Strengthening Planning and

Budgeting Linkage at the

Barangays

A presentation to the Barangay Officials

July 4-6, 2018
Bohol Cultural Center, Tagbilaran City
 Outline of Presentation

• Barangay Development Planning

• Barangay Budgeting
• Sustaining Development: Key Economic
Indicators
Barangay Development Planning
Why is there a need to prepare a
barangay development plan?

… in accordance with the

budgeting principle that ”local
government budgets shall
operationalize the approved local
development plans”
(section 305 of RA 7160)

…the plan establishes the priority

programs and projects which shall
be the basis for programming of
funds and budgeting
How is planning linked with
budgeting?

… the plan sets the priority

areas of services and
specifies the target outputs
and accomplishments

… the budget provides the

available resources to carry
out the activities required to
accomplish the target
Who prepares and approves the
Barangay Development Plan?
… The Barangay Development Council shall prepare the
Barangay Development Plan and shall be approved by the
Sangguniang Barangay (Section 107 of the RA 7160)

… The BDC shall be headed by the Punong Barangay with

the following as members:

• Members of the Sangguniang Barangay

• Representatives of non-government organizations
operating in the barangay, who shall constitute not
less than ¼ of the members of the council
• A representative of the congressman
When does the Barangay prepare
the Barangay Development Plan?
… in accordance with the bottom up approach, the
barangay development plan shall be prepared/
updated and submitted to the municipal/ city
development coordinator before the preparation/
updating of the city/ municipal development plan, to
ensure that priority projects of the barangays are
integrated in the mother municipal/ city development
plan

… the development plan is usually on medium-term

(5 years)
 Development Planning Processes

Situational Vision, goal, Policy and Programs/

analysis and objective and strategy projects
problem target setting formulation identification
identification

Plan Formulation

Plan monitoring Plan Investment

and implementation Budgeting Programming
evaluation
 Alignment of National and Local Plans

National

Regional

Provincial

City/Municipal

Barangay
Note: Contents from the Regional Development Council 7/ NEDA RO 7
 Local Government Priorities

Infrastructure Responsible
Agricultural
Support Tourism
Productivity
Development Development

Educational Social services

Fishery
upliftment delivery
Development

Business and
Peace and Environmental
Trade
Order Management
Promotion
and Protection
OVERARCHING
DEVELOPMENT
FRAMEWORK

PROVINCE OF
BOHOL

InSPIRED

HEAT-IT Bohol

BIG LEAP
Vision for the Country

“By 2040, the Philippines shall be a prosperous,

predominantly middle-class society where no one is
poor. Our peoples will enjoy long and healthy lives, are
smart and innovative, and will live in a high-trust
society”

Note: Contents from the Regional Development Council 7/ NEDA RO 7

Overall Strategic
Vision for Framework of the Philippines
the Country
MATATAG, MAGINHAWA AT PANATAG NA BUHAY 2040
FOUNDATION FOR INCLUSIVE GROWTH, A HIGH-TRUST SOCIETY AND A GLOBALLY COMPETITIVE
KNOWLEDGE ECONOMY
2022

“MALASAKIT” “PAGBABAGO” “KAUNLARAN”

ENHANCING THE SOCIAL FABRIC REDUCING INEQUALITY INCREASING GROWTH POTENTIAL

Note: Contents from the Regional Development Council 7/ NEDA RO 7

Planning – Budgeting Process at the Local Level
Synchronized Local Planning and Budgeting Diagram
Long-term plan/ Multi-year/ Multi- Term-based Agenda Annual Implementation
framework for physical sectoral development Instruments
development (10 years) plan(6 years) (3 years)

Comprehensive Formulation of
Land Use Plan • Comprehensive
• Executive Annual
(CLUP)/ Prov’l Development
Legislative Agenda Investment
Devt & Physical Plan (CDP)
(ELA) Plan (AIP)
Framework Plan • Local Development
• (Office Strategic
(PDPFP) Investment Plan
Plans)

• Barangay Development Plan

Barangay/
Monitoring & Municipal/Provincial
Evaluation Budget Budget
(Accountability) Execution Preparation,
Authorization,
Procurement/ Review
Implementation
The Annual Investment Program (AIP)

… the AIP is a component of the medium-term BDP

and shall contain the specific programs, projects and
activities with corresponding project costs including
the necessary fund flows to approximate the
reasonable timing in the release of funds.

