SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. IBS5 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
'13 
NOV 27 P 3 :\4 
Much has been said and argued about people empowerment. It is a 
fundamental fact, however, that people empowerment can become a reality only 
if the people are well-equipped socially and economically to harness much 
needed resources. 
The barangay, being the government unit closest to the people where 
certain levels of executive, legislative and judicial functions are bestowed, is the 
proper vehicle to actualize this vision of people empowerment. However, at 
present, barangays can hardly be expected to assume this vital role because of 
the inadequacy of funds and resources at their disposal. 
It is therefore, the intention of this bill to seek the allocation of Two 
Hundred Thousand Pesos (P200,OOO.OO) per annum for six consecutive years for 
each barangay. This amount shall be known as the Rural Livelihood and 
Economic Development Fund to be used specifically for livelihood projects that 
shall provide employment and increase the income of the people. Alternatively, it 
can be used as seed money for cooperatives, as well as to finance infrastructure 
projects. 
Approval of this bill is therefore earnestly requested. 
Y EJERCITO ESTRADA 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 19 6 5 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
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IIlV 27 P3 :14 
APPROPRIATING THE AMOUNT OF TWO HUNDRED THOUSAND PESOS 
(P200,OOO.OO) 
PER 
ANNUM 
FOR 
EVERY 
BARANGA Y 
FOR 
SIX 
CONSECUTIVE YEARS TO CONSTITUTE A FUND KNOWN AS THE RURAL 
LIVELIHOOD AND ECONOMIC DEVELOPMENT FUND 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. There shall be established in every barangay a special fund 
to be known as the "Rural Livelihood and Economic Development Fund'. 
SEC. 2. Pursuant to the preceding Section, every barangay shall be 
allocated an amount of Two Hundred Thousand Pesos (P200,OOO.OO) per 
annum, for six consecutive years from the effectivity of this Act. The fund shall be 
included in the annual appropriation of the Department of Interior and Local 
Government and may be funded from foreign and domestic sources. 
SEC. 3. The funds shall be used exclusively for the establishments of 
small-scale livelihood projects, seed money for cooperatives, or for the purchase 
of equipment and facilities necessary in the administration of barangay affairs 
and infrastructure projects: Provided, That contiguous barangays may combine 
their respective allocations in order to come up with impact projects requiring 
greater capitalization. 
SEC. 4. The Department of the Interior and Local Government (DILG), in 
coordination with the local government unit concerned, shall administer and 
supervise the implementation of the fund in coordination with appropriate 
government agencies concerned like the Department of Agriculture (DA), 
Department of Trade and Industry (OTI) and the Department of Science and 
Technology (008T). For this purpose, the Department of the Interior and Local 
Government is hereby authorized to formulate the necessary guidelines to 
ensure the successful implementation of this program. 
SEC. 5. 
Repealing Clause - All laws, presidential decrees, executive 
Orders, rules and regulations or parts thereof which are inconsistent with or 
contrary to this Act are hereby repealed or modified accordingly. 


SEC. 6. Separability Clause - Should any provision, part or portion of 
this Act be declared unconstitutional or invalid, the other provisions, sections, 
parts or portions not affected thereby shall continue to remain in full force and 
effect. 
SEC. 7. Effectivity Clause - This Act shall take effect fifteen (15) days 
after its publication in two (2) newspapers of general circulation. 
Approved,