LGU revenues seen to further dip in 2021

Local governments have been tasked to collect P223.9 billion in taxes and fees this year, a downscaled target as well as lower than last year’s projected revenues amid a prolonged recession due to the COVID-19 pandemic.

In a statement on Monday, the Department of Finance’s Bureau of Local Government Finance (DOF-BLGF) said had the pandemic not happened, local government units (LGUs) were programmed to generate revenues of up to P321.6 billion in 2021 or 30-percent bigger than the new goal.

But the BLGF said since the recession-battered 2020 would be the assessment base year for 2021 dues, provinces were expected to contribute only P32.23 billion; cities, the biggest chunk amounting to P165.2 billion, and municipalities, P26.47 billion.

The bulk of LGU revenues projected to be collected this year would come from local business tax and other taxes, at an estimated P97.75 billion; real property tax and special education fund, P76.03 billion; regulatory fees and user charges, P29.76 billion, and receipts from local economic enterprises’ operations, P20.35 billion.

7-percent bigger

On a per region basis, LGUs in Metro Manila were seen to generate P102.07 billion or nearly half of the total. Provinces, cities and towns in Calabarzon and Central Luzon were tasked to collect P34.14 billion and P19.89 billion, respectively, the BLGF said.

While the report on the full-year 2020 collections would come out only by March or April, the BLGF estimated last year’s LGU revenues to have reached P241.39 billion, 7-percent bigger than this year’s goal.

Since most 2020 collections were based on 2019 assessments, LGUs’ revenues from January to September last year amounted to P205.71 billion, already surpassing the full-year program of P193.04 billion alongside gradually easing quarantine restrictions.

Prior to the pandemic, the BLGF had set an even higher 2020 revenue target for LGUs at P307.08 billion, but the government had allowed extended payment deadlines as a form of relief to individuals as well as businesses amid the health and socioeconomic crises inflicted by the deadly COVID-19. —Ben O. de Vera INQ