Republic of the Philippines

Province of Surigao Del Sur

Municipality of Tagbina

OFFICE OF THE MUNICIPAL MAYOR

BUDGET MESSAGE
Fiscal Year 2022
October 20, 2021

The Honorable
MEMBERS OF THE SANGGUNIANG BAYAN
This Municipality

RE: BUDGET MESSAGE

Gentlemen and Ladies:

May I submit the proposed Annual Budgets for FY 2022 of the Municipality of
Tagbina for both the General Fund and Operation of Economic Enterprise under Section 318
of RA 7160, otherwise known as the Local Government Code.

The 2022 Annual Budget of the General Fund showed allocations of figures among the
four (4) different sectors namely, General Public Services, Social Services, Economic Services,
and other services, respectively, as shown below:
Exhibit 1

EXPENDITURE PROGRAM
(Distribution by Sector)

44354584.84; 17% General Services

Social Services
137279997.17; Economic Services
49482468.96; 19% 52% OS

35204792.03; 13%

 The above-mentioned figures distributed among different sectors which totaled P

261,321,843.00 will be used to fulfill our vision of an “Industrialized Tagbina: A prime
 Republic of the Philippines
Province of Surigao Del Sur
Municipality of Tagbina
 producer of agricultural and forest products in CARAGA Region through proper utilization of
natural and eco-tourism resources supported by adequate infrastructure facilities,
implemented by morally upright leaders to attain better economy for contented and God-
fearing population.”

           To Finance our General Fund proposed expenditures for Budget Year 2022, we project
to realize revenues of P 266,321,843.00 from the following sources, to wit:

Exhibit 2

SOURCE OF FINANCING AMOUNT PERCENTAGE

National Tax Allotment 252,321,843.00 95.0%
Local Tax Revenues 14,000,000.00 5.0%
TOTAL REGULAR INCOME ₱ 266,321,843.00 100.0%

SOURCE OF FINANCING

14000000; 5%
National Tax Allotment
Local Tax Revenues

252321743;
95%

Local income of our Municipality consists only of about 5% as against National Tax
Allotment of 95%. This means that we will have to aggressively campaign to increase our
local revenue generation for the municipality to get out of the shackles of dependency from
the National Tax Allotment. Exhibit 2 shows also the National Tax Allotment for FY 2022
significantly increased by 34% from last year's Tax allotment with the implementation of the
Mandanas-Garcia ruling according to Executive Order No. 138 dated June 1, 2021. LGUs are
expected to gradually upscale our services to fully assume the devolved functions, services,
and facilities as provided in Section 17 of the Local Government Code. Starting FY 2022,
there shall also be scaling down of financial subsidies from the national government of our
local programs and projects; hence, the LGU is expected to strengthen our local revenue
generation capacity to meet the increasing needs. On top of this, the provision of COVID 19
related PPAs and expenses for response and recovery measures remain a priority.
To support the budget for FY 2022 the following fiscal policies and measures were approved
and endorsed by the Sanggunian:

1. Enhanced tax collection efficiency by launching a vigorous tax info campaign

supported by an intensified tax collection effort.
 Republic of the Philippines
Province of Surigao Del Sur
Municipality of Tagbina
2. Encourage cost-recovery measures for goods and services delivered to support the
revenue enhancement effort of the Local Government.
3. Enforce energy conservation as one of the economic measures consistent with the
national government’s Energy Management Program.
4. Promote participative governance from the stakeholders of civil society groups,
NGOs, private sectors, and disadvantaged groups through consultation to decide on
the rational allocation of scarce resources.

Exhibit 3

EXPENDITURE PROGRAM BY SECTOR

160,000,000.00
140,000,000.00
120,000,000.00
100,000,000.00
80,000,000.00
60,000,000.00
40,000,000.00
20,000,000.00
-
GPS SS ES OS

Exhibit 3 shows the trend of expenditures for FY 2020 to FY 2022. Each sector has
registered sizeable increases for the three years. This is attributed to the implementation of
Mandanas – Garcia ruling or the Full devolution of certain functions of the Executive branch
to local governments.

