20% Development Fund

Joint Memorandum Circular 2017 – 1

UPDATED GUIDELINES ON THE UTILIZATION
ON THE APPROPRIATION & UTILIZATION OF
THE 20% OF THE ANNUAL INTERNAL
REVENUE ALLOTMENT (IRA) FOR
DEVELOPMENT PROJECTS
GENERAL POLICIES
In accordance with Section 287 of RA 7160,
every LGU shall appropriate in its Annual
Budget not less than 20% of its annual IRA
for development projects.
The 20% DF shall be utilized to finance the
LGU’s priority development projects, as
embodied in its duly approved local
development plans, and Annual Investment
Program (AIP), which should be directly to
supportive of the Philippine Development
Plan & Public Investment Program.
GENERAL POLICIES
All development projects to be funded
under the 20% DF shall contribute to
the attainment of desirable socio-
economic development &
environmental management
outcomes of the LGU, and shall
partake the nature of investment or
capital expenditures.
SOCIAL DEVELOPMENT PROJECTS
HEALTH CENTERS, RURAL HEALTH UNITS & HOSPITALS

AMBULANCE AND OTHER MEDICAL EQUIPMENT

POTABLE WATER SUPPLY SYSTEMS

MANPOWER DEVELOPMENT CENTERS

DRUG EDUCATION TREATMENT/REHABILITATION CENTERS

DISASTER RESILIENT EVACUATION CENTERS

MULTI-PURPOSE HALLS AND HISTORICAL SITES
CLASSIFIED BY NHCP
INSTALLATION OF STREET LIGHTING SYSTEM
LAND FOR RELOCATION OF INFORMAL SETTLERS
& VICTIMS OF CALAMITIES
ECONOMIC DEVELOPMENT
PROJECTS
COMMUNAL IRRIGATIONS AND WATER IMPOUNDING SYSTEM

POST – HARVEST FACILITIES AND EQUIPMENT FOR FARMER

LOCAL ROADS, BRIDGES AND FARM-TO-MARKET ROADS

ENGINEERING EQUIPMENT INCLUDING DUMP TRUCKS,

GRADERS AND PAY LOADERS
ALTERNATIVE POWER OR ENERGY SOURCES
SUCH AS RENEWABLE ENERGY POWER PLANTS

CAPITAL EXPENDITURES FOR LOCAL LIVELIHOOD

OR ENTREPRENEURSHIP
ENVIRONMENTAL MANAGEMENT
PROJECTS

GARBAGE TRUCKS AND OTHER

EQUIPMENT FOR ENVIRONMENTAL
MANAGEMENT AND PROTECTION
REFORESTATION AND
URBAN GREENING

FLOOD CONTROL PROJECTS

SUCH AS DRAINAGE SYSTEMS,
RIVERWALLS AND DE-CLOGGING
OF CANALS
SANITARY LANDFILL AND
MATERIAL RECOVERY FACILITIES
NOT ALLOWED EXPENDITURE
ITEMS
SALARIES AND WAGES, OVERTIME PAY & PERSONNEL BENEFI

ADMINISTRATIVE EXPENSES SUCH AS SUPPLIES, ELECTRICIT

TRAVELING EXPENSES WHETHER DOMISTIC OR FOREIGN

OFFICE FURNITURES, FIXTURES, EQUIPMENT AND APPLIANC

REPAIR OF MOTOR VEHICLES OR MOTORCYCLES

REGISTRATION FEES FOR SEMINARS & CONFERENCES

The utilization of the 20% Development Fund for any

purpose than those prescribed by law or public policy
shall be subject to the sanctions provided under RA 7160
and other applicable laws.
 Additional Guidelines on
20% Development Fund
Joint Memorandum Circular 2020-1
ADDITIONAL GUIDELINES ON THE
UTILIZATION OF THE 20% OF THE ANNUAL
INTERNAL REVENUE ALLOTMENT (IRA) FOR
DEVELOPMENT PROJECTS IN VIEW OF
CORONADISEASE 2019 (COVID19) SITUATION
GENERAL POLICIES
In addition to the allowable to be used
for the following COVID 19-related
expenses:
Procurement of PPE;
Procurement of equipment, regents, and kits for
COVID19 testing;
Procurement of medicines and vitamins
Procurement of hospital equipment and supplies
Procurement of disinfectants, sprayers,
disinfection tents and other disinfecting supplies
and misting equipment.
GENERAL POLICIES
In addition to the allowable to be used for
the following COVID 19-related expenses:
 Food transportation (including fuel) and
accommodation expenses of medical personnel and
other LGU personnel directly involved in the
implementation of COVID-19 related PPAs
 Food assistance and other relief goods for affected
households;
 Expenses for the construction/repair/ lease/ rental
of additional space/ building to accommodate
COVID-19 patients and person under
monitoring/investigation;
GENERAL POLICIES
In addition to the allowable to be used for
the following COVID 19-related expenses:
 Expenses for the operation of stand-alone/ mobile
testing laboratory;
 Expenses for the purchase/rental of tents for
temporary shelter of the homeless;
 Expenses for training of personnel in the conduct of
COVID-19 testing and other related trainings; and
 Other necessaryCOVID-19 related PPAs and
expenses.
NOT ALLOWED EXPENDITURE
ITEMS
• SALARIES AND WAGES, OVERTIME PAY & PERSONNEL
BENEFITS
• ADMINISTRATIVE EXPENSES SUCH AS SUPPLIES,
ELECTRICITY
• TRAVELING EXPENSES WHETHER DOMISTIC OR
FOREIGN
• REGISTRATION OR PARTICIPATION FEES IN TRAINING,
SEMINARS, CONFERENCES OR CONVENTIONS
• PURCHASE OF ADMINISTRATIVE OFFICE’ FURNITURE,
FIXTURES, EQUIPMENT OR APPLIANCES; AND
• PURCHASE, MAINTENANCE OR REPAIR OF MOTOR
VEHICLES OR MOTORCYCLES, OTHER THAN THOSE
SPECIFIED IN ITEM 3.0 OF DILG JMC 2017-1

The utilization of the 20% Development Fund for any

purpose than those prescribed by law or public policy
shall be subject to the sanctions provided under RA 7160
and other applicable laws.
Note to remember:
This additional guidelines only in full force or in effect
throughout the duration of the State of Calamity as
declared by the President through PROCLAMATION
NO. 929.