. . . .  
. .  
. .  
. . . .  
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T E  
12 
S.B. No. 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
As an archipelago situated in the western rim of the Pacific Ocean and part of the circum- 
Pacific seismic belt, the Philippines is situated in the path of turbulent and destructive typhoons, 
storms, floods, drought, earthquake, volcanic emption and landslides. Its coastline of 17,46 1 
kilometers making it vulnerable to tsunamis and storm surges that endanger coastal communities. 
Natural disasters, like the above-mentioned, cause great loss of life and extensive damage 
to property and infrastructure. The macroeconomic impact of these catastrophies can be 
measured in terms of its effects on agricultural production, on industry and services, employment 
and inflation. In other words, the loss of resources due these unpredicted catastrophies adversely 
affect the national economy. Depending on the extent of damage, the development process can 
be delayed or set back by years or a decade. 
It may be gleaned from Section 324, para. (d) of R.A. 7160 (The Local Government 
Code) that the unused or unutilized balance of the annual five percent (5%) sets aside for 
unforeseen calamities is reverted back to the unappropriated surplus of the general funds (Sec. 
322, R. A. 7160) of the municipality. Thus, such reversion renders the unexpended balance 
available for re-apportionment at the pleasure of the sanggunian concerned. 
This bill seeks to amend a specific provision in R. A. 7160 by providing for a "Calamity 
Reserve Fund" to mitigate the effects of unprecedented calamities. 
The early passage of this bill is earnestly sought. 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
”04 JUL -1 
A9 :3 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
R 
S E N A T E  
S.B. No. 
12 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
AMENDING PARAGRAPH (D), SECTION 324 OF REPUBLIC 
ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL 
GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. Paragraph (d), Section 324 of Republic Act No. 7160, otherwise known as 
the Local government Code of 1991 is hereby amended as follows: 
“Sec. 324. Budgetary Requirements. - The budgets of local government 
units for any fiscal year shall comply with the following requirements: 
“(d) Five percent (5%) of the estimated revenue from regular sources shall 
be set aside as annual lump sum appropriation for unforeseen expenditures 
arising from the occurrence of calamities: Provided, however, That such 
appropriation shall be used only in the area, or portion thereof, of the local 
government unit or other areas [declared in state of calamity by the 
President] AFFECTED 
BY DIASATER 
OR 
CALAMITY AS 
DETERMINED BY THE LOCAL SANGGU” 
CONCERNED: 
PROVIDED, THAT THE TWENTY PERCENT (20%) OF THE 
UNEXPENDED BALANCE OF THE ANNUAL, LUMP SUM 
APPROPRIATION FOR UNFORESEEN EXPENDITURES ARISING 


FROM THE OCCURRENCE OF CALAMITIES SHALL NOT REVERT 
TO THE UNAPPROPRIATED SURPLUS OF THE GENERAL FUND, 
BUT INSTEAD, SHALL BE SET ASIDE AS A CALAMITY RESERVE 
FUND. SAID FUND TO BE USED TO AUGMENT THE ANNUAL 
CALAMITY FUND WHEN DEEMED NECESSARY.” 
SEC. 2. 
Separability Clause. - If for any reason any section or provision of this 
Act is declared unconstitutional, other provisions hereof which are not affected thereby shall 
continue to be in full force and effect. 
SEC. 3. 
Repealing Clause. - Any laws, decrees, or rules and regulations which are 
inconsistent with or contrary to the provisions of this Act are hereby amended or repealed. 
SEC. 4. 
Efleetivity Clause. - This Act shall take effect upon its publication in at 
least two (2) national newspapers of general circulation. 
Approved,