MikeLigalig.com

REP. RON P. SALO
KABAYAN Party-list
Assistant Majority Leader

Member, Good Government and Public Accountability and 11 other Committees

Good governance must also take place at barangay level

REP. RON SALO BATS FOR BARANGAY FINANCE UPGRADING, ADDITIONAL BUDGET FOR BARANGAYS 

Most Filipino citizens are unaware that their barangays have budgets amounting to millions of pesos because of their respective shares in the IRA or internal revenue allotment of the cities or towns they are part of. They should be aware. 

For 2018, the national budget has these allocations for LGUs, among others:

P522.75 billion – IRA (Internal Revenue Allotment)
P7 billion – Local Government Support Fund – Financial Assistance to LGUs)
P2.59 billion – LGSF – Assistance to Cities
P1 billion – Performance Challenge Fund
P2.178 billion – DILG GAA Special Provisions
 
Of the P522.75 billion for IRA, the 41,902 barangays, as one group, get P103.25 billion. 

I filed House Bill 7493 (Barangay Equalization Fund Act) on April 2, 2018. Many of the poor barangays, especially in the undeveloped and underdeveloped areas in the countryside, lack the necessary resources to provide the basic services to their constituents.

The internal revenue allotment (IRA) share that barangays are receiving from the national government is oftentimes insufficient to fund their programs and services. Some barangays are also receiving substantially less than the others because of the sharing formula established in existing laws. 

HB 7493 seeks to include in the annual General Appropriations Act a Barangay Equalization Fund for every barangay. The Barangay Equalization Fund shall be on top of the Internal Revenue Allotment share that each barangay is already receiving from the national government.

The appropriation of each barangay shall be based on the Philippine Statistics Authority’s income classification of the city or municipality in which the barangay belongs.

These are the proposed Equalization Fund allocations:

a) Every barangay of Fourth, Fifth and Sixth Class municipalities shall receive an annual appropriation of Six Million Pesos (P 6,000,000.00). 

b) Every barangay of First, Second and Third Class municipalities shall receive an annual appropriation of Five Million Pesos (P 5,000,000.00).

c) Every barangay of Fourth, Fifth and Sixth Class cities shall receive an annual appropriation of Four Million Pesos (P 4,000,000.00). 

d) Every barangay of First, Second and Third Class cities shall receive an annual appropriation of Three Million Pesos (P 3,000,000.00). 

The Barangay Equalization Fund shall be released annually to every barangay before March 1 of the calendar year, and shall be treated as a trust fund in their annual budget.

The fund shall be solely allocated for the improvement of the health and upliftment of the economic life of the residents of the barangay, and shall be specifically allotted as follows:

a) 25% shall be allocated for infrastructure development; 

b) 25% shall be allocated for livelihood programs; 
c) 25% shall be allocated for social services such as medical, educational, transportation, burial, and food subsidy assistance; and 

d) 25% shall be allocated for a barangay nutrition program. 

Not more than 5% of the allocated amount shall be spent for administration of any of the aforesaid program or project.

Indeed, the indispensable role of barangays in nation-building necessitates that Congress provide it with sufficient resources in order to address the most basic needs of the people, as well as ensure their economic development. (END)

Going to travel? Book your place to stay at www.booking.com



Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=89479.0