Makati Tops Rankings for Fiscal Autonomy and Per Capita Spending in 2022 and 2023

Makati has been recognized by the Department of Finance (DOF) as the leading city for fiscal autonomy, achieving the highest per capita spending for fiscal years 2022 and 2023.

Mayor Abby Binay thanked the business community and Makatizens for their vital role in the city’s financial stability, stating, “Your trust and cooperation have been essential to our economic growth and enhanced services for everyone.”

At a ceremony on Wednesday at Seda Manila Bay Hotel, the DOF's Bureau of Local Government Finance (DOF-BLGF) awarded Mayor Binay seven accolades.

Makati topped all cities in the highest ratio of local source revenues to total current operating income for 2022 and 2023 and recorded the highest total current operating expenditure per capita for two consecutive years. Additionally, it ranked second in local source revenues over the two-year period and among highly urbanized cities for year-on-year growth in local source revenues for fiscal year 2023.

In a statement, Makati Mayor Abby Binay said "We are honored to receive these accolades. 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.”

According to reports from the Bureau of Local Government Finance (BLGF), Makati's ratio of local source revenues to total current operating income was 86.84 percent in 2022 and increased to 90.60 percent in 2023. This high ratio reflects the city’s strong independence from external funding sources, including the national tax allotment and shares from PEZA and PCSO.

As the country’s financial hub, Makati also reported the highest total current operating expenditure per capita, amounting to P24,050 in 2022 and P23,995 in 2023.

“For the past eight years, Makati’s sustainable and strong local economy has made it possible for the city government to undertake game-changing innovations that have made our services and programs better and more conveniently accessible to residents and other stakeholders,” Mayor Binay added.

According to the latest report of Makati City's treasurer's office, it shows that the city exceeded its revenue target for the year, collecting P18.8 billion by the end of August, which is 102 percent of the P18.4-billion goal.

Business tax was the largest revenue source, contributing P10.22 billion, followed by real property tax at P6.19 billion. Additional collections included P748.82 million from fees and charges, P310.12 million from economic enterprises, and P411.75 million from interest income. The city also received P670.76 million from the national tax allotment, P248.13 million from PEZA shares, and P4.22 million from the PCSO.

By the end of September, the city had approved 3,900 new businesses this year, totaling P31.87 billion in capital investment. During the same period, 34,771 businesses renewed their permits, reporting gross sales of P1.87 trillion.