Budget and Planning:

The Budget Process

in the Brgys.
 Budget
Is the legal authority and a financial plan for the
use of Barangay funds, embodying the Estimates
of Income and Expenditures for the designated
calendar year. No money shall be paid out of the
treasury except in pursuance of a lawful
appropriation.
 Budget
Aside to its being a legal requirement
under the Local Government Code, it is
one of the basic requirements of the local
governance.
The Budget Cycle
1. Budget Preparation
2. Budget Authorization
3. Budget Review
4. Budget Execution
5. Budget Accountability
Budget Preparation
The preparation of the Barangay budget is
provided in Article 423 of the Local Gov't.
Code which states that "Upon receipt of the
Statement of Income and Expenditures from
the Barangay Treasurer, the Punong
Barangay shall prepare the Barangay
Budget for the ensuing Fiscal Year in the
Budget Preparation
manner and within the period
prescribed and submit the Annual
Sangguniang to the Barangay Budget
for enactment.
Budget Authorization
This stage of the budget process is
the adoption and enactment of a
Barangay Budget into a General
Appropriations Ordinance (GAO).
Budget Authorization
This provide is Section 391 (a) (3) of the
Local Gov't. Code "the Sangguniang
shall enact Annual and Barangay
Supplemental Budget in accordance with
the Provisions of this code."
 How the
Barangay
Budget is
Authorized:
Step I
- Present the Executive Barangay Budget to
the Sangguniang Barangay

Step II
- Deliberate on the Executive Budget
 Step III
- Enact the General Appropriations Act
(GAO)

Step IV
- Approved the GAO by the Punong Barangay
Budget Review
The GAO, authorizing the Annual or
Supplemental Budget is submitted for
review within ten (10) days after its
enactment to the Sangguniang Bayan. *
Legal basis for the review of brgy.
Budget under Article 424.
Budget Review
a. Copies of the Brgy. Ordinance
authorizing the Annual Appropriation
shall be furnished the Sangguniang
Bayan through the Municipal Budget
Officer.
Budget Review
b. The Sanggunian concerned shall
review the Barangay Ordinance to
ensure compliance thereof with all the
budgetary requirements and limitations
provided in this rule.
Purposes in the Budget Review
a. To ensure that the budgetary requirements
and general limitations provided in the Code are
complied with.
b. The Budget does not exceed the Estimated
Receipts or Income of the Barangay
c. The items of Appropriations are not more
than those provided by existing laws.
 How is the
Budget
Review Done:
1. Review within 60 days upon
receipt
2. Declare the Barangay Budget
Operative
3. Declare the Barangay budget
inoperative in its entirely
4. Declare the Barangay budget
inoperation in past
5. Check consistency of GAO with
AIP and ELA
6. Appeal for consideration in case
of Conflict in Budget Review
Budget Execution
The local Government Code is clear and
explicit on the effectivity of Barangay
Budget. Section 332 provides that the
ordinance enacting the Annual Budget
shall take effect at the beginning of the
ensuing calendar year.
Budget Execution
However, an ordinance enacting a
Supplemental Budget shall take effect upon
its approval or on the date fixed herein. The
Punong Barangay shall be primarily
responsible for the execution of the Annual
and Supplemental Budget of the Barangay.
Budget Accountability
Section 332 of the Local Government Code
provides that "the responsibility for
accountability of the Annual and
Supplemental Budget vested primarily in
the Punong Barangay.
BSBA FM - 4A Group 1
Agosto, Jessa May
Villa, Janiah
Borrinaga, Dhannaveah
Cuizon, Kemberly
Siat, Easel