular Sources Budget Year P1,200,000

Multiplied by 5%

DRRM Activities P 60,000


Priorities in the Use of
Funds
Budgetary Requirements – 5% DRRM Fund

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
Priorities in the Use of
Funds
Budgetary Requirements – 5% DRRM Fund
 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.
Priorities in the Use of
Funds
Budgetary Requirements – 5% DRRM Fund
 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)
Priorities in the Use of
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.
Priorities in the Use of
Funds
Budgetary Requirements – 10% SK Fund

General Fund Budget Year P1,500,000

Multiplied by 10%

Youth Development Programs P 150,000


Priorities in the Use of
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.
Priorities in the Use of
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


Allocation of SK Funds – 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
Development Plan & Budget
• 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
Development Plan & Budget
• 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.
SK Reforms – RA 10742
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;
SK Reforms – RA 10742
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.
SK Reforms – RA 10742
SK Reforms – RA 10742
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.
SK Reforms – RA 10742
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.
SK Reforms – RA 10742
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).
Allocation of SK Funds – 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,


Allocation of SK Funds – 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.
SK Reforms – RA 10742
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.
SK Reforms – RA 10742
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;
Gender and Development
(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.
Gender and Development
(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.
Gender and Development
(GAD)
Legal Basis

Section 30 of the GP of RA 10924


 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.
Gender and Development
(GAD)
Legal Basis
Section 30 of the GP of RA 10924
 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.
Gender and Development
(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).
Gender and Development
(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;
Gender and Development
(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.
Gender and Development
(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.
Gender and Development
(GAD)
Creation of LGU GAD Focal Point
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
Gender and Development
(GAD)
Creation of LGU GAD Focal Point
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.
Gender and Development
(GAD)
Creation of LGU GAD Focal Point
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.
Gender and Development
(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.
Gender and Development
(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.
Gender and Development
(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;
Gender and Development
(GAD)
How is the GAD Budget Prepared?

 The GAD PPAs may be classified into:

1. Organization-focused
2. Client-focused
Gender and Development
(GAD)
How is the GAD Budget Prepared?

 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.
Gender and Development
(GAD)
How is the GAD Budget Prepared?

 Client-focused, where efforts address


gender issues that affect the LGU’s
clients and/or constituents.
Gender and Development
(GAD)
How is the GAD Budget Prepared?
 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)
Gender and Development
(GAD)
How is the GAD Budget Prepared?
 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.
Gender and Development
(GAD)
How is the GAD Budget Prepared?
 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.
Gender and Development
(GAD)
How is the GAD Budget Prepared?
 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.
Gender and Development
(GAD)
How is the GAD Budget Prepared?
 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
Gender and Development
(GAD)
How is the GAD Budget Prepared?
 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.
Gender and Development
(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;
Gender and Development
(GAD)
Schedule to be observed in GAD
Planning & Budgeting
 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.
Gender and Development
(GAD)
Schedule to be observed in GAD
Planning & Budgeting
 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.
Gender and Development
(GAD)
Schedule to be observed in GAD
Planning & Budgeting
 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.
Gender and Development
(GAD)
Schedule to be observed in GAD
Planning & Budgeting
 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.
Gender and Development
(GAD)
Schedule to be observed in GAD
Planning & Budgeting
 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.
Senior Citizens & Persons
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.
Senior Citizens & Persons
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
Senior Citizens & Persons
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;
Senior Citizens & Persons
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.
Enforcement of Dangerous
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.
Enforcement of Dangerous
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
Particulars Basis of Computation Percentage / Rate
Appropriation 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