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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
Introduced by Representatives Ron P. Salo 
EXPLANATORY NOTE 
The barangay is the basic political unit of the Philippine Government System and 
plays an important role in the progress and development of the entire country. It serves 
as the primary planning and implementing unit of government programs. However, many 
barangays, especially in the undeveloped and underdeveloped areas in the countryside, 
still lack the necessary resources in order to provide the necessary services to its people, 
and to spur economic development. 
This Bill seeks to establish a Barangay Equalization Fund which will annually be 
released to every barangay in order to augment their meager resources. This aims to help 
address prevailing nationwide poverty and spur the development of undeveloped and 
underdeveloped areas in the country. 
The Barangay Equalization Fund shall exclusively be used to fund their 
infrastructure programs, livelihood programs, social services, as well as fund a nutrition 
program for its residents. 
Indeed, the indispensable role of barangays in nation building necessitates that 
Congress provide it with steady government support in order to address the most basic 
needs of the people. It will ensure that the development of these undeveloped and 
underdeveloped areas is not neglected. 
In view of the foregoing, approval of this bill is urgently sought. 
RON P. SALO 
   KABAYAN Partylist 
July 1, 2022
8:01 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
Introduced by Representatives Ron P. Salo 
AN ACT 
PROVIDING FOR A BARANGAY EQUALIZATION FUND 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Declaration of Policy. – Section 9, Article II of the 1987 Constitution 
states that “(t)he State shall promote a just and dynamic social order that will ensure the 
prosperity and independence of the nation and free the people from poverty through 
policies that provide adequate social services, promote full employment, a rising standard 
of living, and an improved quality of life for all.” 
SEC. 2. Barangay Equalization Fund. – There shall be included in the annual 
national budget a Barangay Equalization Fund for every barangay. 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. The Barangay Equalization Fund 
shall be on top of the Internal Revenue Allotment share that each barangay is already 
receiving from the national government.  
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).
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SEC. 3. Trust Fund Classification. –  The Barangay Equalization Fund shall be 
released annually to every barangay before March 1st of the calendar year and shall be 
treated as a trust fund in their annual budget.  
 
SEC. 4. Exclusive Allocation. – The fund shall be solely allocated for the 
upliftment of the economic life of the constituents of the barangay, and shall 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.  
 
SEC. 5. Prohibited Acts. – Any public officer who is accountable for the Barangay 
Equalization Fund who shall take or misappropriate, or shall consent or permit, through 
abandonment or negligence, any other person to take such public funds or property, 
wholly or partially, shall be liable for misappropriation or malversation of such funds or 
property, and shall suffer the penalties prescribed in Article 217 of the Revised Penal 
Code.  
 
SEC. 6. Implementing Rules and Regulations. – Within ninety (90) days from 
the effectivity of this Act, the Department of Budget and Management, Department of 
Finance, and the Department of the Interior and Local Government, shall promulgate the 
implementing rules and regulations of this Act. 
 
SEC. 7. Appropriations. – The amount necessary for the initial implementation of 
this Act shall be included in the annual General Appropriations Act.  
 
SEC. 8. Separability Clause. – If any provision or part of this Act is declared 
invalid or unconstitutional, the remaining parts or provisions not affected shall continue to 
be in full force and effect. 
 
SEC. 9. Repealing Clause. – All laws, executive orders, and administrative orders 
or parts thereof inconsistent with any provision of this Act are hereby repealed or 
amended accordingly. 
 
SEC. 10. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in the online version of the Official Gazette or in two (2) newspapers of general 
circulation.