THE BARANGAY BUDGET

BUDGET
- Is the legal authority and a financial plan for the use of Barangay
funds, embodying the Estimates of Income and Expenditures for the
designated calendar year. No money shall be paid out of the treasury
except in pursuance of a lawful appropriation

- Aside to its being a legal requirement under the Local Government

Code, it is one of the basic requirements of the local governance
 LEGAL BASIS OF BARANGAY BUDGET PROCESS

The Barangay Development Plan is the basis of the Barangay Budget.

Consequently , the priority program and projects identified by the barangay make
up for its annual investment plan.

Sections 329-334 (Barangay Budget) of the Local Government Code of 1991

provide the basis for the collection, safekeeping, and use of barangay funds. The
aforesaid provisions govern the preparation, affective, and review of the barangay
budget, including the financial procedures that the barangay shall observe. This
comprehensive legislation sets forth the framework for local government units,
including barangays, and defines the processes and requirements for budgeting
the barangay level. These provisions in RA 7160 ensure that the barangay budget
process is carried out in a transparent and accountable manner, with the
participation of the community and adherence to fiscal responsibility .
 THE BUDGET CYCLE

1. Budget Preparation
2. Budget Authorization
3. Budget Review
4. Budget Execution
5. Budget Accountability
 THE BUDGET CYCLE

1. BUDGET PREPARATION (September 5 – October 16)

The preparation of the Barangay Budget is provided in

Article 331 of the Local Government Code which states that “Upon
receipt of the Statement of Income and Expenditures from the
Barangay Treasurer, the Punong Barangay shall prepare the Barangay
Budget for the ensuing Fiscal Year in manner and within the period
prescribed and submit the Annual Barangay Budget to the
Sangguniang Barangay for enactment.”
Mandatory Obligations in the Barangay Annual Budget

1. 55% Personal Services – The total annual appropriations for

personal services of a barangay for one (1) fiscal year shall not
exceed fifty-five percent (55%)of the total annual income actually
realized from local sources during the next preceding fiscal year.
2. 20% Development Fund – Each local government unit shall
appropriate in its annual budget no less than twenty percent
(20%) of its annual Internal Revenue Allotment for development
projects (Sec. 287 of LGC 1991)
3. 10% Sangguniang Kabataan Fund – Appropriations for
Sangguniang Kabataan (SK) programs, projects and activities
equivalent to 10% of the general fund of the barangay for the
budget year (Sec. 329)
 Mandatory Obligations in the Barangay Annual Budget
4. 5% Barangay DRRM Fund – Appropriations for unforeseen
expenditures arising from the occurrence of calamities of regular
income for the budget year (Sec. 21 of RA 10121)
5. 5% GAD Programs (Attributory) – This policy directs all
government departments and agencies to allocate a minimum of five
percent (5%) of their total annual budgets for gender programs,
projects and activities (RA 9710)
6. 1% Children – Allocation of one percent (1%) National Tax
Allocation (NTA) for the strengthening and implementation of the
programs, projects and activities of the Local Councils for the
Protection of Children (LCPC) (Sec. 15 of RA 9344)
7. 1% Senior Citizens & PWDs – Section 29 of GAA DBM-
DSWD Circular No. 2003-01 (RA 9994)
 THE BUDGET CYCLE

2. BUDGET AUTHORIZATION (October 17- 31)

This stage of the budget process the adoption and enactment of
a Barangay Budget into a General Appropriations Ordinance (GAO)
as provided in Sec. 391 (a) (3) of the LGC – “the Sangguniang
Barangay shall enact Annual and Supplemental Budget in accordance
with the Provisions of this code.
How the Barangay Budget is authorized?
Step I – The Punong Barangay submits the Executive Barangay
Budget to the Sangguniang Barangay
Step II – The Sangguniang Barangay evaluates the proposed budget
and enact the appropriation ordinance
 THE BUDGET CYCLE

2. BUDGET AUTHORIZATION
Step III – Approved the Appropriation Ordinance
 THE BUDGET CYCLE

3. Budget Review (October 17 – 31)

The AO, authorizing the Annual/Supplemental Budget is
submitted for review after its enactment to the Sangguniang Bayan
through the Municipal Budget Officer.
The Sanggunian concerned shall review the Barangay
Ordinance to ensure compliance thereof with all the budgetary
requirements and limitations provided in the Code are complied with,
the Budget does not exceed the Estimated Receipts or Income of the
Barangay and the items of Appropriations are not more than those
provided by existing laws.
 THE BUDGET CYCLE

4. Budget Execution (January 1 – December 31)

The Local Government Code is clear and explicit on the
effectivity of Barangay Budget.
Section 332 provides that “the ordinance enacting the
Annual Budget shall take effect at the beginning of the ensuing
calendar year. However, an ordinance enacting a Supplemental
Budget shall take effect upon its approval or on the date fixed herein.
The Punong Barangay shall be primarily responsible for
the execution of the Annual and Supplemental Budget of the Barangay
 THE BUDGET CYCLE

4. Budget Execution (January 1 – December 31)

The Punong Barangay ensures the following:
1. That the revenues as Estimated are realized
2. That the approved development projects and
basic services are implemented and delivered
 THE BUDGET CYCLE

5. Budget Accountability
Section 332 of the Local Government Code provides that
“the responsibility for accountability of the Annual and Supplemental
Budget vested primarily in the Punong Barangay.

How is the accountability of the budget done?

1. Record all collections from taxes, fees and charges in the Income
Books of Accounts
2. Issue an Official Receipt
3. Deposit all collections in the bank
 THE BUDGET CYCLE

5. Budget Accountability
How is the accountability of the budget done?
4. Collect Real Property Taxes and other taxes
5. Record all obligation and disbursements in the
Expenditure Books of Accounts
 Roles of the following Barangay Officials:

Punong Barangay: The barangay captain is responsible for

convening and presiding over meetings of the barangay council, and
for implementing the barangay budget (Section 401, LGC of 1991)

Barangay Treasurer: The barangay treasurer is responsible for

preparing the budget proposal, disbursing funds to various
departments and programs, and monitoring and evaluating budget
execution (Section 112, LGC of 1991)
 Roles of the following Barangay Officials:

Barangay Secretary: The barangay secretary is responsible for

preparing all the barangay’s official records, including report on budget
implementation (Section 399, LGC of 1991)

Barangay Sanggunian Members: The barangay council

members are responsible for reviewing and approving the budget
proposal, and for monitoring and evaluating budget execution (Section
109, LGC of 1991)
 Status of Barangay Annual Budget 2024

12 brgys – ready for Sangguniang Bayan endorsement, waiting for

AIP
11 brgys – reviewed
4 brgys – no submission for review
THANK YOU !!!