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REPUBLIC OF THE PHILIPPINES DATE:

HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

5431

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

Article II, Section 28 of the 1987 Constitution declares that subject to reasonable conditions
prescribed by law, the State adopts and implements a policy of full disclosure of all its
transactions involving public interest. In response to this, this bill seeks to provide for the
creation of a single, searchable Internet website that retains and displays data and information
on the local government units’ annual revenues, expenditures, and total bonded indebtedness.
With the supervision of the Department of Interior and Local Government and the assistance
of the Department of Information and Communications Technology, the Municipal or City
Treasurer shall design and develop a local government public finance website, and to
maintain and operate the site, without charge, every fiscal year.

The bill, establishes an accessible, user-friendly source of information to track local revenues
and expenditures and to gauge the local government units’ past and present levels of bonded
indebtedness. Furthermore, this legislation helps facilitate transparency and accountability in
governance and in the bureaucracy, identifying waste, and eliminating abuse at the local
level. It is hoped that this bill will empower local residents by reinforcing their right to follow
the allocation and spending of their hard-earned taxes, and hold their local leaders responsible
for every fiscal transaction in their behalf.

In view of the foregoing, approval of this measure is earnestly sought.

NO


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 5434

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
PROMOTING TRANSPARENCY IN GOVERNMENT BY ESTABLISHING A
LOCAL GOVERNMENT FINANCE WEBSITE

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

SECTION 1. Short Title. -This Act shall be known as the "Local Government
Transparency Act of 2017".

SEC. 2. Definition of Terms. - For the purposes of this Act, the following terms have
the following meaning:

1. "Searchable website” shall mean an Internet website that allows the general public to
search and aggregate data and information. The term shall include requirements that
the website offer the general public the ability to search and display data, and
ascertain the total amounts of:

a. Revenues and expenditures of funds established within the local government
treasury;

b. Compensation paid to public employees of local government agencies; and

c. Bond debt as specified in this Act, in an aggregate or summary form in a manner
determined by the Municipal or City Treasurer, in consultation with the
Department of Interior and Local Government, here in after referred to as the
DILG, and the Department of Information and Communications Technology,
hereinafter referred to as the DICT.

2. "Local government agency” or “agency” shall mean any of the principal departments
in the Executive Branch and any division, board, bureau, office, commission, or other

instrumentality within or created by such principal department; the Municipal or City

1


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Government and any office, board, bureau, or commission within or created by the
Municipal or City Government; and any independent State authority, commission,

instrumentality, or agency.

SEC. 3. Public Finance Website. —

1. The Municipal or City Treasurer, with the supervision of the DILG, and in
consultation with the CICT, shall design, develop, and maintain a single, searchable
Internet. Website that is accessible to the general public without charge and that
includes data and information on the following:

a. annual agency expenditures, as determined by the Municipal or City Treasurer and
as available within the accounting system and municipal or city payroll system,
which shall include but not be limited to:

(1) Disbursements by an agency from funds established within the municipal
or city treasury;
(2) bond debt services including, but not limited to, amounts of bond debt or
interest paid and sources of funds for bond issues;
(3) salaries and wages including, but not limited to, compensation paid to
employees of local government agencies;
(4) contractual service purchases including, but not limited to, amounts
paid to vendors;
(5) commodity purchases including, but not limited to, amounts paid to
vendors,
(6) capital outlay and improvements including, but not limited to, amounts
paid to vendors;
(7) aid to local units of government including, but not limited to, amounts
paid to individual units of local government for aid programs; and
(8) additional forms of assistance and benefits deemed relevant by the
Municipal or City Treasurer

b. annual local revenues, as determined by the Municipal or City Treasurer and as

available within the central accounting system, which shall include but not be

limited to:

(1) receipts and deposits by any State agency into funds established within the

State treasury;


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(2) taxes including, but not limited to, compulsory contributions imposed by
the State for the, purpose of financing services;

(3) agency earnings including, but not limited to, amounts collected by each
agency for merchandise sold, services performed, licenses, and permits
issued, or regulation;

(4) revenue for the use of money and property including, but not limited to,

amounts received for compensation for the use of State-owned money and
Property;

(5) gifts, donations, and federal grants including, but not limited to, amounts
received from public and private entities to aid in support of a specific
function or other governmental activity;

(6) other revenue including, but not limited to, receipts not classified
elsewhere; and

(7) non-revenue receipts including, but not limited to, all receipts that do not
constitute revenue.

c. annual local government bonded indebtedness, as determined by the Municipal or
City Treasurer and as available within the central accounting system, which shall
include but not be limited to:

()) amount of the total original obligation stated in terms of principal and
interest;

(2) term of the obligation;

(3) source of funding for repayment of the obligation;

(4) amounts of principal and interest previously paid to reduce the obligation

(5) remaining balance of the obligation;

(6) data and information related to refinancing of the obligation; and

(7) cited statutory or constitutional authority to issue such bonds .

d. any other data or information specified by the Municipal or City Treasurer after

Consulting with and seeking the advice of the CICT.

The public finance website shall include all data and information enumerated in

subsection a. of this section for each fiscal year. Such data and information posted on

the website may be periodically updated, but shall not be subject to removal


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3. All data and information that is available in: the accounting and local payroll systems
shall be made available on the public finance website as soon as practicable, but not
later than forty-five (45) days after the last day of the preceding fiscal year.

4. The Municipal or City Treasurer shall develop policies and procedures to make data
and information available from any other source

5. Notwithstanding any other law to the contrary, the State Treasurer shall not be
required to provide data and information on the public finance website that is not
available in the central accounting system and the State payroll system at the time of
the website's initial implementation

6. All municipal or city offices are directed to cooperate with the Municipal or City
Treasurer, and the CICT in compiling the data and information necessary to comply
with the provisions of this act.

7. Nothing in this act shall require the disclosure of information deemed private,
personal, or confidential by national law.

SEC. 4. Implementing Rules and Regulations. - The Department of Interior and
Local Government shall, within sixty (60) days after the approval of this Act, shall prepare
and issue the necessary guidelines to implement the same.

SEC. 5. Separability Clause. If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting,

SEC. 6. Repealing Clause, Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to, or inconsistent with,
the provisions of this Act, is hereby repealed, modified, or amended accordingly.

SEC. 7. Effectivity Clause. This Act shall take effect fifteen (15S) days after its
complete publication in the Official Gazette or in at least two (2) newspapers of general

circulation

Approved,