Chapter I

THE PROBLEM

Introduction

Revenue is often associated basically in generating money which is normally produced

from normal business operations. It is typically understood to be the sales resulting from the

exchange of goods or services for cash. It can be acquired anytime if follows the flow of

generating income such as on public sector, revenues are being understood in form of any

monetary inflows into the local government's treasury that are made to cover government

expenses. Local governments usually receive funding from inter-governmental revenue, property

taxes, utility revenues, sales taxes, loans, and other sources. Exploring the bottom line, in

barangays generating income is essential to meet the community's basic needs hence they

typically accomplish this by levying taxes on businesses operating within their boundaries.

Mikesell (2021) defined public revenue as the cash that the government collects from

various sources, such as taxes, fees, and charges, and which are used to pay public expenditures.

When it comes to producing income, the capacity to pay concept is at the core of government

policy, therefore a barangay's ability to ensure that it carries out activities that would drive to

revenue enhancement might be hampered by number of significant variables.

The unlimited wants of the local government units to received funding from the national

government could not always be satisfied since the resources are scarce, limited or allotted to a

much more important activities as such they need to produce their own by other means. Diokno-

Sicat et al. (2020) implied that managing local assets can increase LGU revenues without

increasing taxes where improved asset management is important as both a potential source of

revenue as well as a means of financing expenditures for development projects. In relation to

this, revenue enhancement allows for the determination of several aspects that impact the
competencies of local government unit officials in order to achieve progressive outcomes in

planned operations. Hence, given the vague considerations of this matter, it is always susceptible

to the critical and strategic management of officials towards their local assets to make use of the

general purpose of revenue enhancement to assist future projects.

Moreover, LGU public officials were given the more challenging task of developing and

implementing revenue-generating initiatives. According to Section 7(a) of Republic Act No.

7160 or known as the Local Government Code of 1991, an income must be sufficient to provide

for all required government facilities and services, as well as specific functions corresponding

with the size of the population. Understanding the concept will civilize a competent strategic

action by means of application of streamlined principles to the problem. Moreover, Section 305

(c) of the same Act provided that local money is generated only from sources specifically

permitted by law or ordinance, and its collection must be duly recognized at all times.

In this light, the LGU bridges the fiscal gap between their capacity to raise revenue as

several factors might affect them in fulfilling their objectives. According to research produced by

the Philippine Institute for Development Studies, which was laid by Ordinario (2020), local

government units (LGUs) can leverage their assets to generate additional cash for various public

services. The competencies of LGU are classified not solely on its nature but with the public

officials who govern the community with their decisions on implementation and strategic action

towards there propose projects. Prior to the internal and external elements of the LGU structure,

it should be suitably to detect any issues and concerns in connection to the barrier that hinders

their competencies to raise revenue.

In this study, the researchers will assess the competencies of Local Government Units

specifically the barangay chairmen to understand their diverse strategy for raising revenue amidst
several factors that influence their course of action in conformance to its beneficial interest to the

community on top of breakthrough and or crisis.

Background of the Study

In the offshore province of Batangas, Tanauan is one of the oldest towns in the province

comprising forty-eight (48) barangays which became a city by virtue of Republic Act 9005 in

2001. On the annual audit report of 2021, City of Tanauan increased its annual regular revenue

by ₱202,120,561.65 and accumulated a total revenue of ₱2,102,894,869.74 higher than its 2020

annual revenue of ₱1,900,774,308.09 presented on the Commission on Audit official webpage. It

became the highest accumulated revenue of the city with over a trillion pesos that are expected to

rise and drop off depending on the situation. Moving forward, the barangays of the city are

divided accordingly to different cluster head as per release by the City Government of Tanauan.

This help to identify each cluster economic environment as such cluster head I, II, and X

compose of 12 barangays are more industrial. Meanwhile, cluster head III compose of 5

barangays are more on technological. Moreover, cluster head IV, V, VI, VII, VIII compose of 27

barangays are more on tourism, agriculture and aquaculture. Lastly, cluster head IX compose of

4 barangays are focus on agriculture and aquaculture. Given the increase in population and wide

territory, despite of high annual revenue return it still causes heavier challenges to the city

government on how it will provide funds and certainly helps to increase the value of living

among forty-eight (48) barangays.

Capturing the context, even the City of Tanauan have raise its annual revenue still the

city has high annual liabilities and expenses. As presented by Commission on Audit the City of

Tanauan accumulated a ₱1,003,237,759.26 of liabilities and ₱1,318,710,554.69 expenses. It

shows that even having a high annual revenue it will always bound by its corresponding
liabilities and expenses that have a close margin to its value. Thus, it makes obvious the real

problem of the city was its revenue enhancement activities given by the facts presented by the

data.

According to Department of the Interior and Local government with its mandate,

barangay chairman as the chief local executive and the presiding officer of the Sanggunian, has a

very significant role in advancing good governance at the barangay level. They deemed

important persons involved relatively to the revenue enhancement activities as they are the one

who will ought to perform any functionable action that can help to sustain the revenue

enhancement of the barangays with the used of different activities.

In relation to legal basis according to Section 389 of Local Government Code of the

Philippines Book III the Barangay Chairman is the chief executive of the Barangay government,

with the authority to enforce laws and ordinances, negotiate contracts, maintain public order, call

and preside over sessions, appoint or replace officials, organize and lead an emergency group,

prepare budgets, approve vouchers, enforce laws and regulations, administer the ‘Katarungang

Pambarangay’, exercise general supervision, ensure basic services, hold an annual palarong

Barangay, and promote general welfare.

Moreover, one of the researchers resides in Tanauan City and by his mere observance

there is a challenge being encountered in generating revenue in its wide and scattered smallest

territorial areas which are its barangays. The researchers ought to perceive the reason behind the

factors that hinder revenue enhancement. Furthermore, the researchers wanted to know how

diverse the revenue enhancement activities of the City of Tanauan using PESTEL framework

which will be utilized using the survey questionnaire that validated with empirical support. The

PESTEL variables will utilize to measure external factors that can affect the local government
unit by putting organize questions that are reliable to answer the rationale of the study. It is to

know if the revenue enhancement activities of the city are well-balance to every barangay or it

seemly focused in sectors of industrial sites which might cause a big interval on reaching high

revenue.

In relation to the Bachelor of Science in Management Accounting, this kind of issue

being constituted in a local government can provide factual evidence of the importance of the

course. This will pursue the credibility of each management accounting students to broaden the

functionable areas they can fit in. Relatively, management accountant professional is one

important person that can help the local government unit to properly manage its resources to

materialize the asset they have in hand. By providing insights to the focus of the study it will

deliberately attributes to the subjects that a management accounting student will take. Such as

political and legal factors can help on Good Governance while social factors take shapes on

Business Ethics. Moreover, the economic and environmental factors inform the Risk

Management and technological factors enhances the Internal Control. Overall, this study can

guide the students on Strategic Management for long-term financial planning.

Thus, the researcher’s intention is to gather information that will suffice the valid grounds

of why barangays be unable to provide such course of action towards revenue enhancement and

its activities. This builds up the desire of the researchers to know more about how the city

barangays, specifically the Barangay Chairmen, are able to conceptualize its income-generating

project and partnership to raise revenue to give highly beneficial interest to the community. This

research will also completely investigate the possibility of giving rise to simple notions of

successful usage of barangay finances and assets towards revenue enhancement. Thus, it will be
gathered through the experiences of barangay officials to further give factual evidence of the

problem being encountered in providing revenue enhancement activities in the barangay.

Statement of the Problem

This study tried to understand and explore more about the barangay revenue enhancement

activities through the supervision of the barangay chairmen in implementing the activities

towards enhancing the revenue of their respective barangays. Significantly, it was guided by the

following questions:

1. What is the profile of the barangay chairman in terms of:

1.1 age;

1.2 sex;

1.3 highest educational attainment; and

1.4 length of service?

2. How do the respondents assess their revenue enhancement activities relative to several

influences of:

2.1 political factors;

2.2 economic factors;

2.3 social factors;

2.4 technological factors;

2.5 environmental factors; and

2.6 legal factors?

3. Is there a significant difference in the respondents’ assessment of their on-revenue

enhancement activities when grouped according to profile?

4. Based on the findings of the study, what course of action may be proposed to develop

enhanced revenue enhancement activities or program for the barangays?

Theoretical Framework

This study aimed to assess the competencies of the barangay chairmen towards the

revenue enhancement activities in their respective barangays as influenced by various factors.

This was anchored on the PESTEL framework by Francis Aguilar in 1967, as utilized by Kyle

Peterdy in 2023. The PESTEL technique or approach is a strategy or approach for determining

the external variables that impact a firm's operations or ability to enter a commercial market or

sector.

Figure 1.
PESTEL Framework by Kyle Peterdy (2023)
 In accordance with the local government unit, particularly the barangay, must assess the

aspects connected to its income development potential. While this framework is ideal for use as a

parameter to assess some variables, they will be detailed below in relation to the potential

implications of income increase at the country's lowest political unit.

These PESTEL framework acronyms pertain to the following: Political factors;

Economic factors; Social factors; Technological factors; Environmental factors; and Legal

factors. Political factors, often known as the political environment in which an organization

works, include laws, rules, policies, and other government activities that have an impact on the

organization. In relation to the community, this is particularly challenging in the range of

possible outcomes that can vary considerably depending on the elected officials who will direct

the community to its enhancement.

Meanwhile, economic factors are the economic environment that an organization

operates in includes changes in consumer demand for its products and services, inflation rates,

unemployment rates, and tax rates. Thus, local government shall understand that it can influence

the investment value of a business which is crucial decisions. Social factors, on the other hand,

include public perception of the organization, the reputation of the industry in which it works,

and labor strikes. Thus, the local government unit shall make sure to prioritize this in assessing

the competencies in revenue enhancement.

Technological factors can have an influence on a company or an industry in terms of

automation, competitive advantage, technological infrastructure, and cyber security. The current

business climate is seeing unprecedented levels of technology disruption, which is having a

disastrous impact on many established organizations and industries. Thus, the local government

shall emphasize this factor in the competency of assessing the revenue enhancement as it might
affect them when technological barriers hit the sector. Moreover, environmental factors emerged

as a sensible addition to recognize that changes to our physical environment can present material

risks and opportunities for organizations. Thus, the local government should focus on initiating

the collective factors in understanding the ability to raise revenue as it may affect by an

interchangeable environment.

Lastly, the legal factors are those that occur as a result of regulatory changes, which may

affect the whole economy, certain industries, or even individual enterprises within a single

sector. Thus, this legal factor can be incorporated into that competency in raising revenue which

can affect the trajectory of the risk of local government units.

This study focused on identifying the competencies of the barangay chairmen on revenue

enhancement activities of their barangays in the City of Tanauan, Batangas. The PESTEL

framework is applicable to the study since it allows a strategic and systematic evaluation of a

risks and opportunities in a large environment such as city. It can give contextual information on

external issues that may have an impact on the City of Tanauan's revenue enhancement efforts.

PESTEL framework's scope includes the six (6) most essential factors present in the City of

Tanauan, Batangas. Thus, the framework served as the backbone of this study and the main

foundation of the overall pursuit of research.

Conceptual Framework

This portion presents the conceptual paradigm of the study. The researchers utilized the

Input-Process-Output (IPO) model to highlight the methods used and the proposed

recommendations for the study.

 Input Process Output
Profile of Barangay
Chairman in terms of:
 Age
 Sex
 Highest
educational
 Construction and
attainment
Validation of the
 Length of Researcher-Made
service Questionnaire
Course of Action:
PESTEL framework to  Administration and
assess influence of: Capacity Building and
Retrieval of the Training
 Political factors Survey Instrument
 Economic
factors  Statistical Analysis
 Social factors
 Technological
factors
 Environmental
factor
 Legal factors

Figure 2
Conceptual Paradigm of the Study

As shown in Figure 2, the input box contains the demographic profile of the barangay

chairmen namely age, sex, highest educational attainment, and length of service. It also includes

the variables used to assess the respondents’ competencies in enhancing the barangay’s revenue

as influenced by the political, economic, social, technological, environmental, and legal factors.

Moreover, the direction of the arrow directly indicates the processes undertaken by the

researchers to arrive at the desired output. The process box includes the construction and

validation of a research-made questionnaire, administration and retrieval of survey instrument

and the analysis of the data gathered. Lastly, the third box includes the possible course of action
to collide with the probable findings of the study. Thus, capacity building and training are the

assumed outputs of the study.

Hypothesis of the Study

This study is guided by the null hypothesis that there is no significant difference in the

respondents’ assessment on revenue enhancement activities relative to several influences when

grouped according to profile.

Scope and Limitation of the Study

The main area of the study is the revenue enhancement activities of the barangays in City

of Tanauan, Batangas. The purpose was to assess the revenue enhancement activities of the

barangay through the experience of barangay chairmen regarding several influences that are

primarily concerned with the objective of achieving the welfare and the common good of their

community, especially in times of emergency. The pulse of the LGU’s reliable public officials,

with respect to the nature of the study, was consolidated to know the diverse endeavors of the

selected units in terms of managing their assets to create sustainable projects that will impact the

growth of their revenue and support the community in times of emergency. The profile of the

barangay captain such as age, sex, highest educational attainment, and length of service were

taken carefully, analyzed and interpreted to identify how things relate to each other.

The PESTEL framework that includes political, economic, social, technological,

environment, and legal factors were used to measure the competencies of the respondent on

revenue enhancement. With these means, the research was limited to the responses of the

barangay chairmen bound by the objectives of this study, and guided only by the variables that

were specified herewith. The researchers limited its scope to the barangay chairmen as they are

the one to be assess in terms of their ability to present the revenue enhancement activities they
are implementing in their respective barangays amid the possible blockage of external factors in

the locality. Thus, researchers believed that they have the ability to answered the question more

precisely and relevant in accordance with the rationale of the study.

Hence, no other barangay officials were considered as the study delimitated them and

limit the responses to the barangay chairman. For the reason that other barangay officials are not

applicable to the rationale of the study as the barangay chairman responses and experience are

the main factors to be assess. The researchers used the quantitative descriptive instrument to

further explore the diverse influences of several factors on the LGU’s competencies when they

do their asset management to create income-generating projects. Through this, the researchers

assessed the LGU officials’ information that might have an influence on the competencies they

have on strategizing and implementing specific measures to provide a diverse action to deal with

the challenges. Corresponding to this, the City of Tanauan, Batangas consisting of 48 Barangays

was the chosen locale of this research.

The findings were used in creating concept and principle to guide LGU public officials to

improve their competencies in terms of revenue enhancement through asset management and

income generation projects. Moreover, the researchers believed that the distinction of the topic

that was being mentioned herewith is only answerable to these chosen public officials. This

study also aimed to understand the possible ways to improve the competencies of barangays in

terms of revenue enhancement by emphasizing the several factors that influence and thereafter

weighing them to generate the pertinent and streamlined concepts to further establish the

continuing growth in the public sectors that concerns the economic activity of the community.

Significance of the Study

 This study determined the competencies of the Local Government Units in conjunction

with several factors that may influence them in formulating and implementing revenue

enhancement activities in their locale. This also helped the researchers in understanding the

underlying factors that contribute to the difficulty to enhance their projects and activities for the

benefits of their community. Thus, the researchers believed that this study will be significant to

the practical, academic and theoretical nature as provided below:

The academic significance refers to the contribution and impact of the study on a research

field. It allows to expand the knowledge and competencies on the subject and career horizons

which includes the Management Accounting Students, the researchers, and future researchers.

The attainment of this research will help by supplying them with helpful information; giving

them a broader perspective of understanding how their respective barangays are doing their

finest action to meet the needs of the community in terms of implementing revenue enhancement

activities. This will be possible by making this study available in the university library and

visible too in the university online library site.

The practical significance refers to the magnitude of the difference, which is known as

the effect size. It is considered as practical meaning of life which the effect is large enough to be

meaningful in the real world. The following falls under practical significance such as Barangay

Chairmen and their respective barangays, this research will help them in providing fundamental

strategies that can lead to enhancement of their barangay’s revenue activities. Thus, the study

will give them a prominent and streamlined guide on improving such activities which they may

utilize in the strategic planning of future efficient and dynamic projects.

Lastly, the theoretical significance which deals on how the study theory will gain new

understanding when applied to other study. It explains things and lead to more knowledge for the
sake of broader horizon of research. Thus, this study will benefit the educational institutions as

this will add information to the existing body of knowledge on the issue and elevate their

understanding of the interest in the topic and can be used as supplementary material for research.

Definition of Terms

The following are conceptually and operationally defined for clarity and preferably

understanding of the study.

Barangay. A barangay is the smallest political unit in the country (Philippine Statistics

Authority, 2023). In this study, it refers to the smallest unit of governance under local

government which is subject as the respondents and setting of the study.

Barangay Chairman. According to The Local Government Code of the Philippines

Book III Title One under Section 387 the Barangay Chairman are the chief executive of the

Barangay government who shall exercise such powers an perform duties and functions in

accordance with the provision of the law (Department of Interior and Local Government, 2016).

