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

EIGHTEENTH CONGRESS
First Regular Session

954

House Bill No.

Introduced by Representatives Ron P. Salo

EXPLANATORY NOTE

The barangay is the basic political unit of the Philippine Government System and
plays an important role in the progress and development of the entire country. It serves
as the primary planning and implementing unit of government programs. However, many
barangays, especially in the undeveloped and underdeveloped areas in the countryside,
still lack the necessary resources in order to provide the necessary services to its people,
and to spur economic development.

This Bill seeks to establish a Barangay Equalization Fund which will annually be
released to every barangay in order to augment their meager resources. This aims to help
address prevailing nationwide poverty and spur the development of undeveloped and
underdeveloped areas in the country.

The Barangay Equalization Fund shall exclusively be used to fund their
infrastructure programs, livelihood programs, social services, as well as fund a nutrition
program for its residents.

Indeed, the indispensable role of barangays in nation building necessitates that
Congress provide it with steady government support in order to address the most basic
needs of the people. It will ensure that the development of these undeveloped and
underdeveloped areas is not neglected.

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

Gu

RON P. SALO
KABAYAN Partylist

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

EIGHTEENTH CONGRESS
First Regular Session

House Bill No.__994

Introduced by Representatives Ron P. Salo

AN ACT
PROVIDING FOR A BARANGAY EQUALIZATION FUND

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

SECTION 1. Declaration of Policy. — Section 9, Article Il of the 1987 Constitution
states that “(t)he State shall promote a just and dynamic social order that will ensure the
prosperity and independence of the nation and free the people from poverty through
policies that provide adequate social services, promote full employment, a rising standard
of living, and an improved quality of life for all.”

SEC. 2. Barangay Equalization Fund. — There shall be included in the annual
national budget a Barangay Equalization Fund for every barangay. The appropriation of
each barangay shall be based on the Philippine Statistics Authority's income classification
of the city or municipality in which the barangay belongs. The Barangay Equalization Fund
shall be on top of the Internal Revenue Allotment share that each barangay is already
receiving from the national government.

Every barangay of Fourth, Fifth and Sixth Class municipalities shall receive an
annual appropriation of Six Million Pesos (P 6,000,000.00).

b

Every barangay of First, Second and Third Class municipalities shall receive
an annual appropriation of Five Million Pesos (P 5,000,000.00).

°)

Every barangay of Fourth, Fifth and Sixth Class cities shall receive an annual
appropriation of Four Million Pesos (P 4,000,000.00).

d)

Every barangay of First, Second and Third Class cities shall receive an annual
appropriation of Three Million Pesos (P 3,000,000.00).

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SEC. 3. Trust Fund Classification. — The Barangay Equalization Fund shall be
released annually to every barangay before March 1* of the calendar year and shall be
treated as a trust fund in their annual budget.

SEC. 4. Exclusive Allocation. —- The fund shall be solely allocated for the
upliftment of the economic life of the constituents of the barangay, and shall specifically
allotted as follows:

a) 25% shall be allocated for infrastructure development;
b) 25% shall be allocated for livelihood programs;

c) 25% shall be allocated for social services such as medical, educational,
transportation, burial, and food subsidy assistance; and

d) 25% shall be allocated for a barangay nutrition program.

Not more than 5% of the allocated amount shall be spent for administration of any
of the aforesaid program or project.

SEC. 5. Prohibited Acts. — Any public officer who is accountable for the Barangay
Equalization Fund who shall take or misappropriate, or shall consent or permit, through
abandonment or negligence, any other person to take such public funds or property,
wholly or partially, shall be liable for misappropriation or malversation of such funds or
property, and shall suffer the penalties prescribed in Article 217 of the Revised Penal
Code.

SEC. 6. Implementing Rules and Regulations. — Within ninety (90) days from
the effectivity of this Act, the Department of Budget and Management, Department of
Finance, and the Department of the Interior and Local Government, shall promulgate the
implementing rules and regulations of this Act.

SEC. 7. Appropriations. — The amount necessary for the initial implementation of
this Act shall be included in the annual General Appropriations Act.

SEC. 8. Separability Clause. — If any provision or part of this Act is declared
invalid or unconstitutional, the remaining parts or provisions not affected shall continue to
be in full force and effect.

SEC. 9. Repealing Clause. — All laws, executive orders, and administrative orders
or parts thereof inconsistent with any provision of this Act are hereby repealed or
amended accordingly.

SEC. 10. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

publication in the online version of the Official Gazette or in two (2) newspapers of general
circulation.

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