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REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF BUDGET AND MANAGEMENT
GENERAL SOLANO STREET, SAN MIGUEL, MANILA

LOCAL BUDGET MEMORANDUM No. 90

Date: June 13, 2024

To Local Chief Executives, Members of the Local Sanggunian, Local

Budget Officers, Local Treasurers, Local Planning and
Development Coordinators, Local Accountants, and All Others
Concerned

Subject INDICATIVE FY 2025 NATIONAL TAX ALLOTMENT (NTA)

SHARES OF LOCAL GOVERNMENT UNITS (LGUs) AND
GUIDELINES ON THE PREPARATION OF THE FY 2025
ANNUAL BUDGETS OF LGUs

1.0 PURPOSE

This Local Budget Memorandum (LBM) is being issued to:

1.1 Inform the LGUs of their indicative NTA shares for FY 2025 based on the
certifications issued by the Bureau of Internal Revenue (BIR), Bureau of
Customs (BOC), and Bureau of the Treasury (BTr) on the share of LGUs
from the actual collections of national taxes in FY 2022 pursuant to the
Local Government Code of 1991 (Republic Act [RA] No. 7160) and the
Supreme Court (SC) decision in the consolidated cases of Congressman
HermHandoI. Mandanas, etaL vs. Executive Secretary Paquito N. Ochoa,
Jr. et al. and Honorable Enrique T. Garcia, Jr. vs. Executive Secretary
Paquito Ochoa, eta!.]^ and

1.2 Prescribe the guidelines on the preparation of the FY 2025 annual

budgets of LGUs.

2.0 GUIDELINES

2.1 Allocation of the FY 2025 NTA

2.1.1 In the computation of the FY 2025 NTA shares of LGUs, the

following factors were taken into consideration:

’ G.R. Nos. 199802 and 208488 dated April 10, 2019

Page 1 of 14
 2.1.1.1 The 2020 Census of Population by Province, City,
Municipality, and Barangay, as approved through
Proclamation No. 1179 dated July 6, 2021;^ and

2.1.1.2 The 2001 Master List of Land Area certified by the Land
Management Bureau (LMB) pursuant to Oversight
Committee on Devolution Resolution No. 1, s. 2005
dated September 12, 2005, unless the latest LMB-
certified Masterlist of Land Area has been validated by
the Department of the Interior and Local Government
(DILG), National Mapping and Resource Information
Authority, and representatives of the Leagues of
Provinces, Cities, and Municipalities, and endorsed by
the Secretary of the Department of Environment and
Natural Resources and the Chief Minister of the
Bangsamoro Autonomous Region in Muslim Mindanao
to the Department of Budget and Management (DBM)
on or before December 31, 2024.

2.1.2 Pursuant to Section 95 of the General Provisions (GPs) of the FY

2024 General Appropriations Act (GAA), RA No. 11975, all valid
adjustments, changes, modifications, or alterations in any of the
factors affecting the computation of the NTA that occurred or
happened, including final and executory court decisions made
effective, during the current fiscal year (FY 2024), shalii only be
considered and implemented by the DBM in the subsequent fiscal
year (FY 2025) from receipt by the DBM of the notice of the said
change.

2.1.3 In relation thereto, the changes in the factors have been

considered in view of the resolution of boundary disputes in the
Supreme Court Decision in the case Municipality of Imeida,
Zamboanga Sibugay vs. Municipality of Payao, Zamboanga
Sibugay?

2.1.4 All other LGUs that may be created/converted by Congress and

approved by the President, the corporate existence of which will
commence in FY 2024, shall likewise be included in the allocation
of the FY 2025 NTA shares of LGUs.

All LGUs concerned shall be informed of the resulting adjustments

in the computation of their respective FY 2025 NTA shares through
a subsequent LBM to be issued by the DBM for the purpose. It
must be noted that said LBM will be issued in December 2024
inasmuch as the authorized adjustment to the NTA covers factors
that occurred or happened until the end of FY 2024.

2 Eteclaring as Official the Population Count of the Philippines by Province, City/Municipality and Barangay based on the 2020
Census of Population and Housing Conducted by the Philippine Statistics Authority
3 G.R.. No. 243167

Page 2 of 14
 2.1.5 Any valid adjustments, changes, modifications, or alterations in
any of the factors affecting the computation of the NTA that may
occur or happen in FY 2025, including final and executory court
decisions, shall be governed by the applicable GP in the FY 2025
GAA.

2.2 Preparation of the FY 2025 Annual Budgets of LGUs

2.2.1 For the purpose of preparing the FY 2025 annual budgets of

LGUs, the total NTA shares of LGUs shall be
Php 1,034,604,869,000 based on the certifications of the BIR,
BOC, and BTr on the actual collections of national taxes in
FY 2022, broken down as follows:

Collecting Agency Amount (Php)

BIR 776,559,602,000
BOC 258,003,912,000
Other agencies (as certified by the 41,355,000
BTr)

TOTAL 1,034,604,869,000

The FY 2025 NTA level is Php 163,229,670,000 or 18.73% higher

than the FY 2024 NTA shares of LGUs.

2.2.2 Pursuant to Sections 284 and 285 of RA No. 7160, and after
consideration of NTA portability under RA No. 11683,^
summarized below are the total shares by the level of LGU in the
FY 2025 NTA.

Level of LGU No. of LGUs Total NTA Shares (Php)

Provinces 835 237,959,119,870
Cities 149 239,045,960,732
Municipalities 1,485 350,678,814,598
Barangays 41,905 206,920,973,800
TOTAL 43,622 1,034,604,869,000

2.2.3 Further details of the FY 2025 NTA shares of LGUs by region and
by level of LGU are reflected in Annex A hereof. The LGUs shall

An Act Amending Section 450 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, as Amended
by Republic Act No. 9009, by Providing for the Requisites for the Conversion of a Municipality into Component City, and for Other
Puiposes
5 The Metropolitan Manila Development Authority is included in the computation of the NTA shares of provinces pursuant to
Section 10 (b) of RA No. 7924.

Page 3 of 14
 be notified of their respective indicative FY 2025 NTA allocations
by the DBM Regional Offices (ROs) concerned, and said
information shall be used by LGUs as basis for determining the
amounts to be allocated for the budgetary requirements as
prescribed under RA No. 7160 and other pertinent laws.

2.2.4 In addition to the NTA, some LGUs are entitled to the following
Special Shares in the Proceeds of National Taxes:

Share in the proceeds from the utilization and

development of national wealth within their territorial
jurisdiction pursuant to Sections 289 to 291 of RA No.
7160;

Excise tax on Virginia Tobacco cigarettes pursuant to RA

No. 7171,^ as incorporated in RA No. 8424,as amended
by RA No. 11346;®

Excise tax on Burley and Native Tobacco products

pursuant to RA No. 8240,^ as amended by RA No. 10351/°
and as further amended by RA No. 11346;

Gross income taxes paid by all businesses and enterprises

within the Economic Zones pursuant to RA No. 7922,^^ as
amended by RA No. 9400;^^

Value-added Tax pursuant to RA No. 7643;^^

Share in Fire Code Fees pursuant to RA No. 9514.^^

The LGUs concerned are advised to coordinate with the

appropriate revenue-collecting agencies and government
corporations to reconcile their records with those of the collecting
agencies to determine the amount of their shares from the said
taxes.

* An Art to Promote the Development of the Farmers in the Virginia Tobacco-Producing Provinces
An Art Amending the National Internal Revenue Codes, as amended, and for Other Purposes
® An Art Increasing the Excise Tax on Tobacco Products, Imposing Excise Tax on Heated Tobacco Products and Vapor Products,
Increasing the Penalties for Violations of Provisions on Articles Subject to Excise Tax, and Earmarking a Portion of the Total Excise
Tax Collection from Sugar-Sweetened Beverages, Alcohol, Tobacco, Heated Tobacco and Vapor Products for Universal Health
Care, Amending for this Purpose Sections 144, 145, 146, 147, 152, 164, 260, 262, 263, 265, 288, and 289, Repealing Section
288(B) and 288(C), and Creating New Sections 263-A, 255-B, and 288-A of the National Internal Revenue Code of 1997, as
Amended by Republic Act No. 10963, and for Other Purposes
5 An Act Amending Sections 138,139,140, and 142 of the National Internal Revenue Code, as amended, and for Other Purposes
An Act Restructuring the Excise Tax on Alcohol and Tobacco Products by Amending Sections 141,142,143, 144, 145, 8,131
and 288 of Republic Art No. 8424, Otherwise Known as the National Internal Revenue Code of 1997, as Amended by republic
Art No. 9334, and for Other Purposes
” Cagayan Economic Zone Art of 199
An Art Amending RA No. 7227, as amended, otherwise known as the Bases Conversion and Development Art of 1992, and for
Other Purposes
An Art to Empower the Commissioner of Internal Revenue to Require the Payment of the Value-Added Tax (VAT) Every Month
and to Allow LGUs to Share in VAT Revenue, Amending for this Purpose Certain Sections of the National Internal Revenue Code
Revised Fire Code of the Philippines of 2008

Page 4 of 14
 2.2.5 Priorities in the Use of the NTA and Other Local Resources

2.2.5.1 Pursuant to Section 17 (g) of RA No. 7160, the NTA

and other local resources shall first cover the cost of
providing the basic services and facilities enumerated
under Section 17 (b) thereof, particularly those
devolved by the National Government (NG), before
applying the same for other purposes.