In this study, it refers to the persons to be assess in terms of their experience towards revenue

enhancement and their implementation of revenue enhancement activities amid different external

factors under PESTEL framework.

Economic Factors. Spacey (2021) defined these as external financial conditions that

have an impact on the strategy of governments, communities, enterprises, and other

organizations. These are generally macroeconomic issues that usually lead local government to

unpredictable side as a probable decline on revenue resources are in nature as the speed of

economy changes instantly. In this study, this relates to how local government units' ability to

build a flexible plan to make economic slump constructively reversible with the influence that

affects their capability to deliberate course of action.

 Environmental Factors. According to Mitchell and Britt (2019), environmental factors

are ny of the trends or impacts of the literal “environment” itself- ranging from natural disasters

to climate change, from environmental regulations to rising demand for eco-friendly “green”

products. In this study, it refers to how local governments change revenue enhancement based

on the risks of various predictable and perhaps unforeseeable environmental occurrences that are

likely to occur in the region in order to take flexible action.

Legal Factors. These are legislative changes that could cause one to alter procedures to

meet new legal requirements (Reding, 2021). In this study, this was used to describe how

different legal procedures influence the local government unit's ability to conduct one activity in

the community.

Political Factors. De Bruin (2023) refers these to the degree a government intervenes in

the economy or a certain industry. In this study, this refers to how the local government units'

competence is influenced by the strongest political attribution to determine how the government

and its laws may affect the community.

Revenue Enhancement. Revenue enhancement is a process focused on the holistic

improvement of the municipal business model that is crucial to identify all critical elements that

affect revenue performance (Jacobs, 2019). In this study, it refers to the ability of local

government units (LGUs) to decide on and carry out a course of action in conjunction to revenue

enhancement without raising taxes but modifying the used of another asset. Thus, the PESTEL

factor will be use as the measurement of the revenue enhancement activity of the local

government unit.

Social Factors. These are defined as things that affect someone’s lifestyle. These could

include wealth, religion, buying habits, education level, family size and structure, and population
density (Betts, 2019). In this study, this refers to how LGUs identify social problems to address

shifting psychological preferences or dispositions in a community context, which prevent them

from taking necessary action to boost income and provide adequate benefits to the community.

Technological Factors. In 2018, Shaw and Shaw identified these as variables that are

being used for evaluating available alternatives with respect to technological capabilities. In this

study, this is used to describe how local government units adopt technological innovation to

provide services and establish a plan of action to lead the revenue enhancement for the

community's benefit.
 Chapter II
REVIEW OF RELATED LITERATURE

This chapter presents the related literature gathered from different and relevant journals,

online sources, books, and other research that the researchers believe to have a significant impact

to the study. The literature and studies will cover the demographic profile of the respondents,

revenue enhancement, public officials’ competencies and the factors that influence barangay on

revenue enhancement. This review will provide a theoretical foundation and conceptual

framework of the study

Conceptual Literature

The conceptual literature was gathered from numerous book authors', journalists', and

articles' perspectives that are highly important in fostering the objective of this study and have a

meaningful resemblance with the notion that is being provided in this study.

Revenue Enhancement. In economic concept, revenue enhancement refers to plans,

policies, or activities adopted by people, corporations, or governments to raise their overall

revenue or income. Increasing sales, growing customer base, entering new markets, optimizing

price and product mix, decreasing expenses, enhancing operational efficiency, and using

technology are all ways to increase revenue. Consequently, it is important to governments as it

can contribute to overall economic growth, improve sustainability, and support long term

development goals. Dominguez (2021) stated that the national government and local

governments must collaborate to improve revenue generation and tax management in order for

the country's economic resources to support all spending on proposed community development

initiatives.
 Thus, in government it can involve policies aimed at increasing tax revenues, such as tax

rate adjustments, closing tax loopholes, and improving tax collection mechanisms. Governments

may also seek to boost revenue through other means, such as increasing fees for services,

implementing tolls or tariffs, and exploring new revenue streams from natural resources or public

assets. To guarantee that revenue development activities are ethical and responsible, they should

be balanced with concerns of justice, social effect, and sustainability. Moreover, revenue

improvement methods should include market dynamics, competitive factors, and regulatory

frameworks in order to optimize efficacy and minimize unexpected effects. Overall, revenue

enhancement is an essential economic concept that refers to efforts taken to increase overall

revenue or income, and it plays a vital role in shaping economic outcomes for enterprises and

governments.

Thapa (2020) emphasized the notion that area of economics known as public finance

deals with the concepts of both public and finance. As a result, the topic is the government's plan

or method for managing finances in order to meet the people's endless needs and desires.

Basically, this area of economics examines how resources are used, including other attributes, to

create institutions. In this regard, it is how the nation establishes other alternate sources of

income, such as proper use of other assets visible in the society, that will help to address

beneficial interest.

Furthermore, Gruber (2016) state that the role of the government in the economy is by

bringing in the potential for efficiency improvement and redistributing resources to establish

equity and equality in society. Providing that there are many resources that can be use within the

area. However, the LGU still can’t maximize the use of their asset as they can provide such ideas

to properly utilize it to use for development. Thus, they need to further evaluate the potential of
every resource to see its beneficial attribution for the equal attainment of community common

good.

Freire and Garzon (2014), also mention on his notion that the primary issues and

challenges related to revenue management functions, illustrate how to conduct revenue trend

analysis, including various methods of revenue forecasting, and address the primary challenges

the political economy poses. They also discuss the primary revenue sources available to local

governments, the issues typically associated with such sources, and the key challenges facing

city financial officers. Cities must have a sound financial foundation if they are to meet the

difficulties of urbanization and provide citizens a sense of local government accountability.

Diokno-Sicat et al. (2020) in conjunction with the above utterance implied the notion that

the Local Government Code of 1991 (LGC) did give more spending and revenue-raising

responsibilities to Local Government Units (LGUs) in the Philippines. The purpose was to

empower LGUs to provide basic services to their constituents and to become self-sufficient in

delivering devolved functions, such as health, agriculture, and social services. However,

recognizing the challenges faced by local governments in fulfilling their basic functions, the

national government provides LGUs with a formulaic share of the country’s internal revenue

allotments (IRA).

Diokno-Sicat et al. (2020) also implied that some LGUs that have natural resources also

receive shares from national wealth as well as excise taxes collected in their locality. These

sources of income are the major sources of LGU income. Despite these various sources of

income, LGUs still face challenges in providing basic services and promoting development.

These challenges include inadequate resources, limited capacity, inefficient governance systems,
and various socio-economic and political factors. As a result, the concept is provided that there

are still disparities in the level of development among LGUs in the Philippines.

Meanwhile, Jacob (2019) state in his notion that the most important source of money

within the local government is its own promoting the fiscal autonomy. As a result, debt

collection, indigent management, and administration of credit controls, meter reading, invoicing

accuracy, cash flow forecasting, and so on tariff determination is a critical component of revenue

enhancement for financial institutions sustainability. The socioeconomic and budgetary

environment in which local government operates, highlights the vast range of social and

economic circumstances that are important among the South Africa's municipal government. The

key term for intergovernmental relations is aspects of the budgetary system of local governments

and how they relate to municipalities. Thus, the concept that dictates the importance of getting

the fundamentals of revenue management correct and the recovery of consumer debtors, as well

as the underpricing of services, is of significant importance.

On the other hand, Diokno-Sicat (2019) states his concept that the governance structures

and revenue mobilization techniques in Metro Manila offered a foundation for highlighting

potential policy alternatives to ease strains on public infrastructure caused by the region's

expansion and urbanization. Hence, the ongoing initiatives to standardize the property tax base

(market value) might provide an additional source of revenue. This strategy, however, has a lag

in capitalizing on improvements in real property values and is dependent on enforcing the yearly

reassessment of tax rolls (proposed to be done every three to five years).

On top of that, Cruz et al. (2018) implied that it is challenging to attain complete

independence of the LGUs from the national budget share or the IRA due to the numerous

limitations on local revenue collection. It can only be accomplished with effective leadership and
rigorous legal enforcement. We can only consider the benefits of decentralization and the

transfer of power to local governments. The degree of fiscal autonomy granted to LGUs will

benefit local residents and will help the region's economy expand and combat poverty.

Furthermore, it is important to emphasize the value of creating subnational revenue

sources, which are ones that jurisdictions have some latitude to alter. Adequate finance is

provided by both transfers and own revenue sources, including tax and non-tax instruments like

fees and levies. Hence, why then should we bother creating our own revenue streams, especially

given how reluctant both the central and subnational levels are to employ them? Nevertheless,

the key idea is that own revenues give a unique component of horizontal accountability of public

leaders to their constituents (Nairobi, 2015).

In addition, Peterdy (2023) introduce PESTEL framework as backbone for analyzing the

external factors that could affect the local government to perform duties specially to revenue

enhancement. In his notion its acronym compose of political, economic, social, technological,

environmental, and legal factors can be seen to the territorial area of one local government

specifically in barangay.

Political Factors. The majority of political systems around the world have gone through

some type of internal conflict that resulted in the violent overthrow of governments that were in

power. In addition, the concept implied that a certain crisis scenarios appear to make the

breakdown of a region's or a nation's political system more likely. It is crucial to recognize that

the current state of the world's politics, which continues to be in flux, has a stronger influence on

all business and economic issues. After undergoing significant phases of growth, decay,

disintegration, and an ongoing ferment of adaptation and adjustment, a nation's political system

takes shape. The extent and range of changes that happened in the world's political systems
during the 1920s and 1980s, for example, indicate the problem's complex dimensions

(Rajagopal, 2016).

According to Kessler and Serva (2022), the government has a range of options at its

disposal to intervene when issues develop. They may use regulations, funding, the creation of

new government programs, and taxes or tax breaks. They can also intervene when there are

natural disasters too big for local governments to handle. There are further reasons why the

government could act. They frequently interfere, for example, to safeguard people or the

environment. There are rules in place to preserve the safety of drinking water and air quality, as

well as the usage of certain items in houses and buildings, such as lead or asbestos. The

Occupational Safety and Health Administration was established by Congress in 1970 to

guarantee that workers have safe working conditions. These initiatives have an effect on the

economy, but their benefit is not only financial. Thus, the notion of these types of disasters not

only pose physical and humanitarian concerns, but also lengthy economic concerns.

Collectively, Horvat et al. (2019) show that the effects of the global financial crisis on

local government have made it more transparent in the use of public resources. A local

community must have revenue for its own operations and be financially independent in order to

complete all responsibilities in a given calendar year. This implies that it must establish a

funding plan, i.e., a plan of action for the coming year. Since the local government is limited to

what the law allows, all revenue and expenditures must be based on it in order to comply with

the law.
 Moreover, political interests, incentives, and institutions can all have an impact on the

quality of public services. It is typically generic, examining the effects of political context as

though all services behaved similarly under the same conditions. Similarly, in the concept of

policy circles, "service delivery" is frequently referred to in aggregate, as if it addressed shared

challenges of politics and performance, regardless of sector, in order to generate income for the

community (Batley and Mcloughlin, 2015).

The study entitled “The Effect of Political Stability and Governance on Economic

Development” conducted by Altun (2016), states that political stability is in the early stages for

the strategy to work but with enough room for peaceful political adaptability to rising changes in

interests in the future. They note that there is no single path to growth.

The enactment of the 'Local Government Code of the Philippines 1991, Republic Act

7160", each local government unit shall have the power to create its own sources of revenues and

to levy taxes, fees and charges subject to such guidelines and limitations as the Congress may

provide, consistent with the basic policy of local autonomy. Such taxes, fees and charges shall

accrue exclusively to the local governments. The study conducted by Moffat et al. (2021)

revenue enhancement strategies can be used to increase revenue in rural municipalities. The

study found that political stability is one of the factors that can contribute to revenue

enhancement. Similar to Al Arif (2020), which implies that the government should increase

political stability to accelerate growth.

According to the "Local Government Code of the Philippines 1991, Republic Act 7160"

the LGU collaborates with other government entities such as the Bureau of Internal Revenue

(BIR) and the Department of Finance (DOF) to ensure that these activities are carried out

effectively and efficiently in accordance with the findings of Cabaluna's study in 2017, it is
recommended that barangay officials implement new strategies to effectively collect fees from

various sources as mandated by RA7160. These strategies should focus on improving the

efficiency and effectiveness of fee collection processes. Additionally, an intensive campaign

should be conducted to educate and inform the barangay constituents about the different fees that

need to be collected from various activities as stipulated in RA7160. By providing clear and

transparent information, this campaign aims to prevent resistance and misunderstandings during

the fee collection process. In addition, barangay captains are responsible for promoting and

supporting revenue-generating projects in their respective barangays

Economic Factors. This refers to external financial conditions that have an impact on the

strategy of governments, communities, enterprises, and other organizations. These are generally

macroeconomic issues that have an impact on entire industry or the overall economy. Economic

factors usually lead local government to unpredictable side as a probable decline on revenue

resources are in nature as the speed of economy changes instantly. Moreover, it hinders the

government to response in instant to the needs of the community as they focus on the allotment

of funds came from the national government (Spacey, 2021). Thus, in accordance with Pettinger

(2021) his concept emphasized that increasing economic well-being through higher real incomes

and other welfare indices such as improved literacy, better infrastructure, lower poverty, and

better health care necessitates political stability, investment, and a collaborative effort of public

and private sectors will provide better sustainability for the delivery of community needs. The

good the economic sector of one community, the better it can provide to boost such area that

would lead to generate more revenue to fund community by being self-efficient.

Moreover, Investopedia (2023) refers the economic cycle is defined by economic

elements as the economic oscillations between periods of expansion and decline. Economic
expansion is characterized by growth and contraction, including recession, a drop-in economic

activity that lasts many months. Provided its division, the macroeconomics is concerned with the

whole economy, whereas microeconomics is concerned with individual agents, such as

customers and firms, and the influence of their behavior and decision-making. Microeconomics

attempts to explain how and why various items have varying values, as well as how individuals

might best optimize efficiency.

Balbacal (2021) recommends that the proposed GROWTH Model for Sustainability of

Local Economic Development will help enhance the programs and activities, which could

potentially uplift the Local Economic Enhancement Strategies (LEES) in the cities of Batangas.

Meanwhile, it is evident that due to the improved local taxation and revenue collection by local

government units (LGUs), including the operation of local enterprises, they are now able to

address the actual needs of their constituents by delivering their mandated services. Additionally,

they have allocated budgets for these initiatives and no longer solely rely on national assistance

to finance such projects (Sartmiento, 2017).

Kusaka (2021) stated that a virtuous cycle can be identified: initiatives for good

governance led to awards, which in turn attract investments. The increased investment generates

more local revenue, enabling the improvement ofpublic services. These improved services, in

turn, attract new awards. While, Boysillo (2021) recommends that there should be an annual

evaluation of performance conducted in the barangays, based on the programs and projects

implemented by the Barangay Chairpersons. Additionally, a proposed intervention plan should

be presented to the barangay officials for review and consideration.

The findings demonstrated that both efficiency and effectiveness are crucial factors

considered during the decision-making process for engaging in regional collaboration. The study
also highlighted the role of regional collaboration in advancing the public interest. Elected

officials and local government managers acknowledged the advantages of regional collaboration,

such as improved efficiency and effectiveness in providing public services, achieving economies

of scale, sharing monetary and non-monetary resources, and collectively investing in large-scale

projects (Davis, 2022).

Social Factors. Social factors are more difficult to quantify than economic aspects. They

refer to changes or evolutions in how stakeholders view life and leisure, which might have an

impact on business activities. This factor may interrupt the condition of the area as they deal with

different demographic attitudes and personality which ideally the reason of low connection with

the community. More so, the social factors should treat differently as people have different

perspective on what the public officials are doing for the enhancement of the community. In line

with public officials can only encourage their community to help in raising income if the nature

of the action is beneficial and with a purpose (Peterdy, 2023).

Yet, according to Bruin (2016), this component of the general environment represents the

demographic traits, norms, practices, and values of the community's people. This concept

encompasses demographic patterns such as population growth rate, age distribution, income

distribution, career attitudes, safety emphasis, health consciousness, lifestyle attitudes, and

cultural obstacles. In this scenario, local government is hampered by social considerations in

terms of providing a course of action for which they receive less assistance from community

citizen.

Alarte (2022) stated that in order to effectively plan and initiate projects that will enhance

the community’s economic productivity while addressing their felt needs, it is essential to pay

close attention to the livelihood needs of the community. The study of Buot et al. (2013) the
willingness of community members to participate was identified as a crucial prerequisite for

developing a successful community development plan. The sincere cooperation of the

participants was deemed essential for the completion of the workshop. Also, in the study of

Lancet (2020) emphasized the importance of nurturing meaningful relationships between

communities and providers to ensure sustainable and inclusive participation.

Adams et. al (2018) recommended that a coordinator/facilitator which have positive

support from community is essential for providing strategic direction, supporting communities

and activities, promoting community ownership, and facilitating partnership development which

led to become the strength of the government.

