" 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SEN":2E 
S. B. NO.' 190 
'14 
APR 24 P5 :21 
Introduced by SENATOR FERDINAND R. MARCOS, JR. RECEIVED By;2 
AN ACT VESTING UPON CONGRESS THE SOLE POWER TO CREATE BARAN GAYS, 
AMENDING FOR THIS PURPOSE SECTIONS 6, 285 AND 385 OF REPUBLIC ACT 7160, 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991, AND FOR OTHER 
PURPOSES 
Explanatory Note 
Section 6 of Republic Act 7160, otherwise known as the Local Governrnent Code 
of 1991. ernpowers the Sangguniang Panlalawigan and Sangguniang Panlungsod to 
create barangays in their respective territorial jurisdiction, through the enactrnent of 
appropriate ordinance, subject to the limitations and requirernents prescribed by the 
Code. The power is designed to enhance local autonorny, and a recognition of the 
fact that the concerned Sanggunians are in a better position to chart the destiny of 
their local units. 
This power is likewise recognized under Section 385 of the Code, which provides 
that barangays, whether created by law passed by Congress or through ordinance of 
the sangguniang panlalawigan or panlungsod, shall be subject to approval by a 
rnajority of the votes cast in a plebiscite to be conducted by the COMELEC in the local 
governrnent unit or units directly affected within such period of tirne as rnay be 
deterrnined by the law. 
Under Section 285 of the Code, however, rnandates that "the financial 
requirements of barangays created by local governrnent units after the effectivity of 
this Code shall be the responsibility of the local government unit concerned." Thus, the 
local government unit creating the barangay, as mandated in the above-quoted 
provision, has the corresponding obligation to financially support the newly established 
local government units. 
Records of the National Statistical Coordinating Board reveal that as of 31 
December 2013, there are 42,026 barangays allover the country. Out of this number, 
more than 200 barangays were created by the Sanggunian. 
The dismal reality 
however, is that barangays created by the Sanggunian have received rneasly amount 
of annual budgetary allocation from the local government unit which created them. 
This results to poor delivery of basic services due to lack of financial resources that 
should have been used to fund various programs and projects in the said barangay. 
It is unfortunate that the funding allocation of the barangays created by 
Sanggunian is grossly incomparable to the Intemal Revenue Allotment of the other 
existing barangays created by law, thereby creating a disparate classification between 
these two classes of barangays. 
" 


In order to address this inequitable scenario, there were certain barangays that 
sought the help of their respective Congressional Representatives to file bills that all seek 
to "re-name" or "re-create" a barangay out of an eXisting barangay that was 
previously created by a Sangguniang Panlalawigan. The common purpose of these 
bills is to secure entitlement to a share in the Intemal Revenue Allotment. 
To remedy this appalling situation, this legislative measure proposes that the 
creation of the smallest political unit in the country be done solely through Acts of 
Congress, and not through Ordinances passed by the Sanggunian Panlalawigan or 
Sanggunian Panlungsod. 
As a result, barangays created by Congress will entitle them to their just share of 
the Internal Revenue Allotment, as provided for under the Local Govemment Code, 
which shall be automatically appropriated and directly released to them. 
This benefit shall likewise equally apply to those barangays previously created by 
the Sanggunian Panlalawigan and Sanggunian Panlungsod through their respective 
Ordinances. 
In view of the foregoing, approval of this bill is eamestly reques d. 
FERDINAND . MA~COS, JR. 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. B. NO. 2190 
Introduced by SENATOR FERDINAND R. MARCOS. JR. 
Senate 
(Off';~ vf I~. C>m.t.'~ 
'14 
APR 24 P5 :21 
AN ACT VESTING UPON CONGRESS THE SOLE POWER TO CREATE BARANGAYS. 
AMENDING FOR THIS PURPOSE SECTIONS 6. 285 AND 385 OF REPUBLIC ACT 7160. 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991. AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 6 of Republic Act No. 7160 is hereby amended to read as 
follows: 
Section 6. Authority to Create Local Government Units. - A local government unit 
may be created. divided. merged. abolished. or its boundaries substantially 
altered [either) by law enacted by Congress. [in the case of a province. city. 
municipality. or any other political subdivision. or by ordinance passed by the 
sangguniang panlalawigan or sangguniang panlungsod concemed in the case 
of a barangay located within its territorial jurisdiction.] subject to such limitations 
and requirements prescribed in this Code. 
SEC. 2. Section 285 of Republic Act No. 7160 is hereby amended to read as 
follows: 
Section 285. Allocation to Local Government Units. - The share of local 
govemment units in the internal revenue allotment shall be collected in the 
following manner: 
(a) Provinces - Twenty-three percent (23%); 
(b) Cities - Twenty-three percent (23%); 
(c) Municipalities - Thirty-four percent (34%); and 
(d) Barangays - Twenty percent (20%) 
Provided. however. That the share of each province. city. and municipality shall 
be determined on the basis of the following formula: 
(a) Population - Fifty percent (50%); 
(b) Land Area - Twenty-five percent (25%); and 
(c) Equal sharing - Twenty-five percent (25%) 


