SOURCES OF INCOME IN THE BARANGAY

     A. The barangay has the power of taxation. It is the power of the barangay to raise revenue by imposing taxes, fees, and other charges on the barangay residents and business.

     The barangay may levy taxes, fees, and charges:

     1.  Taxes - on stores and retailers

• Gross sales or receipts of Php. 50,000.00 or less in the case of cities
• Gross Sales or receipts of Php. 30,000,00 or less in the case of municipalities, at a rate not exceeding one percent (1%) on such gross sales or receipts.

     2.  Service Fees or charges

     3.  Barangay Clearance

     4.  Other fees and charges such as

• Commercial breeding of fighting cocks, cockfights and cockpits
• On places of recreation which charge admission fees
• On billboards, signboards, neon signs and outdoor advertisements.

     B. Shares of the Barangay in Taxes Collected

      1.  Fifty percent (50%) of the proceeds of the community tax collected through the barangay treasurer shall accrue to the barangay where the tax is collected. (sec. 164c)

      2.  Proceeds of real property tax shall be as follows:

• In case of provinces, twenty-five percent (25%) shall accrue to the barangay where the property is located. ( Sec. 271-a3)
• In case of cities, thirty percent (30%) shall be distributes among the component barangays of the cities where the property is located in the following manner; (Sec. 271-b2)

            i.   Fifty percent (50%) shall accrue to the barangay where the property is located.

            ii.  Fifty percent (50%) shall accrue equally to all component barangays of the city

• In case of municipalities within Metro Manila area, thirty percent (30%) shall be distributed among the component barangays of the municipality where the property is located in the following manner: (sec 271-c3)

            i.   Fifty percent (50%) shall accrue to the barangay where the property is located.

            ii,  Fifty percent (50%) shall accrue equally to all component barangays of the municipality.

            iii. The barangay shall be entitled to forty percent (40%) of the proceeds collected by the province out of the sand, gravel and other quarry materials extracted from the barangay concerned.

      C. Shares of the barangay in the proceeds of taxes collected by the national government.

           The following are the shares of barangays from the national government:

• Twenty percent (20%) of the internal revenue allotment share.
• Thirty five percent (35%) of the forty percent (40%) of the gross collection derived by the national government from the utilization of national wealth.

Barangay Peace and Order Committee (BPOC)

     The Barangay Peace and Order Committee was created by law, E.O. 366 further amending E.O. 309, S. 1987 entitled "Reorganizing the POC". As amended by E.O. 320, S. 1988 and E.O. 20, S. of 1992 and organizing the Barangay Peace and Order Committees as the implementing arm of the city/municipal POC at the Barangay.

     The BPOC shall be composed of the following:

• Punong Barangay as Chairman
• SK Chairman
• A member of the Lupong Tagapamayapa to be designated by the Punong Barangay
• A barangay tanod to be designated by the Punong Barangay
• A public school teacher to be designated by the school principal or head teacher
• A representative from the interfaith group/a senior citizen representative
• At least three (3) members of existing barangay based anti-crime or neighborhood watch groups or an NGO representative well-known in the community
• A PNP officer to be designated by the Chief of Police of the city/municipality.

     The Punong Barangay can appoint an additional sectoral member in the community depending on the situation and needs in the area the Punong Barangay in his capacity as chairman of the BPOC may appoint additional sectoral representative.

     The BPOC shall have the following functions and responsibilities:

• Monitor and coordinate the implementation of peace and order programs and projects at the barangay level;
• Serves as an information-gathering mechanism;
• Monitor and check the nefarious activities of criminal elements;
• Identify barangay constituents with strong deviant behavior for referral to appropriate authorities;
• Maintain continuing dialogue, close coordination and rapport with the higher levels of the peace and order and public safety councils in their area of responsibility;
• Monitor, coordinate and supervise the operation of all community-based anti-crime movements within the barangay;
• Make periodic assessment of the prevailing peace and order situation in their respective areas of responsibility and submit report with appropriate recommendations to the higher level Peace and Order Council, and
• Perform such other functions, which may be assigned by the higher level peace and order councils.

Budget Process: Budget Authorization (October 20-October 31)

     This stage of the budget process is the adoption and enactment of a Barangay Budget into a General Appropriations Ordinance (GAO) - This is provided in Section 391 (a) (3) "the Sangguniang Barangay shall enact annual and supplemental budgets in accordance with the provisions of this Code".

     The GAO authorizes the Punong Barangay and other Barangay Officials to carry out delivery of basic services and to implement priority development projects.

     The GAO provides funds to support such undertakings.

What are the contents of the Barangay Budget?

     The Annual Barangay Budget document shall contain the following:

• Budget Message
• Local Expenditures Program or "Proposed General Barangay Appropriation Bill"
• Summary of Income and Expenditure (Past Year, Current Year and Budget Year), and
• Summary of Actual and Estimated Output.