Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 559)
The primary purpose of Presidential Decree No. 559 is to amend Sections 2, 3, and 5 of Presidential Decree No. 144 to strengthen barangays by providing them with added financial resources and to further support their role as grassroots government units.
The allotment is initially distributed as 30% to provinces, 45% to municipalities, 25% to cities, and ₱65 million to barangays. Starting Fiscal Year 1976-77, the distribution changes to 25% to provinces, 40% to municipalities, 25% to cities, and 10% to barangays.
The formula is 70% based on population, 20% based on land area, and 10% equally shared among provinces, cities, and municipalities.
It is a fund constituted by annual contributions of not exceeding ₱500 per barangay from each province, city, and municipality, to be spent solely on community development projects that meet the requirements set forth by the Secretary of Local Government and Community Development.
The Provincial Treasurer is the custodian of the Barangay Development Fund and maintains a special account for it.
Releases are made through the Municipal Treasurer, who is responsible for the proper disbursement and accounting of the fund.
Section 5-A mandates that the amount set aside for barangays shall be distributed annually by the President according to approved development plans and used exclusively for self-help and development projects funded partially from the Barangay Development Fund.
The Municipal Treasurer exercises general supervision, while the barangay treasurer is directly responsible for disbursement and accounting.
The Secretary of Finance is required to issue necessary rules and regulations for the prompt and effective implementation of this Decree.
All acts, laws, decrees, orders, or parts thereof that are contrary to or inconsistent with this Decree are revoked or modified accordingly.