REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

House BillNo,__ 8944

Introduced by REP. PAULINO SALVADOR “DOY” C. LEACHON

EXPLANATORY NOTE

The bill seeks to amend certain provisions of the Local Government Code
of 1991 particularly Title III, Chapter 1, of Section 285 in order to allow
barangays which were created after the effectivity of the Local Government Code
of 1991 on January 1, 1992, to receive their just share of the Internal Revenue
Allotment (IRA) and shall provide the basis for redistributing the IRA shares of
Local Government Units to the barangays, irrespective of the date of their
creation.

To date, almost 300 barangays were created after the advent of the Local
Government Code of 1991 (LGC) which also function and perform on the basis of
the same mandate as that of the barangays created before the LGC took effect.

Hence, the necessity and immediacy of approving this bill is of higher
importance. /

PAULINO SALVADOR “DQY” C. LEACHON


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

3541

House Bill No.

Introduced by REP. PAULINO SALVADOR “DOY” C, LEACHON

AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 7160
OTHERWISE KNOWN AS “THE LOCAL GOVERNMENT CODE OF 1991”
AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Section 285 of Republic Act 7160 otherwise known as the
Local Government Code of the Philippines is hereby amended:

“Section 285. Allocation to Local Government Units.- The
share of local government units in the internal revenue allotment
shall be allocated in the following manner:

(a)xxx

(d) barangays - Twenty percent (20%) TO BE ALLOCATED
TO ALL BARANGAYS, REGARDLESS OF THEIR DATE OF
CREATION.

Provided, however, That the share of each province, city,
and municipality shall be determined on the basis of the following
formula:

(ayox

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 Pesos (P80,000.00) per annum

chargeable against the twenty (20%) share of the barangay from

the internal revenue allotment, and the balance to be allocated on

the basis of the following formula:

(ax

Provided, finally, THAT ALL BARANGAYS IRRESPECTIVE
OF THE DATE OF THEIR CREATION SHALL HAVE THE SAME
ALLOCATION.

IN THE ALLOCATION AND RELEASE OF FUNDS, THE
DEPARTMENT OF FINANCE, DEPARTMENT OF THE
INTERIOR AND LOCAL GOVERNMENT AND DEPARTMENT
OF BUDGET AND MANAGEMENT SHALL ENSURE THE EQUAL
TREATMENT OF ALL THE BARANGAYS.

SECTION 2. Application. The right of the barangays created after the
effectivity of the Local Government Code of 1991 shall accrue in the immediately
preceding fiscal year after the approval of this act.

SECTION 3. Repealing Clause. All laws, decrees, executive orders,
issuances or regulations inconsistent with the provisions of this Act are hereby
revised or amended accordingly.

SECTION 4. Separability Clause. If any part of this law is declared
unconstitutional or invalid, such parts or provisions thereof not so declared shall
remain valid and subsisting.

SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days after
completion of its publication in the Official Gazette or in two (2) newspapers of

general circulation.

Approved,