2.2.5.2 Each LGU shall appropriate In Its annual budget no

less than twenty percent (20%) of its NTA share for
development projects, which is commonly known as
the 20% Development Fund (DF), as mandated under
Section 287 of RA No. 7160.

The 20% DF shall be utilized in accordance with the

DBM-DOF-DILG Joint Memorandum Circular (JMC) No.
1 dated November 4, 2020.

2.2.5.3 As provided under Section 21 of RA No. 10121,Rule

18 of its Implementing Rules and Regulations (IRR),
and item 4.0 of National Disaster Risk Reduction and
Management Council-DBM-DILG JMC No.. 2013-1
dated March 25, 2013,not less than five percent
(5%) of the estimated revenue of LGUs from regular
sources^® shall be set aside as the Local Disaster Risk
Reduction and Management Fund (LDRRMF), and
shall be utilized in accordance with the pertinent
provisions of laws, rules and regulations.

2.2.5.4 Pursuant to Section 324 (c) of RA No. 7160, provinces,

cities, and municipalities shall provide aid to their
component barangays in the amount of not less than
One Thousand Pesos (Php 1,000.00) per barangay.

2.2.5.5 The FY 2025 annual budgets of LGUs shall likewise

include programs, projects, and activities (PPAs) that
can be attributed and built-in within the budget levels
for the following:

• Gender and Development pursuant to RA No.

7192,15 RA No. 9710,20 and Philippine
Commission on Women-DILG-DBM-National

Revised Guidelines on the Appropriation and Utilization of the Twenty Percent (20%) of the Annual Internal Revenue Allotment
(IRA) [now NTA] for Development Projects
Philippine Disaster Risk Reduction and Management Act of 2010
Allocation and Utilization of the Local Disaster Risk Reduction and Management Fund (LDRRMF)
” Refer to local taxes, fees, and receipts that may be collected by the LGU, including the NTA and other shares provided for in
Sections 284, 290 and 291 of RA No. 7160, but exclusive of non-recurring receipts such as national aids, grants, financial
assistance, loan proceeds, sales of assets, miscellaneous income/receipts and other similar receipts.
*’ Women in Development and Nation Building Act
“ The Magna Carta of Women

Page 5 of 14
 Economic and Development Authority JMC No.
2016-01 dated January 12, 2016;2i
Senior Citizens and Persons with Disabilities
pursuant to RA No. 99942^ amending RA No.
7432,23 and RA No. 94422^ amending RA No.
7277;25

• Community-based Human Immunodeficiency

Virus/Acquired Immune Deficiency Syndrome
(HIV/AIDS) prevention and care services (RA
No. 11166);^® and

• Implementation of the programs of the Local

Councils for the Protection of Children pursuant
to RA No. 9344.27

2.2.5.6 In accordance with Section 329 of RA No. 7160 and

Section 20 (a) of RA No. 10742,28 as amended by RA
No. 11768,29 the barangays shall set aside ten percent
(10%) of the general fund of the barangay for the
Sangguniang Kabataan (SK). The Sangguniang
Barangays shall appropriate the SK funds in lump
sums which shall be disbursed for youth development
and empowerment purposes.

In the appropriation and release of additional

honoraria for SK officials, the LCDs shall observe the
policies and procedures prescribed under Local
Budget Circular (LBC) No. 148 dated December 23,
2022.30

2.2.6 Pursuant to Section 305 (h) of RA No. 7160, local budget plans
and goals shall, as far as practicable, be harmonized with national
development plans, goals, and strategies to optimize the
utilization of resources and to avoid duplication in the use of fiscal
and physical resources.

“ Amendments to Philippine Commission on Women-DILG-DBM-National Economic and Development Authority JMC No. 2013 01:
Guidelines on the Localization of the Magna Carta of Women
Expanded Senior Citizens Act of 2010
An Act to Maximize the Contribution of Senior Citizens to Nation Building, Grant Benefits and Special Privileges and for Other
Purposes
An Act Amending RA No. 7227, Otherwise Known as the "Magna Carta for Disabled Persons," and for Other Purposes
Magna Carta for Disabled Persons
2*’ An Act Strengthening the Philippine Comprehensive Policy on Human Immunodeficiency Virus (HIV) and Acquired Immune
Deficiency Syndrome (AIDS) Prevention, Treatment, Care, and Support, and. Reconstituting the Philippine National Aids Council
(PNAC), Repealing for the Purpose Republic Act No. 8504, Otherwise Known as the "Philippine Aids Prevention and Control Act of
1998", and Appropriating Funds Therefor
Juvenile Justice and Welfare Act of 2006
Sangguniang Kabataan Reform Act of 2015
2'’ An Act Strengthening the Sangguniang Kabataan, Institutionalizing Additional Reforms to Revitalize Youth Participation in Local
Governance and by Providing Honorarium, Other Benefits and Privileges, Amending for the Purpose Certain Sections of Republic
Act No. 10742, Otherwise Known as the "Sangguniang Kabataan Reform Act of 2015"
Implementing Guidelines on the Grant of Honorarium to SK Officials Pursuant to Republic Act (RA) No. 11768

Page € of 14
 2.2.6.1 To this end, the LGUs are enjoined to align their PPAs
with the priorities of the NG, specifically those
embodied under the Philippine Development Plan and
Public Investment Program for 2023-2028.

2.2.6.2 Moreover, In accordance with Executive Order (EO)

No. 14 dated January 27, 2023,the PPAs of LGUs
shall have a results-oriented focus on national
development goals and shall be in line with AMBISYON
NATIN 2040, the 2030 Agenda for Sustainable
Development, which is anchored on a set of
Sustainable Development Goals, the President's 8-
Point Socioeconomic Agenda, and the 2022-2028
Medium-Term Fiscal Framework.

2.2.6.3 In accordance with DILG-Office of the Presidential

Adviser on the Peace Process JMC No. 1, s. 2020 dated
November 16, 2020,^^ LGUs are encouraged to adopt
Conflict Sensitivity and Peace Promotion approaches
in the preparation of their budgets.

2.2.6.4 Finally, the LGUs are reminded to ensure that the PPAs
committed to the attainment of targets in the
Provincial/National Capital Region LGUs Results
Matrices are prioritized in their respective budgets to
ensure convergence and alignment of initiatives at the
different levels of government.

2.2.7 Section 305 (i) of RA No. 7160 provides that local budgets shall
operationalize approved local development plans. For this
purpose, LGUs shall prepare the total resource Annual
Investment Program (AIP) for the budget year. The template of
the AIP for provinces, cities and municipalities is provided in
Annex B, while the template of the AIP for barangays is provided
in Annex C.

The same shall be culled out from the Local Development

Investment Program (LDIP), which in turn shall be based on the
approved Barangay Development Plan in the case of barangays.
Comprehensive Development Plan in the case of cities and
municipalities, and Provincial Development and Physical
Framework Plan in the case of provinces.

The AIPs, as well as the LDIPs based on the approved local

development plans, shall include the PPAs pertaining to the
devolved functions and services pursuant to Section 17 (b) of RA
No. 7160, and this LBM.

Approving and Adopting the Philippine Development Plan for the Period 2023-2028
Guidelines on Mainstreaming Conflict Sensitivity and Peace Promotion (CSPP) and Sectoral Concerns in the Comprehensive
Develcpraent Plan (CDP) of Local Government Units (LGUs) in Conflict-Affected and Conflict-Vulnerable Areas.

Page 7 of 14
 2.2.8 Proclamation No. 297 dated July 21, 2023^^ lifted the State of
Public Health Emergency throughout the country due to COVID-
19. Nevertheless, LGUs may provide funds for COVID-19-related
and/or other health-related emergency PPAs and expenses, as
may be necessary.

2.2.9 Section 12 of RA No. 11861^^ provides that the cities and

municipalities shall allocate a monthly cash subsidy of One
Thousand Pesos (Php 1,000.00) for solo parents earning
minimum wage and below in accordance with Section 17 (b) (2)
(iv) of RA No. 7160, and DILG Memorandum Circular (MC) No.
2023-140 dated September 29, 2023.^^

2.2.10 In accordance with DILG MC No. 2024-071 dated May 10, 2024,
all LGUs shall include in their respective Local Development Plans
and AIP, applicable Philippine Plan of Action for Nutrition (PPAN)
programs to ensure adequate funding for nutrition impact, which
shall be formulated in accordance with the PPAN 2023-2028.

2.2.11 Pursuant to Section 51 of RA No. 9165,LGUs shall appropriate

a substantial portion of their respective annual budgets to assist
in or enhance the enforcement of said law by giving priority to
preventive or educational programs and the rehabilitation or
treatment of drug dependents.

Relative thereto, LGUs may refer to DILG MC No. 2021-044 dated

April 14, 2021^^ for the list of anti-illegal drug programs and/or
activities that they may prioritize and implement.

2.2.12 Pursuant to DILG MC No. 2013-98 dated September 10, 2013,^^

and DILG MC No. 2017-133 dated September 29, 2017,-’° all
LGUs are encouraged to allocate funds for PPAs on culture, arts,
and cultural heritage which shall be sourced from the annual
cultural development plans prepared and approved by their
respective local culture and arts councils. These PPAs shall be
categorized under the social sector in the AIP and its precedent
development plans in consonance with their respective Regional
Development Plans.