Calaca et. al (2022) highlighted the importance of monitoring efforts to go beyond

measuring solely monetary value. They emphasized the need to also consider non-monetary

gains, such as pride in the local community, a sense of ownership, increased self-esteem, and

more. Interestingly, in most of the case studies presented in the Community-Based Tourism

(CBT), the non-monetary gains were valued more highly by the local community than the

financial benefits.

It was emphasized that Local Government Units (LGUs) should improve their data

presentation by being more consistent. They should also utilize infographics and incorporate

native language, understandable terms, and non-technical language to enhance comprehension.

Furthermore, LGUs should prioritize transparency in their utilization of local funds and ensure

that reliable sources are employed when disseminating information (Asuncion et al., 2020)

Technological Factors. The emergence of new and revolutionary integration technologies

(IntTech) has had a significant impact on local government decision-making. Local governments
that intend to use such integrated technology may consider it a significant investment. The

technology is leading the way of the world; thus, it is resembling to what the local should focus

on. These factors can be seen as an advantage but it also can be considered as a threat to the

LGU if they are late to realize the effect of technological advancement. Moreover, investing to

such kind of technology would make it easier for the local government in terms of their local

revenue generation (Kamal et al., 2015).

According to Ott (2023), technology has the ability to reduce collecting restrictions,

notably by broadening the information available to the government. In the context of municipal

taxes, technology can have two components: a geographic database of properties and the

incorporation of property information into software that aids in bill delivery and enforcement. It

increases the payment margin through a variety of routes. Whereas, proper utilization of the

technology will give positive impact to the community. The rise of advancement significantly

empowered them to identify critically data that can’t be seen manually. Thus, technological

factors consider as opportunity but turns out as threat when not use technically for accountability

on providing ease delivery of service and revenue collection. Similarly, Ocsko (2021)

emphasizes why local government unit has a long struggle to move on to better things when it

comes to digital transformation. He said that the old solution somehow seems more comfortable,

more familiar and more reliable, despite of all evidence to the contrary. All of these concerns are

entirely justified, so it makes sense that many local government units would be reluctant to adopt

new technology in favor of sticking with the security of well-known and reliable platforms.

These worries, however, are making councils vulnerable and preventing them from

implementing solutions that could greatly benefit both themselves and their constituents. These
solutions include cost savings, improved security of private information, and—above all—better

public services.

Mallick (2020) in conjunction with the above utterance implied that the concept with data

collection, access and increased data processing power, technological improvement and their

adoptions can allow the government to improve ways of collecting taxes. Accordingly, the

concept with which the introduction of contemporary technology has significantly decreased tax

evasion activities since the system has caught all possible tax payers are imposed.

Furthermore, Ocenar (2016) state that from 2001 to 2007, the municipal administration

launched a number of measures to promote its computerization effort. Under the tenure of former

Mayor Jerry Trenas, the city attempted to get a grant from the Department of Finance through its

LAMP and LOGOFINDS programs, however the project was stalled owing to administrative

difficulties. The concept of this grant was meant to be used to purchase additional computers for

assessment and revenue generation purposes. It also made an effort to obtain private-sector

capability-building program funds on information technologies in order to provide the city

treasurer and assessor with competencies in improving revenue collection, and the city planning

and development office with competencies in strengthening its planning and research functions.

Moreover, technology is changing the way governments raise and spend money. An

increase in data processing skills can boost revenue. Investments in information technology will

not only result in more responsive governance, but will also increase LGU revenue generation.

He pointed out the concept of being technologically inclined community as it will help to grow

and maximize the community revenue generation leaving so the traditional manual set up. Apart

from it, the security will further improve and it can make sure that every revenue is classified in

detail (Dominguez 2020).

 The most essential purpose of municipal governance is the successful delivery of services

that benefit the public good. The use of ICT is critical to this position. The outcomes of this

study indicate that the government must invest in ICT infrastructure in order to reap the benefits

of ICT utilization. Given that government finances are insufficient to meet this requirement,

barangay authorities should petition municipal leaders for assistance not only financially, but

also in mobilizing private and public partnerships (Raboy, 2019). Hence, in a journal published

by Anderson and Perrin (2017) they point out that the technology age differences face unique

barriers to adopt, ranging from physical challenges to a lack of comfort and familiarity with

technology.

In the study of Bautista (2015), the advent of modern technology expands potential for

barangays to better serve their citizens through computerization of papers such as barangay

clearance, certificate of indulgence, letter of recommendation, annual report, and others. Have

indicated that increasing internet coverage can increase economic growth and income levels. It

also suggests thatthe government's expenditures in digital infrastructure be targeted and limited

to network segments and places where the market fails to deliver. To enable players to invest,

create, and innovate, the government should remove regulatory impediments and expand market

opportunities (Mirandilla-Santos, 2021)

BIPS utilized technology for budget allocation and decision making in the barangay.

BIPS can assist Barangay officials in utilizing data from home profiling by developing an

aggregate form that can be seen in the system dashboard. Barangay officials can utilize the

information as the basis for budgeting and supporting documentation to produce various

strategies to improve the quality of life and well-being of the community controlled than

aggregate form that can be visualized in the system dashboard. Barangay officials can make use
of the information as the basis for budgeting and supporting documents to generate other ways in

uplifting the quality of life and wellbeing of the community governed (Lacansadile et. al., 2020)

Dharmaraj (2020) have been called upon to embrace digital technology in order to

substantially improve their delivery of frontline services and create more income. Technologies

should be used to process business registrations and collect local taxes. Investments in

information technology will not only result in more responsive governance but will also increase

LGU revenue generation.

Environmental Factors. The environmental factors to the local government organization

that are the primary hurdles in the fundamental services of road and bridge facilities are the range

of nature, climate, and the area's isolation. In order to overcome challenges, this circumstance

necessitates high costs and extra coordination across institutions. Apart from the physical

condition of the land, the socioeconomic conditions of the community have a significant impact.

Thus, the notion may be seen in the uneven distribution of the population, the mental attitude of

the unsupportive community in creating infrastructure, and the people's economic activities that

are geared to neighboring countries (Arifin & Rupita, 2021).

Moreover, environmental factors, sometimes known as 'ecological factors,' relate to

environmental variables. This covers consumer health, climate change, energy availability, and

any direct effects of these factors. The environmental factor scrutinizes the capability of one

LGU to raise revenue in a way that different fortuitous event can happen that will dismantle the

fund resources of the community. Thus, it will lead to incompetent delivery of action for the

community as such the factors deliberately hinder the potential revenue generation where

resources become inadequate (Bush, 2016).

 Sustainable development goals (SDG) in Indonesia need a low-carbon pathway that has

the potential to promote growth while improving the healthy environment, community welfare,

and climate resilience. Instability in environmental health sustainability leads to the negative

effect on the people, which also affects their income-generating activities in Indonesian villages.

Along with environmental sustainability issues, economic sustainability issue is also rising

among the Indonesian villages. SDGs promote the welfare of communities globally by reducing

the level of poverty through the promotion of various income-generating activities. Additionally,

these goals promote environmental sustainability by reducing the substances which pollute the

environment (Reza Ronaldo, Tulus Suryanto, 2022).

According to the Ecological Solid Waste Management Act of 2000, (RA9003), the LGUs

are also directed to integrate environmental aspects in local development planning and

implement environmental protection programs and projects as well as enforce laws and

regulations.

The Philippines' unique and sensitive ecosystems, with natural features that make its

habitats and coastal areas attractive and a significant contributor to revenue generation, is under

threat from pollution and environmental deterioration, which affects habitats and coastal areas.

The Philippine Development Plan (PDP) 2017-2022 seeks to rehabilitate and restore degraded

resources, safeguard vulnerable ecosystems, and improve the well-being of resource-dependent

populations. Political and leadership paradigms influence environmental management, which

employs a variety of techniques and tactics, according to Sandhu (2021).

Ekayani et. al, (2019) stated that natural tourism activities can generate revenue which

can be allocated for conservation as well as provide economic benefits for local communities.

With the proviso that tourism activities still benefit communities’ economy, then it possibly will
increase their awareness and participation in conservation activities. Tourism activities could

drive community's participation for conservation in Halimun Salak National Park due to their

economic dependencies on tourism. Economic benefits of natural tourism to society in the area

surrounding HSNP is high. The revenue from the tourism sector has become an important part of

household income.

According to Orcena (2019), the Council is likewise driven to ensure the protection of the

barangay's health environment with the adoption of best practices in ecological waste

management. However, local official’s city mayors, and other government units held responsible

for making decisions and reforms for this concern must help the barangay foster environmental

security and sustainability.

Legal Factors. State and local governments adopt laws and regulations that influence how

economic activity occurs. These include labor market laws, tax policy, environmental

restrictions, and zoning regulations. The legal factors dealt with the lack of ability to be fit in

certain areas. As some legal action doesn’t cover the potential differences of different

community. This interrupt the capability of one sector to adopt and provide things because legal

factors could hinder the way to implement such action they are proposing to do. Thus, for the

economy to thrive and living standards to rise, successful policy at all levels of government is

critical (Nunn et al., 2019).

However, the Philippines Department of Finance stated in 2019 that it served as the

custodian of sound fiscal policy. On its main concept they develop revenue policies to secure the

funding of key government programs that enhance human well-being and drive economic growth

and stability. They are primarily concerned with providing legal aspects that will monitor local

governments' actions regarding revenue and expenditures. Thus, they are taking the initiative to
lay a solid framework for institutionalization, improved tax collection, and non-tax revenue

efforts.

Moreover, Peterdy (2023) implied that legal factors are those that occur as a result of

changes in the regulatory environment, which may affect the entire economy, specific industries,

or even individuals in a certain sector, such as government. They include, but are not limited to,

restrictions that operate as a headwind or tailwind for any course of action established by a local

government. Those restriction becomes the barriers of some LGU as they can’t provide action

when they overpass the legal requirements. Providing that it causes cease of action with how

they can deliberately provide revenue streams for the community to be self-sufficient in some

kind.

In accordance with the Local Government Code of the Philippines 1991, Republic Act

7160. Power to Create Sources of Revenue -Each local government unit shall exercise its power

to develop its own sources of revenue and to collect taxes, fees, and charges in accordance with

the core policy of local autonomy. Such taxes, fees, and charges shallbe borne solely by local

government bodies.

Furthermore, Adejoh et. Al (2019) to increase revenue, encouragement of tax compliance

is advocated. Also, control measures should be put in place to check possible frauds and

embezzlement in revenue generation and utilization of State governments. The authority

relationship between those levels of government's is regulated by having regard to the

particularities and diversity of each region. In addition, the relations between the national

government and the regions concerning finances, public services, and the use of natural and other

resources are regulated and implemented with justice and equity. The improvement of local

government laws and regulations and the balance of national and regional finances are expected
to enable the flexibility of the regions to fulfill the needs of the people in the regional (Arya and

Yasa, 2021).

Nigeria needs improved revenue generation, classification, assessment, collection, and

remittances strategies to meet state obligations. Nwekeaku (2013) recommends synergy among

stakeholders at federal, state, and local levels to encourage cooperation, collaboration, and

effective interaction. This reduces conflicts, duplication of efforts, and resource duplication,

improving inter-agency relations and increasing revenue collection.

In conformance with the Local Government Code of the Philippines 1991, Republic Act

7160 It is likewise the policy of the State to require all national agencies and offices to conduct

periodic consultations with appropriate local government units, nongovernmental and people’s

organizations, and other concerned sectors of the community before any project or program is

implemented in their respective jurisdictions. These operative principles provide a framework for

the formulation and implementation of policies and measures on local autonomy, guiding local

government units in their functions and responsibilities. By adhering to these principles, local

government units can promote effective governance, community development, and the welfare

of their constituents.

Local Government Units. The passage of Republic Act 7610, popularly known as the

Local Government Code of 1991, was a watershed moment in Philippine governance reform.

This reinforces the overall framework for local administration by introducing the notion of

decentralization and increased local autonomy and responsibility. This code resulted in beneficial

growth for local government entities, notably in terms of equitable and sustainable development.
 According to Cana (2017), it is the responsibility of Local Government Units to raise

funds and revenues while also protecting the welfare of citizens by providing basic services such

as health, education, social welfare, livelihood, and infrastructure. Local Government Units

would also maintain law and order in order to safeguard citizens from external threats, whether

natural or man-made. Schools, health centers, hospitals, livelihood and technology centers,

marketplaces, cemeteries, libraries, and infrastructure such as gymnasiums, multipurpose halls,

ports, water supply, and beverage systems are examples of these. Of course, all of this is

contingent on the clarity, capacity, and financial situation of Local Government Units. It has

been noted that the sort of political system has little bearing on the quality of governance. It has

made a difference in Asian countries' economic performance.

Meanwhile, Nairobi (2015) defined local government units in terms of authority,

demonstrating their growing importance in addressing the community's core requirements for

public services. He also stated that local governments should be the ones to deal with the larger

issue of chaotic urbanization, as well as devise measures to mitigate the difficulties posed by

climate change-related natural catastrophes. However, the financial and economic crises that are

common in many nations continue to exacerbate these issues.

Barangay. According to the Local Government Code of the Philippines Book III, the

Barangay is the primary planning and implementing unit of government policies, plans,

programs, projects, and activities in the community, as well as a forum where the people's

collective views can be expressed, crystallized, and taken into account, and where disputes can

be amicably resolved.

Furthermore, as the basic political unit, the barangay has traditionally been at the

forefront of local development initiatives in the country. Collectively, Due to their important
position at the grassroots level, barangays are partners of the national government in responding

to development concerns, particularly in the effective and efficient delivery of community

services. The barangays' collaboration in service delivery reflects the city's or municipality's

level of government (Boysillo, 2017).

Barangay Chairman. According to the Local Government Code of the Philippines,

LGUs, the barangay chairman, as the chief executive of the barangay government, is mandated

to exercise powers and fulfill duties outlined in the code and other laws. These responsibilities

include enforcing applicable laws and ordinances, overseeing pollution control and

environmental protection, ensuring the delivery of basic services, promoting the general welfare

of the barangay, and exercising additional powers as prescribed by law or ordinance.

Furthermore, in maintaining peace and order, the barangay chairmen have defined powers to

enhance their existence as an autonomous part of municipality. They possess executive,

legislative and adjudicatory powers within the purview of the Local Government Code of the

Philippines (Aquino et al., 2017).

Meanwhile, good public management is required for modern-day governance. The

responsibilities of government officials and public managers are multifaceted and complex.

Meeting the needs of public administration thus necessitates a well-balanced blend of

knowledge, skills, attitudes, and behaviors. This concept is encapsulated in the term competence

(Magkilat, 2022). He also added that competencies in South East Asean countries indicate that

public servants are expected to be leaders and professionals with strong ethical principles.

Leadership, morals and ethics, and strategic thinking are all prevalent in competency

frameworks. Hence, it imposed the concept that government failures are frequently the result of

rushed ministers listening to public servant too little, not too much.
 In an article at the Cambridge University Press by Fisher & Shapiro (2021) they implied

that competence is not exactly a heart-racing concept. Calling someone competent is generally a

compliment. Competence does not imply excitement. It has an air of staidness, if not dullness,

about it. However, it is necessary for good governance. Thus, if communal problems are to be

addressed and minimized, the government must be able to act competently - intelligently and

efficiently.

In addition, Caldo (2015) emphasized on his notion that a barangay official can only

deliver its strategic intention through the effective delegation of government planned objectives

to individual team members and the continual and consistent development support of staff to

achieve them. Thus, expectation can only be delivered through appraisal and personal

development planning process, which aligns organization aspirations with individual

performance and provides for effective team and individual development.

Moreover, Mananes (2015) implied that barangay officials must took the opportunity to

properly distribute responsibilities throughout municipal and barangay officials and to formally

present all requirements to the implementing project. The barangay officials were given vital

roles during the project implementation and they must cooperate in the barangay so that their

local labor can have additional income. It is important not only for the officials to be aware and

involved but for the local residents as well.

Demographic Profile. This portion present the ideas and concept with regard the

demographic profile of barangay captain as researcher will use this in the foregoing study.

Age. This refers to a person's entire existence in the world. With respect to the local

government, according to Becker (2022), a wide range of government policies affect both
persons' ability and need to remain in the labor force at older ages in local government. As a

result, aging is more likely to have an impact on performance if the occupation needs sensory

awareness, selective attention, working memory, information processing, quick reaction, or

physical strength. Moreover, according to Philippines Commission on Elections on 2013, section

2 of the law provided that the candidate for barangay captain and councilor shall be at least 18

years old on election day.

Sex. Newman (2023) describes sex as physical differences that exist between people who

are male, female, or intersex. It usually refers to the person's sex at birth, which is determined by

physiological traits such as genitalia and chromosome composition. According to the World

Health Organization, sex refers to the various biological and physiological characteristics of

males and females, such as reproductive organs, chromosomes, hormones, and so on. In general,

sex should not be used as a criterion for being able to function in diverse situations, but utilizing

it as a criterion has been shown to depress one's spirit and capacity for growth.