… the AIP for the budget year shall be the basis in

preparing the annual barangay budget
What are the basic services and
facilities that the barangay should
provide its constituents?
• Agricultural support services
which include planting materials
distributions system and
operation of farm produce
collection and buying stations
• Health an social welfare services which include
maintenance of barangay health center and day care
center
• Services and facilities related to general hygiene and
sanitation, beautification , and solid waste collection
• Maintenance of Katarungang Pambarangay
What are the basic services and
facilities that the barangay should
provide its constituents?
• Maintenance of barangay
roads and bridges and water
supply system
• Infrastructure facilities such as
multi-purpose hall, multi-purpose
pavement, plaza, sports center,
and other similar facilities
• Information and reading center
• Satellite or public market, where
viable
(Section 17 (b.1) of RA 7160)
Guidelines in the Utilization of the 20% Development Fund

JMC No. 1 2017 (DILG and DBM) (February 22, 2017)

 Updated guidelines on the
appropriation and utilization of the
twenty percent (20%) of the annual
internal revenue allotment (IRA) for
development projects
 The 20% development fund shall be
utilized to finance the LGU’s priority
development plans and Annual
Investment Program (AIP)

 All development projects funded

under the 20% development fund shall
contribute to the attainment of
desirable outcomes of he LGU and
shall partake of investment or capital
expenditure in nature
Guidelines in the Utilization of the 20% Development Fund

JMC No. 1 2017 (DILG and DBM) (February 22, 2017)

 Allowable Development Projects Chargeable
Against the 20% Development Fund:

Social Development
 Construction or rehabilitation of health centers,
rural health units or hospitals, including the
purchase of lot for the purpose;

 Purchase of ambulance and medical equipment;

 Construction or rehabilitation of local government-
owned potable water supply systems;
 Establishment or rehabilitation of Manpower
Development Centers;
 Construction or rehabilitation of evacuation
centers, including the purchase of lot for the
purpose;
Guidelines in the Utilization of the 20% Development Fund

JMC No. 1 2017 (DILG and DBM) (February 22, 2017)

 Allowable Development Projects (cont’d)
Social Development (cont’d)

 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 Phils.;

 Purchase and development of land for the

relocation of informal settlers and relocation of
victims of calamities;

 Construction or rehabilitation of multi-purpose

halls, including purchase of lot for the purpose;
and

 Installation of street lighting system

Guidelines in the Utilization of the 20% Development Fund

JMC No. 1 2017 (DILG and DBM) (February 22, 2017)

 Allowable Development Projects (cont’d)
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, 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;
 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
 Amortization of 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
Guidelines in the Utilization of the 20% Development Fund

JMC No. 2017-01

 Projects Covered (cont’d)
Environmental Management

 Reforestation and urban greening;

 Construction or rehabilitation of sanitary landfills, and
materials recovery facilities;
 Purchase of garbage trucks and other related
equipment for environmental management and
protection purposes;
 Implementation of flood and erosion control projects
such as rehabilitation and construction of drainage
systems, de-silting or rivers, 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
Guidelines in the Utilization of the 20% Development Fund

JMC No. 1 2017 (DILG and DBM) (February 22, 2017)

 Expenditure Items NOT Allowed

The following shall not be allowed to be charged against the

20% Dev’t. Fund or included in the appropriations for
allowable 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;

 Travelling expenses, whether domestic or foreign;

 Registration or participation fees in training, seminars,

conferences or conventions;

 Purchase of administrative office furniture, fixtures,

equipment or appliances; and

 Purchase, maintenance or repair of motor vehicles or

motor cycle, other than those specified in the JMC
Barangay Budgeting
Why prepare a Barangay Budget?
Legal Basis for barangay budgeting:

• Sections 329-334 (Barangay Budget) of the Local

Government Code

• Provides the basis for the collection, safekeeping

and use of barangay funds

• Such provisions govern the preparation,

effectivity, and review of the barangay budget,
including the financial procedures that the
barangay shall observe
Why prepare a Barangay Budget?
• The barangay 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 calender year

• It serves as an instrument for barangay officials to

effectively manage the development of the
barangay.

