TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHIUPPINES 
First Regular Session
)
)
)
SENATE
S. B. No. 65
25
-3 P3 39
Introduced by Senator Rodante D. Marcoleta
AN ACT
CREATING THE BARANGAY AFFAIRS AND DEVELOPMENT COMMISSION, 
DEFINING ITS POWERS AND FUNCTIONS, ESTABLISHING THE BARANGAY 
DEVELOPMENT FUND, AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
This bill seeks to create the Barangay Affairs and Development Commission, 
define its powers and functions, and establish the Barangay Development Fund.
With history dating back pre-colonial times, the barangay is considered to be 
the government unit closest to the people. Not only does it provide basic social and 
health services, but it also facilitates neighborhood planning and assembly; assists in 
community reconciliation; and even serves as an essential response unit in times of 
emergencies and disasters. With more or less 42,000 barangays in the country, the 
barangay undoubtedly plays an indispensable role to the country's current political 
landscape and development.1
The landmark legislation Republic Act No. 7160 (RA 7160), otherwise known as 
the "Local Government Code of 1991," has recognized the critical role of barangays. 
In particular. Section 384 of the said law provides:
"SEC. 384. Role of the Barangay. - As the basic political unit, the barangay 
serves as the primary planning and implementing unit of government policies.
1 Department of Interior and Local Government. "Regional Summary - Number of Provinces, Cities, and 
Municipalities and Barangays as of March 31, 
2025." 
(29 April 2025). Accessed from:
https://www.dilg.gov.ph/facts-and-figures/Regional-Summary-Number-of-Provinces-Cities-Municipalities-and- 
Barangays-as-of-March-31-2025/32


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, and where disputes may be amicably settled."
Barangays today, however, face various challenges. For one, barangays and 
barangay officials—especially those in rural and remote areas—often lack resources 
and support. This is incongruous to the extensive nature of their work, which often 
always requires them to be on-standby 24 hours a day, 7 days a week.
Politics also considerably impacts the distribution of resources and projects at 
the barangay level. A mayor's political priorities may lead to the concentration of 
resources and development projects in certain areas while neglecting others. Various 
factors, including political alliances, personal biases, and the availability of funds, can 
influence this. As a result, economic development is not cascaded to the barangays 
the way it should.
Therefore, it is crucial to re-examine the functions of the barangay not only as 
a political unit but also as an enabler of the community's socioeconomic affairs. 
Equipping barangays with the necessary skills to manage their limited resources 
effectively, generate economic gains, and provide basic local services to their 
constituents is essential.
This bill seeks to establish a Barangay Affairs and Development Commission, a 
government agency that will focus on the development and welfare of barangays. The 
proposed commission will formulate policies, plans, and programs for the development 
of barangays, monitor and evaluate the implementation of barangay development 
programs, provide technical assistance and capacity-building initiatives, and 
coordinate with relevant government agencies for resource generation and allocation 
for barangay development.
A Barangay Development Fund is also proposed to be established, which will 
be utilized exclusively for the development projects and programs of the barangays, 
including subsidies to poor barangays for the honoraria of barangay officials and 
employees. This will ensure that barangays have the financial resources to implement 
their local development initiatives and pay reasonable honoraria for their officials and 
employees.


The creation of the Barangay Affairs and Development Commission is a way to 
enhance the capacity of barangays to address the needs of their constituents, 
particularly in rural areas where many barangays need more resources and expertise 
to provide essential services. The commission will also bridge the national government 
and the barangays, ensuring that national policies and programs are effectively 
implemented.
With the passage of this bill, we are taking a significant step towards 
strengthening our barangays, empowering our citizens at the grassroots level, and 
realizing the true potential of effective local governance.
In view of the foregoing, the {passage of this bill is earnestly sought.
RODANl E D. MARCOLETA