Lifting of the State of Public Health Emergency throughout the Philippines due to COVID-19
Expanded Solo Parents Welfare Act
Guidelines for Local Government Units and others concerned on the Implementation of RA 11861 otherwise known as the
Expanded Solo-Parents Welfare Act
Adoption and Implementation of the Philippine Plan of Action for Nutrition (PPAN) 2017-2022
Comprehensive Dangerous Drugs Act of 2002
Guidelines for Substantial Budget Allocation for the Holistic Implementation of Anti-Drug Abuse Programs by Local Government
Units
Encouraging LGU Support to Protect and Conserve National Cultural Heritage
Revision of DILG Memorandum Circular No. 2002-81, Titled, "Creation of Local Culture and Arts Councils

Page 8 of 14
 2.2.13 Pursuant to EO No. 533 dated June 6, 2006,'’^ the LGUs
concerned shall allocate adequate funds for the development and
implementation of integrated coastal management programs.

2.2.14 In accordance with Section 29 and Section 38 of RA No. 10601,

Department of Agriculture (DA) - DILG JMC No. 2018-02 dated
August 02, 2018,'^^ and DA-DBM-Civil Service Commission (CSC)-
DILG JMC No. 02, s. 2020 dated June 24, 2020,^^ lqus are
enjoined to allocate funds for the development and
implementation of devolved and mandated local agricultural and
fisheries mechanization, irrigation, farm-to-market roads, and
other related infrastructure programs and projects.

2.2.15 Section 4 of RA No. 11315^"^ provides that a Community-Based

Monitoring System (CBMS) shall be established and instituted in
every city and municipality as an economic and social tool for the
formulation and implementation of poverty alleviation and
development programs that are specific, targeted, and
responsive to the basic needs of each sector of the community.

Hence, the LGUs concerned shall provide the needed funds for
the implementation of their respective mandates and functions
relative to the CBMS established under RA No. 11315.

2.2.16 The FY 2025 annual budgets of provinces, cities, and

municipalities shall be prepared in accordance with the
procedures and schedules prescribed under RA No. 7160, and
LBC No. 152 dated August 2, 2023 (Budget Operations Manual
for LGUs, 2023 Edition), which include the following Local Budget
Preparation (LBP) forms:

LBP Form No. 1 - Budget of Expenditures and Sources of

Financing (with minor adjustment in Annex D);

LBP Form No. 2 - Programmed Appropriation and

Obligation by Object of Expenditure (Annex E);

LBP Form No. 3 - Plantilla of Personnel (Annex F);

LBP Form No. 4 - Mandate, Vision/Mission, Major Final

Output, Performance Indicators and Targets (Annex G);

LBP Form No. 5 - Statement of Indebtedness (Annex H);

Adopting Integrated Coastal Management as a National Strategy to Ensure the Sustainable Development of the Country's
Coastal and Marine Development and Resources and Establishing Supporting Mechanisms for its Implementation
‘*2 National Guidelines for the Registration of Ownership of Agricultural and Fisheries Machinery and Equipment
Implementing Guidelines on the Strengthening and Establishment of the Agricultural and Biosystems Engineering Groups of the
Local Government Units (LGUs)
** Community-Based Monitoring System Act

Page 9 of 14
 LBP Form No. 6 - Statement of Statutory and Contractual
Obligations and Budgetary Requirements (Annex I); and

LBP Form No. 7 - Statement of Fund Allocation by Sector

(Annex J).

2.2.17 In accordance with the DBM-Climate Change Commission (CCC)-

DILG JMC No. 2015-01 dated July 23, 2015,"’^ the provinces,
cities, and municipalities shall identify, tag, and prioritize their
respective climate change PPAs. Moreover, as required under
item 5.1,5 of the same JMC, the LGUs shall submit an electronic
copy of the tagged AIP to the CCC.

The Process Guide for Local Climate Change Expenditure Tagging

(LCCET) (Annex K) and other LCCET knowledge products issued
by the CCC shall be used as a reference by the provinces, cities,
and municipalities in the identification, tagging, and prioritization
of their respective climate change PPAs which can be accessed
through this link: https://bit.ly/LocalCCETKProducts. Moreover,
the LGUs may coordinate with the CCET Help Desk through
[email protected] or (02) 8254-7056.

2.2.18 Together with the Local Expenditure Program, the following

documents shall be prepared and submitted by the local chief
executives (LCEs) of provinces, cities, and municipalities to the
local sanggunian concerned for budget authorization purposes:

- Budget Message;
■ Plantilla of LGU Personnel (LBP Form No. 3);
■ Statement of Indebtedness (LBP Form No. 5);
■ Annual Operating Budget for Local Economic Enterprise(s),
if any; and
- AIP, duly approved by the Sanggunian through a
Resolution.

It is the responsibility of the LGUs to ensure that the

priorities and requirements of the various plans of LGUs
were considered in the formulation of the AIP.

2.2.19 The FY 2025 annual budgets of provinces, cities, and

municipalities shall be prepared consistent with the Revised Chart
of Accounts for LGUs, as prescribed under Commission on Audit
(COA) Circular No. 2015-009 dated December 1, 2015.

2.2.20 In the case of barangays, their FY 2025 annual budgets shall be

prepared in accordance with the procedures and schedules

Revised Guideiines for Tagging/Tracking Climate Change Expenditures in the Local Budget (Amending JMC No. 2014-01 dated
August 1, 2014)
Prescribing the Revised Chart of Accounts for Local Government Units

Page 10 of 14
 prescribed under RA No. 7160, using the following Barangay
Budget Preparation (BBP) forms:

■ BBP Form No. 1 - Budget of Expenditures and Sources of

Financing (Annex L);

- BBP Form No. 2 - Programmed Appropriation by PPA,

Expense Class, Object of Expenditure and Expected Results
(Annex M);

■ BBP Form No. 2-A - List of Projects Chargeable Against the

20% Development Fund (Annex N);

■ BBP Form No. 3 - Plantilla of Personnel (Annex 0); and

- BBP Form No. 4 - Statement of Indebtedness (Annex P).

2.2.21 Together with the Barangay Expenditure Program (sample

hereto attached as Annex Q), the following documents shall be
prepared and submitted by the punong barangay to the
sangguniang barangay for budget authorization purposes:

• Budget Message;
■ Plantilla of Personnel (BBP Form No. 3);
- Statement of Indebtedness (BBP Form No. 4), if any; and
■ AIP, duly approved by the Sanggunian through a
Resolution.

2.2.22 The FY 2025 annual budgets of barangays shall be prepared

consistent with the Manual on Financial Management for
Barangays prescribed under COA Circular No. 2015-011 dated
December 1, 2015.^^7

2.2.23 As provided in Item 2.0 of LBC No. 137 dated July 13, 2021,^ all
positions in the LGUs shall be allocated to their proper position
titles and salary grades in accordance with the Index of
Occupational Services, Position Titles, and Salary Grades in the
Local Government (lOS-LGU), CY 2021 Edition, and Budget
Circular No. 2021-2 dated August 25, 2021.'*® Moreover, the LGUs
are reminded to conform with the CSC MC No. 12 dated
November 8, 2022.^°

2.3 Personal Services (PS) Limitation of LGUs

2.3.1 The LGUs shall comply with the PS Limitation as prescribed under
Section 325 (a) of RA No. 7160 for provinces, cities, and
municipalities, and Section 331 (b) of RA No. 7160 for barangays.

Prescribing the Use of the Manual on Financial Management for Barangays

* Index of Occupational Services, Position Titles and Salary Grades in the Local Government (lOS-LGU), CY 2021 Edition
■’5 Modification of Nurse Positions
Guidelines and Standards in the Establishment of Organizational Structures and Staffing Patterns in Local Government Units.

Page 11 of 14
2.3.2 For this purpose, the PS Limitation in an LGU budget for a budget
year shall be determined as follows:

2.3.2.1 For an existing Province, City, or Municipality,

compute the Total Annual Income from Regular
Sources realized in the next preceding fiscal years,
based on the trial balance as of December 31 of said
year.

2.3.2.2 For an Existing Barangay, compute the Total Income

Actually Realized from Local Sources during the next
preceding fiscal year, based on the trial balance as of
December 31 of said year.

2.3.2.3 For a newly created LGU, in its initial year of creation,

the PS Limitation on the annual and supplemental
budget(s) shall be based on the total estimated
income to be generated by the LGU during the year
from both internal sources, such as share from local
taxes, fees, and charges, and external sources, such
as shares from the NTA and utilization and
development of the national wealth, among others. It
must be understood that, in determining the total
estimated income, the LGU shall not include the
financial subsidies/assistance that it may receive from
the NG and other extraordinary receipts, such as
loans, donations, capital income, and other non­
recurring income.

For the year immediately following the initial year of

its creation, the PS Limitation on the annual and
supplemental budget(s) of a newiy-created LGU shall
be based on the total income generated by the LGU in
the preceding year, applying the specific types of
income to be included and excluded as cited in the
preceding paragraph.

In the succeeding years, Sections 325 (a) and 331 (b)

of RA No. 7160 shall already govern the computation
of the PS limitation on the annual and supplemental
budget(s) of the newly-created LGU.

