Rcpubtic of the philippines IDDpARTMENT oF THE_iNTERron

.rr,l6'Loc.{L cojronnunurA.Francisco cold condominium II, EDSA comer Mapagm"nJ a, , oii**r, eUEzoN ctTyTelephone Number 92s.11.48. -sZl.es.es . itzs.Oi.,:z r

wlvw. dilg. gov. pl-r

LEGAL SERVICE

GOVERNOR ALFREDO G. MARANONProvince of Negros Occidental

Dear Governor Maraflon:

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DlLp Opinion No. 3, s.20132ql.nN zom

This has reference to your lettel dated 03 January 2013 this Department'sopinion regarding your 2013 Annual Budget which was in its entirety by your

or grounds for theires, to w1t:

sanggunian by a vote of 9-5 without them stating thedisapproval. Specifically, you want to be clarified on the following

"1. Can our Sanggunian disapprove in its entirety our Annual Budgetwithout stating the reasons or grounds for their disapproial?

2. Can I veto the disapproval ofour enrire Annual Budget?

3. If I can veto the disapproval, what is the effect ifl the Sangguniancannot override my veto?

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4. If we operate on a re-enacted br-rdget, can we uri)ize the following:-l

a. 20o/o Provincial DeveLopment Fund fol the payfnent of our loanswhich are also our contractual obligations?

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b. 20o/o Provincial Development Funcl for the irnplpmentation of ourcontinuing projects like the operation of our farms? These saidFarns are occupied and without the br.rdget to $rnd the operationrnihrlc,..;11,.-.i"L.

c. Grants and Donations account under the Officf of the Governor,,,hi^h ic nad

^,,F nrevious year's Annual Budgetl""" P^ " - *"

d. Gender and Development projects which is rnnder our SpecialPr r moqe Ann-onriations?

5. Can the Sanggunian take up in their session other rriatters even if wedon't have yet an approved Annual Budget in view of Sec. 323 of theLocal Government Code?"

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income and expenditures from the treasurer, the budget proposals of the of depanments and offices, andthe estimates of income and budgetary ceilings from the local finance , the local chief executive shallprepare the executive budget for the ensuing fiscal year in accordance w.ith the

1., Iof this Title.

document prepared by the concerned local chief executive (LCE) fbr the ensuing fiscar yearbased on the estimates of income and erpenditures from the t."u!rr"r, the budget proposalsof the heads of departmenrs and offices, and the esdmates of inc$me and budgetari ceilingsfrom the local finance comrnittee. while it may be true rhat rhe approval or disapproval ofthe executive budget is within the discretion of the siproper that the sanggunian, in entirery disapproving,^"'lffillit;,XJ:J:i:Ti:'j,ffi,:that the LCE will be apprised thereof and make the necessaly cprlections or clarificatrons.Let it be noted thar the LCE prepared his executive budger on the basis of the data comrngfrom the treasurer, heads of departments and offices, and local finance committee.

The second and third questions shan be answered jointly si[ce they are related.Section 54 of the Local Governmenr Code of 1991 provid

"Secttbn 54. Approval or ordinances.-(a) Every enacted bvthe sangguniang panlalaurigan, sangguniang panlungsod, or bayanshall be presented to the pnouincial governor or city or m mayor, as rhecase may be. If the local chief executive concemed apptpyei, the same, he shallatfix his sig4atue on each and every page thereof; ise, he shall veto itand return the same with his obiecrions to thewith his objections to the sanggunian, which maysame. The concemed may override the veto lof the |ocal chiefexecutive by two-thir.ds' (2/3) veto of all its members, making theordinance or resolution eifective for all lesal intents and

(b) The veto shall be communicated bv the chief executive

(15) days flom receipt thereof, as the case may be; or (3) ia'here frre Lcn exercises his vetobut the same was overridden by the Sanggunian.

