.. , 
FOURTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHlLlPPlNES 
First Regular Session 
S.B. SENAT?. 
No. 
4 
lntrodaced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
As an archipelago situated in the western rim of the Pacific Ocean and part of the 
circum-Pacific seismic belt, the Philippines is situated in the path of turbulent and 
destructive typhoons, storms, floods, drought, earthquake, volcanic emption and 
landslides. Its coastline of 17,461 kilometers making it vulnerable to tsunamis and storm 
surges that endanger coastal communities. 
Natural disasters, like the above-mentioned, cause great loss of life and extensive 
damage to property and infrastructure. The macroeconomic impact of these catastrophies 
can be measured in terms of its effects on agricultural production, on industry and 
services, employment and inflation. In other words, the loss of resources due these 
unpredicted catastrophies adversely affect the national economy. Depending on the extent 
of damage, the development process can be delayed or set back by years or a decade. 
It may be gleaned from Section 324, paragraph. (d) of R.A. 7160 (The Local 
Government Code) that the unused or unutilized balance of the annual five percent (5%) 
sets aside for unforeseen calamities is reverted back to the unappropriated surplus of the 
general funds (Sec. 322, R. A. 7160) of the municipality. Thus, such reversion renders the 
unexpended balance available for re-apportionment at the pleasure of the sanggunian 
concerned. 
This bill seeks to amend a specific provision in R. A. 7160 by providing for a 
"Calamity Reserve Fund" to mitigate the effects of unprecedented calamities. 
The early passage of this hill is earnestly sought 


Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
AMENDING PARAGRAPH (D), SECTION 324 OF REPUBLIC 
ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL 
GOVERNMENT CODE OF 1991 
Re it enacted by the Senute and House of Representatives of the Philippines it? 
Congress assembled: 
SECTION 1. Paragraph (d), Section 324 of Republic Act No. 7160, otherwise 
known as the Local government Code of 1991 is hereby amended as follows: 
“Sec. 324. Budgetary Requirements. - The budgets of local 
government units for any fiscal year shall comply with the 
following requirements: 
“(d) Five percent (5%) of the estimated revenue from regular 
sources shall he set aside as annual lump sum appropriation for 
unforeseen expenditures arising from the occurrence of calamities: 
Provided, however, That such appropriation shall be used only in 
the area, or portion thereof, of the local government unit or other 
areas [declared in state of calamity by the President) AFFECTED 
BY DISASTER OR CALAMITY AS DETERMINED BY THE 
LOCAL SANGGUNIAN CONCERNED: PROVIDED, THAT 
THE TWENTY PERCENT (20%) OF THE UNEXPENDED 
BALANCE OF THE ANNUAL, LUMP SUM APPROPRIATION 
FOR UNFORESEEN EXPENDITURES ARISING FROM THE 
OCCURRENCE OF CALAMITIES SHALL NOT REVERT TO 
THE UNAPPROPRIATED SURPLUS OF THE GENERAL 
FUND, BUT INSTEAD, SHALL BE SET ASIDE AS A 
CALAMITY RESERVE FUND. SAD FUND TO BE USED TO 
AUGMENT 
THE ANNUAL 
CALAMITY FUND 
WHEN 
DEEMED NECESSARY.” 
SEC. 2. Separability Clause. - If for any reason any section or provision of this 
Act is declared unconstitutional, other provisions hereof which are not affected thereby 
shall continue to be in full force and effect. 


SEC. 3. Repealing Clause. - Any laws, decrees, or rules and regulations 
which are inconsistent with or contray to the provisions of this Act are hereby 
amended or repealed. 
SEC. 4. Effectivity Clause. - This Act shall take effect upon its publication 
in at least two (2) national newspapers of general circulation. 
Approved,