2.3.2.4 For the determination of the total PS cost for waived

items and the total annual and supplemental PS
budget within the PS Limitation, and other guidelines
on PS Limitation, the LGUs shall be guided by the

Page 12 of 14
 guidelines prescribed under LBC No. 156 dated April
15, 2024.51

2.3.2.5 Section 41 (d) of the Universal Health Care (UHC)

Act,52 provides that in the first three (3) years from
the enactment of the UHC Act, the province-wide and
city-wide systems shall exhibit managerial integration
and that within the next three (3) years thereafter, the
province-wide and city-wide systems shall exhibit
financial integration. Relatedly, the Philippine Health
Insurance Corporation (PhilHealth) payments shall be
credited to the annual regular income of the LGUs
pursuant to Section 215^ of the UHC Act, the same
shall be included in the base computation of PS
Limitation, 5% allocation for LDRRMF, and debt
servicing pursuant to Section 324 (b) of the LGC.

2.3.2.6 Further, PS expenditures charged against the Special

Health Fund (SHF) are also subject to PS Limitation
per Department of Health-DBM-DOF-DILG-PhilHealth
JMC No. 2021-0001 dated January 13, 2021.

2.3.2.7 Appropriate LBP Forms may be adjusted to include

PhilHealth Payment and PS Expenditures charged
against the SHF.

2.3.2.8 Finally, to fully account for the PS expenditures

charged against the SHF subject to PS Limitation,
LGUs shall fill out LBP Form No. 3A (Annex R).

2.4 The LGUs may coordinate with the DBM ROs for the necessary technical
assistance in the preparation of their respective FY 2025 annual budgets.
The barangays may also coordinate with the local budget officers of their
mother LGUs for the necessary technical assistance in the preparation of
their respective FY 2025 annual budgets.

3.0 MONITORING AND EVALUATION SYSTEM

The LCDs are enjoined to fully cooperate in the implementation of the results-
oriented based monitoring and evaluation system that will be established by the
oversight agencies, and/or other national government agencies, as the case

Guidelines on the Implementation of Personal Services (PS) Limitation on Local Government Budgets and Determination of
Waived PS Items Pursuant to Section 95 of the General Provisions (GPs) of the Fiscal Year (FY) 2024 General Appropriations Act
(GAA), Republic Act (RA) No. 11975 and Years Thereafter
An Ad Institutionalizing Universal Health Care for All Filipinos, Prescribing Reforms in the Health Care System, and
Appropriating funds therefor
5’ SEC. 21. Income Derived from PhilHealth Payments. All income derived from PhilHealth payments shall accrue to the Special
Health Fund to be allocated by the LGUs exclusively for the improvement of the LGU health system: Provided, That PhilHealth
payments shall be credited to the annual regular income (ARI) of the LGU.
5** Guidelines on the Allocation, Utilization, and Monitoring of, and Accountability for the Special Health Fund

Page 13 of 14
 may be, in order to ensure the purposive monitoring and assessment of the
performance of LGUs in the delivery of devolved functions and services. This is
in support of good governance, transparency, accountability, and evidence­
based decision-making.

4.0 RESPONSIBILITY AND ACCOUNTABILITY

The responsibility and accountability in the disbursement of funds shall rest

upon the LCEs and other local officials concerned. It is also the responsibility of
the said local officials to ensure that the funds are utilized strictly in accordance
with applicable budgeting, accounting, and auditing rules and regulations, and
the provisions of the Government Procurement Reform Act (RA No. 9184) and
other pertinent laws.

5.0 Please be guided accordingly.

AMEN F. PANGANDAMAN
Secretary

Page 14 of 14
CY2025 NTAOF LGUs Annex A
NTAP1,034,604,869,000

REGION PROVINCES CITIES MUNICIPALITIES BARANGAYS GRAND TOTAL

NATIONAL CAPITAL REGION 810,164,730 43,005,118,596 240,601,641 18,264,086,176 62,319,971,143

CORDILLERA ADMINISTRATIVE REGION 9,842,935,505 3,246,230,115 13,482,012,597 4,401,190,726 30,972,368,943
REGION I 12,439.860,529 7,814,823,499 22,080,240,878 12,572,263,568 54,907,188,474
REGION II 14,018,646,164 7,592,330,732 21,955,257,728 8,822,427,452 52,388,662,076
REGION III 25,324,698,328 19,304,879,304 35,871,157,231 20,223,352,313 100,724,087,176
REGION IV.A 28,927,286,561 32,884,768,869 34,608,405,153 26,292,682,103 122,713,142,686
REGION IV.B 12,661,873,562 5,993,847,567 19,708,044,434 6,583,422,796 44,947,188,359
REGION V 15,836,357,768 7,499,784,920 24,971,897,989 13,855,416,150 62,163,456,827
REGION VI 17,702,059,042 20,952,850,722 25,603,835,422 17,136,304,196 81,395,049,382
REGION VII 14,473,782,160 20,283,992,630 23,160,187,547 15,163,618,216 73,081,580,553
REGION VIII 14,100,082,413 10,315,439,722 23,508,921,361 13,945,387,879 61,869,831,375
REGION IX 8,850,335,260 10,117,531,694 14,568,506,848 8,207,366,517 41,743,740,319
REGION X 12,555,383,038 14,936,363,608 18,030,760,544 9,735,216,025 55,257,723,215
REGION XI 11,701,289,206 15,933,429,026 14,132,783,042 8,208,174,829 49,975,676,103
REGION XII 12,293,953,668 6,637,933,467 18,163,726,632 7,085,035,808 44,180,649,575
REGION XIII 10,771,158,995 8,857,708,404 14,692,370,478 5,799,274,355 40,120,512,232
BANGSAMORO AUTONOMOUS REGION IN MUSLIM MINDANAO 15,649,252,941 3,668,927,857 25,900,105,073 10,625,754,691 55,844,040,562

GRAND TOTAL 237,959,119,870 239,045,960,732 350,678,814,598 206,920,973,800 1,034,604,869,000

 Annex B

FY Annual Investment Program (AlP)

By Program/Project/Activity by Sector
As of
Province/City/Municipality:
I I No Climate Change Expenditure (Please tick the box if your LGU does not have any climate change expenditure)

Amount of Climate Change

Schedule of Amount
Expenditure
Implementation (in thousand pesos)
(In Thousand Pesos)
AlP Implementing CC
Program/P roject/ Expected Funding
Reference Office/ Maintenance Typology
Activity Description Outputs Source
Code Department Personal and Other Financial Climate Code
Completion Capital Outlay Climate Change
Start Date Services Operating Expenses Total Change
Date (CO) Adaptation
(PS) Expenses (FE) Mitigation
(MOOE)
(12)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (13) (14) (15)
8+9+10+11
General
Services
(1000)
Social
Services
(3000)
Economic
Services
(8000)
Other
Services
(9000)

Prepared by: Attested by:

Local Planning and Development Coordinator Local Budget Officer Local Chief Executive
Date: Date: Date:
 Annex C

FY Annual Investment Program (AlP)

By Program/Project/Activity by Sector

Barangay:
City/Municipality:
Province:

Amount
Schedule of Implementation
(in thousand pesos)

AlP Maintenance
Program/Project/ Implementing Expected Funding
Reference Personal and Other Financial Capital
Activity Description Office/Unit Completion Outputs Source
Code Start Date Services Operating Expenses Outlay Total
Date
(PS) Expenses (FE) (CO)
(MOOE)

(12)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 8+9+10+11
General
Services
(1000)
Social
Services
(3000)
Economic
Services
(8000)
Other
Services
(9000)

Prepared by: Attested by:

Barangay Secretary Barangay Treasurer Punong Barangay

Date: Date: Date: ____
 Annex D
LBP Form No. 1
BUDGET OF EXPENDITURES AND SOURCES OF FINANCING
LGU:
GENERAL FUND

Current Year
Past Year Budget Year
Particulars Account Code First Semester Second Semester
(Actual)’ Total (Proposed)
(Actual) (Estimate)
1 2 3 4 5 6 7
I. Beginning Cash Balance

II. Receipts
Regular Income
A. Local Sources
1. Tax Revenue
a. Rea! Property Tax (RPT)
i. Basic RPT
b- Business Tax
c. Other Local Taxes
Total Tax Revenue
2. Non-Tax Revenue
a. Regulatory Fees
b. Service/User Charges
c. Receipts from Economic Enterprise
d. Other Receipts
Total Non-Tax Revenue
Total Local Sources
B. External Sources
1. Shares from National Tax Allotment (formerly Internal Revenue Allotment)
2. Share from GOCCs(PAGCOR and PCSO)
3. Other Shares from National Tax Collections
a. Share from Ecozone
b. Share from EVAT
c. Share from National Wealth
d- Share from Tobacco Excise Tax
4. PhilHealth Payments
Total External Sources
Total Regular Income
Non-Regular Income
C. External Sources
1. Inter-Local Transfer
2. Extraordinary Receipts/Grants/Donations/Alds
Total External Sources
D. Non-Income Receipts
1. Capital Investment Receipts
a. Proceeds from Sale of Assets
b. Proceeds from Sale of Debt Securities of Other Entities
c. Collection of Loan Receivables
Total Capital Investment Receipts
2. Receipts from Loans and Borrowings
a. Acquisition of Loans
b. Issuance of Bonds
Total Receipts from Loans and Borrowings
Total Non-Income Receipts
Total Non-Regular Income
Total Receipts
 Current Year
Past Year Budget Year
Particulars Account Code First Semester Second Semester
(Actual)' Total (Proposed)
(Actual) (Estimate)
1 2 3 4 5 6 7

III. Expenditures
Personal Services
Salaries and Wages - Regular/Others
Personal Economic Relief Allowance

Maintenance and Other Operating Expenses

Traveling Expenses
Training and Scholarship Expenses

Financial Expenses
Capital Outlay$
Buildings
Office Equipment

Special Purpose Appropriations (SPAs)

Appropriation for Development Programs/Projects (20% Development Fund)
Appropriation for Local Disaster Risk Reduction and Management (LDRRM)
P rog rams/P rejects
Appropriation for Debt Service
Subsidy to Local Economic Enterprises/Public Utilities
Aid to Barangays
Other Authorized SPAs
Total Expenditures

IV. Ending Balance

Less: PhilHealth Payments for Automatic Appropriation for the Expenditures under Special
Health Fund

V. Net Ending Balance

Based on the Trial Balance for the Applicable Year

We hereby certify that the information presented are true and correct. We further certify that the foregoing estimated receipts are reasonably projected as collectible for the Budget Year.

