Business & Investment

Local government unit planning to raise 241 billion pesos by the end of the year

Residents of San Juan will wait for financial assistance at the San Juan Arena on August 28th. — Philippine Star / Michael Barkas

Along Beatrice M. Laforga, Reporter

The local government (LGU) plans to collect up to 241 billion pesos by the end of the year after exceeding the full-year collection target of 193 billion pesos at the end of September.

Nino Raymond B. Albina, Executive Director of the Local Government Finance Bureau, Business world Local accounts, states, cities and municipalities raised P20.571 billion in the first nine months of the year, 7% above the already downgraded target of P19.34 billion in 2020 as a whole.

He said the nine-month tally was also 2% higher than the 2016.09 billion pesos collected around the same time last year.

“With this relaxation of development and business activity restrictions, we predict that the 2020 collection could reach P241.39B if the trend from the third quarter collection continues,” Alvina said last week. I mentioned in a text message.

Economic managers have previously reduced LGU’s target collection by 37% from their original target of 307 billion pesos due to the recession caused by the coronavirus pandemic.

Municipalities have allowed deferred payments of taxes, fees, and other charges to provide relief to the affected sectors in light of the disruption of business activities caused by the pandemic.

Albina said the LGU was still able to report year-over-year growth because the local taxes collected this year are based on previous year’s valuations or 2019.

However, in the midst of a strict blockade, local governments reduced their tax collection in the second quarter by 2% from 162.42 billion pesos a year ago to 159.15 billion pesos.

“”[The third quarter] LGU’s collection performance has increased due to the successful adoption of taxpayer bailouts, especially interests and penalties, and the innovative use of alternative payment and collection schemes, “Alvina said. ..

“For the 2021 target, we have revised our forecast of P14.89 billion issued in August 2020, taking into account LGU’s second and third quarter performance,” Alvina added. ..

The National Government provided 37 billion pesos, a one-time Bayanihan grant to the LGU, 30.8 billion pesos to cities and municipalities, and 6.2 billion pesos to the states as financial support during the pandemic. ..

This amount is equivalent to one month’s worth of internal revenue allocation for cities and municipalities, or part of the national tax, and half a month’s worth for states.

The state banks Land Bank of the Philippines and Development Bank of the Philippines have also launched low interest rate and subsidized interest rate loan programs for LGUs.

Treasury Secretary Carlos G. Dominges III has previously instructed the LGU to maximize its borrowing capacity to fund recovery measures and allow the local economy to recover faster.



Local government unit planning to raise 241 billion pesos by the end of the year

https://www.bworldonline.com/local-govt-units-on-track-to-raise-p241-billion-by-year-end/ Local government unit planning to raise 241 billion pesos by the end of the year

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