Barangay Officials’ Capabilities and Challenges in the Local Budgeting Process

This study examined the capabilities and challenges of barangay officials in the local budgeting process in San Carlos City, Negros Occidental, Philippines. Guided by Human Capital Theory, it assessed how socio-demographic characteristics influence competency in budget preparation, authorization, execution, and accountability. A descriptive research design was employed involving a total enumeration of 162 barangay officials (Punong Barangays, Kagawads, and Treasurers) from 18 barangays. Data were collected using a researcher-developed questionnaire validated by experts in governance and budgeting. The instrument obtained a Cronbach’s alpha of 0.954, indicating high reliability. Findings revealed that barangay officials had a moderate level of capability across all budgeting phases. Strengths were noted in compliance with procedures, delegation of tasks, and basic budget execution. However, weaknesses were identified in stakeholder participation, monitoring systems, contingency planning, and transparency. Major challenges included limited financial resources and heavy dependence on national government transfers. Inferential analysis showed significant differences in budgeting capability when grouped according to sex, age, position, educational attainment, and length of service. The study concludes that while barangay officials demonstrate functional budgeting competence, their effectiveness is constrained by limited human capital development and structural fiscal limitations. Strengthened training programs, improved financial autonomy, and enhanced accountability systems are recommended.