Clarification on the Basis of the Local Disaster Risk Reduction and Management Fund (LDRRMF)

January 3, 2019 BLGF MEMORANDUM CIRCULAR NO. 002-19 FOR : All BLGF Central and Regional Directors; All Provincial, City and Municipal Treasurers; and Others Concerned SUBJECT : Clarification on the Basis of the Local Disaster Risk Reduction and Management Fund (LDRRMF) This Memorandum Circular (MC) is issued to guide all concerned relative to the computation of the five percent (5%) LDRRMF of local government units (LGUs) pursuant to Section 21 of Republic Act (RA) No. 10121. 1 The provision of the law provides, in part, that not less than 5% of the estimated revenue from regular sources of LGUs shall be set aside as the LDRMMF. cSEDTC Further, the Local Government and Regional Coordination Bureau of the Department of Budget and Management (LGRCB-DBM) stated in a letter dated 16 November 2018 that the reference made to the BLGF MC No. 16-2015 2 dated 19 June 2015 for the Local Budget Memorandum (LBM) Nos. 74 3 dated 15 June 2016, 75 4 dated 01 June 2017 and 77 5 dated 15 May 2018, was made with the intention of guiding the LGUs in determining which of their potential revenues can be considered as "regular" and not to refer to the actual revenue from regular sources as the basis of the 5% LDRRMF of LGUs. Thus, the basis of the 5% LDRRMF of LGUs under RA No. 10121 shall still be the estimated revenue from regular sources . The Regional Directors of this Bureau are hereby instructed to widely and immediately disseminate this Circular to all concerned. Be guided accordingly. AIDSTE (SGD.) NIO RAYMOND B. ALVINA Executive Director Footnotes 1. Philippine Disaster Risk Reduction and Management Act of 2010. 2. Local Public Financial Management (PFM) Tools for the Electronic Statement of Receipts and Expenditures (which include the Guidebook for the New Local Government Financial Performance Monitoring System). 3. FY 2017 Internal Revenue Allotment and Guidelines on the Preparation of the FY 2017 Annual Budgets of Local Government Units. 4. FY 2018 Internal Revenue Allotment and Guidelines on the Preparation of the FY 2018 Annual Budgets of Local Government Units. 5. FY 2019 Internal Revenue Allotment and Guidelines on the Preparation of the FY 2019 Annual Budgets of Local Government Units.