It has been long recognized that for a Local Government unit to achieve efficient and
effective delivery of services, it should aim for the improvement of the ratio of its overhead
costs to cost of production and service delivery. Thus, it is important to present in the
Message, through the chart below, the direct cost of public goods and services produced
and delivered vis-à-vis their associated costs. This presentation slices the budget pie based
on functional activity.
 Republic of the Philippines
Province of Surigao Del Sur
Municipality of Tagbina
Exhibit 4

DISTRIBUTION BY LGU BUDGET By Functi onal

Activity FY 2022

2663218.43; 1% 2523218.43; 1% 835963.68; 0%

50464368.6; 19%
89105313.2;
13316092.15; 5% 33%

13316092.15; 5%

30742250; 12%
5945716.95; 2% 57409609.41; 22%

PS MOOE CO LFP 5% GAD

5% MDRRM 20% LDF 1% SC/PWD 1% LCPC Other SPA

The distribution of the LGU budget (Exhibit 4), shows that P 89,105,313.20 or 33% is
allocated for the salary of all elected and regular employees of this municipality, the amount
of P 6,799,749.20 which is included in the allocation of Personnel Services is allotted for the
payment of Terminal Leave Benefits. The amount of P 57,409,609.41 has been set aside for
MOOE, representing 19% of the budget. Expenditures for Capital Outlays of the different
offices amounted to P 5,945,716.95 or 2% of the total expenditures. 20% or P 50,464,368.60
of the National tax allotment is appropriated for the local development programs of the
LGU. The amount of P 30,742,250.00 has been set aside for locally funded projects which
are 12% of the total expenditures. A lump-sum amount of P 32,654,584.84 has been set
aside for other Special Purpose Appropriation (5% MDRRM, 1% SC/PWD, 1% LCPC, 2%
Discretionary, Aid to Barangays, and Election reserve) representing 12.26 of the total
expenditures.

Details of the budget per program, project, activity (PPA) are outlined in various
offices and sectors mandated to undertake said program/project/activity as embodied in
this General 2022 Annual Budget.

OPERATION OF ECONOMIC ENTERPRISE

The proposed Budget for the operation of Economic Enterprise (Operation of Public
Market and Terminal and Cemetery) in FY 2022 shall be sourced from the income of Public
Market Terminal and Cemetery amounted to P 2,134,175.00 and subsidy from General Fund
amounted to P 1,590,000.00 to complement the financial needs of the Local Economic
Enterprise with the end in view of ensuring efficient and effective delivery of basic services.
Shown below is the allocation of the total local economic appropriation for FY 2022.
 Republic of the Philippines
Province of Surigao Del Sur
Municipality of Tagbina

DISTRIBUTION OF EXPENDITURE

100000; 3%

1348105.79; 36% Personal Services

MOOE
Capital Outlay

2276069.21; 61%

CONCLUSION:

Submitted together with this message are the Local Expenditure Program, Plantilla of
Personnel, Annual operating Budget of LEEs, approved Annual Investment Program, and
other supporting schedules. Gentlemen and Ladies of the Sanggunian, this budget proposal
manifests our determination to lay a strong foundation for a greater and progressive
municipality. Let us join our hands as we go about our mission of providing a brighter future
for our constituents.

Very truly yours,

GENEROSO L. NARAISO
Municipal Mayor
 Republic of the Philippines
Province of Surigao Del Sur
Municipality of Tagbina
OFFICE OF THE MUNICIPAL MAYOR

October 20, 2021

The Honorable
MEMBERS OF THE SANGGUNIANG BAYAN
This Municipality

Gentlemen and Ladies:

In compliance with the provisions of Article 422 of the rules and Regulations
implementing the Local Government Code of 1991. I have the honor to submit thirteen
copies (13) of the Local Expenditure Program and Annual Operating Budget of Local
Economic Enterprise for CY 2022 and LEE Business Plan for CY 2021-2023 together with the
following documents:

1. Budget Message
2. Personnel Schedule (General Fund & LEE)
3. Statement of Indebtedness
4. Budget of Expenditures and Sources of Financing (BESF)

Anticipating for your favorable and immediate action.

Very truly yours,

GENEROSO L. NARAISO
Municipal Mayor