Local Treasurer Local Budget Officer Local Planning and Development Coordinator Local Accountant

Approved by:

Local Chief Executive

Instructions:

Column 1 - Indicate the receipts by major source and expenditures by e^qiense class. The beginning cash balance shall be net of amounts earmarked for specific purposes (e.g., continuing appropriations,
20% Development Fund).

Column 2 - Indicate the account code for each itemized receipt using the Revised Chart of Accounts for LGUs, as prescribed under Commission on Audit Circular No. 2015-009 dated December 1. 2015.

Column 3 - Indicate the past year’s actual receipts and expenditures. The past year’s and the first two quarters of the current year's actual receipts and expenditures shall be jointly certified by the Local
Treasurer and the Local Accountant, based on the Trial Balance for the year.

Columns 4 and 5 - Indicate the current year’s estimated receipts and expenditures, as follows;
First semester - actual receipts and expenditures jointly certified by the Local Treasurer and the Local Accountant.
Second semester - estimated receipts and expenditures prepared by the Local Budget Officer.

Column 6 - Indicate the totals of the amounts under Columns 4 and 5.

Column 7 - Indicate the proposed amount of receipts and expenditures for the budget year.

Notes:

1. Prepare the same form for each local economic enterprise/public utility.

2. Regular revenues refer to taxes, fees and receipts actually realized, including the NTA (formerly IRA) and other shares provided for in Sections 284, 290 and 291 of the LGC, but exclusive of non­
recurring receipts such as national aids, grants, financial assistance, loan proceeds, sales of assets, miscellaneous income/receipts and other similar receipts (based on the Bureau of Local Government
Finance Memorandum Circular No. 16-2015 dated June 19, 2015 re Local Public Financial Management [PFM] Tools for the Electronic Statement of Receipts and Expenditures [which include the
Guidebook for the New Local Government Financial Performance Monitoring System]).
 Annex E
LBP Form No. 2
PROGRAMMED APPROPRIATION AND OBLIGATION BY OBJECT OF EXPENDITURE
LGU: ___________________________

Office;

Current Year
Past Year Budget Year
Object of Expenditure Account Code First Semester Second Semester
(Actual) Total (Proposed)
(Actual) (Estimates)

1 2 3 4 5 6 7

Personal Services
Salaries and Wages
Salaries and Wages - Regular
Other Compensations
Personal Economic Relief Allowance
Personnel Benefit Contributions
Other Personnel Benefit

Maintenance and Other Operating Expenses

Traveling Expenses
Training and Scholarship Expenses
Supplies and Materials Expenses
Utility Expenses
Communication Expenses
Awards/Rewards Expenses

Financial Expenses

Capital Outlays
Investment Property
Land and Buildings
Property, Plant and Equipment
Land
Land Improvement

Special Purpose Appropriations

Appropriation for Development Programs/Projects
(20% Development Fund)
Appropriation for Local Disaster Risk Reduction and
Management (LDRRM) Programs/Projects
Appropriation for Debt Service
Subsidy to Local Economic Enterprises/Public Utilities
Aid to Barangays
Other Authorized SPAs

Total Appropriations

Prepared by: Reviewed by: Approved by:

Department Head Local Budget Officer Local Chief Executive

INSTRUCTIONS

Column 1 - Indicate the applicable Objects of Expenditure for the programmed appropriation and Special Purpose Appropriations, if any.

Column 2 - Indicate account code using the Revised Chart of Accounts for LGUs, as prescribed under Commission on Audit Circular No. 2015-009 dated December 1. 2015.

Column 3 - Indicate the actual expenditures incurred in the Past Year.

Columns 4 and 5 - Indicate current year’s expenditures, as follows;

-First semester - actual expenditures as certified by the Local Accountant.
-Second semester - estimated expenditures prepared by the Department Head. The totals of this column tor all Departments/Offices should tally with the amount of Expenditures per Columns 4 and 5 of LBP Form No. 1.

Column 6 - Indicate the totals of the amounts under Columns 4 and 5.

Column 7 - Indicate the proposed expenditures for the budget year.

Note: The Local Budget Officer shall prepare a summary for all offices using LBP Form No. 1.
 Annex F
LBP Form No. 3
PLANTILLA OF PERSONNEL CY
LGU:

Current Year Authorized Budget Year Proposed

Item Number Name of Increase I
Position Title Rate/Annum______ Rate/An n u m__
Incumbent Decrease
Old New SG / Step XVnount SG / Step Amount
(1) (2) (3) (4) (5) (6) (7) (8) (9)

Prepared by: Reviewed by: Approved by:

Human Resource Management Officer Local Budget Officer Local Chief Executive

INSTRUCTIONS

Columns 1 and 2 - indicate the old and new item numbers of the plantilla position.

Columns 3 and 4 - Indicate the position title and the name of the incumbent occupying each position. If the position is unfilled, indicate the word “vacant” under Column 4. If the position is proposed
for abolition, place the position title inside a bracket. If a position is proposed for reclassification, place the previous position title in a bracket and indicate the proposed position title below it.

Columns 5 and 6 - Indicate the current salary grade/step and corresponding rate per annum of each position. Include as a footnote the compensation law/circular being implemented. For the initial
implementation of changes, attach a copy of the Position Allocation List.

Columns 7 and 8 - Indicate the salary grade/step and corresponding rate per annum of each position proposed for the budget year.

Column 9 - Indicate the difference between the old and the new rates of compensation per annum for the budget year.

Additional Instructions:
1. The plantilla of personnel shall be presented according to department/office.
2. Use the same form for each local economic enterprise/public utility.
3. Using the same form, a separate plantilla shall be prepared for Casual Employees whose salaries are chargeable against Personal Services appropriation,
4. Only funded vacant positions shall be included in the plantilla, unfunded positions shall be removed/deleted from the plantilla.
 Annex G
LBP Form No. 4
Mandate, Vision/Mission, Major Final Output, Performance Indicators and Targets CY
LGU:
DepartmentZOffice
Mandate
Vision
Mission
Organizational Outcome

Program/Project/ Performance indicator/ Target for the Budget Proposed Budget for the Budget Year
AlP Reference Code Major Final Output
Activity Description Output Year
PS MOOE FE CO Total
1 2 3 4 5 6 7 8 9 10

Prepared by: Reviewed by: Local Finance Committee

Department Head Local Planning and Development Coordinator Local Budget Officer Local Treasurer

Approved by:

Local Chief Executive

INSTRUCTIONS

Mandate: Quote the provision of the LGC on the mandate of the Department/Office.
Vision: Indicate the future role of tfie Department/Office in the LGU's development.
Mission: Indicate the significant role of the Department/Office in attaining the vision.
Organizational Outcome; The specific short-term benefits to clients and the community as a result of the LGU’s delivery of Major Rnal Outputs as defined in the organization’s results framework.

Column 1- Indicate the PPA reference code reflected in the AlP by each PPA.

Column 2- Indicate a concise description of the work to be done under a particular sector to achieve specific objectives. Present the PPAs following the structure prescribed in the Budget Operations Manual for LGU, 2023 Edition.

Column 3- Indicate the good or sen/ice that a department/agency is mandated to deliver to external clients through the implementation of PPAs.

Column 4- Indicate the means for measuring the quantity, quality, and timeliness of service delivery to the clients.

Column 5- Indicate the target for the budget year in terms of the performance indicator expressed in quantity, quality, and timeliness.

Columns 6,7,8 and 9 - Indicate the proposed budget for the PPA, broken down by expense class - Personal Services (PS), Maintenance and Other Operating Expenses (MODE), Financial Expenses (FE), and Capital Outlay (CO), including Special
Purpose Appropriations attributed to and implemented by the Deparbnent/Office.

Column 10 - Indicate the total amount of the proposed budget.