Highest Educational Attainment. This concerns the level of education a certain person

has reached. According to Bouchrika (2022), there are many types of degrees which are divided

into four (4) categories such as: associate degree, bachelor degree’s, master’s degree, and

doctorate degree. However, the only denominator of these categories is the measurement of a

person’s attainment when education is primarily concern.

With regard to the highest educational attainment, Ignacio (2019) mentioned that level of

education is not an assurance for efficiency or effectiveness as a public official for it does not

mean that a college graduate is more honest or less corrupt than an elementary graduate. Though

it has been acknowledged that education still plays the most critical rule in every decisive
moment, the competency assessment is still observable externally and not the qualification of the

one who observes it.

In conjunction with the statement mentioned, Kotur (2014) in his article said that

education is nothing but adjustment to environment. It implies the concept that a person upon

education, will adjust or at least capable of trying to adjust to the environment, i.e., education

brings about a change in the behavior of a person to environment. This concept applies equally

well even to a leader. Upon education the leader will try to adjust to his or her followers and this

brings about a change in the leadership behavior of the leader.

In contrary, Taranekar (2016) mentioned that education is not necessary; a good

politician is a good leader who takes good decisions, empathizes with people, has a vision for the

future and knows the way to get there. It does not really matter if the person owns educational

degree or not, what matters is his love for the nation by becoming honest, patriot, and devoted

person to the country. Similarly, Mascarenas (2016) state that, a person who is educated is more

positive towards changes and they are more receptive to new ideas and new ways as compared to

those with low level of education.

Length of Service. It refers to the number of years a person has worked for a company

(Watkins, 2023). This is extremely important in most organizations because greater experience

produces better results, which may sometimes be equated to someone's competence. It has also

been mentioned that younger employees are more likely to decline and lose interest in their work

than elders.

Collectively, De Layola (2023) transcribed the concept that while making the adjustments

of tenure from three to five years, it keeps the three consecutive term restriction, thus a victorious
barangay or SK official can serve for a total of 15 years if he wins elections three times in a

succession. As mentioned also in this article, Rufus Rodriguez, 2nd District Representative of

Cagayan De Oro City, is campaigning for a law that would extend the term of office of barangay

and Sangguniang Kabataan (SK) or youth council leaders to five years in order to eliminate

division and maintain stability in the barangays.

Research Literature

The following studies how different findings which are significant to the present study

and served as a basis on the assessment of their competencies on the revenue enhancement of

barangays in City of Tanauan that face several influences of external factors.

Administrative, fiscal, and political decentralization has proven to be a difficult shift in

many developing countries throughout the more than three decades that it has been popular and

prevalent. Fiscal decentralization has been particularly disappointing considering the level of

consensus on specific reform proposals, with low own source revenue generation among the

most critical fiscal issues. The empirical research clearly suggests that subnational revenue

generation frequently falls short of requirements and expectations. Local government financial

management is frequently limited by a lack of technological infrastructure and capability, and

revenue generation opportunities are also hampered by weak legal frameworks or unfavorable

political structures. In addition, increased reliance on intergovernmental transfers and

development aid was related with a higher budget allocation for administrative expenditures and

workforce benefits. Further investigation is clearly required, but this data appears to corroborate
the assumption that when residents pay more to local governments, local leaders are more

attentive to their demands. Overall, the data supports the potential political and budgetary benefit

of effectively educating and engaging residents about the generation and use of local government

revenues (Nairobi, 2015).

Meanwhile, Panao (2020) study argued that fiscal decentralization based on

unconditional central-to-local transfers, as in the Philippines, leads to overreliance on central

government assistance and undermines the idea of fiscal autonomy. Two empirical findings are

made after examining Philippine fiscal and electoral statistics from 1992 to 2016. First,

unconditional transfers such as internal revenue allocations (IRA) drive out revenue generation

and establish fiscal reliance among local government units. Second, local government entities

that rely less on IRA are more active in increasing their own revenue sources and allocate more

for public welfare. As a result, the findings imply that federalism, as a mechanism of

decentralization, would not necessarily result in a more effective and fair system of fiscal

administration if its implementation is sudden and does not take into consideration the

coordination of subsidiary units as direct stakeholders.

Furthermore, Akujuru (2015) recently study aimed to specify that revenue allocation

under a federal form of government comprises two core systems. The first entails vertical sharing

between the federal or inclusive government and various levels of government. The topic of this

sharing plan is federally produced money, such as loyalties, export duties, import tariffs, mining

rates, and so on. The second notion vary on horizontal revenue sharing principle which originates

from variances in the revenue generation capacities of component units. To guarantee stability, a

relative greater tax is applied in places where revenue potential is large. This is referred to as an

"equalization transfer." The result is that excessive taxes in relatively low revenue-generating
locations will drive away company investments and further weaken the economy of such places.

To counter this, the federal government must increase its investment in such sectors in order to

promote stability.

Meanwhile, Cabaluna (2017) implied on his study from selected barangays in Lingayen

that raising funding, allocating, and spending public resources are key operations that serve as

the cornerstone of any government. According to the study (Philippine Institute for Development

Studies), the study was done for the purpose of income generation and distribution of money.

Corruption is rampant not just at the highest levels of government, but even in the barangays.

Consequently, on his study he found out that the barangay officials are in their late twenties, and

are primarily male, and the majority are married, with experience as barangay officials and

formal schooling. The main revenue streams in the barangay are service and barangay clearing

fees. The fundamental issue of the barangay offices is indeed the collection of internal taxes.

Noble-Nur (2018) stated on her study that barangay captain success is heavily determined

by their age and educational attainment. The older barangay captain outperforms the younger

ones. Similarly, people with a greater level of education perform better. Thus, she suggested that

the Commission on Elections should revise the barangay captain qualification standards to

include a higher minimum age and educational credentials. As well Tandoc-Juan et al (2019)

implied that educational attainment was a strong predictor of the choice preferences for a

politician. Someone who had finished/her education is preferred for they are imbued with

relevant knowledge, skills and attitudes necessary for a leader. Accordingly, Donn-Ignacio

(2019), reiterate in his journal that a certain level of education should be a requirement for

elected officials. This seems very practical as many believe that for a person to be an effective

leader, one should at least be a college graduate.

 Meanwhile, Dumlao (2016) discovered in his study’s findings that the higher the

education, the higher the performance may produce. With this, she proved that there is

significant relationship between the educational attainment profile and the performance of the

Barangay Captain. Also, the study discovered that there is a need for further education.

Moreover, may the DILG, via the Local Government Academy, assist the Local Government

Unit by providing opportunities to participate in international training programs covering all

elements of local governance and associated sectors.

Moreover, in terms of age, MC Viray (2021) published a journal about Effective

Operations and Advantage of Barangay Officials in the Philippines which summarize the duties

and responsibilities of the barangay chairman. Thus, they must be a person of legal age, at least a

high school graduate from any recognized school in the Philippines. The data above reveals that

the reason why the majority of the respondents fell in the age bracket of 42 – 57 is because of the

existing qualifications that authorized agency sets. Moreover, C. Cruz et al (2017) states on their

research that the reason why most of the elected officials is on middle age is that older citizens or

citizen that have been living a long time in the community tends to be more interested in local

politics and thus more likely to vote same age group of specific candidates. Furthermore, this

may also be related to the length of service the respondents have, as presented in the following

table, which reveals their having served more than one term as a barangay chairman.

In a 2017 study on gender equality in local government, Belgrade conducted a thorough

analysis of the factors underlying the disparities in the representation of two sexual orientations

in the public sector. According to his research, women only make up 14% of the population in 29

municipalities. This is because, during election seasons, the majority of applicants are men, a

phenomenon that may be outside the purview of the local election committee. On the other hand,
considering decision-making and the degree of authority held by both genders. Likewise,

Belgrade (2017) discovered that control over a particular decision is inevitably disproportionate

because men are more likely to hold higher positions.

Furthermore, Brown et al. (2019) investigated the limits that local governments face in

Africa, notably Ghana. The research provides an in-depth examination of the revenue

instruments and techniques used by local governments to achieve efficient revenue collection. As

a result, the study concludes that, while revenue generation by local governments is vital, the

quantity of revenue collected is insufficient to develop and provide the necessary services for the

continually rising population. This is mostly due to the existence of fresh revenue streams that

local governments have not exhausted.

Correspondingly, in a study conducted in the local government of Bongabon, Nueva

Ecija in the Philippines assessing its revenue raising capacity implied that it is far from the

independency from the national government when it comes to local revenue raising. This is

mainly because of the lack of ability of the LGU to raise local revenue from sources such as

business tax and real property tax. Bongabon only has an average of 40.866% in its local revenue

raising capacity and has approximately 20.6% efficiency ratio which is low. Based on the results,

there is a need for the government to establish programs that would encourage taxpayers to pay

their taxes on time or in advance and properly using the asset relatively available in the barangay

(Cruz et al., 2018).

In accordance with the above remarks, Asian Development Bank (2013) argued that

government units have limited revenue-raising potential because they become unduly reliant on

fiscal transfers, particularly in rural regions. As a result, striving to increase local government

revenue generation becomes ineffective and wasteful, demanding repeated regulation revisions.
Hence, Recillo et al. (2022) analysis suggested that the issues faced by City of Tanauan local

governments in regards to revenue generation constituted a high risk. According to their

research, the majority of the LGUs in the City of Tanauan have been striving to find ways to

solve this extremely serious issue, especially given the difficulties of having a revenue

generation activity to enhance revenue collection.

In addition, revenue and income generation is the bread and butter of the local economic

enterprises in the successful operation of its programs and activities. However, on his findings it

shows that revenue and income generation contribution of local economic enterprises to their

respective LGU remains an elusive reality unless something new is made. Thus, the City of

Batangas, Lipa and Tanauan faces external factors challenge as low revenue arise because of the

sluggish development of the economy, especially in local areas (Balbacal, 2021).

Furthermore, Tamayo (2017) implied that when authorities and responsibilities are

decentralized, revenue-generation must be specified to support the provision of public goods, the

equalization of results, and the fiscal equitable equalization of government levels from local to

state to federal. To ensure that equals are treated equally, basic services must be the same.

Reiterating some of the specific external factors, Canares (2016) paper contends to focus

on the influence of ICT on local revenue creation in Bohol, Philippines. It claims that the use of

ICT may lead to more transparent and responsible revenue collection techniques, which would

benefit both the government and taxpayers. However, a number of factors impact the

effectiveness of ICT adoption, including the degree of political leadership, the nature of ICT

demand, the cost-benefit ratio, and the availability of technical skills and resources. In order to

strengthen governance, the study proposes an ecosystem analysis technique for assessing ICT

uptake, scalability, and use by subnational governments. It highlights the potential of IT to

enhance income generating mechanisms at the local level, but also emphasizes the importance of

good planning and execution to ensure success.

On contrary, Mallick (2020) study found that ICT infrastructure and governance,

evaluated independently, do not significantly contribute to increased income mobilization as

projected. Incorporating the change into the tax regime without closing the administrative

loopholes would have a limited impact on revenue generation.

In view of the discussion, Zhao & Madni (2021) stated on their findings that the context

of the intersection of economic and political changes are intriguing. It has been discovered that

one sort of reform leads to another; that is, political reforms encourage economic reforms and

vice versa. Furthermore, each sort of reform has a favorable impact on emerging countries'

environmental performance. The research looked at how economic changes affected political

reforms and vice versa, and discovered that one type of reform spurred the other. Several studies

have found that economic reforms are a source of stabilizing the financial system, restoring

investor and public trust, and that if any sort of reforms prevail in an economy, green technology

would grow. The research' findings indicate that institutions are critical for environmental

performance. According to the study's conclusions, economic and political changes are both

critical for environmental preservation in developing nations. The environment may be

considerably safeguarded through market processes and political structure. Political changes

provide the regulations for environmental protection, while economic reforms assist the

manufacturing sector in becoming more environmentally friendly. Environmental deterioration is

linked to ineffective institutions and poor governance. Thus, it hinders the local governments to

provide course of action as these factors is around and dwelling the public servant to deteriorate

its capability to govern for improvement.

 Similarly, Amatus & Calderon (2022) research examined Mount Arayat National Park's

(MANP) finance situation and fund administration, offering administrative, budgetary, and

policy possibilities for long-term funding. Inadequate money and ineffective fund administration

are two of the most significant impediments to successful protected area management in the

Philippines. Protected areas (PAs) seek financial sustainability in addition to biodiversity

protection. One of MANP's primary strengths, and likely that of other site-level PAs in the

nation, is the provision of adequate and competent legal, regulatory, and institutional frameworks

enabling sustainable finance. Yet, there are ways to increase the adoption and implementation of

these standards, such as business planning and cost-effective management systems. Partnership

with organizations such as local government units, academia, non-governmental organizations,

and other government agencies for potential benefit and cost-sharing schemes may also be

promoted. Investment in human resources and capacity building is advised, particularly for

efficient fund administration and revenue generation methods, as well as for developing and

promoting alternative finance options.

In addition to the above statement, Jerkovic (2015) investigated the significance of tax

income in local government budgets.as well as regional self-government units. She stated that

the purpose of any state decentralization is to understand and satisfy public demands while also

encouraging local development. As a result of this findings, local governments have a firmer

claim to their own financial resources, which they can dispose of within the scope of their power.

She concluded that, while such a privilege was already available for the said units, certain

sources of revenue could not be found within the location of such a unit, making it more difficult

for government officials to achieve the revenue enhancement, which aims to reduce expenses

while maximizing community benefits.

 Furthermore, Gumban (2013) observed that total revenue and external income differ

when towns are grouped based on distance from Iloilo City, socioeconomic class, population,

and political configuration. When municipalities are classified by distance, there is no link

between internal income and population size. Municipal revenue enhancement strategies have a

strong relationship with total income but not with internal income. Expenditures fluctuate

according to the income-boosting initiatives put in place. Income and expenditure are

inextricably linked.

On the other hand, the Philippine government, according to Diokno-Sikat et al. (2022),

makes intergovernmental budgetary transfers to local governments. (LGUs). The Internal

Revenue Allocation (IRA) is a one-time grant intended to help local governments bridge the

budgetary gap between their abilities to earn revenue and deliver devolved services. This study

explores the opinions of local development planning authorities on raising revenue based on a

survey of 1,373 municipalities.

Additionally, Octobre (2022) on her study investigated the revenue generating patterns of

selected Surigao del Sur coastal municipalities from Fiscal Years 2000 to 2018. It was

determined that all municipalities may produce revenue from both local and external sources,

with the main distinction being their income categorization. The report advises local government

units (LGUs) to undertake different income generating initiatives, such as upgrading their Real

Property Tax assessment and collection procedures and forming public-private partnerships.

According to research produced by the Philippine Institute for Development Studies

(2020), local government units (LGUs) can leverage their assets to generate additional revenue

for various public services (Pids). Furthermore, local governments solely could see asset

management as an accounting, bookkeeping, and recording activity. Asset management, on the

other hand, might entail leveraging assets as leverage against private-sector funding.

Consequently, the LGC with accounting and auditing rules published by the Commission on

Audit has entrusted LGUs in the Philippines with asset management tasks.

In conjunction, "Asset Management in Local Government," Shapo (2018) stated that

resources, infrastructure, and employees are essential assets in increasing service coverage and

improving the quality of services given to local communities. Despite the fact that municipal

officials are legally required to provide a wide range of services, they frequently prioritize their

personal activities over the requirements of the community they represent. As a result, service

delivery is usually an outcome of their efforts. To address this issue and build a framework for

towns to set their objectives, municipalities must first assess their present service offerings and

identify opportunities for improvement. This strategy can help towns focus on fulfilling the

needs of their populations and providing high-quality public services in increasing its revenue

generation capacity.

Similarly, Arora (2016) stated in her study that making use of resources available to

generate funds or in their locality and it got the other kinds of support like asking volunteers to

raise funds, building and utilizing network and goodwill to raise funds happened naturally in a

community. More so, generating funds using the asset available in the area is the big advantage

for the local community, hence they are tasked to utilized its capacity for use to provide output-

result based which will quantify the ability to raise revenue in such resources commonly seen

within the territory.

Furthermore, on the study of Villamor et al. (2017) their assessment on the challenges

encountered by the respondents in the governance as well as their capacity to mobilize resources

was interpreted as moderately serious. It can be reflected from the data that when it comes to
capacity to mobilize resources of the respondents to challenges encountered, respondents were

aware that there was no tourist attraction in their locality. It implied that some of the place in

Municipality of Mataas na Kahoy were not yet discovered and developed. Meanwhile, in terms

of efficiency and effectiveness through undelivered services to constituents the findings interpret

it as moderately serious. Which depicts that lack of funds is one of the reasons of undelivered

basic service and connection to the higher position is probably weak. Thus, it can be seen that

proper utilization of resources to generate revenue is a beneficial factor to sustaining community

needs.

