AN

“7.8 SEP 2088
SEAM

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
16” Congress

House Bill No, 2912—

Introduced by: HON. OSCAR S, RODRIGUEZ

EXPLANATORY NOTE

‘This bill seeks to include all barangays, especially those created after the effectivity of The Local
Government Code (LGC) of 1991 in the computation of the Internal Revenue Allotment (IRA)
and for them to receive their share in the same way as those barangays already existing prior to
LGC.

The exclusion of barangays created after the effectivity of the LGC from the distribution of
Internal Revenue Allotment (IRA) share has raise not only legal issues but also created difficult
circumstances. From 1991 to present, several hundreds of barangays were created, However, the
treatment with respect to their financial requirement is very much different from those already
existing prior to LGC.

Their lack of IRA allocation raises the legal issue of equal protection. The last paragraph of
Section 285 of the Local Government Code of 1991 provides “Provided, finally, That the
financial requirements of barangays created by local government units after the effectivity of this
Code shall be the responsibility of the local government unit concerned.” This an apparent
transgression of the equal protection clause enshrined in Section 1, Article III of the 1987
Constitution. Other than the date of creation of these barangays, no substantial distinction was
provided, to justify the unequal treatment with respect to IRA allocation. Moreover, Sections 385
to 386 of the same Code provided for the manner and requisites for the creation of a barangay.
Evidently, once created, the barangay by law assumes a legal personality with both rights and
responsibilities as any existing barangay.

Needless to say, the Local Government Code was enacted for the purpose of achieving local
autonomy. Local government units, especially barangays were given additional powers to
become independent in the management of their affairs and to properly address the delivery of
basic services to their constituents. Unfortunately, the above-cited provision, limited the powers
of the newly created barangays with respect to their financial independence. Unlike their
counterparts, these barangays depends solely to the city or municipality for their financial
requirements. ‘This situation oftentimes created difficult circumstances. For instance, when city
or municipality has financial problems or when there is a political discord between the mayors
and barangay chairman; this in reality, directly affects the release of the financial support of the
city/municpality to that particular barangay.

This bill which introduce the amendment to the above-cited law, aims primarily to put all
barangays regardless of the date of their creation at equal footing with respect to financial
independence.

In view of the foregoing, the approval of this bill is eamestly sought.

Wyo

HON. OSCAR S. RODRIGUEZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

16" Congress

2912

House Bill No.

Introduced by: HON OSCAR S. RODRIGUEZ

AN ACT
AMENDING SECTION 285 OF R.A. 7160 OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991

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

Congress assembled:

SECTION 1. Section 285 of Republic Act 7160 is hereby amended to read as
follows:

“SEC, 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) 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 pesos (80,000.00) per
annum chargeable against the twenty percent (20%) share of the barangay from the
internal 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%)
(©) On the third year and thereafter:

(1) Population - Sixty percent (60%); and


(2) Equal Sharing - Forty percent (40%),
PROVIDED, FINALLY, THAT BARANGAYS CREATED BY LOCAL
GOVERNMENT UNITS AFTER THE EFFECTIVITY OF THIS CODE, SHALL BE
INCLUDED IN THE COMPUTATION OF THE INTERNAL REVENUE
ALLOTMENT SHARE, AFTER If HAS PASSED THE NI
REQUIREMENTS AND PROCEDURES FOR ITS CRI
DETERMINATION OF THE INTERNAL REVE
BARANGAYS SHALL BE THE OFFICIAL MAST!
THE NATIONAL BARANGAY OPERATIONS OFFIC!
INTERIOR AND LOCAL GOVERNMENT (DILG).”

LIST OF BARANGAYS OF
OF THE DEPARTMENT OF

. 2. All laws, issuances, rules and regulations inconsistent with the provision
hereby amended, repealed or modified accordingly.

of this act

SEC. 3. This Act shall take effect fifteen (15) days after its publication in at least
two (2) newspaper of national circulation.

Approved,