AMENDING SECTIONS TWO, THREE AND FIVE OF PRESIDENTIAL DECREE NUMBERED ONE HUNDRED AND FORTY-FOUR.

• Number: Presidential Decree No. 559
• Sections: 9

Preamble

WHEREAS, the barangays have time and again served as

dependable government units at the grassroots level thru which the

people express their collective decision on issues affecting the

community;

WHEREAS, the barangays in concerted action have ably

demonstrated their capacity to act as effective agents of reforms and

vital forces in the political, economic, social and cultural development

of the nation;

WHEREAS, to strengthen the barangays and accelerate the

transformation of local governments into self-reliant and progressive

communities, it is necessary to provide them with added financial

resources;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution,

do hereby decree and order the following:

Section 1

SECTION 1. Section 2 of Presidential Decree No. 144 issued

on March 3, 1973 is hereby amended to read as follows:

"2. This allotment shall be distributed as follows: Thirty per

centum (30%) to provinces Forty-five per centum (45%) to municipalities

Twenty-five per centum (25%) to cities And, sixty-five million pesos

(P65M) to the barangays "Starting the Fiscal Year 1976-77, however, the

following allocations shall be followed: Twenty-five per centum (25%)

to provinces Forty per centum (40%) to municipalities Twenty-five per

centum (25%) to cities Ten per centum (10%) to barangays"

Section 2

SEC. 2. Section 3 of Presidential Decree No. 144 is hereby

amended to read as follows:

"3. The share of each province, city, and municipality shall be

determined on the basis of the following formula:

Seventy per centum (70%) — Population

Twenty per centum (20%) — Land Area

Ten per centum (10%) — Equal Sharing

Section 3

SEC. 3. Section 5 of Presidential Decree No. 144 is hereby

amended to read as follows:

"5. There is hereby created a Barangay Development Fund to be

constituted of the annual contributions of not exceeding P500 per

barangay from each province, city and municipality, which fund shall be

spent solely for community development projects which meet the

requirements set fourth by the Secretary of Local Government and

Community Development.

"The Provincial Treasurer shall be the custodian of this fund

arid he shall maintain in his books a special account therefor. Releases

of this fund shall be made through the Municipal Treasurer concerned

who shall be responsible for the proper disbursement and accounting of

the same."

Section 4

SEC. 4. There is hereby inserted after Section 5 of

Presidential Decree No. 144, a new Section to be designated as Section

5-A which shall read as follows:

"SEC. 5-A. The amount set aside for the Barangays under

this Decree shall be allotted and distributed annually by the President

among the Barangays in accordance with the development plan of the

province, city, municipality and barangay as approved by him to be spent

exclusively for self-help projects and/or other development projects

funded partially from the Barangay Development Fund established in

Section 5

Section 5 hereof.

"Under the general supervision of the Municipal Treasurer of the

municipality where the barangay is located, the barangay treasurer

shall be responsible for the proper disbursement and accounting of the

annual allotments of the barangay and, for this purpose, he shall take

up said annual allotments in a special account in the barangay general

fund."

Section 6

SEC. 6. All acts, laws, decrees, orders, or part or parts

thereof contrary to or inconsistent herewith are hereby revoked or

modified accordingly.

Section 7

SEC. 7. This Decree shall take effect upon approval.

Done in the City of Manila, this 21st day of September, in the

year of Our Lord, nineteen hundred and seventy-four.

(Sgd.)

FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.)

ROBERTO V. REYES

Assistant Executive Secretary

Section 5

SEC. 5. As provided for in Section 9 of Presidential Decree

No. 144, the Secretary of Finance shall issue the necessary rules and

regulations for the prompt and effective implementation of this Decree.