City’s annual budget keeps increasing at P2.4B for 2014 PDF Print E-mail
Friday, 17 January 2014 11:44

The city government’s annual budget is constantly increasing from P2.194 billion in 2013 to P2.429 billion as projected for 2014 or an increase of P235 million.

This was revealed by the City Budget Office (CBO) in its report that formed part of the Executive Summary for the first State of the City Report of Mayor Beng Climaco before the members of the City Council Wednesday morning at the Sangguniang Panlungsod’s session hall.

When the FY 2013 Executive Budget was prepared, according to the CBO report, the Internal Revenue Allotment (IRA) of the city was estimated at P1.537 billion, adding said amount to the estimated local taxes and reversions, the FY 2013 Executive Budget was P2.203 billion.

The CBO further reported that the receipts in local taxes for 2014 are projected at P652 million or an increase of P28 million compared to that of the previous year. Also included in the 2014 Annual Budget are shares the Philippine Charity Sweepstake’s Office (PCSO) in the amount of P7.5 million and P2.8 million from the National Wealth and Reversions of P76.9 million from the continuing appropriations, both un-allotted and unexpended balances.

Thus, the city government under Climaco’s administration will continue to have a well-balanced mix of a conservative Personal Services (PS) of 30%, a manageable Maintenance and Other Operating Expenses (MOOE) of 34% and ensure a development Capital Outlay (CO) of 36%.

In terms of budgetary allocations, the CBO report said, Social Services will continue to get the highest allocation of P1 billion or 41% followed by Economic Services at P743 million or 31%, and the General Public Services P680.9 million or 28%.

Meanwhile, the City Treasurer’s Office (CTO) reported that the city government’s total revenue collection from all sources in 2013 was P2.037 billion.

Despite the 23-day siege last September, the CTO report said, the revenue from local taxes had increased by P31.02 million, which is about 9.36% higher than the 2012 collection, due to the increase in business tax collection by P5.88% or P15 million compared to the 2012 record.

According to the mayor, efforts are underway to improve collection efficiency in local taxes.

“I have issued Executive Order 28, streamlining the business permit renewal process with the hope of not only reducing processing time but also increasing revenues and pimp-priming micro and small enterprises and employment,” Climaco said in her SOCR.

As a result, business tax collections as of Jan. 9 reached P9 million compared to the P7.2 million collection of the same period last year.

The mayor said 2013 has been a challenging year. The September siege had affected tax collections of several fees and these included the rental fees from the city’s five economic enterprises, namely; Paseo del Mar, Mayor Vitaliano D. Agan Colliseum, Jardin de Maria Clara L. Lobregat, Main Public Market and Mayor Joaquin F. Enriquez Memorial Sports Complex (Grandstand).

Collection from these facilities was suspected from September to November, except for the grandstand which up to now is being used as evacuation center of the internally displaced persons (IDPs), thus collection thereat remain suspended.

Notwithstanding the setbacks, Climaco said the city government was recognized as one of the Most Valuable Partners of the Bureau of Internal Revenue (BIR) during its 109th Anniversary celebration on August 7 at the Grand Astoria Hotel.

The city was also chosen by the Revenue Officers for its exemplary performance as a Taxpayer, a performance that assisted the Revenue Region 15 (Zamboanga City) to exceed its target collection goal for Tax Year 2012 BY 2.5%.

For 2014, the chief executive said the estimated collection is projected to increase to P2.35 billion, of which P652 million to come from local revenues and P1.698 billion from IRA.- — Vic Larato