In conformance, local governments must be able to produce enough revenue for the

services their communities require in a fair and consistent manner with the values of their

communities. Sadly, the present structure of local government revenue systems is incompatible

with modern economic realities. This leads to economic distortions and unjust treatment of

taxpayers. Working together to rethink local government income for public officials is so

essential. Local governments may be more vulnerable to economic downturns if their revenue

system is outdated. During economic downturns, demand for many public services remains

constant, and in some cases increases. This means that local governments require consistent

revenue sources. Some of the revenues that have replaced it, such as sales taxes, hotel taxes, and

income taxes, are even more subject to economic fluctuations. An ideal revenue structure would

generate more consistent resources, allowing local governments to have adequate resources

accessible during downturns without ever overtaxing their constituents. Considering other means

such as income generating activities and asset management of barangay would deliver a

sustainable resource of funds that let to raise revenue at long span (Kavanagh, 2022).

Synthesis
 The cited literature and studies provided the researcher pertinent information regarding

the influence of several factors available in the local government in terms of revenue

enhancement and their competencies to be dealt with.

Dominguez defined revenue enhancement as an essential economic concept that refers to

the efforts taken to increase overall revenue which plays a vital role in shaping economic

outcomes for the government. Thus, it is how the nation establishes other alternate sources of

income such as proper usage of another asset (Thapa) and to have a sound financial foundation to

meet the difficulties of urbanization with regard to increasing revenue (Freire and Garzon). In

conjunction, some LGUs have natural resources but still the disparities in the level of

development are high because of not proper utilization (Diokno-Sicat et al.) hence correcting the

revenue management is significantly important (Jacob). Meanwhile, in terms of six (6) factors of

PESTEL which are considered as a backbone for studying revenue enhancement, Peterdy states

that it is in nature that external factors could affect the LGU to provide a course of action to raise

revenue. Ponce and Cahiles specified that political factors can hinder the competencies to

address problems in revenue generation and (Batley and Mclughlin) by addressing the same

concept of political circle as a service delivery. On the other hand, (Nairobi) suggest that valuing

the creation of revenue sources can alter the jurisdictions to give own unique source of revenue.

Pettinger, Bruin, Mallick, Bush, and Nunn et al., suggest that public officials’ qualities, welfare,

social considerations, technological adoption, direct consumption of natural resources, and

policy are common traits available in nature that can hinder or help the local government to their

course of action towards the attempt to enhance their revenue for community interest. With

respect to competencies the responsibilities of government officials are multifaceted and

complex (Magkilat). Thus, the role of the government in the economy is by bringing the
potential for efficiency improvement and redistributing resources to establish equity and equality

in society (Gruber).

In terms of fund resources for the projects to increase revenue, Nairobi and Panao

specified that local governments tend to be over reliant on the national government assistance

which results in inadequate options to generate revenue on their own. As a result of this, local

governments with low revenue-generating capacity will lead them to weaken the economy hence

if they increase the investment using other assets such a community can promote stability

(Akujuru). In accordance with the statement above about the overreliance of local government to

national government funds some factors may occur in such Cabaluna state that corruption has

shown a prominent concern in the development assessment. As a result, it is considered that local

governments could perform better if public officials will honestly and vigorously do their job.

Noble-Nur stated that barangay captain success is heavily determined by their age and

educational background. In conjunction Ricamata, Dumlao, Taranekar and Mascarenas support

Noble-Nur statement in regard to highest educational attainment where the higher the education,

the higher the performance may produce which makes them efficient and effective for leading

the community. However, Acero contradicts the statement of Noble-Nur, Ricamata, Dumlao,

Taranekar and Mascarenas which she specified that highest educational attainment had no

bearing on the degree of work performance of Barangay Captain. Watkins finally stated that

length of service refers to the number of years a person has worked for a company, which

notably gives good impact as to loyalty. Hence, hinder the community to adapt for changes and

have fresh ideas of government.

Referring to the demographic profile, Becker reiterates that age in a wide range of

government policies affect both the person’s ability and need to remain in the labor force at older
ages in local government. It was little mentioned that sex is the physical difference between

male, female, or intersex. However, it should not be used as criterion for being able to function

in diverse situations as it can degrade one’s capacity to grow (Newman).

This study explored the competencies by the influence available in nature that local

government faced in revenue enhancement, which was supported by the assumption that external

factors are the main contributor to these challenges. Thus, the specific literature provided the

researchers with essential information to support their study findings. Contracted to, revenue

enhancement in local government is an economic concept that refers to a broader aspect of

efforts taken to increase overall revenue (Dominguez) but still dependent on national government

(Panao) and use of local government revenue (Nairobi). Furthermore, raising revenue is one key

operation that serves as the cornerstone of the government (Cabaluna), while revenue generation

by local government is vital (Brown), it is still necessary that local governments could improve

their revenue efforts by not relying on the statutory allocations of the national government. Thus,

it is proven that less dependency of local government to internal revenue allocation gives more

increase on own revenue sources and help allocate more for public welfare (Panao).

On the other hand, some studies covered the specific factors that affect the local

government to provide high beneficial interest. In a study in the local government of Bongabon

Nueva Ecija in the Philippines by Cruz et al. it implied that it is far from the independence of

LGU from the national government when it comes to local revenue raising. It was supported by

the study of Recillo et al. and Asian Development Bank that local government units have limited

revenue-raising potential and are at high risk.

Reiterating the view of technological domination, Canares, Ocenar, Dharmaraj,

Dominguez and Ott claim that ICT can lead to more transparent and responsible revenue
generation which increases the margin through a variety of routes. On the contrary Mallick,

Sivarajah and Irani state that loopholes could be the problem if administered technological

advancement, in such security, ethical, and regulatory compliance makes local government

difficult to adopt.

In view of the discussion Zhao & Madni state that the context of the intersection of

economic and political changes are intriguing which further impact the environmental

performance. It was proven by the study of Amatus & Calderon which examines Mount Arayat

National Park, significant findings showing that environmental settings can cause inadequate

money and ineffective fund administration that can hinder the success of the area to increase

revenue capacity. Hence, local governments have firm claim to their own revenue generation

capacity, which they can dispose of within the scope of proper administration (Jerkovic) and to

be considered as self-sufficient (Tulagan et al.). On the other hand, Gumban state that total

revenue capacity can differ when towns are grouped according to their distance and

socioeconomic class which the complex patterns will determine the capacity of one local

government to deal with external factors.

Furthermore, Philippine Institute for Development Studies, Shapo and Arora implied that

local government units can leverage their assets to make useful resources to generate additional

revenue. Despite the fact that public officials are legally required to provide a wide range of

services, asset management will leverage them for extra funding. Thus, it can be possible only

when the public officials know how to manage its local assets. In conjunction with the statement,

it is necessary for the public officials to be competent in order for good governance as it will help

to maximize the effort using their knowledge and skills for effective and efficient use of public

local assets (Magkilat).

 More so, Villamor et al. reflected that from the data when it comes to capacity to

mobilize resources of the respondents to challenges encountered, respondents were aware that

some of the developed and could be the reason of hardship in terms of revenue generation.

Moreover, Kavanagh specified that local governments must be able to produce enough

revenue for their community by considering other means such as income generating activities

and asset management would deliver sustainable resources of funds. Amatus & Calderon

findings on how to develop and promote alternative finance options support the study. Thus,

proper utilization of resources to generate revenue is a beneficial factor to sustain community

needs (Villamor et al.). As a result, due to the existence of fresh revenue streams the local

government cannot be exhausted (Brown). On the other hand, the concepts and findings provided

by the authors of different books, journals and other resource materials elevate the study of

competencies and revenue enhancement of local government, especially the barangay. It

supported the result of the study.

The studies of Moffat et. al, Cabaluna, Balbacal, Arora highlighted that barangays need

to develop strategies in order to improve their revenue enhancement activities to be more

effective and efficient. Also, the barangay should use any resources they have to generate funds

for their locality. Meanwhile, in the studies of Sartmiento, Brown et al, Canares, and Mallick are

more focused on improving local collections in order to generate funds such as local taxation,

instruments, techniques, and infrastructure that will benefit both taxpayers and the local

government as well. Furthermore, the study of Kusaka, Boysillo, Reza Ronaldo, Tulus Suryanto,

Tamayo, Zhao & Madni, Villamor et al, Kavanagh focusing on the good governance of the

barangay in order to generate funds and to encourage investors and to initiate different programs

and projects to improve the healthy environment to mobilize their resources and to produce
revenue for the services to the community. As a result, due to the existence of fresh revenue

streams the local government can be not exhausted. On the other hand, the concepts and findings

provided by the authors of different books, journals and other resource materials elevate the

study of competencies and revenue enhancement of local government specially the barangay. It

supported the result of the study.

 Chapter III
RESEARCH METHODOLOGY

This chapter provides an overview of the method and procedures that will be used during

the conduct of the study. This includes the research design, sampling design, respondents of the

study, the data gathering instrument, data gathering procedures, and the statistical treatment of

data.

Research Design

The researchers used the quantitative and descriptive methods as the study required

various perspectives and accurate information from the respondents, which such methods could

only support. Hence, the researchers collected the data through a survey questionnaire in which

responses were subjected to description and firm interpretation. Using the Analysis of Variance,

the pulse of the Local Government Unit officials was measured following the requirements that

this study had set.

Meanwhile, quantitative research is embedded in the systematized process of collecting

information that will be interpreted using numerical data. Bhandari (2020) alleged that

quantitative research is the collection and analysis of numerical data. It may be used to discover

patterns and averages, to make predictions, to verify causal linkages, and to generalize results to

larger groups. As a result, data is used to objectively measure reality. Unlike qualitative research,

it is widely utilized in natural sciences such as biology, psychology, sociology and economics.

Since the goal of this research is to understand and know seriously the competencies of Local

Government Units in raising revenue guided by the factors that they may encounter every time,

the researchers believed that this method would be effective and efficient to collate the pulse of

different local government unit officials which narrowly the numerical data can possibly justify

by means of pragmatic interpretation On the other hand, descriptive research method was used as
it can help the researchers to identify the characteristics, frequencies, and categories of each data

gathered through surveys and observations made by them (McCombes, 2019).

Respondents of the Study

This study collected data from the 48 Barangay Chairmen in the City of Tanauan,

Batangas. This was delimited to non-barangay captains, financial officers, non-financial officers,

barangay secretaries, and non-barangay secretaries since the topic is very specific to its target

respondents. Hence, the barangay chairmen were chosen as the researchers anticipated that they

will provide pertinent data for the study. Supporting the essence of this sampling method, the

researchers believed that with the utilization of such a mean, much reliable information can be

possibly obtained regardless of the limited number of respondents. The table for the respondents

of the study is presented in Appendix A.

Sampling Design

The researchers targeted responses from the total population of 48 Barangay Chairmen in

Tanauan City, Batangas. Thus, no sampling design was utilized.

Data Gathering Instrument

Research instrument is an important thing to do in collecting and gathering data. By

doing research instrument, the result of the study will be more accurate through some methods or

techniques. Taking into consideration the nature of this study, the researchers used researcher-

made survey questionnaire, which consisted of two (2) parts, to gather the information that

supports the objective of the topic. The first part of the questionnaire dealt with the demographic

profile of the respondents namely age, sex, highest educational attainment, and length of service.

Additionally, the second part comprised statements that focused on the assessment of

Barangay Chairmen on factors under the PESTEL framework that may influence them and/or the
LGU in its revenue enhancement activities. PESTEL is an acronym for political, economic,

social, technology, environmental, and legal factors. Also, in the second part, respondents were

asked to rate each item using four (4)-point Likert rating scale. Each variable has six (5)

statements which the respondents may respond to depending on the frequency of their actions.

The researchers used the following mode and interpretation to show the equivalence of each

item.

Responses Mean Ranges Verbal Interpretation

4 3.50 – 4.00 Strongly Agree/Highly Influential

3 2.50 – 3.49 Agree/Influential

2 1.50 – 2.49 Strongly Disagree/Least Influential

1 1.00 – 1.49 Disagree/Not Influential

Meanwhile, the researchers assured that the data they have collected were treated with

utmost confidentiality pursuant to the Republic Act 10173 also known as the Data Privacy Act.

Data Gathering Procedure

To uncover the topic competently, the researchers made in-depth research by reading

books, journals, cases, and related studies on the factors that may influence the competency of

the LGU to raise revenue, which lead them to discover the concept of six (6) factors under

PESTEL framework. The researchers conceptualized their research questions by outlining the

possible significance that this study may have and generating the objectives that may serve as the

backbone of this research pursuit.

Subsequently, the researchers made a preliminary draft of the survey questions and hand

them over to their thesis adviser for corrections and suggestions. The questions focused on the

assessment of factors that may influence the competency of Local Government Units officials in
City of Tanauan on revenue enhancement and highlighted how the government officials

competently recognize and acknowledge the value of raising revenue.

Furthermore, with the guidance of the adviser and the panel of examiners, the validated

questionnaire was then tested for reliability. The pre-survey, which was conducted face-to-face

to 15 Barangay Chairmen at the City of Sto. Tomas, Batangas from the 2 nd to 9th day of August,

2023. The retrieved data from the pre-survey was then tabulated and forwarded to the thesis

statistician. After the testing, the Cronbach Alpha was computed at 0.84 with the reliability level

of “Good”, which implies that the research instrument was reliable. Moreover, upon knowing the

reliability of the instrument, the researchers proceeded to the actual survey.

Additionally, the researchers sought the approval and consent of the City Mayor in the

distribution of the validated, tested, and reliable survey questionnaire to the 48 Barangay

Chairmen in the Tanauan City, Batangas. Considering the geographical area of Tanauan City, the

time allocation and availability of the barangay chairmen and the researchers’ internship they

strategically divided the 48 barangays into four (4). This is to have a fast pace of distributing the

research questionnaire while lowering the cost of transportation used, thus decreasing

expenditures.

The researcher only distributes the research questionnaire every Monday and Friday as it

was the free time available. The actual survey lasted from August 26 until October 23, 2023.

After the retrieval, the results were then tallied, tabulated, and forwarded to the thesis statistician.

This is to determine, analyze and interpret the results.

Statistical Treatment of Data

 In analyzing the survey results, frequency and percentage, weighted mean, brown

forsythe test, and mann whitney u test were used as the study’s statistical instruments. This were

utilized to generate accurate results necessary for detailed interpretation.

Frequency and Percentage. These were used to present the demographic profile of the

respondents in terms of age, sex, highest educational attainment, and length of service.

Mean and Composite Mean. These were used to interpret the assessment of the

Barangay Chairmen on the influence of the factors included in the PESTEL framework on their

competencies to raise revenue.

Brown Forsythe Test. This was used to determine if there is a significant difference

between the Barangay Chairmen’s assessment on the factors that influence revenue enhancement

when grouped according to profile variables except sex.

Mann Whitney U Test. This was used to determine if there is a significant difference in

the respondents’ assessment on the factors that influence revenue enhancement when grouped

according to profile variables sex.

Ethical Considerations

For ethical purposes, the researchers asked the respondents for support and time to

participate in the survey. A short overview of the goals of data collection was performed as part

of the academic requirements. The researchers also assured them that their participation was

voluntary and that they had the right to withdraw from any successful data collection at any point

under pressure or fear of reprisal. All details and views from the respondents were anonymous.

No documents from the survey showed the names of the respondents and their establishment.

The 2012 Data Privacy Act was respected accordingly to protect privacy. Data processing was

handled confidentially. The researchers secured the full consent of the participants.
 Chapter IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter covers the presentation of the data gathered through the survey, the analysis

of every consolidated finding, and the interpretation of the indicated results. This study aims to

discover specific factors that affects the Local Government Units from the City of Tanauan in

terms of providing revenue enhancement activities. Thus, the data presented here is in a tabular

form, analyzed correspondingly, and interpreted based on the Literature presented on Chapter 2

of this study.

1. Profile of the Respondents

The succeeding tables present the demographic profile of the Barangay Chairmen in

Tanauan City, Batangas. These specifically provide the age, sex, highest educational attainment,

and length of service of the respondents.

1.1 Age. Table 4.1.1 presents the profile of the respondents in terms of their age. This

was determined and interpreted using frequency and percentage.

Table 4.1.1
Distribution of Respondents in terms of Age

Age Frequency Percentage

26 – 41 06 012
42 – 57 20 042
58 – 67 15 031
68 Above 07 015
Total 48 100

Based on the table above, majority of the respondents fall in the age bracket of 42 – 57,

which has a frequency of 20 and a percentage of 42. It was followed by the age bracket of 58 –

67, which has a frequency of 15 or a percentage of 31. Meanwhile, ages 68 and above garnered a

frequency of seven (7) or a percentage of 15 and ages between 26 – 41 had a percentage of 12

with a frequency of six (6).

 Results revealed that most of the Barangay Chairmen in Tanauan City, Batangas had

already acquired not only the knowledge but also the experience in leading certain group of

people. Analysis may be linked to the idea that as one ages, he/she will be able to face various

life challenges which may teach them lessons. Additionally, as observed, mostly people who run

in the government are those at the age where they already have family or had enjoyed a certain

career in their life.

Additionally, C. Cruz et al (2017) states on their research that the reason why most of the

elected officials is on middle age is that older citizens or citizen that have been living a long time

in the community tends to be more interested in local politics and thus more likely to vote same

age group of specific candidates.

