Rcpubtic of the philippines

DDpARTMENT oF THE_iNTERron .rr,l6'Loc.{L

cojronnunur
A.Francisco cold condominium II, EDSA
comer Mapagm"nJ
a, , oii**r, eUEzoN ctTy
-sZl.es.es
Telephone Number 92s.11.48.
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wlvw. dilg. gov. pl-r

LEGAL SERVICE
I

DlLp Opinion No. 3, s.2013

2ql.nN zom

GOVERNOR ALFREDO G. MARANON

Province of Negros Occidental
Dear Governor Maraflon:

This has reference to your lettel dated 03 January 2013

opinion regarding your 2013 Annual Budget which was
sanggunian by a vote of 9-5 without them stating the
disapproval. Specifically, you want to be clarified on the following

this Department's
in its entirety by your
or grounds for their
es, to w1t:

"1. Can our

Sanggunian disapprove in its entirety our Annual Budget

without stating the reasons or grounds for their disapproial?

2.

Can I veto the disapproval ofour enrire Annual Budget?

3. If I can veto the disapproval,

cannot override my veto?
4.

If we operate on a re-enacted

a.

what is the effect ifl the Sanggunian

-l

br-rdget, can we uri)ize the

following:

Provincial DeveLopment Fund fol the payfnent of our loans

which are also our contractual obligations?
i

b.

20o/o

Provincial Development Funcl for the irnplpmentation of our

continuing projects like the operation of our farms? These said
Farns are occupied and without the br.rdget to
the operation
$rnd
20o/o

rnihrlc,..;11,.-.i"L.

c.

Grants and Donations account under the Officf of the Governor

,,,hi^h ic nad ^,,F nrevious
P^ "
- *" year's Annual Budgetl
"""

d.

Gender and Development projects which is rnnder our Special

Pr

moqe Ann-onriations?

5.

Can the Sanggunian take up in their session other rriatters even if we

don't have yet an approved Annual Budget in view of Sec. 323 of the
Local Government

Code?"
I

income and expenditures from the treasurer, the budget proposals of the
of depanments and offices, and
the estimates of income and budgetary ceilings from the local finance
, the local chief executive shall
of this Title.
prepare the executive budget for the ensuing fiscal year in accordance w.ith the

1.,

document prepared by the concerned local chief executive (LCE) fbr the ensuing
fiscar year
based on the estimates of income and erpenditures from the t."u!rr"r, the
budget proposals
of the heads of departmenrs and offices, and the esdmates of inc$me and budgetari
ceilings
from the local finance comrnittee. while it may be true rhat rhe approval or disapproval
of
the executive budget is within the discretion of the si
proper that the sanggunian, in entirery disapproving,^"'lffillit;,XJ:J:i:Ti:'j,ffi,:
that the LCE will be apprised thereof and make the necessaly cprlections or clarificatrons.
Let it be noted thar the LCE prepared his executive budger on the basis of the data
comrng
from the treasurer, heads of departments and offices, and local finance committee.
The second and third questions shan be answered jointly si[ce they are related.
Section 54 of the Local Governmenr Code of 1991 provid
"Secttbn

54. Approval or ordinances.-(a) Every

enacted bv
the sangguniang panlalaurigan, sangguniang panlungsod, or
bayan
shall be presented to the pnouincial governor or city or m
mayor, as rhe
case may be. If the local chief executive concemed
apptpyei, the same, he shall
atfix his sig4atue on each and every page thereof;
ise, he shall veto it

and return the same with his obiecrions to the

which the same
with his objections to the sanggunian, which may
to reconsider the
same. The
concemed may override the veto lof the |ocal chief
executive by two-thir.ds' (2/3) veto of all its members,
making the
ordinance or resolution eifective for all lesal intents and

(b) The veto shall be communicated bv the

chief executive
concerned to the sanggunian within frfteen e5) days in tae tase ofa prouince,

and ten (10) days in the case ofa ci4' or municipaLity; othen[ise, the ordinance
shall be deemed approved as ifhe had signed it.

xnr,'

May we take particular note of the underlinecl wo.d, ..enafted,, and ,.approves,,. The
word "enacted" connotes and signifies that a particular measure ha! already been approved at
the sanggunian level.-,The said enacted ordinance by the Sanggunlan shall then be presented
to the concerned LC$ (the governor in this case) for his approwal.
]

on the aforequoted provision of Section 54 of the local Government code of

1991, approval of the. ordinance of any kind for that matr.er *[y
through: (1) the
"o-.
signing by the LCE of the ordinance signifying approval rhereto;
$r, (2) through inaction on
the part of the LCE, making the enacted ordinance lapse into a l{w after ten (10) or fifteen
(15) days flom receipt thereof, as the case may be; or (3) ia'here frre Lcn exercises his veto
but the same was overridden by the Sanggunian.
Based