• A well-prepared budget serves as basis for:

• Planning and policy adoption
• Program and project implementation
• Financial control
• Management information
 Budget Cycle
Preparation of the
Budget by the
Punong Barangay
Management
reporting by the
Punong Barangay

Execution of the Legislative action by

budget by the the Sangguniang
Punong Barangay Barangay

Budget review by the

Sangguniang Bayan/
Panlungsod
Barangay Budget Process
Budget Brgy Treasurer prepares and Punong Brgy prepares the annual
Preparation submits Statement of Income barangay budget by determining
(July 1 to Oct 15) and Expenditures to the and allocating the net resources
Punong Brgy (on or before available for appropriation
sept. 15)

Budget Punong Brgy submits the Sangguniang Barangay evaluates

Authorization proposed annual barangay the proposed budget and enacts
(Oct 16 – Nov. 16) budget to the Sangguniang the Appropriation Ordinance
Barangay

Budget Review Punong Brgy submits through Sangguniang Panlungsod / Bayan

(Nov. 17 - onwards) the City/ Municipal Budget reviews budget for compliance with
Officer the approved budgetary requirements/
Appropriation Ordinance for limitations and declares the budget
review covering the Annual / operative/ inoperative
Supplemental Budget
Barangay Budget Process
Budget execution Punong Brgy receives thru the Punong Brgy executes the budget
(Jan1 to Dec 31) CBO/MBO the approved/ Brgy Treasurer disburses funds
authorized budget per through a simple cash program/
appropriation ordinance financial procedures provided
under the LGC

Budget Brgy Treasurer submits written Punong Brgy reviews/ signs

Accountability financial report to barangay financial reports and prepares
(Jan. 1 to Dec 31) officials/ general public performance report
Basic principles in barangay budget
administration
• No money shall be paid out of barangay funds
except in pursuance of an appropriation ordinance
or law

• Barangay funds and monies shall be spent solely for

public purpose

• Barangay revenue is generated only from sources

expressly authorized by law or ordinance, and its
collection shall at all times be acknowledged
properly
Basic principles in barangay budget
administration
• All monies officially received by a barangay official in
any capacity or on any occasion shall be
accounted for as barangay funds unless otherwise
provided by law

• Trust funds in the barangay treasury shall not be paid

out except in fulfillment of the purpose for which the
trust was created or the funds received

• The barangay shall implement a sound barangay

budget and cash program based on functions,
projects and activities in terms of expected results
Basic principles in barangay budget
administration
• Barangay budgets shall be harmonized with national
and other local development plans to optimize the
utilization of resources

• The barangay budget shall operationalize approved

local development plans

• The barangay shall ensure that their budgets

incorporate the requirements of their communities
(puroks) and provide for the equitable allocation of
resources among them
Basic principles in barangay budget
administration

• Fiscal responsibility shall be shared by all exercising

authority over the financial affairs, transactions and
operations of the barangay

• The barangay shall endeavor to have a balanced

budget in each fiscal year of operation
Components of a Barangay Budget
• Estimates of Income
• Internal Revenue Allotment
• Share of real property taxes, community tax, tax on sand, gravel,
other quarry sources
• Financial aid from LGUs
• Income taxes on stores or retailers
• Income from revenue-raising powers: service fees or charges for
use of barangay property or facilities, barangay clearance fees,
fees and charges on places of recreation with admission fees, tool
fees/ charges for use of any public road, and other infrastructure
funded and constructed by the barangay, revenues from
operation of public utilities, fines (for violation of brgy ordinance)
• Proceeds from sale or lease of barangay property, or from loans
and grants secured by the barangay government

• Total Appropriations covering current operating

expenditures and capital outlays
Mandatory Obligations that should
be provided in the Barangay Budget
• Appropriations for development
projects of not less than 20% of
the total Internal Revenue
Allotment 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
budget year (SK Fund)
 Mandatory Obligations that should
be provided in the Barangay Budget
• Appropriations for unforeseen
expenditures arising from the
occurrence of calamities at
5% of regular income for the
budget year (Calamity Fund)
(JMC 2013-1)
• Provision for the delivery of
basic services pursuant to
Section 17 of RA 7160 and
effective local governance
Personal Services for Barangays

• The Barangay can

appropriate not more
than 55% of the total
annual income
actually realized
during the next
preceding year for
personal services
Purpose of BUDGET REVIEW
• Barangay budgets are submitted for review to ensure
that:
 Budgetary requirements and limitations provided
in the Local Government Code are complies
 The budget does not exceed the estimated
receipts and/ or income of the barangay
 The items of appropriations are not more than
those provided by existing laws
 Responsibilities of Barangay Officials
in implementing the Budget
• Ensure that:
 Revenues as estimated are
realized
 Approved programs and
projects in the barangay
development plan and in the
annual budget are
implemented
 Barangay funds are disbursed
in accordance with the
appropriation ordinance and
reviewed annual budget
 All financial transactions of the
barangay follow accounting
and auditing rules
Guides in the Planning, Budgeting and
Implementation of Programs, Projects and Activities