1.2 Sex. The profile of the Barangay Chairmen in terms of sex was determined. Table

4.1.2 presents the data collected using frequency and percentage.

Table 4.1.2
Distribution of Respondents in terms of Sex

Sex Frequency Percentage

Male 40 083
Female 08 017
Total 48 100

As gleaned from Table 4.1.2, 40 or 83 percent of the respondents were male while the

remaining eight (8) or 17 percent were female. Data may be linked to the observation that even

during the election process, men and women are disproportionally represented. It does not seem

to necessarily anti-sexual prejudice since orientation is still prevalent, but perhaps as a result of

men and women choices to run for a position, that varies. Furthermore, it may be inferred from

the facts above that men are more likely than women to be interested in entering politics because

it could be presumed that men have what it takes to lead a particular group of people. This may
also be affirmed by the notions of many that men were more adept at handling complicated

responsibilities.

In a 2017 study on gender equality in local government, Belgrade conducted a thorough

analysis of the factors underlying the disparities in the representation of two sexual orientations

in the public sector. According to his research, women only make up 14% of the population in 29

municipalities. This is because, during election seasons, the majority of applicants are men, a

phenomenon that may be outside the purview of the local election committee. On the other hand,

considering decision-making and the degree of authority held by both genders. Additionally, he

discovered that control over a particular decision is inevitably disproportionate because men are

more likely to hold higher positions.

1.3 Highest Educational Attainment. The highest educational attainment of the 48

Barangay Chairmen in Tanauan City, Batangas was determined. Data gathered were interpreted

using frequency and percentage as presented in Table 4.1.3.

Table 4.1.3
Distribution of Respondents in terms of Highest Educational Attainment

Highest Educational Attainment Frequency Percentage

Elementary Graduate 02 004
High School Graduate 09 019
Vocational Graduate 06 012
College Graduate 31 065
Total 48 100

It can be gleaned from the table above, 31 or 65 percent of the respondents are College

graduates. This was followed by those whom are High school graduates with a frequency of

nine (9) and a percentage of 19. Moreover, six (6) or 12 percent of the Barangay Chairmen are

vocational graduates while two (2) or four (4) percent are elementary graduates.

Given that most barangay chairmen in Tanauan City, Batangas have college degrees, it
can be assumed that they have a greater understanding of the planning, implementation, and

assessing the projects of the local government units. These data could be a positive effect on

the community because the barangay chairmen have received extensive training, leading to

more effective management techniques that will eventually benefit the community. Therefore,

educational attainment is one important factor before entering politics as it will drive an edge

for extensive service an elected officials can provide.

To support the claim, Ignacio (2019) mentioned that educational attainment has been

acknowledged and plays the most critical role in every decisive moment. He further

communicated that the competency assessment is still observable externally and the

qualifications of the one who are elected. This is also strengthened by the conclusion made by

Tandoc-Juan et al (2019) and Noble-Nur (2019) that educational attainment was strong

predictor of the choice of preferences for a politician. Someone who had finished his/her

education is preferred for they are imbued with relevant knowledge, skills and attitudes

necessary for a leader. Though this is not an undervaluing of those person who didn’t finished

their education, the literature may reveal that in today’s generation educated politicians are on

top needed as they have more knowledge and skills to provide extensive solution to the

problem. Supported further by Donn-Ignacio (2019), who specified in his journal that a certain

level of education should be a requirement for elected officials. This seems very practical as

many believe that for a person to be an effective leader, one should at least be a college

graduate since they have to deal with different challenges. Similarly, with Mascarenas (2016)

and Dumlao (2016) which state that a person who is educated is more positive towards

challenges and they are more receptive to new ideas and new ways as compared to those with

low level education.

 Moreover, stated in Section 3 of the Batas Pambansa BLG. 222, otherwise known as an

act providing for the election of barangay officials, and for other purposes. Qualification in the

barangay election is at least no person shall be eligible to be candidate as barangay official

unless he is a citizen of the Philippines, a registered voter and actual resident of the barangay

for at least six (6) months immediately before the preceding the election and is at least twenty-

one (21) years of age, who can able to read and write and who is not otherwise disqualified by

the existing laws.

1.4 Length of Service. The Barangay Chairmen’s profile in terms of length of service

was also identified. Data gathered were presented and interpreted using frequency and

percentage.

As shown in Table 4.1.4, out of 48 Barangay Chairmen, 26 or 54 percent of them had

been in service for more than seven (7) years. This was seconded by 15 or 31 percent who had

been in service for five (5) to six (6) and remaining seven (7) or 15 percent had been in service

for three (3) to four (4) years.

Table 4.1.4
Distribution of Respondents in terms of Length of Service

Length of Service Frequency Percentage

3 - 4 Years 07 015
5 – 6 Years 15 031
7 Years above 26 054
Total 48 100

Findings of the study may be linked to the several postponements of local government

elections during the past years which provided for longer term of office to many. This may also

imply that the majority of people in the area think that barangay officials who have held office

for multiple terms are trustworthy candidates for public office because they have more

substantial experience and superior managerial skills. In connection with this De Loyola (2023)
ascertained that when educational attainment is not met, people tend to base on experience and

length of service when it comes on choosing the elected officials.

Moreover, stated in Section 43 (a) (b) of the Republic Act No. 7160, otherwise known

as the Local Government code of 1991. The term of office of the elective officials shall be three

(3) years. No local elective official shall serve for more than three (3) consecutive terms in the

same position on their barangay. Hence, voluntary renunciation of the office for any length of

time shall not be considered as an interruption in the continuity of the service for the full term

for which the elective official was elected.

2. Respondents’ Assessment on the Influence of PESTEL on their Revenue Enhancement

Activities

The succeeding tables present the respondents’ assessment on the external factors that

may influence their revenue enhancement activities. Thus, it covers factors such as political

factors, economic factors, social factors, technological factors, environmental factors, and legal

factors. Meanwhile, the data presented in the following tables are gathered through the

utilization of a researcher-made questionnaire in pursuit of the purpose of this study.

2.1. Political Factors. Table 4.2.1 presents the respondents’ assessment on their revenue

enhancement activities as influenced by political factors. Data gathered were interpreted using

weighted mean and composite mean.

The respondents strongly agreed that the barangay’s leadership actively supports and

promotes revenue enhancement activities as it garnered a 3.71 weighted mean. This implies that

the Local Government Units in the City of Tanauan actively supports and highly performs the

initiatives towards activities to raise revenue to help and not cause hindrance to boost the

growth of economy. Thus, the notion connects to the statement which specify that LGU can
support the needs of the community even limited to what the law allows by creating ordinances

that put initiatives to different ideas regarding revenue enhancement activities.

Table 4.2.1
Respondents Assessment in their Revenue Enhancement Activities as Influenced
by Political Factors

Weighte Verbal
Item Statement
d Mean Interpretation
1. The barangay’s revenue enhancement
activities are supported by the local
3.60 Strongly Agree
government’s existing policies and
regulations.
2. The barangay’s political stability positively
3.35 Agree
impacts revenue generation efforts.
3. The execution of revenue enhancement
activities in the barangay has been easy with
3.46 Agree
its strong collaborations with other
government entities.
4. The barangay effectively advocates for
favorable tax and fee structures to enhance 3.58 Strongly Agree
revenue.
5. The barangay’s leadership actively supports
3.71 Strongly Agree
and promotes revenue generating projects.
Composite Mean 3.54 Highly Influential

It was supported by the Republic Act 7160 or otherwise known as Local Government

Code of 1991, which indicates that barangay chairmen are responsible for promoting and

supporting revenue- generating projects in their respective barangays.

Collectively, Horvat et al. (2019) states that the effects of the global financial crisis on

local government have made it more transparent in the use of public resources. A local

community must have revenue for its own operations and be financially independent in order to

complete all responsibilities in a given calendar year. This implies that it must establish a

funding plan, i.e., a plan of action for the coming year. Since the local government is limited to

what the law allows, all revenue and expenditures must be based on it in order to comply with

the law.
 Meanwhile, with the lowest computed weighted mean of 3.35, the respondents agreed

that the barangay’s political stability positively impacts revenue generation efforts. One of the

ways to meet the community’s needs towards revenue booster is by having stable political traits.

The data tells that the barangay chairmen may have encountered changes in the past 5 years

relatively on the next level of political unit which is the City Government. The significant event

happened in the past 5 year change the way of living specifically in December 2019 which an

infectious disease spread in different countries which affects the economy in terms of tourism. It

was followed then by the eruption of Taal Volcano on January 12, 2020 where the City of

Tanauan were also affected by the natural phenomena. Lastly is the spread of infectious disease

which known as COVID 19 that affect the living of many people that drastically lowered the

capacity of improving its economic ability to provide for the needs of their respective barangays

together with tight budget until 2023. Thus, it is a challenging reality to adapt from continuous

changes of commanding leader in order to pursue to address the recurrence of unwanted

circumstances that might cause harmful effect to the community.

The claims are supported by the findings of the study conducted by Altun (2016) on the

effect of political stability and governance on the economic development, which reveals that

political stability is in the early stages for the strategy to work but with enough room for peaceful

political adaptability to rising changes in interests in the future. They note that there is no single

path to growth. Additionally, Moffat et al. (2021), states that revenue enhancement strategies can

be used to increase revenue in rural municipalities. The study found that political stability is one

of the factors that can contribute to revenue enhancement if the power will be well distributed.

Similar to Al Arif (2020), which implies that the government should increase political stability to

accelerate growth.
 Hence, with a computed composite mean of 3.54, Barangay Chairmen assessed political

factors as highly influential on the revenue enhancement activities in their respective barangays.

This may be associated to the observation that initiatives from the City Government were a big

factor to be able to provide the service delivery as if it is failed to do so the political difference

can be used as barrier to implement such activities. Moreover, during the survey conducted by

the researchers, majority of the respondents still must try to improve further their strong

relationship towards its local government units to further increase their political ties in terms of

providing revenue enhancement initiatives. It is in order to avoid political instability as this may

occur from changes over time. Nonetheless, political support helps barangay chairmen at least to

surpass the challenges on having the right of proper distribution of power by the local

government in order to implement certain activities that can lead to revenue enhancement of their

distinct barangays.

In order to do this, Batley and Mcloughlin (2015) supported the claims that the political

interests, incentives, and institutions can all have an impact on the quality of public services. It is

typically generic, examining the effects of political context as though all services behaved

similarly under the same conditions. Similarly, in the concept of policy circles, "service delivery"

is frequently referred to in aggregate, as if it addressed shared challenges of politics and

performance, regardless of sector, in order to generate income for the community.

2.2 Economic Factors. The respondents’ assessment on influence of economic factors on

their revenue enhancement activities was also determined. Data gathered were interpreted using

weighted mean and composite mean.

Table 4.2.2 reveals that with the highest computed weighted mean of 3.73, Barangay

Chairmen in Tanauan City, Batangas strongly agreed that the revenue enhancement activities
implemented by the barangay have positively contributed to the economic development of the

community. This implies that the different initiatives and actions of the barangays on their

community directly impact the growth of their own community economic development that can

lead to high revenue collections to support and establish economic well-being and increase

quality of life.

Table 4.2.2
Respondents Assessment in their Revenue Enhancement Activities as Influenced
by Economic Factors

Weighted Verbal
Item Statement
Mean Interpretation
1. The revenue enhancement activities implemented
by the barangay have positively contributed to the 3.73 Strongly Agree
economic development of the community.
2. The barangay government effectively manages its
financial resources to maximize revenue 3.65 Strongly Agree
generation.
3. The barangay government has successfully
3.42
attracted investments and businesses to the area Agree
through its revenue enhancement initiatives
4. The barangay government regularly evaluates and
adjusts its revenue enhancement strategies based 3.48 Agree
on economic trends and community needs.
5. The barangay government actively collaborates
with external stakeholders, such as businesses and
3.29 Agree
financial institutions, to implement effective
revenue enhancement measures.
Composite Mean 3.51 Highly Influential

Pettinger (2021) supported this with his concept which states that increasing economic

well-being through higher real incomes and other welfare indices such as improved literacy,

better infrastructure, lower poverty, and better health care necessitates political stability,

investment, and a collaborative effort of public and private sectors will provide better

sustainability for the delivery of community needs. The good the economic sector of one

community, the better it can provide to boost such area that would lead to generate more revenue
to find community by being self-efficient. Similarly, Balbacal (2021) in his study on the

sustainability of local economic enterprises, he recommended that enhancing more the

contributions of certain revenue activities will deal positive response to economic development

of the barangay.

Further, with the lowest weighted mean computed at 3.29, respondents agreed that the

barangay government actively collaborates with external stakeholders, such as businesses and

financial institutions, to implement effective revenue enhancement measures. This implies that

the barangay chairmen do recognize the importance of cooperation among various stakeholders

in their community. This may be associated to the fact that these stakeholders are great

contributors to the barangay’s revenue generation, thus, the need to integrate their roles towards

effective implementation of revenue enhancement measures is a must. Additionally, as specified,

this covers the collaboration of the barangays to different external outlets present within the

range and distant area, such as economic and industrial zone that can provide aid by bringing

them to certain location on the barangay. And this, will bring certain impact to gradually increase

the economic development to support widely the urgent demands of the community, if only if,

they will focus on making quality collaboration to external outlets that assures benefits for the

two parties. However, the recognition of collaboration in this context signifies that local

government unit understand the importance of partnerships with businesses and financial

institutions in revenue enhancement efforts.

It has been supported by the study of Davis (2022) where in his findings he demonstrated

that both efficiency and effectiveness are crucial factors considered during the decision-making

process for engaging in regional collaboration. The study also highlighted the role of regional

collaboration in advancing the public interest. Elected officials and local government managers
acknowledged the advantages of regional collaboration, such as improved efficiency and

effectiveness in providing public services, achieving economies of scale, sharing monetary and

non-monetary resources, and collectively investing in large-scale projects. Likewise, it has been

supported by Pettinger (2021) who emphasizes the need for a collaborative effort between the

public and private sectors. Collaboration with external stakeholders, such as businesses and

financial institutions, reflects this cooperative approach to implementing revenue enhancement

measures and contributing to community well-being.

Finally, a notably high computed composite mean of 3.51 denotes that economic factors

are highly influential on the barangays’ revenue enhancement activities as assessed by the

respective Chairmen. In which the respondents assume that the economic factors do not hinder

their capabilities to provide effective actions towards increasing the revenue outlet of the

barangays. In simpler terms, they believed that these programs and actions were successful in

promoting economic growth and prosperity. Yet, they still need to maintain good foundation in

economic development especially in collaborating with external outlets. As it may strengthen the

resilience of its policy action to further act progressively towards the aim of having higher return

of revenue.

Furthermore, the proactive approach adopted by the barangay government in managing

and improving economic conditions, in alignment with various economic factors, underscored

the significance of these initiatives within the overall economic landscape of the barangay. These

efforts played a substantial role in fostering economic well-being and prosperity within the

community, ensuring its long-term growth and sustainability. This clear, proactive stance from

the government was instrumental in advancing the economic welfare of the community and

bolstering its prospects for future development.

 This has been supported as by the study of Arora (2016) which implied that making use

of resources available to generate funds or in their locality and it got the other kinds of support

like asking volunteers to raise funds, building and utilizing network and goodwill, collaborations

with different sectors within and distant area such as industrial zone happened naturally in a

community who have strong ties of vision to expand economically. Likewise, Peterdy (2023)

relate it to broader economy and tended to be explicitly financial in nature. In which economic

factors was relevant to how local government units built a flexible plan to constructively reverse

economic slumps, considering influences that affected their capability to deliberate on a course

of action. The high consensus on the government's positive impact on economic development

was directly linked to the alignment of their proactive stance with these economic factors,

showcasing the importance of their efforts in the community's economic well-being and long-

term growth.

2.3. Social Factors. The influence of social factors on the revenue enhancement activities

of the barangays in Tanauan City, Batangas was also determined in the study. Data collected

were analyzed, interpreted and presented using weighted mean and composite mean.

Table 4.2.3
Respondents Assessment in their Revenue Enhancement Activities as Influenced
by Social Factors

Weighted Verbal
Item Statement
Mean Interpretation
1. The barangay’s revenue enhancement activities
are aligned with the needs and aspirations of the 3.67 Strongly Agree
community.
2. Revenue-generating projects in the barangay
promote social inclusivity and community 3.46 Agree
participation.
3. The positive support from the people in the
community has been considered a strength for the 3.56 Strongly Agree
barangay’s revenue enhancement initiatives.
4. Revenue enhancement activities in the barangay 3.50 Strongly Agree
 foster a sense of community pride and ownership.
5. The barangay effectively communicates the
benefits of revenue enhancement activities to the 3.08 Agree
community.
Composite Mean 3.45 Influential

It can be gleaned in Table 4.2.3 that with the highest computed weighted mean of 3.67,

the respondents strongly agreed that the barangay’s revenue enhancement activities were clearly

aligned with the needs and aspirations of the community. This alignment necessitated an

inclusive and transparent approach, channeling the generated revenue towards addressing the

community’s pressing concerns. In which the community will more likely to participate and help

the local government unit to attain its goal to enhance its revenue outlets. It is presumed that the

local government unit elected officials on barangay are quite aware on the social needs of their

corresponding citizen which is the in-depth concern. Thus, it can convey that the connection

between the local government unit and the citizen still concrete but need to preserve in order to

garner the cooperation of the community.

