D E PA RT M E N T O F F I N A N C E

BUREAU OF LOCAL GOVERNMENT FINANCE

www.blgf.gov.ph

LGU Financial Performance

Historical LGU Financial Performance

PARTICULARS 2012 2013 2014 2015 2016

Locally-Sourced Revenue (LSR) 104.09 107.98 122.97 140.71 148.10

Annual Regular Income (ARI) 332.06 357.38 403.51 460.09 505.70

IRA (PCM) 219.02 240.13 273.38 313.11 341.26

Surplus 53.59 57.55 88.99 129.54 134.61

Total Revenues 376.79 402.45 448.95 533.24 574.85

Total Expenditures 330.08 349.89 368.13 407.13 441.79

LSR Growth Rate 15% 4% 14% 14% 5%

LSR Dependence 31% 30% 30% 31% 29%

LSR to GDP 0.99% 0.94% 0.97% 1.06% 1.02%

IRA Dependence 66% 67% 68% 68% 67%

IRA to GDP 2.6% 2.7% 2.8% 3.0% 3.0%

Surplus to GDP 0.5% 0.5% 0.7% 1.0% 0.9%

Note:Amounts in Billion Pesos

Locally-Sourced Revenue (LSR) = RPT (GF) + Tax on Business + Other Taxes + Regulatory Fees (Permit and Licenses) + Service/User Charges (Service Income) +

Income from Economic Enterprises (Business Income)

Annual Regular Income = LSR + IRA (CY) + Other Shares from National Tax Collections + Interest Income

LGU Surplus/(Deficit) = Net Increase/(Decrease) in Funds - Loans and Borrowings + Debt Service (Principal and Interest)

FY 2009-2015 data as of July 7, 2016

FY 2016 data as of 04 April 2017 (Preliminary)

Summary of LGU Financial Performance

Local collection efforts grew by 5% in 2016, accounting for 1.02% of the country’s GDP.

6%

13%

15%

4%

14%

14%

5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2010 2011 2012 2013 2014 2015 2016

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Gro

wth

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e

In M

illio

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hp

Locally-Sourced Revenue (LSR) LSR Growth Rate

LGUs remained IRA dependent at 67%. Local collection contributed only 29% of the total

regular income.

2009 2010 2011 2012 2013 2014 2015 2016

LSR to ARI 27% 26% 27% 31% 30% 30% 31% 29%

IRA to ARI 73% 70% 71% 66% 67% 68% 68% 67%

LSR to GDP 0.94% 0.89% 0.93% 0.99% 0.94% 0.97% 1.06% 1.02%

IRA to GDP 3.1% 2.9% 2.9% 2.6% 2.7% 2.8% 3.0% 3.0%

0%

1%

1%

2%

2%

3%

3%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

RA

TIO

TO

GD

P

RA

TIO

TO

AR

I

LSR to ARI IRA to ARI LSR to GDP IRA to GDP

Highest collections were from Business Taxes at 38%, followed by Real Property Taxes contributing 28% of local tax revenues.

IRA remained to be the main external revenue source at 93%.

93%

4.61% 0.6%

1.6%

External Revenues

Internal RevenueAllotment

Other Shares fromNational Tax Collections

Inter-Local Transfer

ExtraordinaryReceipts/Grants/Donations/Aids

Non-Tax Revenues30%

Real Property Tax28%

Business Tax38%

Other Taxes4%

Tax Revenues70%

Non-Tax Revenues Real Property Tax Business Tax Other Taxes

Summary of LGU Financial Performance

Revenue Profile (FY 2016)

Revenue Profile by LGU Type (FY 2016)

Cities are the most self-sufficient with only 41% of their operating income

contributed by IRA and 51% coming from local revenues

In Million Pesos

Local Sources, 17%

IRA, 72%

Other External

Sources, 3.4%Capital/Invest

ment Receipts,

0.0%

Receipts from Loans and

Borrowings, 3.7%

Other Non-Income

Receipts, 3.6%

Province

Local Sources, 51%

IRA, 41%

Other External Sources, 4%

Capital/Investment Receipts,

0.3%

Receipts from Loans and

Borrowings, 2.3%

Other Non-Income

Receipts, 1.5%

City

Local Sources, 17%

IRA, 73%

Other External Sources, 5.8%

Capital/Investment

Receipts, 0.1%

Receipts from Loans and

Borrowings, 2.1%

Other Non-Income

Receipts, 2.3%

Municipality

Particulars Province City MunicipalityLocal Sources 23.68 123.46 32.68 IRA 98.34 98.03 144.89 Other External Sources 4.69 8.76 11.52

