DOF hikes LGUs’ 2020 collection goal to P307B

/ 04:08 AM January 14, 2020

The Department of Finance (DOF) has increased by almost a fifth to P307.1 billion the revenues that treasurers of local government units (LGUs) nationwide must collect this year.

According to the DOF-attached Bureau of Local Government Finance (BLGF), the 2020 collection target for provincial, city and municipal treasurers was 19-percent bigger than the 2019 goal of P257.6 billion.


In particular, provincial treasurers had been programmed to generate P54.2 billion in revenues; city treasurers, P213.7 billion; and municipal treasurers, P39.2 billion.

The BLGF expects local business and other taxes to be the biggest revenue source among LGUs this year, projected to reach P126.2 billion.


Real property tax was seen generating P107.2 billion; fees and charges, P43.9 billion; and receipts from operations of LGUs’ economic enterprises, P29.8 billion.

As early as the first quarter, the BLGF expects LGUs to already gain P136.2 billion or 44 percent of the full-year revenue target due to collections coming from local tax payments as well as renewal of business licenses and permits due at the start of the year.

The three regions expected to generate the largest tax revenues this year were the National Capital Region (P122.1 billion), Calabarzon (P46.1 billion), and Central Luzon (P28.9 billon).

In terms of provinces, the BLGF was eyeing the biggest 2020 revenues from the following: Rizal, Bataan, Bulacan, Nueva Ecija, Batangas, Quezon, Pampanga, Cavite, Pangasinan, and Iloilo.

The 10 cities seen generating the most revenues this year included eight in Metro Manila, namely: Quezon City, Manila, Makati, Pasig, Taguig, Pasay, Parañaque, and Muntinlupa.

Besides the eight cities in the National Capital Region, the BLGF expects Davao City and Cebu City to be among the 10 biggest revenue collectors in 2020.Among the country’s municipalities, the top revenue generators were projected to be Cainta, Rizal; Carmona, Cavite; Taytay, Rizal; Malay, Aklan, Echague, Isabela; Marilao, Bulacan; Pagbilao, Quezon; Santo Tomas, Batangas; Baliuag, Bulacan; and Guiguinto, Bulacan, the BLGF said.

However, Santo Tomas, Batangas already became a city last year.


“The target for real property tax is based on the LGU’s total current collectibles and cumulative five-year realty tax delinquencies, while targets for local business tax and other taxes, fees and charges, and receipts from economic enterprise/s are based on the previous year’s actual collections plus an incremental factor based on the gross regional domestic product and inflation rate,” the BLGF explained.

“The setting of annual local revenue collection target is part of the performance evaluation of local treasurers who are under the administrative and technical supervision of the DOF, through the BLGF, and as one of the indicators in Chapter 15 of Philippine Development Plan (PDP) 2017-2022,” it said.—BEN O. DE VERA INQ

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