If the ordinance is approved through any of the

ordinance so enacted by the Sanggunian shall now be called an "a
The local chief executive shall submit the said executive budeet to the

than the sixteenth (16th) of October of the current fiscal year. Fajlr.rre to
prescribed herein shall subject the local chief executive to such criminal
provided [or under rhis Code and orher applicable laws.

manner, then the

ordinance".

concerned noI later

sucl.r budget on tl:e date
administrative penalties as

Having laid down the applicable rrrle of law, it is thereforp clear that only measures
that have been enacted (meaning, approved by the Sanggunian at its level) into an ordinance
by the Sanggunian shall be submitted to the LCE for the latter to lither aPProve or veto the

same,

the Sanggunian "disapproves" in its enfirety the executive budget

being proposed by the LCE. Such disapproval only means that no $rdinance was ever enacted
by the Sanggunian. Logically therelbre, the LCE cannot yet exerci]se his/her approval or veto
power since there is no enacted ordinance,. so to speak, to be foiwarded to him,/her by the
Sanggunian, It bears to stress that when the Saggunian disapprowef, the executive budget, the
measgre is considered a "lOst measUre" and, hence, thele was notliing to be for-warded to the
Governor for his/herlapfroval or veto.

In the

case at hand,

Government Code of 1991

With regard to your fourth query, Section 323 of the
Regulations (lRR) clearly
as reiterated under Article 415 of its Implementing Rules
appropriations, that
provide the consequence in case the Sanggunian fails to enact the
budget, only the
is, the budget of the preceding year is reenacted2. In case of
statutory and contractual
annual appropriations for salaries and wages of existing positi
obiigations, and essential operating exPenses authorized in
budgets for the preceding year shall be deemed reenacted.
Supreme Court in the case of Villanueva vs. Ople3.

annual and supplemental

was reiterated. by the

appropriations that you

The information,you have given vis-a-vis the four (4)
for us to render a legal
are seeking to utilize in case of re-enacted budget is not suffici
rule, that is, in case of reopinion thereon. Be'thatlas it may, please be advised on the
of positions, no new
enacted budget, there will be no,creation of positions, no
programs, projects and activities, the increase in Internal evenue Allotment (IRA)
ered by an Appropriation
allocation for the vear cannot be utilized since the same is not

- ln

the sanggunian concernecl fails

the ensuing fiscal year, it shall
to pass the ordinance authorizing the annual appropriations at the beginning
such ordinance is approved,
its
members,
for
additional
remunelation
without
to
hold
sessions,
continue
If
the
still fails to enact such
sessions.
during
such
and no other business may be taken up
authorizing the
year
the
ordinance
ordinance after niaety (90) days from the beginning of the fiscal
in force and effect until rhe
appropriations of the PrecedinB year shall be deemed reenacted and shall
concerned. However. onll' the
ordinalce authorizing the proposed approfriations is passed by the

"SICTION 323. Failure to Enact the An-nual Appropriations

In the implementation of such reenacted ordinance, the local

the estirnates of income for the preceding fiscal year those realized from
aids, proceeds from loans,i sale of assets, prioi year adjustments, and other
ordinance authorizing supplemental appropriations shall be passed in place

]i. tt-l.r l/aa(.

concerned shall exclude from

sources, Iil(e national
ogous sources of income. No
annual appropriations.

xxx

lcc<

"ART.415. Budget Authorizadon. X:o<

the annual appropriations at
ln case the sanggunian concetned fails to pass the ordinance a
ns of the preceding year
the beginning of the ensuing fiscal year, the ordinance authorizing the
of existing positions
and
wages
for
annual
appropriations
the
shall be deemed reenactedi toor-Only
in the annual and
authorized
operating
statutory and contractual obligatioDs, and essential
supplernental budgets for the preceding year shall bq deemed reenacted an disbursement of funds shall be in

accordance

'c.R.

therewith.

:r ..

No. 165125, 18 November 2005

x.lo(

xra(

t.

' i-, :l

ri

Ordinance,
$,ga. r' L' t t

activities cannot be underLaken no

how vital they may

is
.
.i(_..
concemed fails to pass d4 oqdinance autho zing the annual
sessions, until such cirdinance
approved and no other
such sessions. Basic is the rule in statutory construction that
is clear, it must be applied according to its e>cpress termss.

ii

that

if

the sanggunian
it shall continue to hold
may be taken up dudng
the language of the law

We hope that we have addressed your concerns

l:lrltt+^rl

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{u{,$-

Director

Cc:

RD

EvelyrA Tr'Tnp$Rli;fi

1,..;0,, DILG Region YI l.i'l

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{ DILG Opinion No. 30,'series of

5

III

'

201l.

Azarcon v. Sandiganbayan, 268 SCRA 747;. February 26, 1997; Ramirez v.

2,18 SCRA 590, September 28,