As asserted by Alarte (2022), in order to effectively plan and initiate projects that will

enhance the community’s economic productivity while addressing their felt needs, it is essential

to pay close attention to the livelihood needs of the community. It has been supported also by

Buot et al. (2013) which provided further endorsement of this notion by highlighting the

willingness of the community members to participate as a crucial prerequisite for developing a

successful community development plan, which aligns with the idea of community participation.

Meanwhile, with the lowest weighted mean computed at 3.08, the respondents agreed

that the barangay effectively communicates the benefits of revenue enhancement activities to the

community. Many people always states that communication is a powerful tool to address

concerns and provide solution. Thus, it needs to be strengthened further in the barangay level.
The local government unit despite their efforts to determine and understand the needs of

community, still the struggle to engage the community is a challenge. This may be due to the

observation that many had lose their interests with their respective barangay’s activities due to

the notion that mostly, those whom are close to the people working for the barangay will be the

only individuals who will benefit from such initiatives. Hence, effective communication within

the context of revenue enhancement must involve the implementation of clear, relevant,

accessible, and transparent messaging, alongside active community engagement to foster

understanding and appreciation of these activities.

This was supported by the study of Asuncion et al. (2020), which emphasized the

importance of Local Government Units (LGUs) improvement of their data presentation, utilizing

understandable terms, and prioritizing transparency in dissemination information to enhance

comprehension within the community. As it can be observed to be triggering, which can lead to

misinformation if local government unit failed to properly communicate. The community should

access wide information dissemination and easy understanding towards the programs and

activities that they will be concerned and benefited specifically when it comes to revenue

activities which talks about money.

In general, the composite mean computed at 3.45 reveals that social factors are influential

on the barangay’s revenue enhancement activities. The local government units obtain supports

and participation from the community by aligning the activities and programs towards the

community needs and aspiration. This alignment actively promotes inclusivity and encouraged

community participation especially in revenue-generating projects. During the data collection

process, the barangay chairmen’s claim of substantial community support emerged as a

cornerstone, fostering a sense of community pride and ownership. However, the support and
participation of the community doesn’t provide assurance as it is not concrete. The local

government units still find it hard to make its people to be participative and understand the

process of certain activities that benefited them. Thus, it is still a challenge, and the local

government units is still encouraged to strengthen the communication to its community to easily

imposed activities regarding to revenue enhancement.

In a study by Bruin (2016), he emphasizes that the component of the general environment

represents the demographic traits, norms, practices, and values of the community's people. This

concept encompasses demographic patterns such as population growth rate, age distribution,

income distribution, career attitudes, safety emphasis, health consciousness, lifestyle attitudes,

and cultural obstacles. In which, local government may be hampered by different social

considerations in terms of the traits of one person. Yet, essential to have the support of the

community to implement activities progressively as they are one of the key drivers for success.

This has been supported by Adams et al (2018), which recommend that a

coordinator/facilitator which have positive support form community is essential for providing

strategic direction, supporting communities and activities, promoting community ownership, and

facilitating partnership development which led to become the strength of the government.

2.4 Technological Factors. Barangay Chairmen’s assessment on the revenue

enhancement activities of their respective barangays as influenced by technological factors was
also determined. Data gathered were analyzed, interpreted and presented using weighted mean
and composite mean.

Table 4.2.4
Respondents Assessment in their Revenue Enhancement Activities as Influenced
by Technological Factors

Weighte Verbal
Item Statement
d Mean Interpretation
1. The barangay uses technology to optimize 3.31 Agree
 revenue generation for collection and
management processes to increase revenue
(e.g., centralized revenue data and integration
with payment gateways.
2. The success of revenue enhancement
activities in barangays is influenced by
adopting technological advancements, such 3.33 Agree
as tourism app, e-commerce platform for
local products and digital advertising spaces.
3. The barangay’s digital platforms and online
3.48 Agree
services contribute to revenue growth.
4. The barangay utilizes data analytics to
3.44 Agree
identify revenue enhancement opportunities.
5. The operational efficiency of barangays is
enhanced through the adoption of technology
3.15 Agree
in revenue generating initiatives, such as
digital payment systems for local services.
Composite Mean 3.34 Influential

As presented in Table 4.2.4, with the highest weighted mean computed at 3.48

respondents agreed that the barangay’s digital platforms and online services contribute to

revenue growth. The effort of the local government unit to adapt in technological based

platforms for their service delivery turns out to be positive in nature as majority of them believes

that on their corresponding barangay they promptly implemented it that lead them to contribute

in revenue growth. It can be projected that by the help of digital platforms and online services

many taxes, fees and other related revenue outlets speed up its collections with accuracy which

lessen the time duration and improve record keeping through online.

The effort of exhibiting technological base services may also invites different investors

which can provide service and revenue from both parties. Despite of the positive turnouts of the

respondents to the statement still some of them see it not contributing that much on their

transactions and activities. Thus, the local government needs to strengthen its implementation

where everyone in the sector can drive forward to the changes applied in the locality to improve

service delivery.
 In connection with, the study of Canares (2016) supports the claims in which his paper

contends to focus on the influence of ICT on local revenue creation in Bohol, Philippines. It

claims that the use of ICT may lead to more transparent and responsible revenue collection

techniques, which would benefit both the government and taxpayers. However, a number of

factors impact the effectiveness of ICT adoption, including the degree of political leadership, the

nature of ICT demand, the cost-benefit ratio, and the availability of technical skills and

resources. In order to strengthen governance, the study proposes an ecosystem analysis technique

for assessing ICT uptake, scalability, and use by subnational governments. It highlights the

potential of IT to enhance income generating mechanisms at the local level, but also emphasizes

the importance of good planning and execution to ensure success.

Technology imposed highly important notes on how people will “adopt” and adapt” to

never ending change. Even with the lowest weighted mean of 3.15, respondents agreed that the

operational efficiency of barangays is enhanced through the adoption of technology in revenue

generating initiatives, such as digital payment systems for local services. It can presume that

respondents enhance their operational transactions that promotes revenue related projects on

their locality. Thus, adoption still vary as it can change deliberate at choice, so it suggests that

the local government unit proactively ensures that everyone is keeping up with the technological

enhancement.

Dharmaraj (2020), supported the claims as he emphasized the positive outcomes resulting

from technology adoption. It led to more responsive governance, as technology enabled the

barangay to efficiently address the needs and demands of its community, making frontline

services more accessible and convenient for residents. Moreover, embracing digital technology
in revenue-generating projects resulted in higher income for the barangay through streamlined

processes, enhanced tax collection, and the creation of new revenue streams.

It is further supported by Ott (2023) and Dominguez (2022) which they emphasize that

technology has the ability to reduce collecting restrictions, notably by broadening the

information available to the government. They pointed out the concept of being adopted as

technologically inclined community will help them to grow and maximize the community

revenue generation leaving so the traditional manual set up.

The study's findings revealed a moderate connection between technology and revenue

enhancement activities in the local government unit. This is as the composite mean was

computed at 3.34, which denotes that indeed technological factors are influential on the

barangays’ revenue enhancement activities. Results implied that there is still a need to figure out

on how the LGU can increase the adoption and adaption of technological aspects in improving

service delivery. It may also presume that some of the local government units do not adopt and

adapt because of their lack of knowledge and ability to put a strain on learning to keep up with

the trend. This may sound off but this is actually necessarily as technological changes is

inevitable in order to promote quality and quantifiable results in terms of increasing market

stands to attract different outlets that can bring revenue.

A relevant study by Kamal et al (2015) reiterate that the emergence of new and

revolutionary integration technologies has had a significant impact on local government

decision-making. The technology is leading the way of the world; thus, it is resembling to what

the local should focus on. These factors can be seen as an advantage but it also can be considered

as a threat to the LGU if they are late to realize the effect of technological advancement.
 Thus, the claims are supported by Ocsko (2021) where he emphasizes why local

government unit has a long struggle to move on to better things when it comes to digital

transformation. He said that the old solution somehow seems more comfortable, more familiar

and more reliable, despite of all evidence to the contrary. All of these concerns are entirely

justified, so it makes sense that many local government units would be reluctant to adopt new

technology in favor of sticking with the security of well-known and reliable platforms. These

worries, however, are making councils vulnerable and preventing them from implementing

solutions that could greatly benefit both themselves and their constituents. These solutions

include cost savings, improved security of private information, and—above all—better public

services.

2.5 Environmental Factors. The influence of environmental factors on the revenue

enhancement activities in the Barangays of Tanauan City, Batangas was determined. Data

gathered were presented in Table 4.2.5 using weighted mean and composite mean.

Local government units have played a pivotal role in providing essential environmental

resources and initiatives to promote sustainability and protect the natural world. With the

weighted mean computed at 3.71, Barangay Chairmen strongly agreed that their respective

barangay focuses on ecologically friendly revenue-generating operations, including waste

management, recycling initiatives, and the sale of locally made eco-friendly products. Findings

may be associated to the fact that in all barangays across the country, solid waste management

had been one of the top priorities. Additionally, this underscores the vital role of local

government units in advancing sustainability and environmental protection, highlighting the

positive correlation between their actions and the endorsement of eco-friendly initiatives. It
conveys thar the LGUs are aware on the impact of every project implementation that they

imposed.

Table 4.2.5
Respondents Assessment in their Revenue Enhancement Activities as Influenced
by Environmental Factors

Weighted Verbal
Item Statement
Mean Interpretation
1. The barangay focuses on ecologically friendly
revenue generating operations, including waste
3.71 Strongly Agree
management, recycling initiatives, and the sale of
locally made eco-friendly products.
2. Revenue-generating projects in the barangay
follow the guidelines set forth in Presidential
Decree No. 1586, also known as the 3.44 Agree
Environmental Impact Statement System, to
assess their potential environmental impacts.
3. The barangay makes efforts to preserve and
protect the environment by implementing 4R’s,
3.40 Agree
which help replenish natural resources and utilize
revenue generation initiatives.
4. The barangay’s revenue generating initiatives
promote green tourism and environmental
conservation such as sustainable farm stays, 3.08 Agree
organic and local food experiences, and
sustainable souvenirs and crafts.
5. The community exhibits a remarkable level of
awareness and support for environmentally
3.48 Agree
responsible revenue enhancement activities, such
as recycling programs and ecotourism initiatives.
Composite Mean 3.34 Influential

The highest weighted mean revealed that most of the barangay chairmen have the

knowledge to support the programs in revenue enhancement by strategically using appropriate

solution in consolidation with the environmental concerns. Such programs like waste

management in conjunction to recycling initiatives and locally made eco-friendly products in

local government will boost the increase of accumulated revenue from one outlet by utilizing the

environmental capacity. This is reinforced by the study of Reza Ronaldo and Tulus Suryato
(2022), which emphasizes that Sustainable Development Goals promote the welfare of

communities globally by reducing poverty levels through the promotion of various income-

generating activities from scratch and waste. Additionally, these goals promote environmental

sustainability by reducing substances that pollute the environment.

Meanwhile, even with the lowest weighted mean of 3.08, the respondents agreed that the

barangay’s revenue-generating initiatives promote green tourism and environmental

conservation, such as sustainable farm stays, organic and local food experiences and sustainable

souvenirs and crafts. The results indicated that even the local government unit is aware on

different environmental factors they still regard as slow on implementation of such activities. It

can be presumed that some local government unit have different geographic scale which reduce

their capacity to initiate programs. The researchers’ observation when they conducted the survey

reveals that the barangay in the City of Tanauan are not proportionally balance as some of its

barangay has given natural landscape that can attract tourism while others have nothing or

certain. It also affects them to implement activities such as sustainable farm stays which can led

to other revenue outlets because of the land capacity and nourish. Thus, there is a potential

improvement on it by further enhancing their promotion to support and engage sustainable

efforts in activities that promotes revenue using the land proportion and other natural resources.

This observation is supported by the study of Arifin & Rupita (2021), which they

reiterate that in order to overcome challenges, this circumstance necessitates high costs and extra

coordination across institutions. Apart from the physical condition of the land, the

socioeconomic conditions of the community have a significant impact. Thus, the notion may be

seen in the uneven distribution of the population, the mental attitude of the unsupportive
community in creating infrastructure, and the people's economic activities that are geared to

neighboring countries.

Furthermore, Ekayani et al. (2019), stated that natural tourism activities can generate

revenue that can be allocated for conservation, providing economic benefits for local

communities. Given that tourism activities have the potential to benefit the local economy, there

is a possibility that they could also increase awareness and participation in conservation

activities.

Summing all these up, with a composite mean of 3.34, study reveals that environmental

factors are influential on the revenue enhancement activities of the barangays in Tanauan City,

Batangas. This implies that the LGU adheres to environmental impact assessment in regard to

their proposed activities. The local government had been including the 4R principles and green

tourism on their goals yet by far on having success outcomes as implementation sometimes

failed to monitor concisely. Local government needs to improve their competency in evaluating

their environmental stands to properly use natural resources in emerging quest for revenue

outlets while bringing up the conservation. In some point, certain area from the local government

were aware that no tourist attraction is place because of geographic location. This is also one

factors that affects the area to produce activities relative to environment support. Thus, local

government are be in need of to provide reforms to further strengthen their barangays.

The claims are thoroughly supported by the study of Villamor et al. (2017) where on their

assessment on the challenges encountered by the respondents in the governance as well as their

capacity to mobilize resources was interpreted as moderately serious. It can be reflected from the

data that when it comes to capacity to mobilize resources of the respondents to challenges

encountered, respondents were aware that there was no tourist attraction in their locality. The
study also implied that some of the place in Municipality of Mataas na Kahoy were not yet

discovered and developed. Having said that, it can be seen that proper utilization of resources to

generate revenue is a beneficial factor to sustaining community needs.

2.6 Legal Factors. The respondents’ assessment on their barangays’ revenue

enhancement activities as influenced by legal factors was also determined. Results were

analyzed, interpreted and presented using weighted mean and composite mean.

Table 4.2.6
Respondents Assessment in their Revenue Enhancement Activities as Influenced
by Legal Factors

Weighted Verbal
Item Statement
Mean Interpretation
1. The barangay’s revenue enhancement activities
such as local taxes and fees, public services and
utilities are implemented in accordance with RA No. 3.44 Agree
1760, also known as Local Government Code of
1991.
2. The barangay effectively manages legal risks to
avoid imposition of unauthorized or excessive fess
associated with revenue-generating project in 3.35 Agree
accordance with RA No. 7160 Local Government
Code of 1991.
3. The barangay has clear and transparent procedures
in place for collecting and managing revenue from
various sources in accordance to RA No. 9485 Anti-
3.48 Agree
Red Tape Act of 2007 (e.g., leasing of barangay
properties, market and stall rentals, community-based
projects).
4. In accordance to RA No. 6957 Public-Private
Partnership Act the barangay’s legal partnerships and
3.25 Agree
collaborations with private sector positively impact
revenue generation efforts.
5. The barangay ensures that its revenue
enhancement activities such as economic enterprise,
tourism and local attractions, comply with the legal 3.46 Agree
framework provided in Presidential Decree No. 1445,
or the Government Auditing Code of the Philippines.
Composite Mean 3.40 Influential
 It can be gleaned from Table 4.2.6 that the respondents strongly agreed that their

barangay has quite clear and transparent procedures in place for collecting and managing

revenue from various sources in accordance to RA No. 9485 Anti-Red Tape Act of 2007 (e.g.,

leasing of barangay properties, market and stall rentals, community-based projects).

The highest weighted mean computed at 3.48 may be associated to the fact that all

government offices are required to provide transparent and organized information on the services

that they are offering. As observed, step by step procedures, the time it will take one to finish a

certain transaction, the person involved and most importantly the amount needed to be paid are

normally posted in any government offices, which enables anyone to have easy access on this

information. This in turn provides more efficient and effective way of delivering services to the

people.

The revenue sources that the local government unit utilizes to sustain itself should

represent the fundamental ideal of democratic systems of government: fair and equal treatment.

Thus, revenue collection and management systems used by local government units are becoming

obsolete in collecting and managing revenue from diverse sources. The claims is supported by

Arya and Yasa (2021) which reiterate that the relations between the national government and the

regions concerning finances, public services, and the use of natural and other resources should be

regulated and implemented in accordance with legal framework to establish justice and equity.

Meanwhile, garnering a weighted mean of 3.25, respondents agreed that in accordance to

RA No. 6957 Public-Private Partnership Act, the barangay’s legal partnerships and

collaborations with private sector positively impact revenue generation efforts. This may be

linked to the fact that the local government initiatives for partnerships and collaborations are
quite small as it always has different legal requirements to bond two parties in accordance with

the law. Local government needs to improve its strong ties to have public and private

collaborations to gain beneficial interest which can impact the growth of revenue generation

efforts. Thus, enhancing the local government inter-agency for undertaking entrepreneurial

projects that use the assets of the barangays can add value to the enrichment of the community at

economic and financially.