TWENTIETH CONGRESS OF THE 
REPUBUC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE 
S. B. No. ^5
25 JUL -3 P3 39
Introduced by Senator Rodante D. Marcoleta
AN ACT
CREATING THE BARANGAY AFFAIRS AND DEVELOPMENT COMMISSION, 
DEFINING ITS POWERS AND FUNCTIONS, ESTABLISHING THE BARANGAY 
DEVELOPMENT FUND, AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Barangay Affairs and
2 
Development Commission Act."
3 
Sec. 2. Declaration of Policy. - The State recognizes the barangay as the basic
4 
political unit that serves as the primary planning and implementing unit of government
5 
policies, plans, programs, projects, and activities in the community, and as a forum
6 
wherein the collective views of the people may be expressed, formed and considered,
7 
and where disputes may be amicably settled. The State also recognizes the barangay's
8 
important role in supporting good governance, promoting public participation and
9 
achieving sustainable development. Towards this end, the State shall uplift the social,
10 
economic and political status of barangays by institutionalizing a body focused on
11 
barangay welfare and development.
12 
Sec. 3. Barangay Affairs and Development Commission. - The Barangay Affairs
13 
and Development Commission, hereinafter referred to as the "Commission," is created
14 
to oversee barangay affairs, support the development of barangays, and implement
15 
the programs and projects of the national government that promote the welfare and
16 
development of the barangays.
17


1 
The Commission shall be an agency attached to the Department of the Interior
2 
and Local Government (DILG) for policy and program coordination. It shall establish
3 
its principal office in the National Capital Region and may set-up field offices as may
4 
be necessary to fulfill its mandate and in coordination with appropriate government
5 
agencies.
6 
Sec. 4. Composition. - The Commission shall be composed of seven (7) regular
7 
Commissioners to be appointed by the President of the Philippines. Three (3)
8 
Commissioners shall represent Luzon, two (2) shall represent Visayas and two (2) shall
9 
represent Mindanao: Provided, That at least two (2) Commissioners are women. The
10 
Secretary of the Interior and Local Government and President of the National Liga ng
11 
mga Barangay shall serve as ex-officio Chairperson and ex-officio member,
12 
respectively.
13 
Sec. 5. Term of Office. - The regular Commissioners shall have a term of office
14 
of four (4) years, without prejudice to reappointment by the President of the
15 
Philippines. Of those first appointed, the three (3) Commissioners shall hold office for
16 
four (4) years, two (2) Commissioners shall hold office for three (3) years, and two
17 
(2) Commissioners shall hold office for two (2) years. Appointment to any vacancy
18 
shall only be for the unexpired term of the predecessor.
19 
Sec. 6. Qualifications. - The regular Commissioners must be citizens and
20 
residents of the Philippines; at least forty-five (45) years old at the time of their
21 
appointment; of good moral character; have not been convicted by final judgment of
22 
a crime involving moral turpitude; and possessed a working knowledge in public
23 
administration with a minimum of five (5) years of experience in the administration of
24 
local government units, preferably with legal or financial knowledge on local
25 
government programs.
26 
Sec. 7. Powers and Functions. - The Commission shall exercise the following
27 
powers and functions:
28 
a. Formulate, coordinate, and undertake development programs, plans, policies,
29 
and projects for the advancement of barangays, with due consideration to
30 
national and local development plans;


1 
b. Identify the problems and needs of a barangay and recommend appropriate
2 
solutions necessary for its development and conduct research, study and
3 
analysis for the purpose;
4 
c. Assess, monitor, and evaluate the performance of the barangays and initiate
5 
measures and interventions to improve their operations and services;
6 
d. Provide technical assistance, advisory services and trainings to barangay
7 
officials and personnel;
8 
e. Coordinate with other national and local government agencies, as well as non-
9 
government organizations, civil society groups, and other stakeholders involved
10 
in barangay development efforts;
11 
f. Administer and manage the Barangay Development Fund established under
12 
Section 17 of this Act, and other resources allocated to the Commission for
13 
barangay development;
14 
g. Issue and promulgate rules, regulations and guidelines as may be necessary to
15 
implement and enforce its powers and functions under this Act;
16 
h. Appoint, hire and maintain adequate staff and personnel, advisers or
17 
consultants with suitable qualifications and experience, as may be necessary;
18 
and,
19 
i. Exercise such other powers and functions necessary or incidental or that which
20 
the President may, from time to time, assign to the Commission to carry out
21 
the objectives of this Act and for the effective administration, management and
22 
development of barangays
23 
Sec. 8. Organizational Structure. - Subject to the approval of the Department
24 
of Budget and Management, the Commission shall determine its organizational
25 
structure and staffing pattern, create offices, divisions, or units as it may deem
26 
necessary, and appoint its officers and employees in accordance with civil service laws,
27 
rules and regulations.
28 
In addition to any office that the Commission may create, the Commission shall
29 
establish the following permanent offices:
30 
a. Administrative and Human Resource Management Service;
31 
b. Barangay Affairs Monitoring and Evaluation Service;
32 
c. Barangay Development and Planning Service;


