Ang Unang Lima

Cities dominate 69% of the local income leaving 13% for Provinces and 18% for Municipalities. Why?

This is not about Senator De Lima.  Instead, let’s focus on why these top five or “lima” are indeed privileged!

Based on LGUs’ Statement of Receipts and Expenditures or SREs for FY 2015, the top 5 LGUs with the highest locally-generated income are:  Quezon City (P17.29B), Makati City (P11.85B), Manila (P9.65B),  Pasig City (P7.70B)  and Taguig City (P4.14B).   

These 5 Metro Cities earn a total of about P50.6 Billion of the P172.34 Billion Total amount generated locally by all the 80 Provinces, 144 Cities and 1,477 Municipalities put together for FY 2015. This top 5, literally a handful, represent a measly 0.30% of all the 1,701 PCMs, already control 30% of the local tax and non-tax revenues to the detriment of the 99.7% of the PCMs which make do with the remaining 70% of the local resources to deliver the same basic services for the people.

Cities dominate 69% of the local income leaving 13% for Provinces and 18% for Municipalities.  Why?  Cities are given more taxing powers in the LGCode than Provinces and Municipalities.  But even among cities, these 5 already control 43% of the total income generated locally by all Cities.  This lopsided allocation of local resources stems from the unequal opportunities in local taxation, mainly due to the situs of tax where 30% goes to the LGU where the main offices of the businesses, banks and financial institutions are located - mainly in these 5 Cities.   

NEDA Sec. Pernia committed to LPP that he will support this vital fiscal reform championed by Governors League and all ULAP-member leagues.  He agrees that Mindanao and Visayas must be given equal opportunities to cope with Imperial Manila. 

Let us, therefore, rally support for the immediate passage by Congress of SB Nos. 782 and 222 . Dapat 222hanin na talaga ang change! 

SBN 222 (Amending Section 150 of Republic Act 7160, otherwise known as "the Local Government Code of 1991") is filed by its author Senator Vicente C. Sotto III on July 4, 2016. SBN 782 (Rationalizing Local Taxation Amending for that Purpose Section 150, Chapter 1, Title one, Book II of Republic Act No. 7160, as Amended, otherwise known as the Local Government Code) was filed on July 21, 2016 by Senator Francis Escudero. Both bills are pending at the Committee of Local Government chaired by Senator Sonny Angara

About the Author
Sandra Tablan Paredes is presently the Executive Director of the League of Provinces of the Philippines (LPP) since October, 2016 although she previously served LPP as Director from 1997 to 2004 Sandy helped organize ULAP in 1998 with former Governor Joey Lina and advocated for the LGUs' rightful IRA share, among other league advocacies, programs and projects to help local officials ensure local and fiscal autonomy and good governance. Recently served as concurrent interim Executive Director of ULAP from Jan-March 31, 2017. You can email her at This email address is being protected from spambots. You need JavaScript enabled to view it.
Other Articles

Sign up via our free email subscription service to receive notifications when new information is available.