Title
Amendment on Barangay Development Fund Allocation
Law
Presidential Decree No. 559
Decision Date
Sep 21, 1974
Presidential Decree No. 559 strengthens local government units in the Philippines by amending the allocation of funds to provinces, municipalities, cities, and barangays, and establishing a Barangay Development Fund for community projects.
A

Basis for Share Determination

  • Shares of provinces, cities, and municipalities are computed based on:
    • 70% population
    • 20% land area
    • 10% equal sharing among units

Creation and Management of Barangay Development Fund

  • Establishes a Barangay Development Fund comprised of annual contributions not exceeding P500 from each barangay within provinces, cities, and municipalities.
  • Fund exclusively for community development projects meeting requirements set by the Secretary of Local Government and Community Development.
  • Provincial Treasurer acts as custodian, maintaining special accounts.
  • Fund releases managed through Municipal Treasurers, who ensure proper disbursement and accounting.

Annual Allotment and Supervision of Barangay Funds

  • Annual allotments to barangays subject to approval by the President based on development plans of province, city, municipality, and barangay.
  • Funds to be used exclusively for self-help or other development projects partially funded by the Barangay Development Fund.
  • Barangay Treasurer, under supervision of Municipal Treasurer, responsible for proper disbursement and accounting.
  • Annual allotments recorded in a special account in the barangay general fund.

Rulemaking and Implementation

  • The Secretary of Finance authorized to issue necessary rules and regulations for prompt, effective implementation of the decree.

Repeal and Modification of Conflicting Laws

  • All laws, decrees, orders, or parts inconsistent with this decree are revoked or modified accordingly.

Effectivity

  • The decree becomes effective immediately upon approval.

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.