THIRTEENTH CONGRESS 
FIRST REGULAR SESSION 
OF THE PHILIPPINES 
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Introduced by Senator LUISA “LOI” P. EJERCITO ESTRADA 
EXPLANATORY NOTE 
Much has been said and argued about people empowerment. It is a 
fundamental fact, however, that people empowerment can come into a 
reality only if the people are well-equipped socially and economically to 
harness much needed resources. 
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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 income of 
the people, or it can be used as seed money for cooperatives, as well as to 
finance infrastructure projects. 
Approval of this bill is therefore earnestly requested. 
LUISA 4 x 0 1 ’ ~  P. ~ E R C I T O  
ESTRADA 
Senator 
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THIRTEENTH CONGRESS OF THE REPUBLIC04 )Jii$ 
OF THE PHILIPPINES 
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FIRST REGULAR SESSION 
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S.B. NO. 
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Introduced by Senator LUISA “LOI” P. EJERCITO ESTRADA .
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 I 
AN ACT 
APPROPRIATING THE AMOUNT OF TWO HUNDRED THOUSAND 
PESOS (P200,OOO.OO) PER ANNUM FOR EVERY BARANGAY FOR SIX 
CONSECUTIVE YEARS TO CONSTITUTE A FUND KNOWN AS THE 
RURAL LIVELIHOOD AND ECONOMIC DEVELOPMENT FUND 
Be it enacted by the Senate and the 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. 
Section 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. 


Section 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. 
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Section 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 (DTI) and the 
Department of Science and Technology (DOST). 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. 
Section 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. 


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Section 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. 
Section 7. Effectivity Clause. - 
This Act shall take effect 
fifteen (15) days after its publication in two (2) newspapers of general 
circulation. 
Approved, 
GVL/tmd/SB 966FEBl bills/