Capital/Investment Receipts0.04 0.66 0.18

Receipts from Loans and Borrowings 5.08 5.64 4.09

Other Non-Income Receipts4.91 3.60 4.62

Total 136.74 240.14 197.97

Expenditure ProfileFY 2010-FY 2016

PARTICULARS 2010 2011 2012 2013 2014 2015 2016

General Public

Services 142.48 146.30 154.81 161.73 163.36 179.59 194.22

Social Services58.97 65.03 69.98 76.25 80.37 85.35 94.31

Economic Services48.43 50.29 53.17 55.38 56.50 61.06 63.88

Debt Service3.99 4.62 4.54 4.37 4.43 4.02 4.01

Total Current

Operating

Expenditures253.87 266.24 282.51 297.73 304.66 330.02 356.41

Note:

Amounts in Billion Pesos

Social Services is the sum of Department of Education, Health, Nutrition and Population Control, Labor and Employment, Housing and Community Development, and

Social Services and Social Welfare

In 2016, 54% or ₱194.22B of the current operating expenditures of the LGUs were spent on General Public Services

₱94.31B or 26% were spent on Social Services

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014 2015 2016G

row

th R

ate

Per

cen

tage

Operating Expenditures

General Public Services Social Services

Economic Services Debt Service

Growth Rate

Expenditure Profile by LGU Type (FY 2016)

Provinces, cities and municipalities spent the most for General Public Services at 47%, 50% and 64%, respectively.

Only around 1% were spent by local government units for debt service interest payments.

General Public Services

47%

Department of Education

2%

Health, Nutrition & Population

Control20%

Labor & Employment

0%

Housing & Community

Development1%

Social Services &

Social Welfare

6%

Economic Services

23%

Debt Service (FE) (Interest

Expense & Other Charges)

1%

Provinces

General Public

Services50%

Department of Education

8%

Health, Nutrition & Population

Control11%

Labor & Employment

0%

Housing & Community

Development5%

Social Services &

Social Welfare

8%

Economic Services

17%

Debt Service (FE) (Interest

Expense & Other

Charges)1%

Cities

General Public

Services64%

Department of Education

2%

Health, Nutrition & Population

Control9%

Labor & Employment

0%

Housing & Community

Development1%

Social Services &

Social Welfare7%

Economic Services

16%

Debt Service (FE) (Interest

Expense & Other

Charges)1%

Municipalities

LGU Surplus

LGUs total revenues reached ₱574.85B in 2016 while expenditures reached

₱441.79B

Local governments surplus are growing from ₱45.57B in 2009 to ₱134.61 B in

2016

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700.00

2009 2010 2011 2012 2013 2014 2015 2016

Revenues and Expenditures

Total Revenues Total Expenditures

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

2009 2010 2011 2012 2013 2014 2015 2016

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160.00

Per

cen

tage

of

SUrp

lus

to G

DP

Surp

lus

LGUs Surplus

Surplus Surplus to GDP

Locally Sourced Revenue Contribution by RegionFY 2016In Billion Pesos

Region Local Revenues

ExternalRevenues

Total Current Operating Income

NCR 72,957 20,371 93,329

REGION IV-A 4,070 11,439 15,509

REGION III 3,716 8,661 12,377

REGION VI 2,923 8,456 11,379

REGION I 1,790 7,781 9,571

REGION XII 882 8,102 8,983

REGION V 1,124 6,827 7,951

REGION VIII 1,377 6,246 7,624

REGION VII 1,323 6,225 7,548

REGION II 1,111 6,117 7,228

REGION IX 602 6,542 7,145

REGION X 1,488 5,427 6,915

REGION IV-B 629 5,420 6,050

REGION XI 960 4,889 5,849

CAR 878 4,637 5,515

CARAGA 576 4,851 5,427

RegionTotal Current Operating

Expenditures

NCR 56,770

REGION IV-A 8,801

REGION III 8,233

REGION VI 6,855

REGION XII 6,312

REGION I 6,085

REGION X 5,724

REGION VII 5,451

REGION VIII 5,182

REGION V 5,094

REGION II 4,803

REGION IX 4,760

REGION XI 4,197

CARAGA 3,620

REGION IV-B 3,529

CAR 3,051

NCR ranked 1st in terms of total current operating income, followed by Region IV-A, III and Region VI.In terms of operating expenditures, NCR ranked 1st again, followed by Region IV-A, Region III and Region VI.

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