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PIA Press Release
2008/08/05

LGUs may enact supplement for used calamity funds - DILG

by Jemin B. Guillermo

Roxas City (5 August) -- With most local government units having used and exhausted their respective calamity funds during the recent typhoon that hardly hit most regions in the country, the government said the LGUs may enact supplemental budget.

Interior and Local Government Secretary Ronaldo Puno said that local legislative councils may enact a supplemental budget to finance disaster risk management efforts at the local level, in case the local calamity fund has already been depleted.

Puno said that the respective councils of Sanggunian may enact a supplemental budget once the five percent local calamity fund has already been used up.

The advisory is contained in a directive issued by DILG to provincial governors, city and municipal mayors and punong barangays, citing the provision of the Local Government Code.

"In times of public calamity, LGUs through their respective local sanggunians may choose to enact a supplemental budget in order to finance and implement their rehabilitation and relief efforts," Puno said.

The LGC mandates every LGU to allocate five percent of the estimated income from regular sources, as annual lump sum appropriation and referred to as Calamity Fund, for relief, rehabilitation, reconstruction and other works and services in connection with the occurrence of calamities during the budget year.

Under Section 321 of the LGC, it states that "A supplemental budget may also be enacted in times of public calamity by way of budgetary realignment to set aside appropriation for the purchase of supplies and materials or the payment of services which are exceptionally urgent or absolutely indispensable to prevent imminent danger to, or loss of, life or property, in the jurisdiction of the local government unit or in other areas declared in a state of calamity by the President."

In a DILG online news, Puno said that in the enactment of a supplemental budget and in the disbursement of funds for disaster efforts, "it is understood that the procedural requirements of the law, rules or regulations shall be strictly observed."

During the devastation of typhoon "Frank" that hardly hit Capiz and other provinces in Western Visayas, the Sangguniang Panlalawigan here has declared the province as under the state of calamity.

Accordingly, millions of pesos have been shelled out by the provincial government of Capiz out of its 5 percent calamity fund for relief operations here. Municipalities and barangays in the province also made use of their respective calamity funds for their respective disaster relief operation. (PIA) [top]

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