Tuesday, November 04, 2008 City ups revenues by 7.6%
DAVAO City's economy has grown and may continue despite the current crisis.
According to City Administrator Wendel Avisado, Davao placed fifth in having the highest revenue or income generated from local taxes. Topping the ranks is Quezon City (P8 billion plus level), followed by Makati (P8 billion plus level), Manila (P5 billion), Pasig (P4 billion) and Davao (P3.2 billion), respectively.
"Malaki talaga ang iniangat ng city for one year. Our revenue in 2008 increased by approximately 7.6 percent or about P227 million," Avisado said.
Avisado added that it is the city's goal to exceed the internal revenue allotment (IRA) so that the city would cease to be IRA-dependent.
This is because, for so many years now, local governments can hardly access their IRA, including Davao City, which has to take out a loan just to make use of the fund.
Other local government units (LGUs) that are not as financially viable are having difficulties because of the withheld IRA, a state the city would rather not be in.
For the year 2009, 59 percent or 1.9 billion of the city's annual budget is still from the IRA, while 38 percent or 1.2 billion comes from local tax collection -- a difference of P700 million for the city collection as compared to its IRA.
According to Avisado, measures to further strengthen the city's tax base are being studied. He added that the city would continue to collect more tax due to the influx of investors here.
"They can see that the city is committed to spend to pursue a good business climate; that is why they are not afraid to spend here. The local government unit should always show that it is capable of giving support services and incentives, as well as pay its loans. The investments will follow," Avisado said. (GLP)
