Income generated by local government units (LGUs) in 2007 increased by 7.56 percent and reached P234.82 billion, financial statements from the Commission on Audit (CoA) published in major dailies today showed.

Net income of LGUs, however, reached P40.02 billion. The figure is P751.33 million or 1.84 percent lower than last year’s net income of P40.77 billion.

The Local Government Code or Republic Act 7160 has given local government units the power to generate their own source of revenue by levying taxes, fees or charges.

Top earners

Provinces with highest income for 2007 are as follows: Bulacan (P1.807 billion), Negros Occidental ((P1.674 billion), Cebu (P1.657 billion), Cavite (P 1.542 billion), Laguna (P1.487 billion), Pangasinan (P1.482 billion), Batangas (P1.386 billion), Quezon (P 1.36 billion), Rizal (P1.361 billion) and Bukidnon (P1.295 billion).

Cities in the National Capital Region, meanwhile, dominated the list of cities with highest income for 2007. The top 10 cities with the highest income for 2007 include Quezon City (P8.43 billion), Makati (P8.296 billion), Manila (P8.240 billion), Pasig (3.952 billion), Davao (P3.153 billion), Caloocan (P 2.509 billion), Cebu (P2.44 billion), Paranaque (P2.153 billion), Pasay (P2.02 billion), Mandaluyong (P1.79 billion).

Municipalites of provinces belonging to Region 4-A or CALABARZON (Cavite Batangas Laguna Rizal and Quezon) dominated the list of towns with highest gross income. The top 10 municipalities with highest income are Binan, Laguna (P677 million); Cabuyao, Laguna (P593 million); Dasmarinas, Cavite (P535 million); Cainta, Rizal (P490 million); Bacoor, Cavite (P456 million); Gen. Trias, Cavite (P415 million); Rosario, Cavite (P408 million); Imus, Cavite (P370 million); Rodriguez, Rizal (P 310 million) and San Pedro, Laguna (P302 million).

Still IRA-dependent

Despite the increase in income, LGUs are still dependent on their share of the national taxes or the Internal Revenue Allotment (IRA). The financial statement of COA showed that 62.43 percent or P 145.69 billion of the LGUs total income represents their share in the IRA.

The IRA is the lifeblood of most LGUs and is used to finance the delivery of basic services. Poor LGUs, especially those who have low income generation capacities, have 80-90 percent IRA dependence.

Big spenders

LGUs also spent more in 2007 than in 2006, the COA financial statement said. “Total expenses incurred by LGUs in fiscal year 2007 totaled P194.79 billion, posting an increase of P17.26 billion or 9.73 percent from P177.53 billion in 2006.”

Negros Occidental, Bulacan, Cebu, Cavite and Quezon were the five the highest spenders among the provinces while Manila, Quezon City, Makati, Davao and Pasig landed on the top five spots of big spenders among the cities.

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