If the ordinance is approved through any of theordinance so enacted by the Sanggunian shall now be called an "a

The local chief executive shall submit the said executive budeet to the concerned noI laterthan the sixteenth (16th) of October of the current fiscal year. Fajlr.rre toprescribed herein shall subject the local chief executive to such criminal

sucl.r budget on tl:e date

provided [or under rhis Code and orher applicable laws.

which the sameto reconsider the

concerned to the sanggunian within frfteen e5) days in tae tase ofa prouince,and ten (10) days in the case ofa ci4' or municipaLity; othen[ise, the ordinanceshall be deemed approved as ifhe had signed it. xnr,'

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May we take particular note of the underlinecl wo.d, ..enafted,, and ,.approves,,. Theword "enacted" connotes and signifies that a particular measure ha! already been approved atthe sanggunian level.-,The said enacted ordinance by the Sanggunlan shall then be presentedto the concerned LC$ (the governor in this case) for his approwal.

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Based on the aforequoted provision of Section 54 of the local Government code of1991, approval of the. ordinance of any kind for that matr.er *[y

"o-. through: (1) thesigning by the LCE of the ordinance signifying approval rhereto; $r, (2) through inaction onthe part of the LCE, making the enacted ordinance lapse into a l{w after ten (10) or fifteen

manner, then theordinance".

administrative penalties as

Having laid down the applicable rrrle of law, it is thereforp clear that only measuresthat have been enacted (meaning, approved by the Sanggunian at its level) into an ordinanceby the Sanggunian shall be submitted to the LCE for the latter to lither aPProve or veto thesame, :

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In the case at hand, the Sanggunian "disapproves" in its enfirety the executive budgetbeing proposed by the LCE. Such disapproval only means that no $rdinance was ever enactedby the Sanggunian. Logically therelbre, the LCE cannot yet exerci]se his/her approval or vetopower since there is no enacted ordinance,. so to speak, to be foiwarded to him,/her by theSanggunian, It bears to stress that when the Saggunian disapprowef, the executive budget, themeasgre is considered a "lOst measUre" and, hence, thele was notliing to be for-warded to theGovernor for his/herlapfroval or veto.

With regard to your fourth query, Section 323 of the Government Code of 1991Regulations (lRR) clearlyas reiterated under Article 415 of its Implementing Rules

provide the consequence in case the Sanggunian fails to enact the appropriations, thatis, the budget of the preceding year is reenacted2. In case of budget, only theannual appropriations for salaries and wages of existing positi statutory and contractual

annual and supplementalobiigations, and essential operating exPenses authorized inbudgets for the preceding year shall be deemed reenacted.Supreme Court in the case of Villanueva vs. Ople3.

was reiterated. by the

The information,you have given vis-a-vis the four (4) appropriations that youfor us to render a legalare seeking to utilize in case of re-enacted budget is not suffici

opinion thereon. Be'thatlas it may, please be advised on the rule, that is, in case of re-enacted budget, there will be no,creation of positions, noprograms, projects and activities, the increase in Internalallocation for the vear cannot be utilized since the same is not

of positions, no newevenue Allotment (IRA)ered by an Appropriation

t "SICTION 323. Failure to Enact the An-nual Appropriations - ln the sanggunian concernecl fails

the ensuing fiscal year, it shallsuch ordinance is approved,

and no other business may be taken up during such sessions. If the still fails to enact suchordinance after niaety (90) days from the beginning of the fiscal year the ordinance authorizing theappropriations of the PrecedinB year shall be deemed reenacted and shall in force and effect until rheordinalce authorizing the proposed approfriations is passed by the concerned. However. onll' the

In the implementation of such reenacted ordinance, the local concerned shall exclude fromthe estirnates of income for the preceding fiscal year those realized from sources, Iil(e nationalaids, proceeds from loans,i sale of assets, prioi year adjustments, and other ogous sources of income. No

annual appropriations.xxx

ordinance authorizing supplemental appropriations shall be passed in place

the annual appropriations atthe beginning of the ensuing fiscal year, the ordinance authorizing the ns of the preceding yearshall be deemed reenactedi toor-Only the annual appropriations for and wages of existing positions

authorized in the annual andstatutory and contractual obligatioDs, and essential operating

to pass the ordinance authorizing the annual appropriations at the beginningcontinue to hold sessions, without additional remunelation for its members,

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