1 
d. Financial Management Service; and,
2 
e. Legislative and Legal Service; and,
3 
f. Regional Offices
4 
The Office of the Undersecretary for Barangay Affairs and National Barangay
5 
Operations Office, including their powers and functions, under the DILG are hereby
6 
transferred to the Commission.
7 
The remuneration and other emoluments for the positions in the staffing pattern
8 
shall strictly conform with existing laws on compensation and position classification.
9 
Sec. 9. Executive Director. - The Commission shall appoint an Executive Director
10 
who shall implement the policies, rules, regulations and directives of the Commission,
11 
and manage, coordinate and supervise the daily operations of the Commission.
12 
The Executive Director shall be a Career Executive Service Officer and must
13 
possess working knowledge in public administration and must have a minimum of five
14 
(5) years of experience in the administration of local government units, preferably
15 
with legal or financial knowledge of local government programs.
16 
Sec. 10. Administrative and Human Resource Management Service. - The
17 
Administrative and Human Resource Management Service of the Commission shall be
18 
responsible for providing the Commission with efficient and effective staff services
19 
relating to personnel, information, records, supplies, equipment, collection,
20 
disbursement, security, and custodial work. For such purposes, it shall exercise the
21 
following functions:
22 
a. Advise the Commission on all matters relating to internal administration and
23 
human resources management;
24 
b. Prepare and implement an integrated personnel plan that includes provisions
25 
on merit promotions, performance evaluation, job rotation, suggestions and
26 
incentive awards systems, and health and welfare services;
27 
c. Provide services related to human resources training, education, and
28 
development, including manpower, career planning and forecasting, and
29 
development of indigenous training materials;
30 
d. Establish and maintain an efficient and cost-effective property procurement
31 
system, in line with existing laws, and coordinate or otherwise interface with


1 
relevant agencies, whether government or private, for the purpose of
2 
developing or upgrading the system;
3 
e. Secure and maintain necessary facilities, and develop, establish, and maintain
4 
an efficient and effective security system covering, among others, personnel,
5 
physical installations, equipment, documents, and materials, including the
6 
conduct of security investigations;
7 
f. Coordinate with the appropriate government agencies for a more efficient
8 
conduct of administrative processes;
9 
g. Develop, establish, and maintain an efficient records system;
10 
h. Provide assistance in its area of specialization to the Commission; and,
11 
i. Perform such other related duties and responsibilities as may be assigned or
12 
delegated by the Commission or as may be required by law.
13 
Sec. 11. Barangay Affairs Monitoring and Evaiuation Service. - The Barangay
14 
Affairs Monitoring and Evaluation Service shall be 
responsible for providing the
15 
Commission with effective staff services relating to monitoring and evaluation of
16 
programs and projects, including timely reports on the status of various Commission
17 
projects and activities, regulatory compliance of barangays, and barangay statistics,
18 
status, and evaluation.
19 
The National Barangay Operations Office under the DILG shall serve as the
20 
Barangay Affairs Monitoring and Evaluation Service and exercise the following
21 
functions:
22 
a. Advise the Commission on all matters relating to monitoring, evaluation and
23 
functionality of barangays;
24 
b. Assess, monitor and evaluate the performance of barangays and initiate
25 
measures to improve their operations and services;
26 
c. Develop policies, plans and programs related to barangay governance and
27 
administration;
28 
d. Develop and maintain a system for retrieving and processing monitoring
29 
information on all projects and activities of concern, including the regulatory
30 
compliance of barangays, to the Commission;
31 
e. Provide technical assistance and advisory services to the barangays;


