DILG OPINION NO. 58 S.

1999

April 16, 1999

Engr. BONIFACIO C. PATTUNG
Office of the Local Finance Committee
Baggao, Cagayan
Re : 1.
Does the sangguniang bayan have the power and authority
to reduce by 50% the appropriations for the MOOE of the various
departments of the municipal government thereat? Is the Sangguniang
Bayan empowered to ignore the justification of the Mayor and the
Department Heads as regards the appropriations for MOOE?
2.
Can the sangguniang bayan amend or repeal the
previously enacted appropriations ordinance covering the CY 1999
budget?
S i r :
Section 320 of the Local Government Code of 1991 requires that
all budgetary proposals shall be included and considered in the budget
preparation process, the executive budget for which shall be submitted
by the local chief executive to the sangguniang bayan for legislative
authorization through the enactment of an appropriations ordinance
(Sec. 319, ibid.). The said section should be read together with Article 415
of its Implementing Rules and Regulations which pertinently provides
that the local sanggunian may not increase the proposed amount in
the executive budget nor include new items except to provide for
statutory and contractual obligations but in no case shall it exceed the
total appropriations in the executive budget. Considering that the only
prohibition is against any increase, we are of the opinion that your
above-captioned first query should be answered in the affirmative and
therefore, to ensure reasonable economy in local government
operations, the sangguniang bayan is not precluded from decreasing
the executive budget proposed by the municipal mayor, provided,

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however, that the budgetary requirements as well as the general

limitations in the use of municipal funds provided for under Sections
324 and 325 of the Code are complied with, in addition to other fiscal
requirements and administrative regulations.
With respect to your second query, any change in the approved
annual budget may be done through a supplemental budget. The
appropriation ordinance authorizing the supplemental budget shall be
enacted by the Sanggunian in the same manner as that of the annual
budget. However, no ordinance providing for a supplemental budget
shall be enacted except: (a) when supported by funds actually
available as certified by the local treasurer, which shall refer to the
amount of money actually collected during a given fiscal year that is
over and above the realized estimated income of that year; or (b) in
times of public calamity by way of budgetary realignment to set aside
appropriations for the purchase of supplies and materials or the
payment of services which are exceptionally urgent or absolutely
indispensable to prevent imminent danger to, or loss of, life or
property, in the jurisdiction of the LGU or in other areas declared in a
state of calamity by the President. Such ordinance shall clearly indicate
the sources of funds available for appropriations, as certified under
oath jointly by the local treasurer and the local accountant and
attested by the local chief executive, and the various items of
appropriations affected, and the reasons for the change (Art. 417, IRR).
We hope to have enlightened you accordingly.
Very truly yours,

JESUS I. INGENIERO
Assistant Secretary

cc :

DIRECTOR MANUEL V. BIASON

DILG Regional Office No. II

Tuguegarao, Cagayan
LS:77