LOCAL FINANCIAL ADMINIST FOR BARANGAYSRATION.pptx

Presentation for barangays

1. xxxxx xxxxx

2. LOCAL FINANCIAL ADMINISTRATION

3. DEFINITION OF TERMS

4. LOCAL FINANCIAL ADMINISTRATION refers to the rational, effective and efficient conduct of the  fiscal  functions and operations of  local  government units which embrace the systems, structures, processes and human resources involved in – revenue generation; revenue allocation and utilization DEFINITION OF TERMS

5. LOCAL FISCAL AUTONOMY means that LGUs have: the power to create their own sources of revenue in addition to their equitable share in the national taxes released by the NGA; t he power to allocate their resources in accordance with their own priorities. It extends to the preparation of their budgets, and local officials in turn have to work within the constraints thereof . DEFINITION OF TERMS

6. LOCAL SOURCES OF FUNDS

7. Taxing Power Other Revenue-raising power of the barangays POWER OF THE BARANGAYS TO CREATE LOCALLY-SOURCED FUNDS

8. Taxing Power Barangays are authorized to generate income from taxes on stores or retailers with fixed business establishments and gross sales or receipts in the preceding year of P50,000 or less in cities and P30,000 or less in municipalities at the rate not exceeding one percent (1%) on such gross sales or receipts . POWER OF THE BARANGAYS TO CREATE LOCALLY-SOURCED FUNDS

9. Other Revenue-Raising Power of the Barangay Service fees or charges for the use of barangay property or facilities Barangay clearance fees Fees or charges for the commercial breeding of fighting cocks and on cockpits and cockfights POWER OF THE BARANGAYS TO CREATE LOCALLY-SOURCED FUNDS

10. Other Revenue-Raising Power of the Barangay Fees or charges on places of recreation with admission fees Fees or charges for billboards, sign boards, neon signs and other outdoor advertisements POWER OF THE BARANGAYS TO CREATE LOCALLY-SOURCED FUNDS

11. Other Revenue-Raising Power of the Barangay Toll fees or charges for the use of any public road, pier or wharf, waterway, bridge, ferry, or telecommunications system funded and constructed by the barangay Revenues from the operation of public utilities and barangay enterprises (markets, slaughterhouses, etc .) POWER OF THE BARANGAYS TO CREATE LOCALLY-SOURCED FUNDS

12. Other Revenue-Raising Power of the Barangay Fines (not exceeding P1,000) for the violation of barangay ordinances Proceeds from the sale or lease of barangay property or from loans and grants secured by the barangay government POWER OF THE BARANGAYS TO CREATE LOCALLY-SOURCED FUNDS

13. EXTERNAL SOURCES OF FUNDS

14. A barangay is entitled to a share from the following revenues: Real property tax (RPT) collections of the province and city (40%-25%-35%) Community tax collections when collected by the barangay Internal revenue collections OTHER SOURCES AND SPECIFIC REVENUE

15. A barangay is entitled to a share from the following revenues: The development and utilization of the national wealth The proceeds of tax on sand, gravel, and other quarry sources(30 %-30%-40%) Tobacco excise tax pursuant to RA No. 7171 OTHER SOURCES AND SPECIFIC REVENUE

16. A barangay is entitled to a share from the following revenues: A barangay is entitled to a mandatory financial aid of not less than P1,000.00 from the city/municipal governments where the barangay is located OTHER SOURCES AND SPECIFIC REVENUE

17. A barangay is entitled to a share from the following revenues: Barangay is also entitled to receive voluntary donations, grants or aids from any public or private entity. However, the amount of donations, grants or aids received shall not be included in the budget. Disbursement therefrom shall not be made except for the purposes from which they are intended. OTHER SOURCES AND SPECIFIC REVENUE

18. NATIONAL TAX ALLOTMENT

19. The National Tax Allocation (NTA) is the annual share of local governments out of the proceeds from national taxes. It is estimated at forty percent (40%) of the actual collections of national taxes during the third fiscal year preceding the current year. All taxes collected- including customs NATIONAL TAX ALLOMENT

20. The following are deemed as national internal revenue taxes: • Income tax • Estate tax and donor’s tax • Value-added tax • Other percentage taxes • Taxes imposed by special laws, such as travel tax NATIONAL INTERNAL REVENUE TAXES BEING USED AS BASES FOR THE COMPUTATION OF NTA

21. Barangays get 20% of the total NTA which is divided among each one of the entire barangays in the country based on the following formula : Population - 60% b. Equal Sharing - 40 % If the barangay has a population of not less than 100 the share should not be less than P80,000 per annum. The amount shall be chargeable against the 20% share of the barangays from the total NTA. PERCENTAGE OF THE TOTAL NTA GOES TO THE BARANGAYS