1 
f. Ccx)rdinate with the appropriate national government agencies tasked with
2 
management of barangay affairs; and,
3 
g. Perform such other related duties and responsibilities as may be assigned or
4 
delegated by the Commission or as may be required by law.
5 
Sec. 12. Barangay Development and Planning Service. - The Barangay
6 
Development and Planning Service shall be responsible for developing policies, plans
7 
and programs related to barangay development. For this purpose, it shall exercise
8 
the following functions:
9 
a. Advise the Commission on all matters relating to barangay development and
10 
planning;
11 
b. Develop policies, plans and programs related to barangay development and
12 
coordinate with other stakeholders involved in barangay development efforts;
13 
c. Formulate strategies and priorities for sustainable development in barangays
14 
consistent with national development objectives and initiate or undertake
15 
relevant surveys for development planning;
16 
d. Assist in the formulation of Barangay Development Master Plan and gather,
17 
analyze and organize necessary data and information;
18 
e. Provide relevant technical assistance to other offices of the Commission as
19 
needed; and,
20 
f. Perform such other related duties and responsibilities as may be assigned or
21 
delegated by the Commission or as may be required by law.
22 
Sec. 13. Financial Management Service. - The Financial Management Service
23 
shall be responsible for providing the Commission with coordinated services relating
24 
to financial systems and procedures, budget, cash, accounting, and all financial
25 
housekeeping matters, including the management of the Barangay Development
26 
Fund. For such purposes, it shall have the following functions:
27 
a. Advise the Commission on all matters relating to the accounting of government
28 
expenditures and receipts, budgeting and cash management, project finances,
29 
and financial systems and procedures;
30 
b. Prepare budget proposals and pursue formal budget authorizations, undertake
31 
budget execution, and prepare and submit all appropriate reports to the proper
32 
offices;


1 
c. Develop and maintain accounting, financial, and assets management systems,
2 
procedures, and practices in the Commission, including the management of the
3 
Barangay Development Fund;
4 
d. Provide assistance in its area of specialization to any unit of the Commission;
5 
e. Review and appraise systems and procedures, organizational structure, assets
6 
management practices, accounting, and other records, reports, and
7 
performance standards such as budgets and standard costs of the Commission;
8 
and,
9 
f. Perform such other related duties and responsibilities as may be assigned or
10 
delegated by the Commission or as may be required by law
11 
Sec. 14. Legislative and Legal Service. - The Legislative and Legal Service shall
12 
be responsible for providing the Commission with services on legislative and legal
13 
affairs such as contract letting and litigation, legal and legislative research, complaints
14 
investigation, legal counseling, and other matters of law. For such purposes, it shall
15 
have the following functions:
16 
a. Advise the Commission on all matters relating to legislative and legal affairs;
17 
b. Prepare Department contracts and legal instruments, review and interpret all
18 
contracts and agreements entered into by the Commission, and evaluate all
19 
legal proposals;
20 
c. Conduct administrative investigation as well as the review of administrative
21 
charges against officers and employees of the Commission;
22 
d. Exercise functional jurisdiction over the legislative and legal staff of regional
23 
offices;
24 
e. Provide legal assistance to the Commission and its offices; and,
25 
f. Perform such other related duties and responsibilities as may be assigned or
26 
delegated by the Commission or as may be required by law.
27 
Sec. 15. Regional Office. - Regional offices shall be responsible for providing
28 
support and assistance to barangays within their regional jurisdiction. For this purpose,
29 
their duties and responsibilities are as follows:
30 
a. Facilitate the implementation of national government programs and projects in
31 
the barangays within the region;


