Barangays urged to pass new budget

CEBU, Philippines - Cebu City Councilor Joey Daluz III, chairman of the committee on budget and appropriations, yesterday urged the 80 barangays to pass new annual budget to ensure the continuity of developments in their constituencies.

After a three-day budget hearing, the City Council is set to approve on tomorrow’s session the P4.4 billion proposed budget of the city government for 2011.

Daluz, in an interview with The FREEMAN, said that so far, none of the 80 barangays have submitted their 2011 annual budget to the City Council committee on budget and appropriations for review and approval.

“If they cannot pass, it will affect the development especially in the delivery of their basic services,” Daluz said, adding that barangay treasurers should submit to their barangay chiefs on or before October of each year the detailed Statements of Income and Expenditures as a basis for the preparation of the budget for the next fiscal year.

Once the barangay passes the budget, Daluz said that it must be submitted to the City Council for review within 10 days after its passage.

“Wala pa gyud naka-submit,” Daluz said, pointing that one of the reasons maybe is the change of administration considering that barangay election has just finished.

Under the Local Government Code, the barangay annual budget must include the following: the appropriations for development projects of not less than 20 percent of the total IRA of the barangay for the budget year (Development Fund); the appropriations for Sangguniang Kabataan (SK) programs, projects and activities equivalent to 10 percent of the general fund of the barangay for the budget year (SK Fund); the appropriations for unforeseen expenditures arising from the occurrence of calamities at five percent of regular income for the budget year (Calamity Fund); and the provision for the delivery of basic services pursuant to Section 17 of RA No. 7160, and effective local governance.

If the barangay failed to pass a new annual budget, it will use the reenacted budget.

Under a reenacted budget, only the annual appropriations for honoraria and salaries/wages of barangay officials and employees, respectively; statutory and contractual obligations; and essential operating expenses authorized in the annual and supplemental budgets for the preceding year shall be deemed reenacted.

Daluz said there are disadvantages of the reenacted budget even if it ensures that barangay operations will continue despite the absence of a new budget. If its reenacted budget, no new projects can be undertaken; new positions cannot be filled; no new equipments can be acquired; non-recurring activities, no matter how vital, cannot be undertaken; and no increase in honoraria and other benefits.

Capitol Site Barangay Captain and Vice President of the Association of Barangay Councils (ABC) Manuel Guanzon said that one of the reasons why they cannot pass a new budget is because of the failure of some barangays to submit reports to the City Accounting Office, particularly liquidation reports. (FREEMAN)