Professional Documents
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Velasco PA506 Local-Fiscal-Administration
Velasco PA506 Local-Fiscal-Administration
Source: https://dilg.gov.ph/PDF_File/factsfigures
2022 INTERNAL REVENUE ALLOTMENT
The Local Government Code provides that local government shall have an equitable share in
the proceeds derived from the utilization and development of national wealth within their
respective areas and sharing these with the inhabitants by way of direct benefits.
Source: www.officialgazette.gov.ph
LOCAL GOVERNMENT CODE OF 1991
Section 291. Share of the Local Governments from any Government
Agency or Government-Owned or -Controlled Corporation.
Local government units shall have a share based on the preceding fiscal year
from the proceeds derived by any government agency or government-owned
or -controlled corporation engaged in the utilization and development of the
national wealth based on the following formula whichever will produce a
higher share for the local government unit:
(a) One percent (1%) of the gross sales or receipts of the preceding
calendar year; or
(b) Forty percent (40%) of the mining taxes, royalties, forestry
and fishery charges and such other taxes, fees or charges,
including related surcharges, interests, or fines the
government agency or government-owned or - controlled
corporation would have paid if it were not otherwise exempt.
Source: www.officialgazette.gov.ph
Powers in Pursuance of Local Fiscal Administration
1. General Welfare Clause (Sec. 16, RA 7160)
– Every local government unit shall exercise the powers expressly granted, those
necessarily implied therefrom, as well as powers necessary, appropriate, or
incidental for its efficient and effective governance, and those which are
essential to the promotion of the general welfare. Within their respective
territorial jurisdictions, local government units shall ensure and support, among
other things, the preservation and enrichment of culture, promote health and
safety, enhance the right of the people to a balanced ecology, encourage and
support the development of appropriate and self-reliant scientific and
technological capabilities, improve public morals, enhance economic prosperity
and social justice, promote full employment among their residents, maintain
peace and order, and preserve the comfort and convenience of their
inhabitants.
Source: www.officialgazette.gov.ph
Powers in Pursuance of Local Fiscal Administration
2. Power to Generate and Apply Resources (Sec. 18, RA 7160)
– Local government units shall have the power and authority to
establish an organization that shall be responsible for the efficient and
effective implementation of their development plans, program
objectives and priorities; to create their own sources of revenues and to
levy taxes, fees, and charges which shall accrue exclusively for their use
and disposition and which shall be retained by them; to have a just
share in national taxes which shall be automatically and directly
released to them without need of any further action; to have an
equitable share in the proceeds from the utilization and development of
the national wealth and resources within their respective territorial
jurisdictions including sharing the same with the inhabitants by way of
direct benefits; …
Source: www.officialgazette.gov.ph
Continuation…
2. Power to Generate and Apply Resources (Sec. 18, RA 7160)
Source: www.officialgazette.gov.ph
Powers in Pursuance of Local Fiscal Administration
Provided, That such reclassification shall be limited to the following percentage of the
total agricultural land area at the time of the passage of the ordinance:
Source: www.officialgazette.gov.ph
Powers in Pursuance of Local Fiscal Administration
5. Corporate Powers (Sec. 22, RA 7160)
Source: www.officialgazette.gov.ph
Powers in Pursuance of Local Fiscal Administration
6. Authority to negotiate and secure grants (Sec. 23, RA 7160)
– Local chief executives may, upon authority of the sanggunian, negotiate and
secure financial grants or donations in kind, in support of the basic services or
facilities enumerated under Section 17 hereof, from local and foreign assistance
agencies without necessity of securing clearance or approval therefor from any
department, agency, or office of the National Government or from any higher
local government unit: Provided, That projects financed by such grants or
assistance with national security implications shall be approved by the national
agency concerned: Provided, further, That when such national agency fails to
act on the request for approval within thirty (30) days from receipt thereof, the
same shall be deemed approved.
Source: www.officialgazette.gov.ph
Powers in Pursuance of Local Fiscal Administration
Source: www.officialgazette.gov.ph
Other Laws and Government Issuances
Local fiscal administration is also governed by laws and issuances from the national agencies that
exercise supervisory power over local government units. Such agencies are the following:
a. Department of Finance (DOF)
- The DOF maintains the Bureau of Local Government
Finance (BLGF) which is the unit primarily involved in local
financial administration.
- Provides technical assistance and training for local
governments on local finance.
- It administers credit facilities such as the Municipal
Development Fund, and prepares guidelines and standards
on matters related to taxation, credit financing, and
imposition of various fees and charges.
- It also exercises technical supervision on local assessment
and treasury operations, and performs monitoring and
evaluation of financial performance.
Other Laws and Government Issuances
b. Department of Budget and Management (DBM)
- The DBM is primarily responsible for
disseminating information on Internal
Allotment (IRA) allocation and the local
Revenue
government’s share from the
utilization
development of national wealth. and
- The Department releases the share of internal
revenue allotment directly to the provinces,
cities, municipalities and barangays.
Other Laws and Government Issuances
c. Commission on Audit (COA)
- The COA is primarily responsible for the accountability
phase of the local budget process.
- The Commission maintains the Local
Government Audit(LGAO), through
Office which it implements
auditing rules and regulations in local government
units.
- The Commission also settles accounts and fixes the
liability of accountable officers, as well as determines
whether fiscal responsibility has been properly and
effectively discharged by the local chief executives.
