20% Development Funds — DILG Region I opinion letter

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT Regional Office No. l, San Fernando City, La Union Tel. Nos. (072) 888-21-08; 700-57 -46;888-22-89;700-27 -0L;7A036-79; 607-12-45 Fax Nos. 888-22-94: 7 OO-27 -O3 April8,2011 ROGER P. DAQUIOAG CLGOO, Laoag CitY Dear Mr. Daquioag This refers to your letter seeking the Department's clarification on the querries of punong Barangays regarding DILG - MC No. 2010 - 138 on the "use of the Twenty percent (20%) component of the Annual lnternal Revenue Allotment (lRA) shares. Before dwelling on the fssue, may we first invite your attention to the following provisions of the DILG - MC No. 2010-138 dated December 2, 2010, to wit; Sec. 287 of the'Local Government Code mandates every LGU to appropriate in its annual budget no less than 20% of its annual revenue allotment for DEVELOPMENT PROJECTS' Development means the realization of desirable social, economic and environmental outcomes essential in the attainment of the desired quality of life for all. ln this connection DILG - MC No. 2010 - 138 provides that all local authorities are enjoined to utilize the said 20% IRA share for meaningful and rooted development and mandate all LGUs to REFRAIN FROM USING SUCH FUND for: offices. )m( 5. Construction, repair or refinishing of administrative Xxx This Office opines that Administrative offices of LGU include Provincial, Municipal and Barangay Halls. Hence, the use of the 20% IRA share for the construction of Barangay Hall is deeply discouraged to all LGU considering that said 20pl IRA share is intended for development projects like socio developmen! economic development and environmental management' However, construction of Multi-purpose hall, where it serves as a classroom' is an example of developmental project promoting Social development on minors, differently-abled persons and older persons, women and out-of-school-youth' celebrating 20 Years of Local Autononw in the Philippines