Provided, further, That the share of each barangay with a population of not less 
than one hundred (100) inhabitants shall not be less than Eighty thousand 
(P80,000.00) per annum chargeable against the twenty percent (20%) share of 
the barangay from the intemal revenue allotment, and the balance to be 
allocated on the basis of the following formula: 
(a) On the first year of the effectivity of this Code: 
(1) Population - Forty percent (40%); and 
(2) Equal sharing - Sixty percent (60%) 
(b) On the second year: 
(1) Population - Fifty percent (50%); and 
(2) Equal sharing - Fifty percent (50%) 
(c) On the third year and thereafter: 
(1) Population - Sixty percent (60%); and 
(2) Equal sharing - Forty percent (40%). 
[Provided, finally, That the financial requirements of barangays created by local 
govemment units after the effectivity of this Code shall be the responsibility of the 
local govemment unit concemed.] 
SEC. 3. Section 385 of Republic Act No. 7160 is hereby amended to read as 
follows: 
Section 385. 
Manner of Creation. - A barangay may be created, divided, 
merged, abolished, or its boundary substantially altered, by law ENACTED BY 
CONGRESS, [or by an ordinance of the sangguniang panlalawigan or 
panlungsod,] subject to approval by a majority of the votes cast in a plebiscite 
to be conducted by the COMELEC in the local govemment unit or units directly 
affected within such period of time as may be determined by the law. [or 
ordinance creating said barangay. In the case of the creation of barangays by 
the sangguniang panlalawigan, the recommendation of the sangguniang 
bayan concerned shall be necessary.] 
SEC. 4. 
Entitlement to Intemal Revenue Allotment Share. 
All barangays, 
including those previously created by Sangguniang Panlalawigan and Sangguniang 
Panlungsod pursuant to Section 6 of RA 7160, shall be entitled to an Internal Revenue 
Allotment share pursuant to Section 284 of RA 7160, which shall be automatically 
appropriated and directly released to them. 
SEC. 5. Implementing Rules and Regulations. The Department of Budget and 
Management (DBM), Department of Finance (DOF), Department of Interior and Local 
Government (DILG), and the different Leagues of the local government units shall issue 
the necessary implementing rules and regulations within sixty (60) days after the 
effectivity of this Act. 


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SEC. 6. 
Separability Clause. - In case any provIsion of this Act is declared 
unconstitutional or invalid, the other provisions hereof which are not affected thereby 
shall continue in full force and effect. 
SEC. 7. Repealing Clause. - All other laws, Executive Orders, Executive Issuances, 
Rules and Regulations or part thereof inconsistent or contrary to the provisions of this 
Act, are hereby repealed or amended accordingly. 
SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in two (2) national newspapers of general circulation. 
Approved.