Other Laws and Government Issuances
Source: www.officialgazette.gov.ph
EXECUTIVE ORDER NO. 249 S. 1987
CLASSIFICATION OF MUNICIPALITIES
CLASS AVERAGE ANNUAL INCOME
First Fifteen million pesos or more
Second Ten million pesos or more but less than fifteen million pesos
Third Five Million Pesos or more but less than ten million pesos
Fourth Three million pesos or more but less than five million pesos
Fifth One million pesos or more but less than ten million pesos
Sixth Less than one million pesos
Source: www.officialgazette.gov.ph
Laguna
• The Province of Laguna, is located in the
CALABARZON region in Luzon, southeast of
Metro Manila, south of the Province of Rizal,
west of Quezon, north of Batangas and east of
Cavite. Laguna hugs the southern shores of
Laguna de Bay, the largest lake in the country
and covers a total area of 1,917.85 km. The
Province of Laguna, which was formerly called
La Laguna and La Provincia de la Laguna de Bay,
was named after Laguna de Bay, the body of
water that forms its northern boundary. It is
composed of six cities, 24 municipalities and
674 barangays divided into six congressional
districts.
Laguna
• Laguna is notable as the birthplace of José Rizal, the
country's de facto national hero. It has numerous
natural and cultural attractions such as Pagsanjan
Falls, the University of the Philippines Los Baños and
the University of the Philippines Open University in
Los Baños, the hot spring resorts of Calamba on the
slopes of Mount Makiling, Pila historic town plaza,
Taytay Falls in Majayjay, the wood carvings and
papier-mâché created by the people of Paete, the
annual Sampaguita Festival in San Pedro, the turumba
of Pakil, the tsinelas footwear from Liliw, the Pandan
Festival of Luisiana, the Seven Lakes of San Pablo, and
the Nagcarlan Underground Cemetery in Nagcarlan.
FINANCIAL PERFORMANCE
2021 2020 Increase /
(Decrease)
Revenue P 355,770,545.45
P 4,673,146,345.01 P 4,317,375,799.56
Expenses 98,446,642.18
3,287,886,843.54 3,189,440,201.36
Net: 308,753,951.76
Transfers, Assistance (369,775,447.23) (61,021,495.47)
and Subsidy
Surplus (Deficit) P (51,430,048.49)
1,015,484,054.24 1,066,914,102.73
The City also takes pride in being the birthplace of the Philippine National Hero, Dr. Jose P.
Rizal. Born and raised in Calamba, he was great pride and inspiration to the City and being
honored in Buhayani Festival, dubbed as “Buhay ng Bayan, Buhay ng Bayani” celebrated
every 19th day of June, his actual date of birth.
FINANCIAL PERFORMANCE
2021 2020 Increase /
(Decrease)
Expenses 476,231,675.24
4,516,279,175.88 4,040,047,500.64
Net: (124,732,625.94) (20,028,187.05) 104,704,438.89
Transfers, Assistance
and Subsidy
Net Other Non- 1,771,850.26
Operating Income (Loss) 3,414,134.88 1,642,284.62
Surplus (Deficit) P 346,383,375.37 P 542,536,189.01 P (196,152,813.64)
Tax Revenue
Other Taxes
Source: www.coa.gov.ph
REVENU
E
Permits & Licenses
Processing Fees
Source: www.coa.gov.ph
REVENU
E
School Fees
Source: www.coa.gov.ph
MUNICIPALITY OF SANTA CRUZ
The Municipality of Santa Cruz is the capital town of
the Province of Laguna. It is classified as a first class
Municipality and is composed of 26 Barangays.
According to the 2020 census, it has a total population
of 123,574 people.
Tax Revenue
Other Taxes
Source: www.coa.gov.ph
REVENU
E
Permits & Licenses
Processing Fees
Source: www.coa.gov.ph
REVENU
E
Rent
Source: www.coa.gov.ph
MUNICIPALITY OF PAGSANJAN
Pagsanjan is among the oldest settlements in Laguna, being
one of the prominent trading posts of Chinese merchants in
the province of Laguna upon the coming of the Spaniards
at the turn of the 16th century. Following its cessation as a
barrio of Lumban in 1668 to become an independent civil
entity, it evolved into a bustling community to eventually
become the capital town of the province until 1858.
Revenue 201,316,059.96
168,867,020.28 P (32,449,039.68)
Expenses
160,002,143.88 162,729,680.61 (2,727,536.73)
Net:
Transfers, Assistance 21,833,935.76 (776,886.37)
22,610,822.13
and Subsidy
Surplus (Deficit)
P 30,698,812.16 P 37,809,492.98 P (7,110,680.82)
Tax Revenue
Other Taxes
Source: www.coa.gov.ph
REVENU
E
Permits & Licenses
Processing Fees
Source: www.coa.gov.ph
REVENU
E
Rent
Source: www.coa.gov.ph
References:
1. Handbook of Local Fiscal Administration in the Philippines, Alicia B.
Celestino, Norberto G. Malvar, Romulo R. Zipagan, Sr., December 1998
2. The 1987 Constitution, Rex Bookstore 2001 Edition, Philippines
3. The Local Government Code of 1991, Rex Bookstore 2001 Edition,
Philippines
4. Local Fiscal Administration, Jocelyn C. Cuaresma and Simeon A. Ilago
5. DBM Memorandums and Issuances
6. COA Annual Audit Reports and Issuances
Suppose one of you wants to build a tower. Won’t you first sit down and estimate
the cost to see if you have enough money to complete it? For if you lay the
foundation and are not able to finish it, everyone who sees it will ridicule you,
saying, “This person began to build and wasn’t able to finish.”
Luke 14:28-30