LOCAL FISCAL MANAGEMENT

Prepared by:
Annalene Ramores Olit
Overview

Local government units, by virtue of the

1987 Constitution and the Local
Government Code of 1991, otherwise
known as Republic Act 7160 have
been given the power to raise
certain taxes.
Overview
Power to Create Sources of Revenue (Sec.
129)
Each local government unit (LGU) has the
power to create its own sources of revenue
and to levy taxes, fees, and charges
The grant of power to create sources of
revenue is consistent with the basic policy
of local autonomy
The taxes, fees and charges shall
accrue exclusively to the LGU.
Local Budgeting Cycle
BUDGET
PREPERATION

BUDGET BUDGET
ACCONTABILIT AUTHORIZATION
Y

BUDGET BUDGET
EXECUTION REVIEW
 Budget
preparation Executive Budget
Local Chief Executive
Local Finance Committee

Done between July 15

and October 15 of the
current year
Transmitted to the Local
Sanggunian not later than
October 16
 Budget
preparation 2 parts of Executive Budget
 Personal Services
Budget
preparation

Current
Operating
expenditure
 Barangay

Budget
preparation

Specific
Expenditure
REquirement
s
 Budget
Authorization
Legislative discussion of proposed
budget is done by the Sanggunian
between October 16 and
November 17

Enact annual budget by issuing

an appropriation ordinance on or
before the current fiscal year
 Budget Municipalities
Review Component Cities
Sangguniang

Submission of the budget for

review is required within 10 days
Budget
Review
 Budget
Execution Basis for programming finances under the financial
Work Plan

This phase involves

the release and
actual disbursement
of funds for the
identified functions
Work and Financial
Plan and Request
for Allotment
 Budget
Accountability
BARANGGAY FISCAL MANAGEMENT

Prepared by:
Annalene Ramores Olit
Overview

Sections 329-334 (Barangay Budget) of

the Local Government Code of 1991 (RA
No. 7160) provide the basis for the
collection, safekeeping and use of
barangay funds. The aforesaid provisions
govern the preparation, effectivity, and
review of the barangay budget, including
the financial procedures that the barangay
shall observe.
Barangay Budget Cycle
THANK YOU!