1 
b. Provide technical assistance and capacity-building programs to barangay
2 
officials and workers to enhance their skills and knowledge in governance,
3 
administration, and community development;
4 
c. Conduct research, surveys, and studies to identify the needs and concerns of
5 
the barangays and their residents, and develop appropriate policies and
6 
programs to address them;
7 
d. Coordinate with other government agencies, non-governmental organizations,
8 
and other stakeholders to ensure the effective and efficient delivery of services
9 
to the barangays;
10 
e. In coordination with relevant offices, monitor and evaluate the performance of
11 
barangay officials and workers and providing feedback and recommendations
12 
for improvement;
13 
f. Provide support and assistance to barangays in times of emergencies and
14 
disasters, including natural calamities, conflicts, and other crises;
15 
g. Promote the empowerment and participation of barangay residents, particularly
16 
women, youth, and marginalized groups, in governance and development
17 
processes;
18 
h. Assist in the resolution of conflicts and disputes within and among barangays
19 
and facilitate the peaceful settlement of issues and concerns; and,
20 
i. Perform such other related duties and responsibilities as may be assigned or
21 
delegated by the Commission.
22 
Sec. 16. Regional Director. - The regional office shall be headed by a regional
23 
director who shall be responsible for efficiently and effectively carrying out the duties
24 
and responsibilities of the regional office. The regional director shall, within the
25 
defined powers, exercise functional and administrative supervision over barangays
26 
within the region.
27 
The Regional Director shall also perform such other related duties and
28 
responsibilities as may be assigned or delegated by the Commission or as may be
29 
required by law. The regional director shall be assisted by one (1) assistant regional
30 
director who shall exercise supervision in the planning, evaluation, and technical
31 
assistance functions of the regional office.
32


1 
Sec. 17. Barangay Development Fund; Sources. - There is hereby created a
2 
Barangay Development Fund (BDF), which shall be administered by the Commission
3 
for the accelerated development of all barangays and implementation of the programs,
4 
projects and activities under the Barangay Development Master Plan provided under
5 
Section 18 of this Act. The BDF shall be sourced from the following:
6 
a. Three percent (3%) of the provinces' share on National Tax Allotment (NTA)
7 
under Republic Act No. 7160 or the Local Government Code of 1991, as
8 
amended (LGC);
9 
b. Three percent (3%) of the cities' share on NTA under the LGC;
10 
c. Four percent (4%) of the municipalities' share on NTA under the LGC; and,
11 
d. Donations, grants, and endowments from private individuals, organizations and
12 
corporations.
13 
Sec. 18. Barangay Development Master Plan. - The Commission shall, in
14 
coordination with the Department of Economy, Planning, and Development (DEPDev)
15 
and other concerned government agencies and stakeholders, formulate a Barangay
16 
Development Master Plan. The Master Plan shall include:
17 
a. Priority listing of barangays that require immediate social and economic
18 
development;
19 
b. Common and specific program for all barangays;
20 
c. Utilization of the BDF that includes the following, in coordination with relevant
21 
government agencies:
22 
i. Construction and maintenance of barangay infrastructure, such as roads,
23 
bridges, health centers, and schools;
24 
ii. 
Livelihood and employment programs for the residents of the barangay;
25 
iii. 
Promotion of economic development by supporting small businesses and
26 
attracting investment;
27 
iv. Improvement of access to education and equality of learning
28 
opportunities for residents of the barangay;
29 
V. Environmental protection and conservation projects;
30 
Vi. Disaster preparedness and mitigation programs;
31 
vii. Health and sanitation programs;


