NELSA B.

SULONG
MPA

REPORT ON LOCAL FISCAL MANAGEMENT

 In the Administration of Local Government, the management of its financial affairs is

one of the important factor and manifestation of a good governance. Hence, under
Local Fiscal Management the local government are vested with authority over local
fiscal matters but with the corresponding limitations to see to it that they operate
within certain defined parameters appropriate for their status and administrative levels.

EXAMPLE: Disbursement from the local treasury can only be made pursuant to an
appropriation ordinance that can only be spent for public purposes.

 Sourcing of local revenue must be expressly granted or authorized by law or by

ordinance and collections must be properly acknowledge and should be accounted to
local funds.
 The LOCAL GOVERNMENT CODE requires LGU’s to formulate a sound financial plans
wherein local budget plans and goals must harmonize with national development plans
to optimize utilization of resources, fiscal or physical.
 Local Development plans are the basis for National plans and budgets of national line
agencies.
 There is sharing of fiscal responsibility by those entities exercising authority over local
fiscal matters
 Most basic limitation is the requirements that all LGU should endeavor to have a
balanced budget for every fiscal year of its operation.

BUDGET FORM AND CONTENT:

LOCAL GOVERNMENT BUDGET SHOULD CONSIST OF THE FF:

1. Estimate Income
2. Total appropriation covering the current operating expenditures and capital outlays

AS A FINANCIAL DOCUMENTS IT SHOULD CONTAIN THE FF:

1. Budget Message of the LCE stating the significance of the executive budget.
2. Summary of functions, projects, and activities to be accomplished
3. Summary of Financial Statements
3.1 Actual income and expenditure during the immediate preceding year
3.2 Actual income and expenditure for the first 2 quarters and the estimates of
the last 2 quarters of the current fiscal year
3.3 Estimates of income for the ensuing fiscal year from ordinances and existing
laws with the revenue raising proposal
3.4 Estimated expenditures necessary to carry out the functions, projects and
activities of the LGU for the ensuing fiscal year.
3.5 All essential facts regarding the bonded and other long-term obligations and
indebtedness of the LGU if any.
3.6 Summary statement of all statutory and contractual obligations due
3.7 Other financial statements and data that is deem necessary.