Locally Sourced Revenues (LSR) collected by all provinces, cities, and municipalities from real property tax (RPT), local business tax (LBT), fees and charges (FC) and receipts from economic enterprises (REE) reached Php256.21 billion in FY2021, up by 1.44% from the Php252.57 billion collections in FY2020. Tax revenues contributed Php191.36 billion to the total LSR during the period, with local business tax (LBT) accounting for 44.2% or Php113.16 billion.
| Particulars | 2020 | % Dist (2020) | 2021 | % Dist (2021) | Difference | % Growth (YoY) |
|---|---|---|---|---|---|---|
| Local Sources | 252.57 | 30% | 256.21 | 29% | 3.65 | 1.44% |
| Tax Revenues | 190.56 | 23% | 191.36 | 22% | 0.80 | 0.42% |
| Non-Tax Revenue | 62.01 | 7% | 64.86 | 7% | 2.85 | 4.59% |
| External Sources | 581.35 | 70% | 615.08 | 71% | 33.73 | 5.80% |
| IRA | 516.07 | 62% | 554.02 | 64% | 37.94 | 7.35% |
| Other Central Transfers | 65.28 | 8% | 61.06 | 7% | -4.22 | -6.46% |
| Total Current Operating Income | 833.92 | 100% | 871.30 | 100% | 37.37 | 4.48% |
Cities had the highest LSR collection at Php175.30 billion, which was 68% to the total LSR of all local government units (LGUs). This was followed by municipalities and provinces, with Php49.97 billion (20%) and Php30.94 billion (12%) collections, respectively.
| Particulars | Province | City | Municipality | Total |
|---|---|---|---|---|
| Local Sources | 30.94 | 175.30 | 49.97 | 256.21 |
| Real Property Tax | 11.84 | 53.82 | 12.53 | 78.20 |
| Business Tax | 3.64 | 93.18 | 16.35 | 113.16 |
| Fees and Charges | 8.32 | 17.60 | 10.44 | 36.36 |
| Receipts from Economic Enterprises | 5.64 | 7.70 | 8.72 | 22.06 |
| Other Receipts | 1.51 | 3.00 | 1.93 | 6.44 |
| % Distribution | 12% | 68% | 20% | 100% |
| IRA | 159.41 | 159.51 | 235.10 | 554.02 |
| Total Current Operating Income | 205.01 | 351.94 | 314.35 | 871.30 |
| of which is IRA | 78% | 45% | 75% | 64% |
The total current operating income, which includes external sources such as the internal revenue allotment (IRA), grew from Php833.92 billion in FY2020 to Php871.30 billion in FY2021. In aggregate terms, LGUs’ dependence on external sources reached 71%, which was 5.80% or Php33.73 billion higher than the Php581.35 billion collections in FY2020. Evidently, most of the LGUs continued to rely on IRA at 64% with provinces being highest at 78%, followed by the municipalities at 75%, and cities at 45%.
Among the regions, the National Capital Region (NCR), as in the previous years, consistently posted the highest LSR collections. Although the year-on-year growth was minimal, the LSR reached Php103.77 billion, which accounts for 41% of the LGUs’ total LSR. Region IV-A and Region III distantly followed, with collections of Php40.23 billion (16%) and Php24.05 billion (9%), respectively.
The following regions posted negative revenue growths in FY2021: Mimaropa Region, Regions VI, VII, VIII, XII, and BARMM.
| Region | 2020 | 2021 | Rank (2021) | % Dist (2021) | % Growth (YoY) |
|---|---|---|---|---|---|
| NCR | 103.76 | 103.77 | 1 | 41% | 0.01% |
| Region IV-A | 38.33 | 40.23 | 2 | 16% | 4.94% |
| Region III | 23.65 | 24.05 | 3 | 9% | 1.70% |
| Region VII | 15.82 | 15.31 | 4 | 6% | -3.19% |
| Region VI | 11.41 | 11.06 | 5 | 4% | -3.02% |
| Region XI | 10.39 | 10.49 | 6 | 4% | 1.01% |
| Region X | 8.53 | 10.18 | 7 | 4% | 19.24% |
| Region I | 8.13 | 8.33 | 8 | 3% | 2.51% |
| Region V | 5.42 | 5.53 | 9 | 2% | 2.05% |
| Region II | 4.39 | 4.43 | 10 | 2% | 0.95% |
| Region XII | 4.47 | 4.31 | 11 | 2% | -3.61% |
| Region VIII | 4.36 | 4.16 | 12 | 2% | -4.52% |
| Region XIII | 3.68 | 4.01 | 13 | 2% | 8.97% |
| Mimaropa Region | 3.74 | 3.56 | 14 | 1% | -4.73% |
| Region IX | 3.16 | 3.22 | 15 | 1% | 1.98% |
| CAR | 2.73 | 2.96 | 16 | 1% | 8.43% |
| BARMM | 0.61 | 0.61 | 17 | 0.2% | -0.06% |
| Total | 252.57 | 256.21 | 100% | 1.44% |
In the NCR, Quezon City continued to be the biggest contributor to the total LSR of all LGUs, at 22% share, during the period, amounting to Php23.35 billion LSR collections. Makati City and Manila City followed with Php14.00 billion (13%) and Php11.60 billion (11%) collections, respectively.
As of Q1 FY2022, local revenue generations showed positive sign of recovery, as the LSR increased by 8.6% or Php10.70 billion. This was from Php124.27 billion in Q1 FY2021 to Php134.97 billion in Q1 FY2022. Tax revenue was the biggest contributor at Php111.94 billion, mostly from LBT and RPT.
LSR collection from cities were highest during the period at Php100.09 billion, which was 74% to the total LSR of all LGUs, followed by municipalities and provinces, with Php24.91 billion (19%) and Php9.97 billion (7%) collections, respectively. LGUs dependence on external sources was 58% during the quarter, it went up from Php143.28 billion in Q1 FY2021 to Php184.45 billion in Q1 FY2022, recording a 28.7% growth. On National Tax Allotment (NTA) dependence, highest dependency was noted for provinces at 83%, followed by municipalities (74%) and cities (34%) in Q1 FY2022.
Among the regions, NCR, Region IV-A and Region III remained to be the major contributors to LSR collections, with Php59.81 billion (44% of total LSR), Php20.73 billion (15% to total LSR) and Php12.37 billion (9% to the total LSR) collections, respectively. The least contributor was BARMM with Php0.25 billion or 0.1% share to the total LSR of all LGUs. Meanwhile, only Region IX posted negative performance in terms of local revenue collection.
