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JOURNAL CRITIQUE

Strategies and Innovations in


Increasing Local Government
Revenue Generation

Running a Bureaucracy
- Ma. Gladys Cruz-Sta. Rita -
THESIS

Organizational reforms and


innovations to boost local
revenue generation that will
lead to its financial
sustainability
METHODS

To achieve the purpose of this topic, the author


used relevant data from the national laws,
researches and studies of the concerned
government agencies, and policies/financial
reports of the local government to better view
the linking interconnected of the relations among
variables.
EVIDENCE OF THESIS SUPPORT
To attest the probity of the thesis, some of the significant
and reliable references are the following:
 Provisions from the Local Government Code of 1991
 Commission Of Audit Report - 2007
 Records and Financial Reports (1999-2006) from the
Provincial Assessment and Treasury Office - Bulacan
 Legislative Enactments from the Sangguniang
Panlalawigan (Ord. No. C-002-1996 & C-003-2004)
 Issuances from the Department of Interior and Local
Government
 Issuances from the Local Chief Executive (Governor)
Local Government Code of 1991
Section 129

- the
powers of the LGUs to create
local revenue generation sources;
Commission On Audit Report
Bulacan: (2007)
-ranked 1st among Provinces with the
Gross Highest Income ofP 1,717,600.00

-ranked 3rd among Provinces with the


Highest Net income of P 368, 180,000.
Records and Financial Reports (1999-2006)
from the Provincial Assessment and
Treasury Office

- Real Property Tax (RPT) (Basic)


1999-2006 : average between P93.6 M to
P154.1M
- RPT Special Education Fund
1999: 129.4 M
2006: 217.8 M
(67% increase)
Issuances from the Department of Interior
and Local Government (DILG)

2003 Organizational Restructuring Program


- Merging of the Provincial Assessment and
Provincial Treasury Departments into one
department (PATO).
Legislative Enactments from the Sangguniang
Panlalawigan

SP Ord. No. C-002-1996:


- Provincial Revenue Code of Bulacan

SP Ord. No. C-003-2004


- Revised Provincial Revenue Code of Bulacan
CONTRIBUTION TO THE
LITERATURE
 Journal of Sustainable Development, Vol.8. No. 9, 2015
Challenges of Expanding Internally Generated Revenue in Local
Government Council Areas in Nigeria

“capacity of a local government to generate revenue


internally is one of the very critical consideration for the
creation of a local government council (Olusola & Syanbola-2014).”
Generating revenue internally is an important statutory
function of a local government. One of the reason d’re for
creating local government is the belief that it could create
and sustain rapid socioeconomic and political development
at the grassroots level.
CONTRIBUTION TO THE LITERATURE
International Journal of Innovative Research and Development,
Vol.2, Issue No. 10, 2013
Strategic control and Revenue Generation: A Critical Success Factor in Local
Government Administration Using the Balanced Scorecard

“For a successful revenue generation, revenue control is


put in place to ensure timely collection of government
revenue, and ensuring that amount due are actually
collected as well as ensure that revenue generated are paid
to the coffers of government. Though financial instruction
is provided for an efficient handling of government
revenue, but in practice the regulations are more often than
not flouted for personal gains due to weak internal control
and other attitudinal problems.”
CONTRIBUTION TO THE LITERATURE
Global Urban Development Magazine, Vol.2, Issue 1, 2006
Expanding local government resources for capital projects through
municipal borrowing and other market-based financing (charles j. billand)

Many municipalities, such as those in India and


the Philippines, have reduced their reliance on
government cash transfers and donor loans and
grants through own-source revenues. Increasing
own-source revenues provides new funds to pay
for building critical infrastructure.
To increase own-source revenues, local
governments have adopted programs to: improve
billing and collections; reduce operating costs by
implementing energy efficiencies;. These actions
are all within the manageable interest of
municipal elected officials and managers and do
not require difficult political decisions such as
raising rates.
CONTRIBUTION TO THE LITERATURE
International Journal of Managerial Studies and Research
(IJMSR) Volume 2, Issue 5, June 2014
Local Government Funding: Entrepreneurial Perspective to Internally
Generated Funds (IGR)

There is a need for the political will to diversify the IGR


of LGs in Nigeria, putting into consideration that needs
and services. Conclusively, improved revenue generation is
vital to the viability and stability of the government. The
fundamental issue is achieving optimum revenue capacity
of local governments. It is expected that local
governments should leverage and exploit the bounties
inherent in fiscal federalism.
CONTRIBUTION TO THE LITERATURE
Commonwealth Journal of Local Governance, issued 18,
December 2015
Mobilizing internally generated funds to finance development projects in
Ghana’s Northern Region

In another study, Alupungu et al. (2012) found that IGF for


the Kumasi Metropolitan Assembly in the 2011/12 fiscal
year constituted just 12% of total revenue, implying an
even wider gap between IGF and external sources for all
MMDAs. This abysmal performance was attributed to
citizens’ lack of awareness of the need to pay taxes to the
assembly, as well as to inadequate logistics and lack of
motivation by revenue collectors
Agyapong (2012), in a study of Kumasi
Metropolitan Assembly, further found that revenues
mobilized could not finance the infrastructure needed,
finding that the shortfall of revenue was mainly due to
corruption amongst revenue collectors, officers and
assemblymen in the various Sub-Metro Districts. The
study concluded that Kumasi was not harnessing fiscal
decentralization enough to empower itself under the Local
Government Act 1993, with the result that the assembly had
not developed new and sustainable strategies to improve
its performance in revenue mobilization.
RECOMMENDATION
National/Local Government Officials, Government
Financial Institutions, Business Sectors, Potential Investors,
the Academe, Taxpayers, Students, and Other stakeholders
will find interesting in this article as it presents a stark
contrast between the traditional local government revenue
management of the past and the liberalized model of LGU
resource generation. It clearly shows that through the
enactment of the Local Government Code of 1991, then
LGUs had always been dependent on the National
Government (via IRA) for fiscal sustenance. But the LGC
catalyzed the fiscal policy environment, allowing local
governments to dream and work for greater self-sufficiency.
Thank you