MANILA – Tagaytay City ranked the highest among cities rated by the Department of Finance (DOF) in its fiscal sustainability report, which determined how well local government units (LGU) managed taxpayers' money.
Tagaytay City was given an “excellent” rating and a score of 86.5 based on its fiscal management performance from 2009 to 2012.
DOF’s assessment was based on the type and income classification, revenue generation capacity with focus on local revenue collection growth, expenditure management, and compliance with reportorial requirements.
Seven other cities were rated "excellent," namely: Quezon City (86.3); Laoag City (84.7); Tanauan City (82.9); Batangas City (82.6); Vigan City (81.4); Davao City (80.5); and Balanga City (80.2).
DOF said these eight high-ranking cities showed that “all revenue and expenditure indicators are strong” and are fully compliant with reportorial requirements.
The cities that ranked “poor,” which means all revenue and expenditure indicators “are way below the benchmarks” and reportorial requirements are either incomplete, not submitted, or require further validation are Bago City (39.2); Gingoog City (39.1); San Fernando City, Pampanga (39.1); Pagadian City (38.8); San Carlos City, Pangasinan (38.6); Passi City(38.2); Canlaon City (37.4); Iriga City (36.8); Bais City (36.5); Malabon City (36.1); Santiago City (34.4); Catbalogan (32.3); Ormoc City (30.2); Bislig City (29.5); Sagay City (29); Isabela City, Basilan (27.7); Calbayog City (26.6); Dapitan City (25.1); and Urdaneta City (11.6).
The cities’ rankings were based on the Statement of Receipts and Expenditures officially submitted by the respective city treasurers to the DOF-BLGF as of August 15, 2013, and other reports from city assessors.
The DOF's LGU Fiscal Sustainability Scorecard aims to institutionalize the regular publication of ?scal indicators and performance review of the LGUs in the spirit of accountability and good local financial housekeeping.
Finance Secretary Cesar Purisima urged local governments to fully enforce the collection of local taxes and other impositions so they could improve their fiscal positions to fund the increasing demand for basic services for the people, without relying solely on national allocations.
“We are closely monitoring the LGUs through their local treasurers and assessors. We want to drive LGU revenue generation performance knowing full well that optimized capacity means having more funds to serve their constituents," he said.
He also urged local governments to update old local revenue codes and schedules of market values as basis for their taxes, fees, and other charges.
The complete DOF report and scorecards of 1,477 municipalities are found in the Iskor ng ‘Yong Bayan website.