Local Fiscal Administration

Local Fiscal Administration draws strength and rationality from the Constitutional provision of granting local government the power to create their own sources of revenue through local taxation.

In public administration, local fiscal administration is commonly referred to as the formulation, implementation, and evaluation of local fiscal policies by local governments.

Among others, these fiscal policies set the framework and procedures on local revenue generation that includes property tax administration, revenue ordinance codification as well as the operations of local economic enterprises.

It also deals on the national government allotments, shares and subsidies together with the availment of credit financing through domestic and foreign institutions.

Local Fiscal Administration involves revenue generation, the rational allocation, utilization and control of resources through the concept of performance budgeting by the local government units to optimize the use of public funds for the benefit of the greatest number of people.

1. Annual Budget/ Annual Investment Plan
Section 129 of RA 7160 also provides that ???Each local government unit shall exercise its power to create its own sources of revenue and to levy taxes, fees and charges subject to the provisions herein, consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively to the local government units.???

This, in effect, gives the local government units freer hand in identifying potential sources of local revenues and in strategizing and mobilizing mechanisms to generate these revenues, taking into consideration, too, the limitations prescribed in the Code.

1. a Social Sector
In 2002, the Social Sector had an allocation of P 24,513,076.00 or 21% of the total budget. In 2003, the total budget increased to 91% because of the release of the withheld Internal Revenue Allotment (IRA) of the city. The Social Sector, therefore, also increased its allocation to P38, 980,052.00 or 17% of the total budget. Likewise, in 2004, the budget for Social Sector increased to P41, 642,623.00 or 28% of the total budget. However, in 2005 and 2006 the budget for Social Sector declined to P32, 134,196.00 and P 31,800,512.00 respectively, but the percentage share remained to be the second and third (respectively) largest of the total budget.

This sector focuses on the development and implementation of programs and projects regarding health, social welfare, nutrition, population awareness, skills training, employment orientation, community organization, sports, peace and order, barangay development assistance, poverty reduction and basic-needs survey.

1. b Development Administration Sector
In 2002 and 2003, the Development Administration Sector had the second largest share of the total budget. In 2004, this sector had an allocation of P22, 174,468.00 or 15% of the total budget for the year. While in 2005 and 2006, the budget decreased to P20, 726,889.00 or 13% and P19, 163,129.00, or 11% of the total budget, respectively..

This sector provides funding for the formulation of plans and programs, implementation, and monitoring and evaluation of various development projects of the city such as Barangay Affairs Administration, Katarungang Pambarangay, Human Resource Development Program, Revenue Generation and Enhancement Program, Real Property Tax Assessment/ Enforcement Program, City Development Program, City Development Council (CDC) Operation, Local Zoning Board of Adjustment and Appeals, and LGU-IT Program.

1. c Infrastructure Sector
Consistently, this sector had the largest share of the budget since 2002 to 2006. At least 30%-40% of the total budget for the last five years had been allocation to fund road development projects such as concreting of 19.17% of the total road network and asphalting of 1.56% of road network of the city of Koronadal, maintenance of existing roads and bridges, construction/repair of Health Center, Day Care Center, and improvement of government structure such as Market, Slaughterhouse, Terminal, Maintenance of Bulok Creek and others.

1.d Economic Sector
The Economic Sector had an allocation of P6,624,858.00 or 6% of the total budget for 2002, P50,091,812.00 or 22% of the total budget for 2003, P27,790,172.00 or 19% of the total budget for 2004, P36,188,955.00 or 23% of the total budget for 2005 and P23,788,891.00 or 14% of the total budget for 2006.
This sector provides funding for the operation and improvement of various programs and projects implemented by the City Agriculture Office, City Veterinary Office, City Cooperative Office, Koronadal Investment Center including the El Gawel Operation and other Livelihood programs of the City Government.

1. e Environment Sector
The City Environment and Natural Resources Office was established in 2004. The budget allocated under the Environment Sector focuses on the development direction of the CENRO particularly in the implementation of the Koronadal Solid Waste Management Program of the City and the Forest Management and Development projects. Budget for the Maintenance of Rizal Park is also included in this sector.

2. Income and Expenditure for CY 2002-2006
2.a City Government
The total income pattern of the City of Koronadal shows an average increase of 7% per annum. The Internal Revenue Allotment (IRA) is still the largest source of revenue for local government contributing an average of 80% to the total income. Local Government Revenue and Expenditures, presents the financial scenario of Koronadal in terms of revenue, expenditures and Internal Revenue Allotment from 2002 to 2006. The distribution of revenue by source calendar year 2002 to 2006. Local revenues made up the other 20% of total income, with the greatest contribution consistently coming from local taxes.

The City Government of Koronadal is planning to reinforce the collection of revenues to augment the development needs of the city. A collaborative effort of different departments/ officials of the city government, headed by the Local Officials, will strengthen the revenue generating potential of the city.

One of the priority projects of the Local Chief Executive that respond to the effective, efficient and reliable operation of the local government is the City of Koronadal Information and Communication Technology Project (CKICTP) or the computerization project. This project aims to:

??? Improve internal processes and procedures;
??? Promote transparency in the assessment and collection of revenues;
??? Provide faster, convenient, and quality services to the citizenry with substantial degree of integrity;
??? Streamline present operations to better serve citizens by way of efficiently implemented development projects;
??? Strengthen the financial foundation and independence of the local government by way of efficient and effective generation of revenues; and
??? Enhance administrative support functions in support to its operations.

2. b 27 Barangays
Barangay Government Revenue and Expenditures, presents the barangay finances of the 27 Barangays of the City of Koronadal. While Table 36, Income of 27 Barangays by Sources, illustrates the sources of revenue of the 27 Barangays of the City.

Sec. 152 of the Local Government Code provides that the barangays may levy taxes, fees and charges, which shall exclusively accrue to them such as: taxes, service fees or charges, barangay clearance, and other charges and fees. For Real Property Taxes, 30% of the total taxes collected shall be distributed among the component barangays of the city. In the current scenario, barangays are also dependent on the IRA, thus, most of the development projects of the barangays are funded by the city. Again, the city is determined to empower the barangays to strengthen the collection of local taxes levied by them.