1 
viii. Subsidies to poor barangays for the honoraria of barangay officials and
2 
employees; and
3 
ix. Any other projects and programs that promote the development of the
4 
barangay;
5 
d. Oversight, audit, and accountability functions of the Commission, DILG, and
6 
the barangays; and,
7 
e. Other components of the program may be determined by the Commission,
8 
DILG and DEPDev.
9 
Sec. 19. Management, Administration, and Audit - The Commission shall,
10 
through the Executive Director, oversee the management and administration of the
11 
BDF, establish guidelines and procedures for the allocation, disbursement, and
12 
monitoring of funds, and ensure that the funds are utilized for their intended purposes.
13 
The management and administration of the BDF, including its allocation and
14 
disbursement, shall be subject to relevant accounting and auditing rules and
15 
regulations of the Commission on Audit (COA).
16 
Sec. 20. Annual Report. - The Commission shall submit an annual report to the
17 
President of the Philippines and Congress of the Philippines on the status of the BDF,
18 
including the amount of funds collected and disbursed and the projects and programs
19 
implemented.
20 
Sec. 21. Interface with Other Sector Regulators. - DILG shall continue to assist
21 
the President of the Philippines in the exercise of general supervision and
22 
establishment of rules, regulations and other issuances implementing the LGC and
23 
promotion of local autonomy, community empowerment and monitor compliance over
24 
provinces, cities and municipalities, while the Commission shall exercise such general
25 
supervision and establishment of rules and regulations implementing the LGC and
26 
promotion of local autonomy, community empowerment and monitor compliance over
27 
the barangays.
28 
Sec. 22. Transfer of Rights and Obligations. - The Commission shall, by virtue
29 
of this Act, be subrogated to all the rights, and assume all the obligations of the
30 
relevant parts of any government agency or unit whose powers and functions have
31 
been transferred to the Commission.
10


1 
The transfer of powers and functions as indicated in the preceding paragraph,
2 
as applicable and as herein provided for, shall take effect within one hundred eighty
3 
(180) days after the effectivity of this Act. The foregoing transfer of powers and
4 
functions shall include all applicable funds, personnel, records, property, and
5 
equipment, as may be necessary. All offices shall continue to function under their
6 
present mandates until transition is effected as provided for under this Act.
7 
All rights and obligations of affected government agencies are hereby
8 
transferred to and assumed by the Commission and shall be acted upon in accordance
9 
with the rules and regulations of COA and other pertinent laws, rules, and regulations.
10 
Sec. 23. Separation from Service. - Employees separated from government
11 
service as a result of this Act shall, within one (1) month from their separation from
12 
the service, receive the benefits to which they may be entitled under existing laws,
13 
rules, and regulations.
14 
Sec. 24. Appropriations. - The amount necessary for the organization of the
15 
Commission and its initial operations shall be charged against the current
16 
appropriations of the Contingent Fund. Thereafter, such sums as necessary to fully
17 
carry out the objectives, powers, and functions of the Commission shall be included
18 
in the annual General Appropriations Act.
19 
The Commission shall include in its annual budget detailed information on the
20 
compensation and benefits received by their employees.
21 
Sec. 25. Periodic Performance Evaluation. - The Commission is hereby required
22 
to formulate and enforce a system of measuring and evaluating periodically and
23 
objectively the performance of the Commission and submit the same annually to the
24 
President.
25 
Sec. 26. Implementing Rules and Regulations. - Within one hundred twenty
26 
(120) days from the effectivity of this Act, the Commission shall, in coordination with
27 
the Department of Budget and Management, DEPDev, and the Civil Service
28 
Commission, and in consultation with other relevant government agencies,
29 
promulgate the necessary rules and regulations to effectively implement the provisions
30 
of this Act.
31
11


1 
Sec. 27. Separability Clause. - If any provision or part of this Act is declared
2 
invalid or unconstitutional, the remaining parts not affected shall remain in full force
3 
and effect.
4 
Sec. 28. Repealing Clause. - The provisions of the LGC which are inconsistent
5 
with this Act are hereby amended or modified accordingly. All laws, presidential
6 
decrees, executive orders, letters of instructions, administrative orders, proclamations
7 
or administrative regulations that are inconsistent with the provisions of this Act are
8 
hereby repealed, amended, or modified accordingly.
9 
Sec. 29. Effectivity. - This Act shall take effect fifteen (15) days after its 
10 publication in the Official Gazette or in a newspaper of general circulation.
Approved,
12