|
Monday, August 22, 2005
Local gov’ts increased expenses, but only by 2.2%
LOCAL governments kept spending under control in 2004, a year marked by repeated warnings of fiscal deficits.
According to the Commission on Audit (COA), local governments increased their spending by only 2.2 percent, or P3.1 billion, for total expenses of P143.7 billion.
That’s about P1,878 per Filipino, given a population of 76.5 million, and assuming that all expenses were for public goods or services.
Belt-tightening allowed local government units (LGUs) to earn P29.8 billion in net income in 2004 — about P389 per citizen, if we were to split the savings.
The good news for taxpayers: Despite greater liabilities, local governments managed to spend less than what they earned in 2004.
COA recorded a total income of P173.5 billion, total expenses of P143.7 billion and a net income of P29.8 billion.
It paid for a full-page advertisement in a Manila broadsheet last Saturday to report on the financial performance of 75 provinces, 117 cities and 1,419 towns in 2004.
“Austerity measures adopted by local governments in 2004 resulted in a minimal growth of their expenses,” state auditors reported.
From P140.6 billion in 2003, expenses reached some P143.7 billion in 2004 — an increase of 2.2 percent, in a year that saw inflation rise by 5.5 percent.
Local governments all over the country gained an additional P20.5 billion in assets last year. Cebu Province topped the list, reporting P1.25 billion in assets.
By the end of 2004, the local governments reported a total of P53.3 billion cash in the banks. Again, Cebu Province topped that list, with P1.03 billion. Cebu City landed in sixth place, with P940 million.
But while local governments reported an increase in assets, their liabilities also rose by P3.4 billion from 2003, for a total of P67.4 billion.
That leaves each Filipino with a tab of P881, if we all suddenly decide to split the local governments’ debt burden.
Cebu City residents might not relish that thought, however. Cebu City, at P3.85 billion, reported the highest liabilities among all cities nationwide.
COA’s report shows the cities earning more, whether gross or net, than provinces did in 2004. But the cities also spent more.
Cebu City, for example, reported P1.57 billion in total expenses last year. Cebu Province spent less, at P948 million. Both were among the top 10 biggest spenders in the country last year.
But Cebu Province and City were also among the 10 LGUs with the largest Internal Revenue Allotment (IRA) shares, which are determined in part by population and land area. The province received P908.1 million, second only to Pangasinan.
The city got P608.3 million, less than what went to the cities of Quezon, Davao, Manila, Caloocan, Zamboanga and Puerto Princesa.
The IRA, amounting to P109.2 billion, accounted for 62.9 percent of the local governments’ total income. AAG/IDA
(August 22, 2005 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