 Always consider the overall

development priorities of the
barangay as the guide of all
Barangay
initiatives and how the VMG
implementation of PPAs can
contribute to the achievement of set
development thrusts and objectives
Barangay
AGENDA
 Look into and review the PPAs
identified in the Barangay Devt. Plan
as reference in project prioritization Barangay
Programs,
Barangay
Programs,
Projects,
and investment programming/ Activities
Projects,
Activities
Barangay
budgeting. Effective programs will Programs,
Projects,
then have to be sustained, Activities

otherwise, will not be funded

Guides in the Planning, Budgeting and
Implementation of Programs, Projects and Activities

 Before proposing projects for funding under the 20%

Development Fund, make sure such projects are within the set
guidelines (capital forming and among the items included in the
project list)

 Estimate well the funding requirement of the PPAs (not too low
that would result to non-implementation of the project due to
lack of funds, not too high that would mean surplus of funds,
which could have been utilized for other projects)

 During the preparation of the

AIP, prioritize and rank projects
(to facilitate decision-making in
fund allocation and budgeting)
Guides in the Planning, Budgeting and
Implementation of Programs, Projects and Activities

 For continuing and recurring projects, consider the level of

appropriations provided during the previous years, while
conservatively proposing other components that are necessary for
the budget year

 Prepare the needed program of work (POW)/ specifications as early

as possible to facilitate early preparation and processing of
procurement documents (ideally before the Budget preparation)

 As much as possible, be specific and detailed in your proposed

project (not generic or catch-all / lumpsum) to promote
accountability and set specific targets and also to facilitate
monitoring
Observations/ Guides in the Planning and Implementation
of Programs, Projects and Activities

 If funds are limited, consider fund sourcing from external sources.

Verify the status of such request , if already approved (to avoid
double appropriation and to maximize the use of the external fund
or the 20% DF/ other local funds)

 Barangays should be watchful on the progress of procurement and

implementation of their respective projects. (Monitor and evaluate
progress of PPAs)

 Considering the budgetary/ time

constraints, barangays may implement
projects by phases/ stages
(especially those that require
significant funding or those that may take
a longer time to implement).
• Barangays must prepare
and execute their Regional and National • Contribute directly/
Vision indirectly to the vision
budgets based on the
priorities identified in of the municipality/
Provincial Vision
their development plans city/ province/ region
Municipal Vision and country
• These priorities must be
able to achieve the Barangay
Vision
goals of the barangay,
and provide results and
outcomes to achieve the
vision of the barangays Barangay
Goals,
Objectives

Utilization and disbursement of funds in accordance with pertinent

budgeting, accounting, and auditing rules and regulations

Barangay
Barangay Barangay
strategies,
strategies, strategies,
Programs,
Programs, Programs,
Projects,
Projects, Projects,
Activities
Activities Activities

Proper planning and

budgeting
As we plan and prepare our Budgets,
our common challenge is how we can
sustain the development of our
barangay and Bohol, in general

Looking at our Socio-Economic Indicators

Socio-Economic Indicators
Decreasing Poverty Incidence of Families

In 2015, Bohol’s poverty incidence of

families reduced further to 21.7%, lower
50.20% than the regional average of 23.6%

40.30%
36.60%
30.60%
21.70%

2000 2006 2009 2012 2015

Source: PSA
Socio-Economic Indicators
Increasing Tourist Arrival

2017 1,131,065

2016 1,000,186

2015 602,257

13% growth in tourist

2014 438,908 arrivals in 2017, with an
average yearly increase of
32% for the last 4 years
2013 389,767

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

Source: DOT
Socio-Economic Indicators
Increasing Number of Accommodation Facilities
Year No. of Accommodation No. of Rooms
Facilities
2013 232 3,912
2014 284 4,954
2015 360 5,054
2016 432 6,370

Number of Accommodation Number of Rooms

6,370
Facilities
432 4,954 5,054
360 3,912
284
232

2013 2014 2015 2016 2013 2014 2015 2016

Source: BTO
Socio-Economic Indicators
Increasing Livestock and Chicken Inventory

Increase
in inventory
Carabao levels of
Cattle livestock
70,057 heads
74,236 heads