Note; This Form shall be prepared by the Department Head, reviewed by the Local Planning and Development Coordinator for the targets, and Local Budget Officer and Local Treasurer for the proposed budget, and approved by the Local Chief
Executive.
 Annex H
LBP Form No. 5
Statement of Indebtedness
LGU:

Date Principal Previous Payments Made Amount Due Balance of the

Creditor Term Purpose
Contracted Amount Principal Interest Total Principal Interest Total Principal
1 2 3 4 5 6 7 8 9 10 11

Certified Correct by: Noted by:

Local Accountant Local Chief Executive

INSTRUCTIONS

Column 1 - Indicate the full name of creditors with their corresponding addresses under each fund/special account and under each office.

Column 2 - Indicate the date when the obligation is incurred.

Column 3 - Indicate the period (months/years) within which to pay the loan.

Column 4 - Indicate the principal amount of the loan.

Column 5 - Indicate the purpose of the loan incurred.

Columns 6, 7, and 8 - Indicate the total payments prior to budget year, including payments within the current year.

Columns 9,10, and 11 - Indicate the amounts due and budgeted for the budget year.

Column 12 - Indicate the balance of the principal after deducting previous payments and amount due for the budget year (Columns 6 to 11).

Note: Prepare the same form for each local economic enterprise/public utility.
 Annex I
LBP Form No. 6
Statement of Statutory and Contractual Obligations and Budgetary Requirements CY
LGU:

Description Amounts
1 2
1. Statutory and Contractual Obligations
1.1 5% MMDA Contribution for LGUs in NCR only (RA No. 7924)
1.2 Retirement Gratuity
1.3 Terminal Leave Benefits
1.4 Debt Service
1.5 Employees Compensation Insurance Premiums
1.6 PhilHealth Contributions
1.7 Pag-IBIG Contribution
1.8 Retirement and Life Insurance Premiums

2. Budgetary Requirements
2.1 20% of NTA (formerly IRA) for Development Fund
2.2 5% Local Disaster Risk Reduction and Management Fund (LDRRMF)
2.3 Financial Assistance to Barangays (Php 1,000.00 minimum aid)

TOTAL

Certified Correct by:

Local Budget Officer Local Treasurer Local Planning and Development Coordinator

Approved by:

Local Chief Executive

Instructions:

Column 1 - Indicate the Statutory and Contractual Obligations and Budgetary Requirements for the budget year.

Column 2 - Indicate the amount for each Contractual Obligations and Budgetary Requirements for the budget year.

Note: Prepare the same form for each local economic enterprise/public utility.
 Annex J
LBP Form No. 7
Statement of Fund Allocation by Sector CY
LGU:

General Public
Particulars Account Code Social Services Economic Services Other Services Total
Services
1 2 3 4 5 6 7

TOTAL APPROPRIATIONS

Certified Correct by: Approved by:

Local Budget Officer Local Chief Executive

INSTRUCTIONS:

Column 1 - Specify all allocations by sector/service, inclusive of lump-sum appropriations for 5% Disaster Risk Reduction Management Fund, 20% Development Fund, Aid to Barangays and
Financial Expenses.

Column 2 - Indicate account code using the Revised Chart of Accounts for LGUs, as prescribed under Commission on Audit Circular No. 2015-009 dated December 1, 2015.

Column 3 - Indicate all PPAs that provide planning, financial, administrative, legal and legislative services to the front-line services of the LGU.

Column 4 - Indicate all PPAs that promote the well-being and general welfare of constituents or people such as education, health, public safety, and protection of the marginalized and
disadvantaged members of the society.

Column 5 - Indicate all PPAs directed towards promoting growth in the economy, using all factors in production, such as increasing productivity in agriculture and all other industries, generating
employment, and other livelihood projects.

Column 6 - Indicate all PPAs that cannot be categorized in any of the sectors identified above.

Column 7 - Indicate the total amount of all PPAs.

Note: Prepare the same form for each local economic enterprise/public utility
 Annex K

Process Guide for Climate Change Expenditure Tagging (CCET)

Strengthening the mainstreaming of climate change in domestic plans and programs necessitates allocation of public funds
for the implementation of climate adaptation and mitigation initiatives. Recognizing this, DBM, CCC, and DILG led the
irstitutionalization of Climate Change Expenditure Tagging through DBM-CCC-DiLG Joint Memorandum Circular 2015-01 for
LGUs to lake stock, track, and report climate change PPAs and expenditures identified in their Annual Investment Programs.

Determine climate change adaptation strategies

^.1
Adaptation is the process of adjustment or
Establish climate change rationale facilitate adjustment to actual or expected
climate and its effects to moderate or avoid harm
The climate and disaster risk assessment or to exploit beneficial opportunities (IPCC, AR5).
(CORA) provides a summary of the impacts of Using CDRA outputs as reference in designing
climate change to the socio-economic and prioritizing adaptation strategies is key to
conditions of the planning area and its spatial ensuring that these are responsive to current
and sectoral implications in the future. and future issues and opportunities in the
planning area.
The greenhouse gas inventory (GHGi)
explains the scope and sectors of greenhouse The CCETTypologies may also be used as
gas emissions. rpreference in designing and deciding on
adaptation strategies.
1-Waty Svpiih'
Together, the CDRA and GHGI form the
climate change rationale which serves as the
basis for determining adaptation and wspfiHW* tTMiiTwnt. eM I
A21MM daroW byvem rt •«sponw to I
mitigation strategies in view of development
objectives.

hervnirtg Hchnoksgm (« g
imel Kvlet irtpeun^tg PQMO

r-, CliimdO ^nd

Disaster ftiak r Climate Risk
Information
r
r Adaptation
Strategies
r
r Comprehensive
Zoning Regulations

L
Assessrijenl
j J j ffL Land Use Plan

GireerthO'jse Gas
Accounting and
Inventory
’
r Sectoral GHG
Emissions
j
r
r Mitigation
Strategies
Ijr Comprehensive
Development Plan
Local Development
Investment Plan
Aniual Investment
Plan/Pfogram
J
I I
T
L2-2: Determine climate change mitigation strategies
Flag climate change adaptation and mitigation
prioritized PPAs
Mitigation, in the context of climate change, refers to It is strongly suggested that the LDIP and AlP
human intervention that reduce anthropogenic emissions with CCET be used in the implementation of
sources and enhance removals by sinks of all GHG, adaptation and mitigation options since they are
including ozone-depleting substances and their the primary implementation instruments for
substitutes (Climate Change Act of 2009 as amended) local plans. x-
--------- 5«R’ • ------

in generating low emission development strategies, one MH

rt
may consider reviewing existing mitigation activities in n

solid waste management, wastewater control and

treatment, forest management, or energy efficiency. This ----- ,
way, GHG emissions reduction is achieved while pursuing ---------- I
sustainable development.
i ._ L\
^The CCETTypologies may also be used as reference in
designing and deciding
■ ....... i-SoWWnK______________________

C»d« < • gwYlw 0«>>«nr ~ T C«d» I * • S»rile» IWhini

Transmit soft copy of AlP to CCETHelp Desk

.Waste reducton and dwnw
jproQtBn'Intenvfv waste
IU2441 j segregation al xjwoe <tv:ard The Climate Change Commission tracks climate actions
iiecpycfy* conotsb^. and
on the ground and CCET plays a crucial role in it.
;«yf*g

) Monitoring adaptation and mitigation informs policy-

and decision-making at the national and local level.
Ccrolructm and ooeraton ul
MaJcnoh Composting and
IUI*42 Rwvety laokty (MCHF). Attachments include the AlP, AlP in CCET
Cenlef. Putfhsse of
MCfiF Analysis Tool, and Quality Assurance and
Review Form.

Prepared by the CCC CCETHelp Desk Send to;[email protected]

Implementation Oversight Division
cc; [email protected]
□irrete Change Coirmission
[email protected];iod.ccccco@)gn^il,com
(02) 8256-7056
 Annex L
Barangay Budget Preparation Form No. 1

BUDGET OF EXPENDITURES AND SOURCES OF FINANCING, FY

Barangay _______________________
CityZMunicipality of
Province of . ______

GENERAL FUND

Current Year Appropriation

Account Income Past Year Budget Year
Particulars Code Classification (Actual) First Second (Proposed)
Semester Semester Total
(Actual) (Estimate)
_________________ (1) (2) (3) (4) (5) (6) (7) (8)
I. Beginning Cash Balance

II. Receipts
Shares in Real Property Tax
Business Tax(es)
Fees and Charges
Receipts from Economic Enterprise
National Tax Allotment
Share from National Wealth
Inter-Local Transfer
Extraordinary Receipts/Grants/
Donations/Aids
Proceeds from Sale of Assets
Collection of Loans Receivable
Acquisition of Loans
Other Receipts

III. Expenditures

Personal Services (PS)

Salaries and wages (permanent and
casual employees)
Honoraria
Cash Gift
 Current Year Appropriation
Account Income Past Year Budget Year
First Second (Proposed)
Particulars Code Classification (Actual)
Semester Semester Total
(Actual) (Estimate)
__________ CD____________ (2) (3) (4) (5) (6) (7) (8)
Other Personnel Benefits of permanent
and casual employees
Associated PS costs (GSIS, PAGIBIG,
etc.) of permanent and casual
employees
Total PS

Maintenance and Other Operating

Expenses (MOOE)
Travelling Expenses - Local
Training Expenses
Supplies and Materials Expenses
Utility Expenses
Communication Expenses
Professional Services
General Services
Repairs and Maintenance
Taxes, Insurance Premiums and Other
Fees
Other MOOE
Total MOOE

Financial Expenses
interest Expenses
Bank Charges
Other Financial Expenses

Capital Outlay (CO)

Land and Buildings
Property, Plant and Equipment
Land Improvements
Total Capital Outlay
 Current Year Appropriation
Account Income Past Year Budget Year
First Second (Proposed)
Particulars Code Classification (Actual)
Semester Semester Total
(Actual) (Estimate)
__________ CD____________ (2) (3) (4) (5) (6) (7) (8)
Special Purpose Appropriation (SPA)
Appropriation for Debt Service
Appropriation for Sangguniang
Kabataan
Appropriation for Development Fund
Appropriation for Barangay Disaster
Risk Reduction and Management
Fund
Other Authorized SPAs
Total SPA

IVe hereby certify that the information presented above are true and correct. We further certify that the foregoing estimated receipts are reasonably
projected as collectible for the Budget Year.

