EXECUTIVE ORDER NO. 189
EXECUTIVE ORDER NO. 189 - DIRECTING
ALL LOCAL GOVERNMENT UNITS TO SUBMIT TO THE DEPARTMENT OF BUDGET AND
MANAGEMENT THEIR RESPECTIVE ANNUAL INVESTMENT PLAN
WHEREAS,
Local Government Units (LGUs) are mandated to appropriate in its annual
budget no less than twenty percent (20%) of its annual internal revenue
allotment for development projects with copies of their respective
Development Plans to be furnished the Department of the Interior and
Local Government, pursuant to Sec. 287 of R.A. No. 7160, the Local
Government Code of 1991, as implemented by Article 384 of its
Implementing Rules and Regulations;
WHEREAS, while the Local Government Code empowers local authorities to
manage their internal affairs consistent with devolution and local
autonomy, it should be emphasized that part of the responsibility of
the national government is to help ensure that public funds,
particularly the 20% Development Fund, shall be appropriated and
disbursed only for the very purpose or purposes for which such Fund was
established; and
WHEREAS, it has been observed that most LGUs, if not all, do not submit
an Annual Investment Plan (Local Development Plan) as required under
the Local Government Code of 1991.
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic
of the Philippines, by virtue of the powers vested in me by law and the
Constitution, do hereby order the following:
Section 1. Use of the 20% Development Fund. — The
Internal Revenue Allotment (IRA) share of local government units
equivalent to twenty percent (20%) set aside for development projects
shall be used for specific sectoral programs, projects and activities
in furtherance of the development agenda of the government.
Accordingly, priority consideration shall be given to the following
areas:
a.
Solid waste management which may include purchase of related equipment,
trucks and compactors, as well as purchase of land for sanitary
landfill purposes;
b. Purchase of
lots for hospitals, health centers, day care centers and similar
facilities which may include construction, repair and/or maintenance of
such facilities;
c. Purchase of
lot for resettlement of squatters, including construction of housing
units and facilities;
d. Activities
in support of the Food Security Program, and the Livestock Dispersal,
Fisheries Development and Fish Culture Farming Programs;
e. Initiatives
in support of Cooperative Development;
f.
Construction, maintenance and/or repair of post-harvest facilities,
irrigation and other agricultural production systems;
g.
Construction, maintenance and/or repair of local roads and bridges;
h.
Construction, maintenance and/or repair of water and sewerage system,
as well as, power and communication facilities; and
i.
Construction, maintenance and/or repair of public buildings which may
include purchase of equipment necessary in the implementation of
infrastructure undertakings.
Sec. 2. Submission of the Annual Investment Plan.
— All local government units shall submit their respective Annual
Investment Plan (Development Plan) as approved by their Local
Development Council, to the appropriate regional office of the
Department of Budget and Management, not later than January 31st of
each year; provided, however, that the submission of this Annual
Investment Plan for the year 2000 shall be not later than March 31,
2000. More specifically, said Annual Investment Plan shall contain
specific programs, projects and activities, as aforementioned, the
corresponding project cost including the necessary fund flows to
approximate the reasonable timing in the release of funds.
Sec. 3. Direct Release of the Internal Revenue
Allotment Representing the 20% Development Fund. — The DBM Regional
Office shall release the twenty percent (20%) Development Fund of the
LGU on the basis of programs, projects, and activities embodied in the
Annual Investment Plan direct to the LGU concerned considering the
appropriate schedule for the release of funds. When appropriate, the
initial release for mobilization and the subsequent progress billing
scheme may be adopted for the purpose.
Sec. 4. Implementing Guidelines. — The Department
of Budget and Management, in consultation with all the Leagues of the
local government units, shall formulate the necessary guidelines for
the effective implementation of this Order and may prescribe
appropriate forms for the purpose.
Sec. 5. Review of the Project List to Implement
the 20% Development Fund. — The Development Budget Coordinating
Committee (DBCC) shall conduct a semestral review of the list of
eligible projects and shall provide the Office of the President with a
report and recommendation on the effective implementation thereof.
Sec. 6. Effectivity. — This Executive Order shall
take effect on January 1, 2000.
DONE, in the City of Manila,
this 21st day of December, in the Year of Our Lord, Nineteen Hundred
and Ninety Nine.
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