DOF names Makati as top LGU in fiscal autonomy

The city of Makati has been ranked first among cities by the Department of Finance (DOF) in sustaining its fiscal autonomy.

This, after Makati recorded the highest ratio of local source revenues to total current operating income for fiscal years 2022 and 2023. 

The country’s top financial district also posted the highest total current operating expenditure per capita among cities for two straight years.

“These are testaments to the persistent efforts of the city government to expand our revenue base through reforms and smart innovations that promote efficiency and transparency in our revenue collection and processing of business permits and licenses,” said Makati Mayor Abby Binay.

OF’s Bureau of Local Government Finance (DOF-BLGF) report showed that the ratio of local source revenues to total current operating income of Makati reached 86.84% in 2022 and 90.60% in 2023. 

The high ratio indicates the city’s high level of independence from external sources, such as the national tax allotment and shares from Philippine Economic Zone Authority and Philippine Charity Sweepstakes Office.

The country’s top financial district has also recorded the highest total current operating expenditure per capita among all cities, with P24,050 in 2022 and P23,995 in 2023.

In the latest report of City Treasurer Jesusa Cuneta, the Makati City said it has surpassed its revenue target for the year as of end-August. 

Total revenue collection reached P18.8 billion, or 102% of the P18.4-billion target.

The report shows business tax as the highest revenue source, with P10.22 billion, followed by real property tax with P6.19 billion. 

From other local sources, the city collected P748.82 million from fees and charges, P310.12 million from economic enterprises, and P411.75 million from interest income.

The remainder of the total collection includes P670.76 million from national tax allotment, P248.13 million from share from economic zone (PEZA), and P4.22 million from share from PCSO.

As of end-September, the city government said it has approved the registration of 3,900 new businesses this year, which have a combined capital investment worth P31.87 billion. 

A total of 34,771 business establishments have renewed their permits during the same period, registering gross sales of P1.87 trillion.

—VAL, GMA Integrated News