Prepared by: Approved by:

Barangay Treasurer Barangay Secretary Punong Barangay

INSTRUCTIONS

Column 1 - Indicate the receipts by major source. The beginning cash balance shall be net of amounts earmarked for specific purposes (e.g., continuing
appropriations, 20% Development Fund). The amount for each expense class shall exclude the appropriations for the SPAs.

The breakdown of the MOOE, i.e., supplies and materials expenses, utility expenses, communication expenses, professional services, general services, repairs
and maintenance, taxes, insurance premiums and other fees, and other MOOE, shall be provided in a separate list. Example:

________ Account Title_______ Account Code _________ Account Title_________ Account Code
Utility Expenses_____________ Professional Services__________
Water Expenses___________ 5-02-04-010 Auditing Services____________ 5-02-07-010
Electricity Expenses________ 5-02-04-020 Consultancy Services_________ 5-02-07-020
Communication Expenses General Services______________
Postage and Courier Services 5-02-05-010 Janitorial Services____________ 5-02-08-020
Telephone Expenses_______ 5-02-05-020 Security Services____________ 5-02-08-030
Repairs and Maintenance_____ Supplies and Materials Expenses
Land Improvement_________ 5-02-09-010 Office Supplies Expenses_____ 5-02-03-010
Machinery and Equipment 5-02-09-040 Drugs and Medicines Expenses 5-02-03-040

Column 2 - Indicate the account code for each itemized receipt using the Manual on Financial Management for Barangays, as prescribed under Commission on
Audit Circular No. 2015-011 dated December 1,2015.
Column 3 - Classify the income into regular (R) or non-regular (NR).
Column 4- Indicate the past year's actual receiptsand expenditures. The past year’s actual receiptsand expenditures shall be certified by the Barangay Treasurer.
Columns 5 and 6 - Indicate current year’s estimated receipts and expenditures, as follows:
• First semester - actual receipts and expenditures certified by the Barangay Treasurer.
• Second semester - estimated receipts and expenditures prepared by the Barangay Treasurer.
Column 7 - Indicate the totals of the amounts under Columns 5 and 6.
Column 8 - Indicate the proposed amount of receipts and expenditures for the budget year.

Note:
Based on the Bureau of Local Government Finance Memorandum Circular No. 16-2015 dated June 19, 2015 re Local Public Financial Management (PFM) Tools
for the Electronic Statement of Receipts and Expenditures (which include the Guidebook for the New Local Government Financial Performance Monitoring
System), regular revenues refer to taxes, fees and receipts actually realized, including the NTA and other shares provided for in Sections 284, 290 and 291 of
the LGC, but exclusive of non-recurring receipts such as national aids, grants, financial assistance, loan proceeds, sales of assets, miscellaneous income/receipts
and other similar receipts.
 Annex M

Barangay Budget Preparation Form No. 2

PROGRAMMED APPROPRIATION BY PPA, EXPENSE CLASS, OBJECT OF EXPENDITURE AND EXPECTED RESULTS, FY
Barangay
City/Municipality of
Province of

AlP Proposed
Program, Projects, Activities Reference Account Amount Expected Outputs
(By Expense Class and Object of Expenditure) Code Code (Budget Year)

(1) (2) (3) (4) (5)

1. GENERAL ADMINISTRATION PROGRAM

Personal Services (PS)
Salaries and wages (permanent and casual
employees)
Honoraria
Cash Gift
Other Personnel Benefits of permanent and casual
employees
Associated PS costs (GSIS, PAGIBIG, etc.) of
permanent and casual employees
Total PS

Maintenance and Other Operating Expenses

(MOOE)
Travelling Expenses - Local
Training Expenses
Supplies and Materials Expenses
Utility Expenses
Communication Expenses
Professional Services
General Services
Repairs and Maintenance
Taxes, Insurance Premiums and Other Fees
Other MOOE
Total MOOE
 AlP Proposed
Program, Projects, Activities Reference Account Amount Expected Outputs
(By Expense Class and Object of Expenditure) Code Code (Budget Year)

(1) (2) (3) (4) (5)

Financial Expenses
Interest Expenses
Bank Charges
Other Financial Expenses

Capital Outlay (CO)

Land and Buildings
Property, Plant and Equipment
Land Improvements
Total Capital Outlay

Special Purpose Appropriation (SPA)

Appropriation for Debt Service
Appropriation for Sangguniang Kabataan
Other Authorized SPAs
Total SPA

2. BASIC SERVICES AND FACILITIES PROGRAM

(BSFP)
Day Care
PS
MOOE
CO
Total

Health and Nutrition

PS
MOOE
CO
Total
 AlP Proposed
Program, Projects, Activities Reference Account Amount Expected Outputs
(By Expense Class and Object of Expenditure) Code Code (Budget Year)

(1) (2) (3) (4) (5)

Peace and Order

PS
MOOE
CO
Total

Agricultural Services
PS
MODE
CO
Total

Katarungang Pambarangay
PS
MOOE
CO
Total

Infrastructure
CO - 20% DF
Non-DF
Total

BDRRMF
Quick Response Fund
Disaster Preparedness, Prevention &
Mitigation, Response
Total

Information and Reading Center

PS
MOOE
CO
Total
 AlP Proposed
Program, Projects, Activities Reference Account Amount Expected Outputs
(By Expense Class and Object of Expenditure) Code Code (Budget Year)

(1) (2) (3) (4) (5)

Other Services
GAD (if provided through direct
appropriation)
Senior Citizens & Persons with Disability
VAWC
Others (specify)

TOTAL BSFP

TOTAL PPA (GAP + BSFP)

We hereby certify that the information presented above are true and correct.

Prepared by: Approved by:

Barangay Treasurer Barangay Secretary Punong Barangay

Note:

This form is intended to reflect the details of programmed appropriation by program, project and activity, expense class, object of expenditure and expected
results in the Barangay Budget.

INSTRUCTIONS

Column 1 - Indicate the name of the Program, Sub-Program (if any), Projectsand Activities (PPA) per major type of expenditures, i.e., General and Administration
Program and Basic Services and Facilities Program and Expense Class, i.e., PS, MOOE, FE and CO; and provide breakdown of object expenditures per each
PPA.

The breakdown of the MOOE, i.e., supplies and materials expenses, utility expenses, communication expenses, professional services, general services, repairs
and maintenance, taxes, insurance premiums and other fees, and other MOOE, shall be provided in a separate list.
Column 2 - Indicate the PPA reference code reflected in the AlP corresponding to each item of appropriation.

Column 3 — Indicate the account code for each of the itemized expenses using the Manual on Financial Management for Barangays, as prescribed under
Commission on Audit Circular No. 2015-011 dated December 1,2015.

Column 4 - indicate the proposed amount for the budget year.

Column 5 - Indicate the good or service that the barangay is expected to deliver through the implementation of the items of appropriation described in quantified
terms (i.e., X (no.) of children ages 5 years and below with low weight for age provided with nutritious meals for X (no.) of days; X (no.) of meters of pathwalk
repaired/rehabilitated/constructed.)
 Annex N

Barangay Budget Preparation Form No. 2>A

LIST OF PROJECTS CHARGEABLE AGAINST THE 20% DEVELOPMENT FUND, FY

Barangay
City/Municipality of ___________________
Province of

AlP Reference Code Details of the Project Amount Implementation Expected Output
Schedule
(Start Date and
Completion Date)
(1) (2) (3) (4) (5)

Total

Prepared by: Approved by:

Barangay Secretary Punong Barangay

INSTRUCTIONS

Column 1 - Indicate the PPA reference code reflected in the AlP corresponding to each item of appropriation
Column 2 - Indicate a concise description and details of each of the development projects to be implemented
Column 3 - Indicate the amount allocated for each development project
Column 4 - Indicate the timelines of the implementation of each development project
Column 5 - Indicate the good or service that the barangay is expected to deliver through the implementation of each development project
 Annex O

Barangay Budget Preparation Form No. 3

PLANTILLA OF PERSONNEL, FY
Barangay...
City/Municipality of _____________
Province of

Compensation
Item Position Title Name of Incumbent Current Year Budget Year Increase/Decrease
Number SG Rate SG Rate
(1) (2) (3) (4) (5) (6) (7) (8)

Prepared by: Approved by:

Barangay Secretary Punong Barangay

INSTRUCTIONS

Column 1- Indicate the item number of the plantilia position.

