Budgetary Appropriations.
Section 105
SEC. 105. Budgetary Appropriations.— (1) Upon receipt of the foregoing statements from the city or municipal treasurer, the punong barangay shall prepare the barangay budget in the manner and within the period prescribed under existing laws. Thereafter, the punong barangay shall submit the annual barangay budget to the sangguniang barangay for legislative authorization and/or enactment of the corresponding appropriation ordinance. (2) The annual budgetary appropriations shall not exceed the estimated tax receipts and/or income for the ensuing calendar year certified as collectible by the city or municipal treasurer concerned. Provisions shall be made for the statutory and current contractual obligations of the barangay, and no barangay official or employee shall receive per diems, wages or salaries and other compensation in excess of those provided for under existing laws and executive orders. (3) If the sangguniang barangay shall fail to enact the annual barangay budget within the prescribed period before the beginning of the ensuing calendar year, the annual barangay budget for the preceding calendar year shall be deemed reenacted. Changes in the annual barangay budget may be effected by supplemental budgets prepared and adopted in the same manner as the former. (4) Copies of the barangay budget shall be furnished the city or municipal budget officer within ten days from its approval, who shall have the power to review such budget in order to ensure that the above provisions are complied with. If within sixty days after the receipt of the barangay budget the city or municipal budget officer takes no action thereon, the same shall be deemed to have been passed in accordance with law and shall continue to be in full force and effect. If within the same period the city or municipal budget officer concerned shall have ascertained that the barangay budget contains appropriations in excess of the estimates of the income duly certified collectible or that the same has not fully provided for statutory or contractual obligations of the barangay, the budget shall be declared inoperative in its entirety. Items of appropriation in excess of those provided in laws and executive orders shall be disallowed or reduced accordingly. (5) The city or municipal budget officer, within the period hereinabove fixed, shall return the barangay budget forthwith to the punong barangay through the barangay treasurer, with the advice of action thereon for proper adjustments, in which event the barangay shall operate on the previous year's budget until such time that a new budget shall have met the objections presented. Upon receipt of such advice, it shall be unlawful for the barangay treasurer or the city or municipal treasurer who has custody of the funds to make further disbursements from any other items of appropriation declared inoperative, disallowed or reduced.