Local government units (LGUs) collected Php205.71 billion in own-source revenues as of Q3 FY2020, which already account for 107 percent of the final full-year collection performance target for FY2020 set by the Bureau of Local Government Finance (BLGF).  

The BLGF earlier targeted Php307.08 billion locally sourced revenue collections for all provincial, city and municipal treasurers for FY2020, but this was adjusted to Php193.04 billion to consider the effects of the Covid-19 pandemic on revenue generation capacity of LGUs. 

Revenues from local sources of LGUs, such as real property tax (RPT), local business tax (LBT) and other local taxes, regulatory fees and user charges, and receipts from the operations of local economic enterprises, for Q3 FY 2020 grew by 2% from Php201.69 billion of local revenues collected during the same period in FY2019. 

From January to September 2020, LBT collections already reached Php108.37 billion, followed by RPT at Php56.23 billion, fees and charges at Php26.61 billion, and receipts from economic enterprises of LGUs at Php14.50 billion. 

Revenues from LBT, which account for 53 percent of the locally sourced income, reached already 123 percent of the full-year target of Php88.42 billion, while RPT, comprising 27 percent of the collections, also reached the target of Php56.14 billion. (See Table 1 for the details) 

*in Php Billion

In Q2 FY2020, local treasurers reported collections of only Php159.15 billion, but eventually bounced back in Q3 FY2020 with a collection growth of 29 percent, due to easing of community quarantine guidelines, resumption of business operations, extension of payment deadlines, and adoption of online and alternative payment facilities, among others. 

By LGU level, cities generated the most revenues with Php150.00 billion (73 percent of total), followed by municipalities with Php35.90 billion (17 percent), and provinces with Php19.81 billion (10 percent). 

External revenues of LGUs, which include the internal revenue allotment (IRA) of LGUs, excluding barangays, remained to be the main source of the LGUs’ operating income, accounting for 68 percent, which is 5 percentage points higher than the same period in FY 2019. 

Comparatively, LGUs from the National Capital Region (NCR) posted the highest local collections for Q3 FY2020 at Php92.00 billion (45 percent of total), followed by Region IV-A and Region III, with Php30.18 billion (15 percent), and Php18.39 billion (9 percent), respectively. (See Table 2 for the regional breakdown and sources of the Q3 FY2020 local collections)  

*in Php Billion

As reported by local treasurers, 499 or 29 percent of the 1,715 provinces, cities and municipalities have already reached their FY2020 full-year collection targets as of September 2020. Fifty nine or 73 percent of 81 provinces, 99 or 68 percent of 146 cities, and 341 or 23 percent of 1,488 municipalities have posted 100 percent collection efficiency.  

As of Q3 FY2020, the Php205.71 billion local revenues collected by local treasurers accounted for 32% of the total LGU operating income of Php639.15 billion during the same period. 

With the easing of quarantine directives and gradual normalization of business operations during the holiday season, the BLGF is projecting additional local revenue collections of Php35.68 billion for the Q4 FY2020, which will be reported by local treasurers on or before 31st of March of this year. 

The annual performance target of BLGF for local treasurers pertain only to taxing mandates of LGUs, such as RPT, LBT and other local taxes, regulatory fees and user charges, and receipts from economic enterprises, and excludes collections from other receipts or other general income of LGUs, such as interest income, rebates, sale of assets or properties, and other non-recurring local income.