Columns 2 and 3 - Indicate the position title and the name of the incumbent occupying each position. If the position is unfilled, indicate the word “vacant” under
column 3. If the position is proposed for abolition, place the position title inside a bracket. If the position is proposed for reclassification, place the previous position
title in a bracket and indicate the proposed position title below it.
Columns 4 and 5 - Indicate the current salary grade/step and corresponding rate per annum of each position. Include as a footnote the compensation law/circular
being implemented. For the initial implementation of changes, attach a copy of the Position Allocation List.
Columns 6 and 7 - Indicate the salary grade/step and corresponding rate per annum of each position proposed for the budget year.
Column 8 - Indicate the difference between the old and the new rates of compensation per annum for the budget year.

Additional Instructions:
1. This form shall cover both elective and appointive officials of the barangay whose salaries are chargeable against Personal Services Appropriation.
2. Only funded vacant positions shall be included in the plantilia. All unfunded vacant positions shall be removed/deleted from the plantilla.
 Annex P

Barangay Budget Preparation Form No. 4

STATEMENT OF INDEBTEDNESS, FY
Barangay
City/Municipality of
Province of

Previous Payments Amounts Due for the

Creditor Date Term Purpose Principal Made Budget Year Balance of the
Contracted Amount Principal Interest Total Principal Interest Total Principal
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

Prepared by: Approved by:

Barangay Treasurer Punong Barangay

INSTRUCTIONS

This form is intended to reflect the following:

Column 1 - Full name of creditors with their corresponding addresses.

Column 2 - Date when the obligation is incurred.
Column 3 - Period (months/years) within which to pay the loan.
Column 4- Purpose of the loan incurred.
Column 5- Principal amount of the loan.
Columns 6, 7 and 8 - Total payments prior to budget year, including payments within the current year.
Columns 9,10 and 11 - Amounts due and budgeted for the budget year.
Column 12 - Balance of the principal after deducting previous payments and amount due for the budget year.
 Annex Q
Sample Barangay Annual Budget

(Accounts provided are based on COA Manual)

Budget Year
Account
Object of Expenditure Expenditures Expected Results Performance Indicator
Code
(Proposed)
Parti. Receipts Program

Shares in Real Property Tax 4-01-01-010 60,000

Tax Revenue - Goods and Services

Business Tax 4-01-02-010 7,000
Share on the tax from sand, gravel and other quarry products 4-01-02-020 12,000

Tax Revenue - Permit Fees

Fees and charges on commercial breeding of fighting cocks, 4-01-03-010 7,000
cockfights and cockpits
Fees and charges on places of recreation which charge
Admission fees 4-01-03-020 5,000

Fees and charges on billboards, signboards, neon signs and

outdoor advertisements 4-01-03-030 6,000

Tax Revenue - Others

Share from NTA 4-01-04-010 3,000,000

Tax Revenue - Fines and Penalties

Property 4-01-05-010 8,000
Goods and Services 4-01-05-020 2,500
Permit Fees
Others 4-01-05-030 1,200

Assistance and Subsidy

Subsidy from National Government 4-02-01-010 25,000
Subsidy from LGUs 4-02-01-020 2,500

Shares, Grants and Donations

Share from National Wealth 4-03-01-010 600,000
Grants and Donations 4-03-02-010 12,000

Service and Business Revenue

Clearance and Certification Fees 4-04-01-010 12,000
Other Service Revenue 4-04-01-990 6,000
 Budget Year
Account
Object of Expenditure Expenditures Expected Results Performance Indicator
Code
(Proposed)

TOTAL ESTIMATED FUNDS AVAILABLE FOR APPROPRIATION 3,766,200

Part II. Expenditure Program

GENERAL ADMINISTRATION PROGRAM:

CURRENT OPERATING EXPENDITURES

Personal Services (PS)

Salaries and Wages (permanent/casual employees)
a. Honoraria 5-01-02-050 500,000
b. Cash Gift 5-01-02-070 50,000
c. Other Personnel Benefits 5-01-02-990 50,000
d. Associated PS costs (GSIS, Pag-IBIG, etc.) 5-01-02-070 55,000

TOTAL PS 655,000

Maintenance and Other Operating Expenses (MOOE)

Traveling Expenses - Local 5-02-01-010 10,000
Training Expenses 5-02-02-010 10,000
Office Supplies Expenses 5-02-03-010 20,000
Accountable Forms Expenses 5-02-03-020 20,000
Welfare Goods Expenses 5-02-03-030 5,000
Drugs and Medicines Expenses 5-02-03-040 5,000
Fuel, Oil and Lubricant Expenses 5-02-03-050 50,000
Other Supplies and Material Expenses 5-02-03-990 10,000
Water Expenses 5-02-04-010 24,000
Electricity Expenses 5-02-04-020 120,000
Postage and Courier Services 5-02-05-010 10,000
Telephone Expenses 5-02-05-020 12,000
Internet Subscription Expenses 5-02-05-030 15,000
Auditing Service 5-02-07-010 60,000
Environment/Sanitary Services 5-02-08-010 50,000
Janitorial Services 5-02-08-020 120,000
Security Services 5-02-08-030 120,000
Repairs and Maintenance
Land Improvements 5-02-09-010 100,000
Infrastructure Assets 5-02-09-020 50,000
Buildings and Other Structures 5-02-09-030 50,000
Machinery and Equipment 5-02-09-040 50,000
 Budget Year
Account
Object of Expenditure Expenditures Expected Results Performance Indicator
Code
(Proposed)
Transportation Equipment 5-02-09-050 50,000

Other MOOE
Advertising Expenses 5-02-99-010 5,000
Transportation and Delivery Expenses 5-02-99-030 10,000
Rent/Lease Expenses 5-02-99-040 14,000
Membership Dues and Contributions 5-02-99-050 30,800
to Organizations
Subscription Expenses 5-02-99-060 6,000
Donations 5-02-99-070 10,000

TOTAL MOOE 1,036,800

Capital Outlay (CO)

Land and Buildings 300,000
Property, Piant and Equipment 300,000

TOTAL CO 600,000

Special Purpose Appropriations (SPA)

Appropriation for Debt Service 123,380
Appropriations for SK 376,620

TOTAL SPA 400,000

TOTAL GENERAL ADMINISTRATION PROGRAM

2,691,800

BASIC SERVICES AND FACILITIES PROGRAM

a. Dav Care More preschoolers Number of enrollees in the

PS enrolled in Day Care Day Care Center
Honoraria 12,000 centers
MOOE
Supplies and Expenses 18,000
CO
Total 30,000
b. Heaith and Nutrition
 Budget Year
Account
Object of Expenditure Expenditures Expected Results Performance Indicator
Code
(Proposed)
PS Improvement of health Number of medicines
Honoraria 12.000 services distributed to the constituents
MOOE
Drugs and Medicine 22,000 Number of patients served in
CO health centers
Total 34,000
c. Peace and Order (includes BADAC)
PS Peaceful community Percentage decrease of
Honoraria 21,200 crime rate in the barangay
MOOE
Uniform/Food Supplies 10,000
CO
Total 31,200

d. Agricultural Support Services

PS 12,000 Increase in agricultural Number of farm inputs, such
MOOE production as pesticides and fertilizers,
Supplies and Materials 12,000 distributed
CO
Total 24,000

e. Katarunqanq Pambaranqav
PS 12,000 Peaceful community Percentage decrease of
MOOE crime rate in the barangay
Supplies and Materials 12,000
CO
Total 24,000

f. Infrastructure
20% Development Fund 600,000 Improved facilities in Number of buildings
Others the barangay repaired/rehabilitated
Total 600,000

g. BDRRMF
QRF 60,000 Resilient community Number of relief goods
Disaster Preparedness, Prevention & distributed
Mitigation, Response, Rehabilitation & 140,000 Decrease in the number of
Recovery 200,000 casualties during calamities
Total

h. Information and Reading Center

PS 12,000
Honoraria 12,000 Number of books purchased
 Budget Year
Account
Object of Expenditure Expenditures Expected Results Performance Indicator
Code
(Proposed)
MOOE 24,000 More students and Number of students
Total researchers in the accommodated
barangay can access
I. Other Services 30,000 the reading center
Senior Citizen/PWD 77,200
Others 107,200
Total

1,074,400
Total for Basic Services & Facilities Program
3,766,200
TOTAL EXPENDITURE PROGRAM

ENDING BALANCE -0-

 Annex R

LBP Form No. 3A

PERSONAL SERVICES (PS) EXPENDITURES CHARGED AGAINST THE SPECIAL HEALTH FUNDS (SHF) FY
Local Government Unit:

Particulars

Remuneration of additional health workers Php

Incentives for all health workers

GRAND TOTAL

Prepared by; Reviewed by: Approved by:

Provincial/City Health Officer Provincial/City Budget Officer Chairperson of the Provincial/City Health Board

Instructions;

PS Expenditures to be charged against the SHF shall be consistent with the filled out SHF Budget Preparation Form No. 1 (Income and Expenditure Estimates) as attached
in Department of Health-Department of Budget and Management-Department of Finance-Department of the Interior and Local Government-Philippine Health Insurance
Corporation Joint Memorandum Circular No. 2021-0001 dated January 13. 2021.