Republic of the Philippines’,
HOUSE OF REPRESENTA’
Quezon City

THIRTEENTH CONGRESS
First Regular Session

115

HNO.

INTRODUCED BY HONORABLE JUAN EDGARDO “SONNY” M. ANGARA
EXPLANATORY NOTE

In the last decade, the national government has acknowledged the need to further
streamline its structure and organization, to strengthen its lower levels and involved people in the
process of development. We are still in the process of redistributing power, resources and
services from the central government to the regions and lower level political communities to
attain détmocratization and sustained growth. However, in the process of the decentralization and
devolution, many problems have been encountered. And one of the problem is that in many
areas, the local officials (including the budget officers and treasurers) hold the barangays hostage
by withholding the release of their share. This situation has led to the mockery of our desire to
democratize up to the lowest levels of governance and stunted the growth of our barangays.

in this context, I would like to propose to further amend certain provisions of Republic
hetNo. 7160, otherwise known and cited as the Local Government Code of 1991, that will
ensure automatic release of the share of the barangays of the national taxes and impositions on
the utilization and development of national wealth. In this way, the barangays will not have to
literally beg for their rightful share of the national taxes from the provincial, city and municipal
‘governments.

Let us correct this situation which encourages patronage politics and attains our goals of
decentralization and sustained growth up to the lowest levels of our political communities by
approving this Bill,

Dic &

JUAN EDGARDO ;ARA
Lone District, Province of Aurora



THIRTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
H.B.No,_115

Introduced by HON. JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
MANDATING THE AUTOMATIC RELEASE OF THE SHARE OF THE BARANGAY
IN THE PROCEEDS OF NATIONAL TAXES AND TAXES ON THE UTILIZATION
AND DEVELOPMENT OF THE NATIONAL WEALTH, AMENDING FOR THIS
PURPOSE SECTION 286, CHAPTER 1 AND SECTION 293, CHAPTER 2, TITLE 3,
BOOK I, RESPECTIVELY, 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 House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 286, Chapter 1, Title 3, Book II is hereby amended to read as
follows:

“SEC. 286. Automatic Release of Shares. - (a) The share of each local
government unit shall be released, without need of any further action, directly to the
provincial, city, municipal or barangay treasurer, as the case may be, on a quarterly basis
within five (5) days after the end of each quarter, and which shall not be subject to any
lien or holdback that may be imposed by the National Government, AND LIKEWISE
THE SHARE OF THE BARANGAYS SHALL NOT BE SUBJECT TO ANY LIEN OR
HOLDBACK THAT MAY BE IMPOSED BY PROVINCIAL, CITY OR MUNICIPAL
GOVERNMENT, for whatever purpose.

“(b) Nothing in this Chapter shall be understood to diminish the share of local
government units under existing laws.”

SEC. 2. Section 293, Chapter 2, Title 3, Book II is hereby amended to read as follows:

“SEC. 293. Remittance of the Share of Local Government Units. - The share of
local government units form the utilization and development of national wealth shall be
remitted in accordance with Section 286 of this Code: Provided, however, That in the
case of any government agency or government-owned or-controlled corporation engaged
in the utilization and development of the national wealth, such share shall be directly
remitted to the provincial, city, municipal of barangay treasurer concerned within five 95)
days after the end of each quarter: PROVIDED, FINALLY, THAT THE SHARE OF
THE BARANGAYS SHALL NOT BE SUBJECTE TO ANY LIEN OR HOLDBACK
THAT MAY BE IMPOSED BY PROVINCIAL, CITY OR MUNICIPAL
GOVERNMENT FOR WHATEVER PURPOSE.”

SEC. 3. The Secretary of the Department of the Interior and Local Government shall
issue such rules and regulations as may be necessary to carry out the provisions of this Act

SEC. 4. This Act shall take effect immediately upon approval.

Approved,