Iloilo city: The Sangguniang Panlungsod has approved a new ordinance to create a PHP2 million annual fund aimed at assisting barangays and Sangguniang Kabataan (SK) councils in meeting budget and development planning requirements. This legislative move is designed to streamline financial processes and ensure timely implementation of local government projects.
According to Philippines News Agency, the newly passed Barangay-SK Budgetary Reform Ordinance establishes a framework for providing technical and professional assistance, ongoing education, capacity building, and compliance monitoring for barangay and SK councils. Majority Floor Leader Rex Marcus Sarabia, who proposed the ordinance, emphasized its necessity in preventing delays in budget preparation and execution.
The ordinance mandates strict adherence to the budgetary calendar outlined in the Local Government Code of 1991, the Philippine Barangay Budgeting Manual, and other relevant regulations. The PHP2 million annual fund will be allocated for training barangay and SK officials and hiring additional staff to assist with budget-related tasks.
In addition to financial support, the ordinance imposes a maximum fine of PHP5,000 and up to one year of imprisonment for officials who fail to transfer public records and documents to newly elected officials during the transition period. Sarabia highlighted the importance of this measure, noting that non-compliance could lead to delayed salaries and unimplemented programs.
Barangays or SK councils that fail to comply for two consecutive years may be subject to an inquiry by the City Council to investigate the reasons behind their noncompliance. To encourage proper budget management, the ordinance introduces a Good Financial Housekeeping Award. This award will recognize councils that exhibit responsible budget practices and adherence to financial documentation requirements, with the first 10 barangays and first 10 SK councils to qualify each receiving PHP200,000 in program funding.
The ordinance comes in the wake of a City Council inquiry revealing that several barangays and SK councils were facing challenges in complying with financial documentation requirements, leading to delayed or reenacted budgets.
