Brgy execs told to pass new annual budgets

By Francis Allan L. Angelo

THE committee on appropriations of the Iloilo City Council urged newly elected barangay officials to make sure that they pass new annual budgets to ensure continuous developments in their constituencies.

Councilor Perla Zulueta, appropriations committee chair, said some 12 or 13 barangays in Iloilo City failed to pass new annual budgets in the last two to three years.

Zulueta said they are concerned with this problem because it will affect the development of these barangays.

Under the Local Government Code, the barangay annual budget must include the following:

- Appropriations for development projects of not less than 20% of the total IRA of the barangay for the budget year (Development Fund);

- Appropriations for Sangguniang Kabataan (SK) programs, projects and activities equivalent to 10% of the general fund of the barangay for the budget year (SK Fund);

- Appropriations for unforeseen expenditures arising from the occurrence of calamities at 5% of regular income for the budget year (Calamity Fund); and

- Provision for the delivery of basic services pursuant to Section 17 of RA No. 7160, and effective local governance.

The barangay treasurer should submit to the punong barangay on or before September 15 of each year the detailed Statements of Income and Expenditures as a basis for the preparation of the budget for the next fiscal year.

Once the barangay passes the budget, it must be submitted to the city or municipal council for review within 10 days after its passage.

Under a reenacted budget, only the annual appropriations for honoraria and salaries/wages of barangay officials and employees, respectively; statutory and contractual obligations; and essential operating expenses authorized in the annual and supplemental budgets for the preceding year shall be deemed reenacted.

While a re-enacted budget ensures that barangay operations will continue despite the absence of a new budget, Zulueta said it has the following disadvantages:

- no new projects can be undertaken;

- new positions cannot be filled;

- no new equipments can be acquired;

- non-recurring activities, no matter how vital, cannot be undertaken; and

- no increase in honoraria and other benefits.

Zulueta said one of the reasons raised by barangays on why they cannot pass a new budget is failure to submit reports to the City Accounting Office, particularly liquidation reports.

Zulueta said the Commission on Audit is also strict in monitoring financial reports of barangays which could affect the passage of a new budget.

“Many of the barangay officials said they lost the documents in fire, flood or the treasurer disappeared. There a lot of reasons why some barangays cannot pass new budgets,” she added.

Can a punong barangay who fails to prepare and submit the annual barangay budget on time?

Pursuant to Section 318 of the Local Government Code and implemented by the Department of Budget and Management-Commission on Audit Joint Circular No. 93-2 dated June 8, 1993, “a Punong Barangay who fails to submit the budget on or before October 16 of the current year shall be subject to such criminal and administrative penalties as may be provided by the Local Government Code and other applicable laws.”

Zulueta said barangay residents can also “punish” their officials for failure to pass a new budget by not reelecting them in the next elections.

Liga ng mga Barangay Irene Ong said she and Zulueta have been talking to city barangays that continue to operate on reenacted budgets to thresh out their problems.

Ong said the concerned barangays have been appealing with COA and the DBM to help them in their liquidation reports so they can pass new appropriations.