Chicken Goat
Hog
3,494,575 82,907 heads
heads 312,288 heads

Source: PSA
Socio-Economic Indicators
Stable and Significant Rice Production
Central Visayas Palay Production (MT), 2016-2017
Bohol accounts 72% of
350,000.00 Region VII’s palay
300,000.00 production in 2017.
250,000.00 Posted increase in
200,000.00 production by 48%, the
150,000.00 highest percentage
100,000.00 increase in the country.
50,000.00

0.00
CENTRAL Bohol Cebu Negros Siquijor
VISAYAS Oriental
2016 176,238.00 161,003.00 13,546.00 1,689.00
2017 325,209.00 238,728.00 14,514.00 69,305.00 2,662.00
Bohol Production, Area and Ave. Yield, 2016-
300,000 3.40
2017
250,000 3.30
3.20
200,000
3.10
150,000

Average yield of 3.29

3.00
100,000
2.90

metric tons per hectare 50,000 2.80

0 2.70
2016 2017
Production (MT) 161,003 238,728
Area (Ha.) 55,406 72,589
Ave. Yield (MT/Ha) 2.91 3.29
Socio-Economic Indicators
Thriving Banking Industry
Consistent growing number of banks 97
85 89
76 80

2013 2014 2015 2016 2017

Steady increase in the number of bank accounts

2017 637,259

2016 611,424

2015 561,332

2014 532,346

2013 486,797
Source: PDIC
Socio-Economic Indicators
Increasing Vehicle Registration
Number of registered
84,287
vehicles increased
by 14.5%

73,644

2015 2016

Source: LTO
Socio-Economic Indicators
Increasing activities at Bohol’s Seaports
Increasing number of shipping traffic
31,795
28,033
23,480

2015 2016 2017

Uptrend in passenger
traffic 5,133,269 5,544,314 Shipcalls up by
4,340,214 13%
and passenger
traffic increased by
8%
2015 2016 2017 Source: PPA
Socio-Economic Indicators
Increasing Passenger traffic and number of flights
at the existing Tagbilaran City Airport
Number of Flights
2017 4,252
Number of flights
by 21%
increased 2016 3,501
in 2017.
Steady increase in 2015 3,405
passenger traffic with
an average Number of Incoming and Outgoing
annual Passengers
increase of 441,478 467,353
400,123 429,914 454,239
389,166

8% for incoming and

outgoing passengers.

2015 2016 2017

Incoming Outgoing

Source: PPA
Socio-Economic Indicators
Significant capital poured by large investors for
tourism, agriculture, medical and enterprises
Large
investments for
2014-2017
amounted to 3.617
P7.332
Billion
2.200

1.000

0.370
0.145
Retail Agribusiness Medical Enterprise/ Economic Accommodation
Zones

Source: Bohol Investment Promotion Center (BIPC), Office of the Provincial Agriculturist (OPA)
Socio-Economic Indicators
Increasing Number of MSMEs
MSME Registration 5,372
Business registration from 4,304
MSMEs marked a 25%
3,577
3,489
3,168
increase from the 2016
figures.

MSMEs sustained the

generation of 2013 2014 2015 2016 2017
employment with
recorded 11,962*
jobs provided in 2017
Employment generated *
11,850 11,962
8,740
8,319
7,520

2013 2014 2015 2016 2017

Source: Bohol Investment Promotion Center (BIPC) (* as of November 2017)
Socio-Economic Indicators In 2017,
actual investments
Increasing investments in MSMEs from MSMEs have
reached PhP1.5
Billion* sustaining
the increasing
2017 1.515963 trend of
investments in the
province.
2016 1.439505

2015 1.037798

2014 1.051339

2013 0.95962

Source: Bohol Investment Promotion Center (BIPC) (* as of November 2017)

 Socio-Economic Indicators
Increasing Employment Rate
96.3
Employment
rate steadily 95.6
increased for
the past 4
years with the 94.8
latest/ highest
recorded in
2016 at
93.6
96.3%*

2013 2014 2015 Oct. 2016

* October 2016 Source: PSA
Socio-Economic Indicators
Decreasing Crime Incidence
Crime Volume
9218
8084 7808

2015 2016 2017

Crime volume Index and non-Index Crimes

consistent
decreased for the 5551
past 3 years and 5218 5260

posting an
average annual 3,667 2,869 2,548
drop of reported
2015 2016 2017
crimes by 8% Index Crime Non-index Crime
Source: Bohol Provincial Police Office – Philippine National Police
OVERARCHING
DEVELOPMENT
FRAMEWORK

PROVINCE OF
BOHOL

InSPIRED

HEAT-IT Bohol

BIG LEAP
Thank you!