Nwekeaku (2013), supports the claims which he reiterates that an enhance synergy

among stakeholders at federal, state, and local levels can encourage cooperation, collaboration,

and effective interaction, He specify that it reduces conflicts, duplication of efforts, resources

duplication while it improves the inter-agency relations and increase revenue projected

collections.

In general, with a composite mean of 3.40 it can be deduced that legal factors are

influential in barangays’ revenue enhancement activities as assessed by its chief executives. This

may be associated to the fact that barangays cannot implement any activities specifically those

that will generate money without pertinent laws as basis or foundation. All initiatives in the

barangay level must be aligned with the goals and objectives set forth by municipal or city level,

if not the national government. Additionally, this implies that LGUs encounter minimal to

maximal risk if not handle correctly the external factors relative to legal framework. It is

important for the local government to strive to study and understand different legal framework to

use properly in accordance to the situation that they will face. This can develop the competency

of the local government to fully utilize the benefits of understanding the legal factors and to

avoid circumstances that drive the performance at failure. Thus, local government should be

aware of some legal factors are not fit in certain areas which causes boundaries to other same
category level of local government. This has been supported by the study of Nunn et al., (2019),

which he reiterates that the state and local governments should adopt laws and regulations that

influence how economic activity occurs. These include labor market laws, tax policy,

environmental restrictions, and zoning regulations. The legal factors dealt with the lack of ability

to be fit in certain areas. As some legal action doesn’t cover the potential differences of different

community. This interrupt the capability of one sector to adopt and provide things because legal

factors could hinder the way to implement such action they are proposing to do. Thus, for the

economy to thrive and living standards to rise, successful policy at all levels of government is

critical.

The table below presents the summary of obtained weighted mean from the external

factors from PESTEL framework which were discussed formerly. As presented in Table 4.2.7,

respondents assessed political factors as highly influential on their revenue enhancement

activities with 3.54 weighted mean. This implies that the maintenance of strong ties and

communication with different government agencies and other stakeholders is an important factor

in the barangays’ revenue enhancement activities. This may be associated to the fact that through

this, benefits of such initiatives will be much easier felt all throughout the community.

Table 4.2.7
Summary of Composite Mean

Item Statement Weighted Mean Verbal Interpretation

Political Factors 3.54 Highly Influential
Economic Factors 3.51 Highly Influential
Social Factors 3.45 Influential
Technological Factors 3.34 Influential
Environmental Factors 3.34 Influential
Legal Factors 3.42 Influential
Grand Composite Mean 3.43 Influential
 Meanwhile, both with 3.34 computed composite mean, study revealed that technological

and environmental factors are influential on the barangays’ revenue enhancement activities.

Findings may be linked to the fact that technological adoption is hard when the leaders are quite

in middle age as they are more into traditional. While in environmental the degree of geographic

area which is not distributed equally affects the barangay to be able to have certain projects that

can generate revenue. And as time goes on, technological and environmental factors reliably an

issue to face when it comes on delivering services, where the two factors are interchangeable and

can cause risk when not used properly.

3. Analysis of difference between respondents’ assessment of their revenue enhancement

activities when grouped according to profile.

This study was conducted to assess the revenue enhancement activities of the barangays

in Tanauan City, Batangas as influenced by the six (6) external factors namely political,

economic, social, technological, environmental and legal. This part of the study presents the

analysis of significant difference between respondents’ assessment on the influence of PESTEL

and their profile variables.

Table 4.3.1 presents the analysis of the respondents’ assessment on the factors that

influence their revenue enhancement activities and profile variable age.

Table 4.3.1
Analysis of Difference between Factors that Influence Revenue Enhancement and Age of
the Respondents

Factors F/t- values p- values Decision Interpretation

Political 0.511 0.678 Failed to Reject Not Significant
Economic 0.500 0.685 Failed to Reject Not Significant
Social 1.132 0.354 Failed to Reject Not Significant
Technological 3.084 0.042 Reject Significant
Environmental 0.657 0.585 Failed to Reject Not Significant
Legal 0.320 0.811 Failed to Reject Not Significant
 Since the data are not distributed normally, the statistician used equality of mean Brown

Forsythe to analyze the significant difference. It can be gleaned from the table that the no

significant differences exist between respondents’ assessment on political, economic, social,

environmental, and legal factors and profile age. This is as the p-values computed at 0.678,

0.685, 0.354, 0.585, and 0.811, respectively, were all found to be greater than the 0.05 level of

significance, thus, null hypothesis was failed to reject. However, in terms of technological

factors, the computed p-value of 0.042 is less than the 0.05 level of significance, thus, null

hypothesis was rejected, significant difference exists. This may be associated to the observation

that today; the rampant use of technology is very evident that most of a man’s activity may be

done effectively and efficiently online or through the use of various products of technological

advancement. However, despite this fact, it is also unconcealed that the use of technology is

quite challenging to others specially to the elders, whom had been used to the traditional way of

doing business. Additionally, Scheffe shows that in terms of technological factors ages 26-41

(M=3.6333) got the highest mean score followed by ages 58-67 (M=3.4267), 42-57 (M=3.2500).

It only means to say that the influence of technology to revenue enhancement has greatest impact

to the respondents ages 26-41. However, in its overall term, it may assume that barangay

chairmen influence is not dependent on their age or level of exposure to an environment where

challenges exist.

In relation to this, Butterfill & Marianti (2014) noted that relying solely on an individual's

level of exposure to a particular situation or circumstance is insufficient to determine their

vulnerability. As a result, they stated that more than the contributing factors the assessment of an

individual's capacity and coping resources is significantly influenced by their age. To provide

more details, they said that regardless of it is insufficient to conclude that the older person has
experienced worse than the younger person, or vice versa, with regard to the variable being

specified here. Hence, in a journal published by Anderson and Perrin (2017) they point out that

the technology age differences face unique barriers to adopt, ranging from physical challenges to

a lack of comfort and familiarity with technology.

Furthermore, Table 4.3.2 presents the analysis of difference on the respondents’

assessment on the factors that influence revenue enhancement activities and profile variable sex.

Table 4.3.2
Analysis of Difference between Factors that Influence Revenue Enhancement and Sex of
the Respondents

Factors F/t- values p- values Decision Interpretation

Political 156.500 0.921 Failed to Reject Not Significant
Economic 159.500 0.989 Failed to Reject Not Significant
Social 119.000 0.248 Failed to Reject Not Significant
Technological 154.500 0.877 Failed to Reject Not Significant
Environmental 154.00 0.866 Failed to Reject Not Significant
Legal 156.500 0.922 Failed to Reject Not Significant

The table above provides data about the summary of significance difference focusing on

sex. The Mann Whitney U Test reveals that the assessment of the respondents’ sex on revenue

enhancement activities in terms of political factors (FBF=156.500, p=0.921), economic factors

(FBF=159.500, p=0.989), social factors (FBF=119.000, p=0.248), technological factors

(FBF=154.500, p=0.877), environmental factors (FBF=154.000, p=0.866) and legal factors

(FBF=156.500, p=0.922) are not significantly different. Hence, the result failed to reject the null

hypothesis which indicates that there was no significant difference in the assessments of the

respondents when grouped according to sex. This could imply that there are no disparities

between sexes in the number of challenges and influence of external factors faced by barangay

chairmen. Their degree of evaluation in this regard is still based on the extent and accountability

of their work. This could also allude to the fine line separating the recognition of difficulties
from their resolution. The community continues to hold the view, according to Prasuna (2021),

that women in leadership roles are more likely to be underestimated. Moreover, will women be

able to lead if they are given the opportunity to speak up? Regarding the evaluation of impact,

the researchers could utilize Prasuna's claim to contend that, just as women's capacity to lead is

not significantly different from a men's, then neither is their assessment of the difficulties and

impact of external factors under these variables.

Moving forward, in Table 4.3.3, the statistician used the Brown Forsythe Test to

determine the difference between respondents’ assessment and their profile variable highest

educational attainment. Findings of the study reveal that the assessment of the respondents’

highest educational attainment on revenue enhancement activities in terms of political factors

(FBF=0.587, p=0.656), economic factors (FBF=1.401, p=0.276), social factor (FBF=1.943,

p=0.163), technological factor (FBF=0.377, p=0.773), environmental factors (FBF=1.063,

p=0.454) and legal factors (FBF=0.467, p=0.712) are not significantly different. Hence, the

result failed to reject the null hypothesis which indicates that there was no significant difference

in the assessments of the respondents when grouped according to highest educational attainment.

This may be link to explain why a barangay chairman’s educational background will not

be used as an excuse to avoid facing the difficulties that come with their job. Since barangay

officials must persevere through many hardships in order to uphold their fundamental role as

public servants, obtaining a degree may not guarantee that obstacles won't be encountered.

Table 4.3.3
Analysis of Difference between Factors that Influence Revenue Enhancement and Highest
Educational Attainment of the Respondents

Factors F/t- values p- values Decision Interpretation

Political 0.587 0.656 Failed to Reject Not Significant
Economic 1.401 0.276 Failed to Reject Not Significant
Social 1.943 0.163 Failed to Reject Not Significant
 Technological 0.377 0.773 Failed to Reject Not Significant
Environmental 1.063 0.454 Failed to Reject Not Significant
Legal 0.467 0.712 Failed to Reject Not Significant

To support the claims, Kotur (2014) in his article said that education is nothing but

adjustment to environment. It implies the concept that a person upon education, will adjust or at

least capable of trying to adjust to the environment, i.e., education brings about a change in the

behavior of a person to environment. This concept applies equally well even to a leader. Upon

education the leader will try to adjust to his or her followers and this brings about a change in the

leadership behavior of the leader.

Lastly, Table 4.3.4 provides the data related to the assessment of significant difference

focus on length of service, in which Brown Forsythe Test was utilized. It can be gleaned from

the table that the assessment of the respondents’ highest educational attainment on revenue

enhancement activities in terms of political factors (FBF=0.849, p=0.443), economic factors

(FBF=0.905, p=0.395), social factor (FBF=0.836, p=0.444), technological factor (FBF=0.459,

p=0.642), environmental factors (FBF=0.598, p=0.555) and legal factors (FBF=3.219, p=0.057)

are not significantly different. Hence, the result failed to reject the null hypothesis which

indicates that there was no significant difference in the assessments of the respondents when

grouped according to length of service.

Table 4.3.4

Analysis of Difference Analysis between Factors that Influence Revenue Enhancement

and Length of Service of the Respondents

Factors F/t- values p- values Decision Interpretation

Political 0.849 0.443 Failed to Reject Not Significant
Economic 0.985 0.395 Failed to Reject Not Significant
Social 0.836 0.444 Failed to Reject Not Significant
Technological 0.459 0.642 Failed to Reject Not Significant
Environmental 0.598 0.555 Failed to Reject Not Significant
 Legal 3.219 0.057 Failed to Reject Not Significant

The data shows that the number of years that the barangay chairmen have served has

nothing to do with the influence about the external factors threat that they are observing and

implementing in terms of collaboratively access revenue enhancement activities outlets. These

results from the testing of significant difference may be because of the disaggregated number of

respondents when grouped according to profile, which is justifiable by the data presented in this

chapter, and the several variables that may weaken the distinction of the actual difference per

assessment. However, it is never denied that all possibilities remain and that further research

using different approaches is hereby recommended to support the findings of this study in terms

of the significance of the respondents’ profiles and their assessment of the influence of several

external factors under PESTEL.

4. Proposed course of action to develop an enhanced revenue enhancement activities or

program for the barangays

The researchers conducted this study to assess the influence of various external factors,

specifically those included in the PESTEL framework on the revenue enhancement activities of

the barangays in Tanauan City, Batangas as determined by the Barangay Chairmen. After a long

process of obtaining the required data from the administered questionnaires, making analysis and

interpretation of data, the researchers arrived at some courses of action addressing the concern

areas namely political, economic and technological factors, to develop an enhanced revenue

enhancement activity of programs for the barangays in the research locale.

 Chapter V
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

This chapter provides a comprehensive summary of the findings from the statistically

analyzed data, the conclusions that resulted from the findings, and the recommendations that

were refined based on the data gathered.

Summary

The focus of this study was to assess the influence of external factors specifically those

included in the PESTEL framework namely political, economic, social, technological,

environmental and legal factors, on the barangays in Tanauan City, Batangas in terms of

providing revenue enhancement activities. It also sought to assess the respondents’ demographic

profile in terms of age, sex, highest educational attainment, and length of service.

To support the study, a quantitative-descriptive method was used by the researchers. The

researchers used a researcher-made survey questionnaire to gather information and conducted a

series of interview to further elaborate the depth of each piece of data gathered, with the goal of

exploring the topic. The total population of 48 Barangay Chairmen in Tanauan City, Batangas

were the respondents of this study. Data were collected from the respondents through survey

questionnaire which was administered face-to face. Statistical tools such as frequency and

percentage, weighted mean and composite mean, Brown Forsythe Test and Mann Whitney U test

were used to analyzed and interpreted the results gathered from the respondents.

Findings
 After the data were gathered, analyzed, tabulated, and statistically treated, the following

findings were revealed:

1. Profile of the Respondents

Majority of the respondents were ages 42-57 with a frequency of 20 and a percentage of

42. In terms of sex, most are male which constituted a frequency of 40 and a percentage of 83.

Moreover, in terms of highest educational attainment, most are college graduates with a

frequency of 31 and percentage of 65. Lastly, in terms of length of service, a frequency of 26 and

a percentage of 54 had been in service for more than seven (7) years.

2. Respondents’ Assessment on the Influence of PESTEL factors on the Revenue

Enhancement Activities

Findings of the study revealed that with composite mean of 3.54 and 3.51, respectively,

political, and economic factors are assessed to be highly influential on the barangays’ revenue

enhancement activities. Meanwhile, social, technological, environmental and legal factors

garnered a composite mean of 3.45, 3.34, 3.34, and 3.42, accordingly, were found to be

influential factors on the barangays’ revenue enhancement activities as assessed by the Barangay

Chairmen.

3. Analysis of difference between respondents’ assessment on their revenue enhancement

activities when grouped according to profile.

Based on the statistically analyzed data, the assessment of the respondents on their

revenue enhancement activities when grouped according to their profile variables, significant

difference only exists between technological factors and profile variable age and the rest has no

significant difference. Hence, in general their age, sex, highest educational attainment, and

length of service has no significant difference.

4. Course of Action to develop an improved revenue enhancement activities or program

for the barangays

Based on findings, the researchers believe that influence are always inherent in the

pursuit of change, and constant improvement is only possible to achieve when government

officials and the community members work together. This study revealed that in terms of the

political, economic and technological factors, it is challenging to maximize their activities to

provide beneficial interest for the community as they face lack of knowledge and strategy to deal

with dilemma. In this regard, the researchers found that the best alternative to ease the challenges

that the local government units are facing it is to adapt the concept of capacity building and

training. Whereas, it is organized procedures designed to improve a person's or an organization's

capacity to carry out their responsibilities with effectiveness. It entails cultivating a deeper

comprehension of particular subjects, developing competencies, and constructing the requisite

capacities to take on obstacles or seize opportunities. Building capacity and providing training

facilitates professional and personal development, organizational growth, and enhanced

performance through methodical learning initiatives.

Conclusions

Based on the afore mentioned summary and findings of the study, the following

conclusions were drawn.

1. Majority of the Barangay Chairmen in Tanauan City, Batangas are ages 42-57, male, college

graduates, and had been in service for more than seven (7) years.
2. The respondents assessed political and economic factors as highly influential while social,

technological, environmental and legal factors as influential on the barangays’ revenue

enhancement activities.

3. Significant difference only exists between respondents’ assessment on technological factors

and profile variable age.

4. Capacity building and trainings are suggested to develop improved revenue enhancement

activities or programs for the barangays.

Recommendations

Based on the determined findings and conclusions, the following recommendations were

presented.

1. It is recommended that local government units prioritize to find a way to have revenue

generation by maximizing the use of their resources. The conduct of more conducive

capacity building and training may help the LGUs in developing defensive strategy so that

their susceptibility to any challenges will be reduced. Additionally, through the

maximizations of knowledge and skills may provide set of strategies that will drive the city

to a holistic development that prioritizes the maximum satisfaction of the local government

in terms of revenue enhancement. More so, the local communities are encouraged to

participate in the initiatives of the local government.

2. The educational institutions and its teaching personnel may incorporate the findings of the

study to encourage students in studying the concept of public revenue management. They

may also establish an avenue for the institutions to partner with the governments through

strategy formulation, reform proposals, and policy recommendations based on evidence from

relevant research pursuits. Students specially Management Accounting students are

 encouraged to indulge themselves on developing an effective revenue management by

studying the concept of public revenue management in greater depth, which this research can

help the with.

3. Researchers may in the future include the geographic characteristics of these units to further

emphasize the impact and difficulties that LGUs are facing that are relevant to the

demographic profile. To evaluate the importance of such a profile, they may also attempt to

use the profile of the barangay itself instead of the profile of the barangay chairmen.