DILG OPINION NO. 43 S.

1999

15 March 1999

MR. ROBERTO B. GUEVARRA

Punong Barangay
Sun Valley, Paranaque City
Re: (1) Whether or not the barangay can
disburse
funds
and
operationalize
its
projects/programs under the new budget despite
the fact that the sangguniang panlungsod has not
yet completed its review of said budget.
(2) Whether or not the new budget is already
deemed reviewed if the sangguniang panlungsod
fails to inform the barangay of the results of the
review of said budget within the 60-day period
prescribed by law.
(3) Whether
or
not
the
sangguniang
panlungsod can still review the barangay budget at
anytime beyond the 60-day period of review.
Dear Sir:
In reply to your first query, please be informed that the
barangay can already disburse funds under the new budget
despite the on-going review because the law expressly
provides that the ordinance enacting the annual budget of the
barangay shall take effect at the beginning of the ensuing
calendar year (Section 332, RA 7160). However, should the
barangay budget or any item thereof be declared inoperative,
disallowed or ordered reduced accordingly by the Sangguniang
Panlungsod upon review, the treasurer who has custody of the
funds shall not make further disbursements from any item of
appropriation declared inoperative (Sec. 333 [b], RA 7160).
As regards your second query, we answer in the
affirmative.
Section 333 of the Local Government Code
provides, among others, that if within sixty (60) days after
the

-2receipt of the ordinance, the sanggunian concerned takes no

action thereon, the same shall continue to be in full force and
effect. The word action should be interpreted as the act of
approving or disapproving a barangay budget and not merely
to a referral to the appropriate committee. This is evident
from the second sentence of the same provision of law which
provides that the ascertainment of the propriety of the
barangay ordinance shall be done within the same period
referring to 60 days after receipt of the barangay ordinance.
Moreover, under the rules on statutory construction, when the
time is specified for the execution of an official act and such
time was designated in order to limit the power or authority of
the officer or body, such time is considered mandatory (Black
on Interpretation of Laws, pp. 544-552). Hence, upon the
lapse of the mandatory prescribed period, the ordinance
becomes fully effective.
Regarding your last query, since the period of review is
mandatory, the reviewing authority should take action thereon
within the specified period. Hence, the lapse of said period
without any action being taken by the Sangguniang
Panlungsod, strips the latter of its power to review.
Hope to have shed light on the matter.

Very truly yours,

JESUS I.
INGENIERO
Assistant Secretary
LS:19/La
cc:

The City Director

DILG City Field Office
Paraaque City
The Regional Director
DILG-NCR
Cubao, Quezon City