Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH (16) CONGRESS
First Regular Session

House Bill No,_ 1607

Introduced by Representative LINO S. CAYETANO

EXPLANATORY NOTE

Republic Act No. 7160, otherwise known as “The Local Government Code of 1991,” as
amended, was enacted precisely to breathe life into the constitutional mandate of local autonomy
by establishing a more responsive and accountable local government structure instituted through
an efficient system of decentralization. Essentially, this system is geared towards empowering
local government units to achieve their full development as self-reliant communities, making
them more effective and meaningful partners in the attainment of the nation’s goals.

Being the basic political unit, the barangay serves as “the primary planning and
implementing unit of government policies, plans, programs, projects and activities in the
community, and as a forum wherein the collective views of the people may be expressed,
crystallized and considered” (Section 384 of the Local Govemment Code). As such, it is the
country’s ultimate front-liner in the provision of a broad range of basic services to the
community, as well as in the delivery to the citizenry of their first taste of the fruits of local
public service.

In this sense, the creation of barangays, upon proper compliance with the requirements
set by the Constitution and the Local Government Code, thus only serves to bolster the capability
of local governments to efficiently and effectively perform their respective functions, duties and
responsibilities in the name of autonomy, decentralization and national growth and prosperity.

The policy on establishing, protecting and enhancing fiscal autonomy on all levels of
local governance is integral to the proper exercise of local government functions. This policy
refers not just to the power to allocate one’s resources in accordance with one’s priorities but
also the power to create one’s own sources of revenue in addition to one’s equitable share in the
national taxes released by the central government.

Section 6, Article X of the Constitution states: “Local government units shall have a just
share, as determined by law, in the national taxes which shall be automatically released to them.”
The Internal Revenue Allotment (IRA) as incorporated in the general appropriations law enacted
annually by the legislature is the “just share” contemplated by the constitutional mandate.
‘Therefore, it is clearly an indispensable component in the grant of meaningful and true fiscal
autonomy to local government units. However, the Local Government Code, in the last
paragraph of Section 285 thereof, excludes barangays created by local government units through
their respective local legislative bodies from receiving the above-mentioned constitutionally
mandated equitable share in the nation’s internal revenue taxes. The Code provides: “x x x 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” (emphasis and
underscoring supplied)

The non-accordance of these resources to the local government units covered by the last
paragraph of Section 285 of the Local Government Code is thus not in accord with the operative
principles of decentralization contained in Section 3 therein and, fundamentally, with the express
entitlement mandated by the Constitution.

Barangay South Signal, located within the City of Taguig, Metro Manila, is one such
barangay excluded from a share in the IRA. It has a land area of Eight Hundred One Thousand
‘Two Hundred square meters (801,200 sq.m.), more or less, and a population of Thirty Nine
Thousand Two Hundred and Sixty (39,260). It is bounded on the North by Luzon Avenue,
Espino Street, Callejon Balleser Street, and Calle Cabasaan; on the South and South West, by
Maharlika Village, a Creek, Barangay Upper Bicutan Proclamation No. 172 Psd-013-002680; on
the East, by NAPOCOR High Tension Line; and on the West, by F.T.I. Compound. Having thus
complied with the requisites prescribed under Section 386 of the Local Government Code and
the plebiscite requirement contained in Section 10, Article X of the Constitution, it was separated
from the original Barangay Signal, and created as a separate barangay by the City Government of
Taguig, acting through the Sangguniang Panlungsod, under City Ordinance No. 60-2008
approved on September 22, 2008. Its corporate existence began on October 25, 2010 when its
first set of regular officials was elected, pursuant to Section 14 of the Local Government Code.

Anentitlement to the IRA is an indispensable element and a constitutionally and lawfully
ingrained component of the resources of any local government unit, In the case of a barangay,
said entitlement becomes even more crucial as these most basic local political subdivisions
deliver the nation’s frontline response to the needs of the Filipino citizenry. Further, it is at the
barangay level that government, both national and local, ideally aspires to implement base
policies, plans, programs, projects and activities, as well as settle all discussions, disputes and
grievances. In the performance of this all-important frontline response and accountability
functions, diminished and uncertain resources deliver a significant blow to the efficiency and
effectiveness of barangay local governance. At the end of the day, it is the Filipino people
themselves who bear the prejudicial consequences of this fiscal disparity.

In view of these considerations, and in the face of resonating and unified public clamor
for a clear and immediate legislative remedy to the matter at hand, the immediate approval of
this bill is highly and earnestly sought.

LINO S. CAYETANO
Representative
Second District, City of Taguig



Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SIXTEENTH (16™") CONGRESS
First Regular Session

House Bill No,__ 1607

Introduced by Representative LINO S. CAYETANO

AN ACT CREATING A BARANGAY TO BE KNOWN AS BARANGAY SOUTH
SIGNAL IN THE CITY OF TAGUIG, METRO MANILA

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

Section 1, Creation. - South Signal Proper in Barangay Signal, Taguig City, Metro
Manila, is hereby separated from Barangay Signal and constituted into a new Barangay to be
known as Barangay South Signal in the City of Taguig, Metro Manila.

Section 2. Conduct and Supervision of Plebiscite. - The plebiscite conducted and
supervised by the Commission on Elections (COMELEC) in Barangay Bagong South Signal
pursuant to City Ordinance No. 60 Series of 2008 of the Sangguniang Panlungsod of the City of
‘Taguig, which ratified the creation of Barangay South Signal as proclaimed by the City Board of
Canvassers on December 28, 2008 shall serve as valid compliance with the plebiscite
requirement under Section 10 of Republic Act No. 7160, otherwise known as “The Local
Government Code of 1991,” as amended.

Section 3, Barangay Officials. - The incumbent officials of Barangay South Signal shall
continue to hold office until such time that their successors shall have been duly elected and
qualified

Section 4, Public Infrastructure and Facilities. - All existing public infrastructure and
facilities for public use existing therein at the time of the approval of this Act are hereby
transferred without cost or compensation to and shall be administered by the new Barangay.

Section 5. Internal Revenue Allotment (IRA) Shares, — Barangay South Signal shall be
entitled to Internal Revenue Allotment (IRA) shares pursuant to Section 285 of the Local
Government Code of 1991

Section 6. This Act shall take effect fifteen (15) days after its publication in any
newspaper of general circulation.

Approved,